Steps to Financial Independence Through Investing in Real Estate

I am glad that you are here on my site! wish you the best of luck with your life and let us keep in touch.  I want to share a story with you. 12 years ago when I was in the Army I heard a more experienced soldier talking about how to set aside a portion of his income to be directly deposited into his bank savings account, so that he can save some money. And, that is what I did, when I got out I was able to save a little, but not a lot, just enough for me to purchase a car.  There is another way that is actually better than saving money in the bank, which is to investing in real estates. Here is the steps.

1. keep a good fico credit score
   1. Get a credit card if dont have one. If no credit at all deposit some money in a bank and get a debt or credit card from that bank
   2. don’t owe more than 50% of your credit limit. example: You have a credit card with $1000 credit line (meaning you can charge it to buy $1k worth of things you want). You take this credit card and go buy your farovite things
   3. pay on time and pay more than the minimum; An example: with that same credit card your pay came with the minimum requried payment to be $49. you dont want to pay just that $49, instead you want to either pay more than $49 or pay it off. a good tool for you to monitor all of your online account is Mint.com. I use it to budget and get text message notices.
   4. call periodically to increase credit line; an exmaple: let us say you have had this account for 8 month and you have been charging on the card and pay more than the minimum amount on a monthly basis now call them to ask for credit increase. Your script to the bank rep.: the bank rep: “how may I help you?” you: “yes. Could you increase my credit line because I am getting ready to make some large purchase.” the bank rep: “ok. I would be happy to do that for you. Ms. Smith do you understand that in order to request for credit increase We would have to run your credit would you still like to proceed?” you: “yes. go ahead please.” the bank rep: “ok. Ms. Smith we have increased your credit line to $1,900. Is there anyting else we may help you with?” you: “no. thank you very much. bye bye.”
   5. keep your credit score as high as possible, ideally over 720
2. get VA loan eligibility certificate by contacting your local va loan officer
   1. http://www.homeloans.va.gov/rlcweb.htm
3. start looking for real estates and get a good realtors
   • http://www.realtor.com/
   • www.newhomesource.com
   • http://www.hud.gov/homes/index.cfm
   • http://www.ocwen.com/
4. sites to do research
   • http://www.dqnews.com/ find out real estate sales history and trend data
   • Trulia.com
   • http://www.city-data.com/ find out real estate sales history and trend data
   • http://www.schoolmatters.com/ find out school performance for the area the home is located
5. find a good mortgage broker and get va mortgage (for your primary residence) and
   1. http://www.homeloans.va.gov/index.htm
   2. http://www.ocwencustomers.com/va_vfp.cfm va vandee loan (for investment homes. you dont have to be a veteran or the princple resident to qualify. the interest rate is currenlty at 5.5%. the down payment needed is 0-5%.
   3. http://www.hud.gov/offices/hsg/sfh/reo/goodn/gnndfaq.cfm it is a special program for law enforcement officers, firefighers, EMT, and teachers
6. find a good management company to manage your investment property if it is far from you
   • http://www.marshallreddickseminars.com/mrweb/mrren/Home.aspx
   • you may find some good networking information from the group above. I think they make money by referring you to buy other peoples property. you have to make sure the price of properties that they pitch to you are at or below market value.

hope this quick guide was helpful to you. let me know if you have any questions.