Rental Property Investor · Tampa · Member since 2019 · 49 posts · 16 votes
I am an 18 year old that has been wanting to start investing in real estate for years Over last year I saved around 20K working at Dominos as a delivery driver. I have found great deals in Tallahassee and I know I can rent it out because I go to FSU so I know a large amount of potential tenants myself included as I intend to househack. I am stuck on getting a loan because as of now I have no job but I have enough funds for a down payment but am curious as to what options I should pursue when it comes to acquiring a loan other than Seller-financing?
I am an 18 year old that has been wanting to start investing in real estate for years Over last year I saved around 20K working at Dominos as a delivery driver. I have found great deals in Tallahassee and I know I can rent it out because I go to FSU so I know a large amount of potential tenants myself included as I intend to househack. I am stuck on getting a loan because as of now I have no job but I have enough funds for a down payment but am curious as to what options I should pursue when it comes to acquiring a loan other than Seller-financing?
Hey David, congrats on saving that much! I too started while I was a sophomore at OSU. I bought a duplex on campus and turned it into a BRRRR deal. Ended up getting money back after a refi and now have rental income! Its a great way to get started!
Without having a w2 you will find it difficult to get a loan, especially with no experience. My recommendation is to find a partner with either experience or a great w2.
I am an 18 year old that has been wanting to start investing in real estate for years Over last year I saved around 20K working at Dominos as a delivery driver. I have found great deals in Tallahassee and I know I can rent it out because I go to FSU so I know a large amount of potential tenants myself included as I intend to househack. I am stuck on getting a loan because as of now I have no job but I have enough funds for a down payment but am curious as to what options I should pursue when it comes to acquiring a loan other than Seller-financing?
Hey David, congrats on saving that much! I too started while I was a sophomore at OSU. I bought a duplex on campus and turned it into a BRRRR deal. Ended up getting money back after a refi and now have rental income! Its a great way to get started!
Without having a w2 you will find it difficult to get a loan, especially with no experience. My recommendation is to find a partner with either experience or a great w2.
Investor · Miami, FL · Member since 2013 · 377 posts · 258 votes
5y
Have you considered house hacking @David Parathundil ? I think that would be a great idea since you probably know other students that need housing as well.
Rental Property Investor · Tampa · Member since 2019 · 49 posts · 16 votes
5y
@Steven Foster Wilson Thank you I was assuming I needed to bring in a partner with a W2 but I wanted to see if there were any other avenues because I have no partner, my family is not well off financially so none of them would be able to be my partner.
@Steven Foster Wilson Thank you I was assuming I needed to bring in a partner with a W2 but I wanted to see if there were any other avenues because I have no partner, my family is not well off financially so none of them would be able to be my partner.
Think of your qualities and skills and try to leverage those with a partner.
Real Estate Agent · Chicagoland · Member since 2018 · 314 posts · 199 votes
5y
If you have a good relationship with your parents or guardians, you may be able to use one or both of them as a silent partner. You fund the down payment, they provide the stability the bank is looking for. If they are like my parents, offer them 10% equity or something if they won't do it for free. You will be hard pressed to find a bank that will give you a loan with no income, even if you put 25% down.
If you have been delivering pizzas for over two years and still are, that income can be used on your application. It may be worth getting a part time job to qualify for a loan. Also, if you can't find tenants or something goes dreadfully wrong, you don't want to face foreclosure when you're 19.
One more word of advice. It may be tempting to house hack a 3 bedroom house and have two friends pay you cash for the rooms so you can keep the profit tax free. Don't. For one, it's against the law, and secondly, that money can help you get loans in the future. Banks will look for two years of income if you list rental income, and by letting that money be taxed, you can leverage a lot more in the future.
Specialist · Huntsville, AL · Member since 2020 · 200 posts · 105 votes
5y
I would be glad to connect with you lenders that will look at the investment scenario and not your income, if its a good deal, its a good deal. And once your done with your first one in Tallahassee you may have the fire to do more. Message me if you would like to connect, I will be glad to help with any advice.
Rental Property Investor · Columbus, OH · Member since 2016 · 30 posts · 34 votes
5y
Hey @David Parathundil, Congrats on saving $20k that is a huge accomplishment! I would recommend connecting with Lenders via the local RIA there in Tallahassee or any other investment groups you can find on BP, Meetup.com, and Facebook groups.