Loan App Process and Networking
Hey BP Community!
So, I am currently going thru the loan app process and my "pre-approval" loan amount is looking at about $100K, which I know is tough but not impossible to navigate for initial home purchases.
I am a service-disabled vet, and hoping to qualify for VA Loan so that I can house-hack a multifamily.
Most likely the best strategy for me is going to be networking and partnering. I will be attending my very first BP Networking Event on Wednesday, just to get familiar with the community and forming new relationships.
I also attended my first sheriff sale/auction this past Tuesday, and I was so confused :D, but learned a little bit to see what else is out there.
I am an action-taker/doer, and want to know what other newbies/rookies and seasoned investors/professionals are doing in this current marketplace to make deals happen?
In other news, I am listening to the BP Podcast daily, re-reading Rich Dad, Poor Dad and my next readings are Set For Life and How to Invest in Real Estate.
Hey @Ashley K. Butler, happy to hear you are taking the necessary steps to get into real estate investing. I love hearing the optimism and motivation behind your post!
I think utilizing the VA loan to get into multi-family investing is hands down one of the best starting points out there.
I would definitely look into getting pre-approved for a VA loan.
Aside from that, keep doing what you are doing. Network, talk to other investors, spend time on this forum, watch youtube videos, read books, the more knowledge and understanding of what is involved the better!
In addition to that I would also work on optimizing your finances as best as possible because this is only going to help. Is there debt that needs to be paid off to improve your credit and your pre-approval amount? Do you have money saved up for costs associated with buying and owning a property?
You're doing all the right things Ashley. And you have a sound plan to house-hack a multifamily deal using your VA loan.
My biggest bit of advice right now is - Don't rush into a purchase. Inventory is up, there are a lot of price reductions happening across most major markets, and this is all forecasted to continue for the foreseeable future.
Never forget that you make money on the buy. This means you should be particular about the location of every property you buy and the price that you pay.
Quote from @Frank Avallone II:
Hey @Ashley K. Butler, happy to hear you are taking the necessary steps to get into real estate investing. I love hearing the optimism and motivation behind your post!
I think utilizing the VA loan to get into multi-family investing is hands down one of the best starting points out there.
I would definitely look into getting pre-approved for a VA loan.
Aside from that, keep doing what you are doing. Network, talk to other investors, spend time on this forum, watch youtube videos, read books, the more knowledge and understanding of what is involved the better!
In addition to that I would also work on optimizing your finances as best as possible because this is only going to help. Is there debt that needs to be paid off to improve your credit and your pre-approval amount? Do you have money saved up for costs associated with buying and owning a property?
Hello Frank! Thank you for the tips! And yes, I am going through the final stages of paying off the remainder of my debt which is just a little over $10K and will be done with that by late December or January.
For savings and investments, I just have my Money Market and Roth IRA, and will be continuing to build that back up once my debt is paid.
My credit score right now is in the high 670s, and by December/January it will be up again. For now, it is mostly like you said going to be networking/partnering, increasing my business income from my LLC, and constant education on how to go about my RE Investment strategy.
Ashley - I love the strategy! VA loans are very flexible when it comes to debt to income ratio, obviously 0% down payment is a plus, and since you have a service connected disability there is no VA funding fee. VA loans are not very picky on credit score either. If you are over a 660-680 range, that will be the best pricing bucket for a VA loan.
Good luck! If you have any loan questions feel free to reach out.
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