A REAL real estate professional advised not to wait to buy your first property as they reveal how they made their first purchase with no money and bad credit.
Life coach Rock Thomas claims it is possible to “hack” the system to get on the ladder of the property, but there is a big tradeoff when it comes to renting rooms.
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Life Coach Rock Thomas advises people not to wait to get to the property managerPhoto credit: YouTube Rock Thomas
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Thomas claims that your first home can be yours with no cash and bad creditPhoto credit: Getty
Thomas was 25 years old when he bankrupted his restaurant in a year after borrowing $ 25,000 from his mother. However, he moved to Quebec City in hopes of turning it around and building his real estate empire.
“I had to learn how to hack the system a bit because I didn’t have the money and the credit rating and if you are in that situation don’t worry about it,” he explains on his Youtube channel.
“You can do it too, no matter where you are, what your credit rating is or how little cash you have.”
Thomas says he started a full-time job as a flight attendant and also parked cars in a hotel next door.
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Rock Thomas claims you can rent rooms out to cover your expenses and live the rent for freePhoto credit: YouTube Rock Thomas
Eager to get his foot in the door and pay the thousands he still owed his mother, the real estate mentor began reading and studying the market.
Thomas admits that he had no real estate knowledge, but was on the “hunt for passive income” and eager to learn.
In his search for open houses, he came across a property that was offered for sale by the owner. This generally means that the building has proven difficult to sell or has problems with the bank.
Thomas says he was immediately intrigued by the $ 65,000 building and learned from its owner that many of its seven bedrooms were rented out to people who needed to be fed and looked after.
It is not clear how the building was used, but Thomas states that he was willing to take on the tenants who contributed a total of $ 2,400 monthly rent.
“You have to decide how high you want to climb to be successful,” says Thomas, explaining his success in breaking the bad credit barrier, adding that he has to use “creativity and ingenuity” due to his lack of money.
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Thomas claims you could move to bigger buildings if you rent our rooms in your first propertyPhoto credit: Getty
The owners agreed to loan him the money to buy the home for $ 62,500, and he gave them a $ 2,000 deposit on his credit card while he repaid the rest at an eight percent interest rate.
Thomas claims that the tenant’s rent covered his principle, interest, taxes, and insurance for the building; allowed him to pay for their food; and also allowed him to hire someone to look after them while he went to work during the day.
“I lived there for free,” says Thomas.
“No rent to pay because they paid it. No taxes to be paid. I lived there for free and after hiring someone to look after them I was able to pocket about $ 500 a month which is not a lot of money but I could put it in my pocket.
“If you have a house hack and someone else pays for your expenses – your capital, interest, taxes, and insurance – now take that money and invest it back and pay off your debt like I’ve been for a while, and.. eventually into buying another property, “he continues.
“If you are unable to buy a property, bring someone into a room in your property or buy a property with someone in the rooms.”
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Thomas claims that you must be able to “fight” in order to follow his “house hack”.Photo credit: YouTube Rock Thomas
Thomas admits the move meant he had to compromise on the quality of his life. “But if that is what it takes to get you over the hill and into your first property, you are ready to do it because it was me.”
“If you want to be a millionaire, when you want to get financially free, chop your house, and get your first piece of property, you have to be hungry and ready to do whatever it takes,” adds Thomas.
He said he sold the building two years later and opened a retirement home where he could raise $ 110,000 a year.
“If you want to get into the game, fight to get into the game, use a strategy to get into the game,” recommends Thomas.
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Rocket Mortgage also suggests that poor creditworthiness does not automatically exclude a person from obtaining a mortgage.
However, they advise that cash is key in these circumstances.
The company also warns that getting a mortgage with bad credit also comes with a higher interest rate so you should be prepared for a higher monthly payment.
The couple buy a dream home but have not moved in for a year after the owner refused to leave the house due to a loophole in the law
