Hello, I am 19 and a local agent in Eugene Oregon. I want to start investing in real estate I've listened to just about every episode of the podcast read lots of books and I think its time I buy my first property. The only problem is I am young with little credit history, I've only been an agent for a year so my income history isn't ideal. I have around 50,000 to invest and I am looking to get started. Whats my best strategy, I am extremely interested in the BRRR method but I'm a little concerned my credit and being able to refinance. Would love any support! Thanks!

@Jesse Haffly   First of all, congrats on the great start so far!  Have you spoken to any lenders yet?  If not, I'd go talk with a couple to see what they say/suggest.  If you've gone that route already and have had no such luck, have you thought about potentially partnering with someone that fits the criteria the lender requires?   

@Christopher Giannino Hey Christopher, thanks for the reply. I have a couple lenders I work with for my clients that I have brought it up with but nothing serious and that's my next step. If I cant qualify I have thought about partnering with someone who would qualify my only concern would be how that would work with the refinancing and splitting of the rental cash flow? Thanks for your help! 

50000 is a pretty good chunk. Have you thought about scooping up a multi unit and living in one of them 

wow after all that reading and prep work in the BP world you still don't know where to start? well you came to the right place. good luck

@Robert Payne , I have thought about house hacking with multifamily and have looked into it and I am currently looking for a duplex in my area! @Dave Carella Its not so much I don't know where to start more of I am looking to see what people in similar situations have done. Since I'm younger and have little credit history I am curious what people have done to refinance. 

Nice work! My suggestion would be to buy a multifamily or monster house using the BRRR method and rent it out to all of your buddies that won't be thinking about owning anything for another 10 years. Pay it off quick, have a great time and be into it for nothing.

Eugene is quite pleasant. I'd go either a house with 4 bedrooms, 5 better and rent them all out or a 2-4 unit. 50k is good money. You call enough banks someone will loan you the money. Guaranteed.

That is an awesome position to be in at 19! I had a similar experience and while I was in my freshman year of college I purchased a couple properties in Nebraska and rented them out to classmates while I was living in the dorms. I strongly suggest finding a good deal and house hacking for as long as you can bear it. Get a small multifamily (2-4) and rent out the other unit(s) as well as the other rooms in the home. Let the space work for you. 50K is a healthy downpayment but I don't necessarily suggest dumping that all into one property. 

Talk to one of your preferred lenders that understands the investment side of real estate and they will be able to help you figure out the best path to take when it comes to financing. Cottage Grove is an awesome place! I love the lake and the bike path around Dorena lake. I finished up college in Eugene at Northwest Christian University and I am very familiar with investors in Eugene. Go to the NWREIA meet ups. They are always very informative and the more seasoned investors would be happy to help you purchase your first investment property! 

Wow great place to be at 19. You may need to be an agent for two years to qualify for conventional financing assuming it’s strictly commission based

Congrats on wanting to invest in real estate at 19 years old!

I agree that you should look into multi-family properties. You can buy your first 4 Fannie Mae loans fairly easily. After 4 homes, you can get financed up to 10 homes, but it will require more reserves. 

If you use your four Fannie Mae loans on a 4-plex, you can have 16 doors with great financing.

@Jacob Wathen That's great to hear!  I actually live down in Cottage Grove and love it. I am planning on going to those NWREIA meetings and networking! Thank you! @Caleb Heimsoth  Thank you! I think you may be right for the 2 years but I have a meeting scheduled with my lender and hopefully, we can find a way around it since I am commission based! 

@Jeffrey Almonte Thanks! Trying to start young, multi-family seems like its going to be a great place for me to start investing. Going to start working on it tonight! Thanks for your reply! 

@Jesse Haffly You're in a good position at 19 for sure if you spend the 50k wisely. If you want to do a BRRRR you'll need to be qualified for a loan, every bank I've ever talked to requires 2 years of tax returns showing income before you can be qualified.

Personally, I would look for a house I can flip and use the money on that. If you find a good deal, you'll have no problem getting a hard money lender or private lender to fund it. 

You're off to a hot start @Jesse Haffly !  It took me much longer to build up that kind of war chest.  I would knock on every door of every lender in Eugene and the state of Oregon - There's a program and a lender for you, no doubt.  Having a well thought out business plan will go a long way to help the lender determine a loan that is right for you.  If after a lot of no's you still don't have a loan, you should have a very good understanding of what you need to do to qualify.  Thus your 2018 goals will be set.

In the meantime, you could partner with someone with a balance sheet or wholesale.

All the best, RC