Getting my first loan

[Louis Lechanteur]

Hey guys!

I am currently 21 years old and graduating from university this coming summer. After having gotten bitten by the real estate bug last summer, I decided that this summer was the time to buy my first rental property.

A partner and I have agreed to go 50 50 on our first investment rental property that we are looking to purchase in the coming months. We created an LLC and partnership agreement over the past couple of weeks but now geared more towards preparing how to approach the bank.

I have secured a 6-month internship that will be paying me roughly $3,500/month starting in June while my business partner will be starting his masters for data analytics. Since neither of us has 2 years of employment and the LLC has no tax returns, we wanted to hear what you guys thought our best direction to secure a loan with 20% down on a 180,000 home.

We thought of adding a reserve bank account at the bank that covers the first 2 years of the mortgage, but still think we're gonna have to do some more convincing. @BrandonTurner always said this like a gun safe that just needs to be unlocked. Any ideas what we could enter as our code to get the loan?

Thank you!

Louis

[Erwin Groenendijk]

Hi @Louis Lechanteur, good job and move forward to your first deal. 

What I think @Jaron Walling is saying, is to re-evaluate opening up an LLC for your first purchase and the situation you are in. You can also buy the apartment together and sign an agreement between the two of you. An LLC or SL in Spain or any business set up can be beneficial, although it needs to be able to work as a proper business to use its advantages. Otherwise, it will only cost you money in the beginning while there is no/not much activity yet in the company. As an individual, you can also already apply to several advantages such as deductions, etc.

Where are you btw looking to buy your first property in Spain? We are based in Barcelona.