New Real Estate Rookie

Member since 2026 · 17 posts · 22 votes

I'm Martin

I'm a full/overtime w-2 income employee. It's been a little more than 2 years to the point that I can possibly qualify a loan but I haven't yet to get a first house. Even if I can, my issue that the loans will be very small I can only afford even a FHA and most houses from where I live are beyond my affordability even a downpayment with all expense combined. I have some questions;

- Until I can get a loan, can I capitalize myself first just to increase my budget for downpayment?

- If there are strategies for no capital and for full/overtime w-2, can wholesaling, house hacking work or anything else can fit as a beginner before I get a first property?

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Clayton Silva
Lender · CA · Member since 2018 · 638 posts · 393 votes
8mo
A good loan officer should be able to take an application, analyze your current purchase power and give you a step by step to get where you want to be. If you are W2 you do not need a full 2 year history (except to count bonuses/overtime/anything variable on top of your base pay). If you are in a HCOL (based on the San Jose tag, I would assume you are). There are tons of creative ways to get what you are looking for. I personally, started with house hacking and can never recommend that enough for starting out. Phenomenal strategy.
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Wale LawalBusiness Member
Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
8mo
@Martin Penn
You are absolutely right, putting the emphasis on saving and building your credit now is a good and most likely effective way to enlarge your buying power when the moment comes. Also learning house hacking in cheaper nearby markets can be very effective to develop experience and maybe even capital without having to purchase a primary residence. I believe many W-2 investors kick off their journey this way before making the first deal.
Good luck!
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Joe VilleneuvePro Member
Plymouth, MI · Member since 2013 · 13k+ posts · 19k+ votes
8mo
You're actually in a better place than you think. Not financially yet, but that's why you're in a better place. Use this time to learn how to analyze markets, and as many strategies as you can. It's the combination of the two that will bring you deals. The fact you are not financially set to start yet is a good thing. It keeps you from "just jumping in" blind, and it forces you to learn. Take advantage of the time you have until you're financially ready. You may/will find that there are many ways to compensate for a lack of credit and cash of your own.
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