Advice for a young real estate investor

8 Replies

Just curious what is the best real estate investment club to join in the DC area? Also I would like to know what is the best loan to use for buy and hold real estate strategy?

Hello Jeevon, I go to the one close to my market in Southern Maryland. My suggestion would be for you to visit a number of them and pick the ones you want to attend on a regular basis. And my preference for buy and hold loan is a fixed rate 30 yr. mortgage, of which I can't get anymore.

Good luck,

@Jeevon Jones Jr

Welcome to BP! I concur that the 30-yr, fixed rate loan is the way to go. It affords you the opportunity for the largest amount of monthly cash-flow, and at this point in time (summer 2015) interest rates are still extremely low in comparison to other decades which saw double-digit interest rates on home loans. Also, this is specific to SFR investing since commercial lending is a bit different. Take massive action and WIN!

 And my preference for buy and hold loan is a fixed rate 30 yr. mortgage, of which I can't get anymore.


Why are you not able to get a 30 year fixed mortgage anymore? Also I see many posting about 203K loans, I thought you can only get these for primary residences. Any info would be great.

@Lisa Keefer

 There are only a certain number of conventional 30 year mortgages you can have at a time, which I assume is why @Nuhan Demirkan can no longer get a 30 year mortgage.

For the 203k FHA loan, you have to live in the house for a year, which is what any FHA will be. You are only allowed to have one FHA loan at a time. The 203k affords repairs to be included in if the home needs some work done to it.

Maximum number of 30 yr fixed loans one can have is 10. After that no matter what your credit score is or how much cash you have you can get one. You would have to get commercial loans or private money.

Thanks for the information guys and gents! @Nuhan Demirkan would you happen to know the name of the real estate investment club you go to? @Juan Cristales what is the average credit score you may need to get the loan? 

Southern Maryland Real Estate Investment Group (SMDREIG)

@Jeevon Jones Jr

That question would probably be best answered by a lender.  The last time I spoke with one, a couple of weeks ago, I was told they could work with a 620 FICO.  They are able to go a little lower but the buyer is going to need to bring more to closing.  Understand that your traditional large banks with a large portion of the market share, aren't necessarily investor friendly though they may say they are.  There may be pockets of individuals in those big banks who are better than others at assisting but by and large they are few.  After you get past your fourth loan (for loans 6 through 10), you are going to need to talk to a different type of bank who can assist you in achieving your goals. 

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