New to Real Estate · Boca Raton, FL · Member since 2020 · 3 posts · 0 votes
Hello everybody, my name is Brandon Kranitz, just recently turned 20 years old and I am planning on buying my first investment property in the next couple months. I want my first investment to be a multifamily home, possibly making it a house hack! I have been reading lots of books, watching webinars, and absorbing as much information I can. I am almost at my money goal as well, but I am at a potential roadblock that I need some advice on, I've only been in the workforce for about two years and I am worried I will not get approved for bank loans because I don't have a lot of work history. Now, a majority of my pay are tips from serving/bartending. To wrap it up, my question is.. How should I prepare for a bank loan from a major bank or from a profolio lender?
Rental Property Investor · Cambridge, UK · Member since 2020 · 123 posts · 64 votes
6y
@Brandon Kranitz To answer your question though, you could provide a detailed business plan to show that you have thought about risk and what you can do to mitigate it.
Rental Property Investor · Cambridge, UK · Member since 2020 · 123 posts · 64 votes
6y
@Brandon Kranitz To answer your question though, you could provide a detailed business plan to show that you have thought about risk and what you can do to mitigate it.
Investor · Fayetteville, NC · Member since 2018 · 263 posts · 216 votes
6y
I agree with Suzanne Sevier. Speak with small banks. Don't get discouraged if you are told "NO" 5 times. You are only looking for one to say yes. It would also go a long way if you could put down a decent down payment. Perhaps you can do a couple wholesale deals to raise some cash.
Rental Property Investor · Normal, IL · Member since 2016 · 170 posts · 85 votes
6y
If you claim your tips you'll be in a much better position for the purchase since your income will be more accurately reflected on your tax returns. I would strongly recommend the house hack route because you'll be able to get better financing for owner occupied and get some experience having and managing tenants. I also agree with @Suzy Sevier I've had great luck on the few deals I've done, working with my local banks and credit unions.
Investor · Cincinnati, OH · Member since 2008 · 319 posts · 243 votes
6y
It is tough right now due to COVID with networking. My traditional advice would be to find a good local meetup, and ask around who a good mortgage broker is in the area. There are typically a couple standout mortgage brokers that will get recommended more than once. Luckily, you can kind of hedge this by finding local facebook investor groups. This probably won't yield as great of results but it something.
Schedule a call with the mortgage broker. You want to outline exactly where you are with your income and what you are trying to do. If you have a sample deal worked out where you did the numbers on something that was on the market that will be helpful. With a multi-family house hack there are rules on how much of the income from the property they will count as your income. Each bank has different overlays on the conforming loans, and different terms on portfolio loans.
By giving the broker a good story of what you are looking to do he will likely have some good info on what you can qualify for and what the terms will be. Then you can go find a property you can make work with that.