Rental Property Investor · Denver, CO · Member since 2016 · 621 posts · 362 votes
6y
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/...
Investor · Reno, NV · Member since 2020 · 7 posts · 2 votes
5y
@Dan Sheeks Hello again Mr. Sheeks!
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.
Rental Property Investor · Denver, CO · Member since 2016 · 621 posts · 362 votes
5y
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?
Investor · Reno, NV · Member since 2020 · 7 posts · 2 votes
5y
@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.