Hi @Account Closed. If you are 18 and have no credit (which makes total sense) and you want to buy a property and have a loan (mortgage) for the property, you basically have two choices.
1. Find a partner who has great credit.
2. Have a parent-cosign on the mortgage with you.
By the way, congrats to you for your ambition! I am willing to help you out with some advice or even chat on the phone if you wish. But I recommend you read this article I wrote for Bigger Pockets titled How to Invest in Real Estate Before Turning 21. I know that you are looking to buy a property pretty quick, but I think this article will still be very helpful to you. Once you've read it, let me know your thoughts and if you have any questions. I am a high school teacher in Colorado and I am always looking to help young people get started in real estate investing or help in any way I can. Let me know if you want to chat sometime. https://www.biggerpockets.com/...
It has been about 10 months since I posted that question. I wanted to say thank you - your articles and insight have been an enormous help in my investing career. I thought I should update you today and see what you think the next best move would be.
Since July of last year, I got my first credit card and raised my score to about 720. I have also saved about $25,000 for my first investment.
Now - I should have been more specific when I last posted. I am now a full-time college student (18 credit semesters) at my local community college. I am looking for a house hack as my first investment once I move to Reno, NV to finish my bachelor's degree at UNR. I am interested in an FHA loan.
My problem is this: I am enrolled full time in school, so I don’t have time to work full time at a W2 job. I work in the summers and do odd jobs, but I’m not sure I should commit 40 hours a week to a job year round. (I could easily make $15/hour in my town by the way).
How can I take steps to qualify for an FHA loan? Should I take less college classes and work full time? Or is there a more creative way to have a bank loan me money for my first property?
Thank you for your time, it is greatly appreciated. Any information would be great.
By far the easiest solution to your problem is to have someone (usually a parent) co-sign on your mortgage. Do you think you have a parent who would do that?
@Dan Sheeks My parents and family members aren’t on board with me starting a real estate investing career. They think the old method of a 401k and a safe, secure job is the better route. I have strongly considered every option, and I’m certain house hacking/investing is for me. That’s why I want to start as early as possible.
I do have one person who might consider co-signing a mortgage with me, however. My former boss has been a really great mentor for this kind of stuff, and I would consider asking him if I had my ducks in a row. He invests in real estate and has a lot of disposable income.
I’m wondering how exactly this would play out, though. Since I can’t work full time, would I work part time and save money to cover the mortgage payment just in case my tenants/roommates rent comes up short? Under what conditions would you co-sign a mortgage with a mentee? I would only ask him if there weren’t any downsides to co-signing.