New to Real Estate · Schaumburg, IL · Member since 2023 · 23 posts · 18 votes
Hello, my name is Luke O'Kane and I am a current senior in high school. I have been interested in real estate investing for a few years now and have done a lot of personal research from listening to podcasts, reading books, learning simple comp skills, and being an intern this past summer. I have large ambitions to begin my own portfolio in the near-ish future and was wondering what you guys would do if you were in my shoes to best prepare me to be an eventual investor. Thank you so much and happy holidays.
Lender · 92703 · Member since 2022 · 326 posts · 538 votes
2y
Hello Luke,
I would recommend to focus on building your capital as fast as possible as thats probably the biggest obstacle for most people. Find a high income gig and live way below your means so you can save as much as possible and help speed up the process. Once you reach your goal then begin looking on how to use that money so it can continue to grow for you. Create a road map for yourself to make sure you reach your goal. You can also partner with people as well. In the meantime continue studying the markets and the industry. Attend local real estate meet ups and ask questions.
Banker · Nationwide · Member since 2020 · 2k+ posts · 1k+ votes
2y
Luke,
First thing is you need to ensure you find a good job offering full time W2 income. If you find a job that is the same line of work as your intern it would be beneficial. The bank can use that previous "time" as credit to fill in the seasoning gap. If you want to buy an investment it is a little easier to buy a home as your primary first to avoid larger down payments.
FHA offers 3.5% Fannie offers 5% both programs allow you to buy single family or up to 4 units. When you buy a home you can refinance in as little as 6 months to transition the home into a rental. FHA requires 12 months occupancy seasoning to pull cash out but you can refinance at the 6 month mark to transition into a conventional loan to turn into a rental.
If you want to buy an investment and have the 15% to put down you can use the rents of the property to qualify. DSCR offers you the option to avoid using income and there is no employment needed to qualify. In most cases its the down payment and closing costs you want to plan for so you do not end up short. You or your agent can ask for a seller credit to cove closing costs to help with fund so that you cover the down payment.
My advice is when your 6 months out from making a move reach out and talk to a Banker or Loan Officer. This is just to ask for advice and to start putting a game plan together to see what you need to do and to talk about credit. There is no need to pull credit early if you monitor your credit but to have a fico score in mind helps.
What you can also do is master the skill of wholesaling real estate, you are still very young, so this can be a good way to stack some capital and use it for investing.
What you can also do is master the skill of wholesaling real estate, you are still very young, so this can be a good way to stack some capital and use it for investing.
Lender · 92703 · Member since 2022 · 326 posts · 538 votes
2y
Hello Luke,
I would recommend to focus on building your capital as fast as possible as thats probably the biggest obstacle for most people. Find a high income gig and live way below your means so you can save as much as possible and help speed up the process. Once you reach your goal then begin looking on how to use that money so it can continue to grow for you. Create a road map for yourself to make sure you reach your goal. You can also partner with people as well. In the meantime continue studying the markets and the industry. Attend local real estate meet ups and ask questions.