What is the best way to raise capital?

Question

I am an eighteen year old looking to move around the Denver area buying one multifamily property a year for seven consecutive years. I know by making each my primary residence for a year I will receive lower interest rates on my loans. I do however still need money for down payments on each of these multifamily properties. I currently have ways I could finance a deal with one of my family members or I could wait to start executing this plan. Instead, finish what I can of college with the little income I have.

What would you suggest I do?

- Finance with a family member

- Raise my own capital

(If yes, what’s the best way?)

- Finish college

What would you suggest I do?

- Finance with a family member

- Raise my own capital

(If yes, what’s the best way?)

- Finish college

Matt M. · Answer

Forget multifamily unless your family will substantially back you. Get a 4-5 bed house and house hack. I've got tons of clients doing it. Most are on multiple homes now.

You'll need to qualify with a lender to buy. So that means 2 years of w2. If you get a job in the same field as your major, assuming you graduate, then you should be able to buy sooner.

Ryan Webster · Answer

@Ryan Brakefield

Stop looking for the "best way" and find "a way". Many people spend so much time searching for the best way they never take the nessasary action to get started. You'll be able to develope a better way simply through the experience of doing deals. Make sure each deal you improve parts or all of your process and you'll be able to find an efficient way to identify, qualify, finance, acquire, and manage your deals.

Find a way to get your first deal with the resources and network you currently have and through experience you'll expand your knowledge, skills, resources, and network as you go. So get out there and do the dang deal.

Aaron K. · Answer

@Ryan Brakefield unless the family member is giving you a gift then you can't use it for an FHA loan, same with investors.  The best way is to just save as much money as you can from any job or side hustle you can get.  Depending on your major I'd probably finish college and get a good paying job that will allow you to save more.  If you are an engineering major, or healthcare or other in demand career field I would suggest taking full advantage of that.