Buying young

13 Replies

  1. Hello BP Forums Im a 17 year old high school student and I am planning on purchasing my first property this summer when I move out for college (Visalia area) and was hoping some of the experienced buyers on this website could steer me in the right direction on the best way to do it. I work part time right now as a personal trainer at a private gym and plan on having saved around $5,000, possibly more, by the time I move out (I will be 18 by then) Im also taking real estate classes right now and hope to have my license by mid summer. I am aware that is no where near enough money but I do have my brother who is willing to be my private lender if I need him for a down payment, and as for my monthly bills/expenses I will have a roommate who will be cutting these payments in half. I figure with that luxury this could be a win win for me.

  2. I know I am not fully prepared at this time to make that commitment (Education wise) so if anyone can send me some feedback on the steps I will need to take considering I will be only 18 with no credit, and where I might want to change things or a better way to go about this I would really appreciate it !

  1. Thank you in advance 

Its admirable that you are starting out at your age and looking at investments. Most young people I know are not focused.

Without credit, you are going to have a hard time qualifying for a loan. You might be able to do it with your brother cosigning. Ask the banks in your area if that would work.

If not, you might have to look for private money sources in your area.

Wow Ulysses, this is great!  Honestly, I think that it is awesome that you have realized what a great avenue real estate investing can be for those willing to take the journey.  It's impressive that you are not even out of high school yet and taking action for your future.  I agree with Neil, you may have some issues with financing without credit, but there's are so many avenues out there for obtaining cash, and you have your brother, that you will hopefully turn this into a reality! Keep it up!

welcome!

I live just down the road in hanford! We got started at 23! So awesome start!

The first thing you need to do is go talk to a mortgage broker or bank to see if you qualify! 

Do you know what type of house you wish to buy price wise? 

You best ability is going to be getting a personal property. You might want to see if your brother is willing to be a co signer. It sounds like you will have enough down for a 5% conventional or maybe even a FHA!

While a pricate invest is awesome, even better is when you can take advantage of the low interest rates offered by conventional banks!

Great to hear more young real estate investor stories ! I am 21 and closing on my first property in two weeks!

I had to have my brother consign with me to be able to get the loan and had to borrow money for the down payment. The bank sees it as a gift from my mom who took out most of my down payment on a home equity line of credit, but I will be paying her back monthly.

If I were you I would be looking for a duplex, triplex, or quad simply because the more bedrooms you have means more rent coming in which means a lower mortgage payment out of pocket.

Good luck and I would love to hear how your future turns out !

Great to hear more young real estate investor stories ! I am 21 and closing on my first property in two weeks!

I had to have my brother consign with me to be able to get the loan and had to borrow money for the down payment. The bank sees it as a gift from my mom who took out most of my down payment on a home equity line of credit, but I will be paying her back monthly.

If I were you I would be looking for a duplex, triplex, or quad simply because the more bedrooms you have means more rent coming in which means a lower mortgage payment out of pocket.

Good luck and I would love to hear how your future turns out !

Elizabeth Colegrove I tried to do mine with FHA and wasn't able to because my cosigner would have had to occupy the dwelling. Not to say it won't work here in this situation just sharing my experience. Definitely worth a shot to check it out though!

Originally posted by @Elizabeth Colegrove:

welcome!

I live just down the road in hanford! We got started at 23! So awesome start!

The first thing you need to do is go talk to a mortgage broker or bank to see if you qualify! 

Do you know what type of house you wish to buy price wise? 

You best ability is going to be getting a personal property. You might want to see if your brother is willing to be a co signer. It sounds like you will have enough down for a 5% conventional or maybe even a FHA!

While a pricate invest is awesome, even better is when you can take advantage of the low interest rates offered by conventional banks!

 I was thinking just a regular 2 bed/1bath house since it will be my college roommate & I, but i am open to the duplex idea that Patrick was talking about considering I do know a few students that are going to be moving out as well.

Originally posted by @Patrick Donovan :

Great to hear more young real estate investor stories ! I am 21 and closing on my first property in two weeks!

I had to have my brother consign with me to be able to get the loan and had to borrow money for the down payment. The bank sees it as a gift from my mom who took out most of my down payment on a home equity line of credit, but I will be paying her back monthly.

If I were you I would be looking for a duplex, triplex, or quad simply because the more bedrooms you have means more rent coming in which means a lower mortgage payment out of pocket.

Good luck and I would love to hear how your future turns out !

What kind of house did you purchase and how much did you take out for the down payment if you don't mind me asking ?

I borrowed 24,000 and had 6,000 of my own to use. This is on a $140,000 property with 20% down. The rent from my roommate and the second unit of the duplex cover my mortgage, insurance, taxes, maintenance, cap ex, vacancies, heat, electric, water, and internet! The only payment I am responsible to pay out of pocket is the second loan (money I borrowed from mom).

@Elizabeth Colegrove I did look at that, however it worked out better in my favor to not pay the PMI but that was just a personal decision to pay more for a short amount of time rather than to pay PMI for ten years or more until I was able to have it removed.

I just want to scold what everyone else is saying. It's awesome that you already have this mind set at such an early age. And like @Elizabeth Colegrove I'm in your backyard. I actually live and invest in Visalia/Tulare. Also, the idea of buying a duplex is a great idea. In fact, I'm pretty sure that's what my next purchase will be. Actually, I'm looking for a 4-plex. I'll be occupying one unit while renting the rest. I think this is a great scenario for you as well. Only problem is the lack of credit. As a new investor, you will learn real quickly the hoops you have to jump through and the boxes you have to check off to qualify. If you are really interested in learning, Brandon's new book on creative investing is a good one. It's only like $10 for the Kindle. Keep us updated to your progress. Would love to hear how it goes for you.

@ Elizabeth Colegrove

would you mind elaborating on why you prefer conventional vs FHA? How to get a 5% down on conventional loan? Thanks.

Originally posted by @Nathan Richmond :

I just want to scold what everyone else is saying. It's awesome that you already have this mind set at such an early age. And like @Elizabeth Colegrove I'm in your backyard. I actually live and invest in Visalia/Tulare. Also, the idea of buying a duplex is a great idea. In fact, I'm pretty sure that's what my next purchase will be. Actually, I'm looking for a 4-plex. I'll be occupying one unit while renting the rest. I think this is a great scenario for you as well. Only problem is the lack of credit. As a new investor, you will learn real quickly the hoops you have to jump through and the boxes you have to check off to qualify. If you are really interested in learning, Brandon's new book on creative investing is a good one. It's only like $10 for the Kindle. Keep us updated to your progress. Would love to hear how it goes for you.

I actually just got started reading that book, and definitely Id love to hear more about how you went about buying your properties and how you would recommend to do it if you could do it at my age. 

scold = SECOND

Still not sure on how to edit a post on here. Sorry. I didn't mean to SCOLD anyone. Lol

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