My New Old House

So, I bought a house. Well, actually a friend and I bought a house. I've been wanting to buy one for quite some time now, and I've put a lot of time and effort into researching the whole process of real estate investing. However, once the ball started rolling it really didn't take much time in between looking at houses and owning one of them (pending certain things such as an inspection and whatnot).

It's an old, attached house and it wasn't very expensive, though it is surprisingly nice for the money. Of course a little TLC won't hurt it, particularly in the case of the lovely, little design someone kindly spray painted under the front window. But, other than that and a few more odds and ends, it's pretty much ready to go. Of course now we've just got to find someone to rent the place.

To lend or not to lend (Part 2)

Well, the meeting is over, but I'm still unsure as to whether the news was good news or bad news. The mortgage guy was a great fella, having talked almost an hour straight, giving us quite useful information. He seemed very enthusiastic about our quest for a mortgage. I'm not sure if these people get commission for this type of thing, but he really did seem to genuinely want to help. He was a younger looking man too, so I guess he could see things from our perspective a little.

So, everything was going well, the news seemed very encouraging, and we were all smiles... until the word guarantor popped up. Then, of course, when it came up once, it came up again and again and again. Apparently, it's unlikely the bank will find us eligible for a mortgage since we're full time students and would be more comfortable if someone in a more stable financial position signed on as well. Now, he did say it isn't necessary, since we're not looking for a two-story luxury mansion or anything, however, he said it would be a good idea. From my perspective, that's dumb. But I guess I can see how the bank would be a little cautious over lending thousands of dollars to 22 year olds without full-time income. Anyway, the point is things are looking pretty good. Not as good as I'd like, but still pretty good. Now, I've just got to find someone to sign their name on a dotted line for me. So, if anyone is game for backing up my $80,000 mortgage for me, be sure to let me know.

To lend or not to lend

I've got a meeting today with a mortgage specialist at my bank. Actually it's me and two of my friends who have a meeting. Never done anything like this before, so I really don't know what to anticipate. I'm guessing either a hearty laugh or a disapproving shake of the head. But anything could happen. I doubt she's gonna come right out and say, "take anything you like" however, something along the lines of, "we'll see if we can work something out" would be nice. I've got to admit, I'm a little nervous. The result of this meeting could impact the rest of my life, or at least start me down a path that could impact the rest of my life. Or, it could be a rude awakening into the realities of life. I'm praying it isn't the latter, but I'm keeping my expectations low. Anyway, I'll know soon enough and I'll keep you updated. I'll probably even have a tip or two on how not to negotiate for a mortgage.

Set it, and forget it

So, I saw a Lamborghini for the first time ever in my life about a month ago while I was on vacation in Montreal. And, being the biggest car fan who knows the least about cars, it was a very exciting time to say the least. What wasn't so exciting was that these magnificent vehicles can cost somewhere in the vicinity of $200,000. Needless to say, putting a few of dollars away here and there simply won't cut it if I'm ever going to own one. That's about the time I stumbled upon house flipping.

Have you ever seen TLC's, Flip That House? Well, the show, as well as plenty of others like it, is basically about people buying houses in order to renovate them and sell them for a profit. At first I would never consider such a venture for the simple fact that I'm not the greatest handyman out there. I mean, give me two boards, a hammer and a nail and I can finish the job and still have most of my thumb remaining, but that's about the extent of it. However, when I saw the profit these people were making, I decided then and there that I would have no trouble learning to put up a few walls, or replace entire bathrooms. Of course there were some people who didn't profit at all from these ventures, but obviously I wouldn't make the same mistakes as they did... the show pretty much lays out what to do. How hard can it be?

So, I've got everything figured out now. All I have to do is ten houses for an average profit of $60,000 each. After splitting with two other partners, I'll have enough for my lambo. No problem to it. I generally try not to be this naive, but these shows are able to exploit every ounce of naivety in my body. There are certainly hints of a "set it, and forget it" mentality throughout each episode. Come to think of it, the show does work in much the same way as an infomercial, just without the live audience who is left in disbelief with every stroke of a paint brush. Either way, I'm still convinced it can be done. I just wish they'd run though how to get a mortgage without having a job...

On another note, I've discovered the secret to doing well in school: Not skipping class. Who would have thought?