Wholesaler(s) in Colorado
Hi there bigger pockets! I’m in Colorado and I’m just getting into real estate. I graduated from Colorado State University with a finance degree 2 years ago. I have my real estate license as well. Trying to wipe out those student loans I piled up just to figure out real estate investing is the path I’m taking. For my first deal I think I would like to buy from a wholesaler with a private equity loan. I probably don’t qualify for fha or conventional because of my student loans and lack of two years of employment. Does anyone have any suggestion, opinions, and/or any dependable wholesalers in the Denver/South Metro/Colorado Springs area? Thank you!
Most Popular Reply
Hey Reid, I'd recommend connecting with some Hard Money Lenders to gauge terms and see what you can actually afford with the cash you have.
Typically - to refinance out of a HML you need a 20% (25% preferred) Loan To Value. Example - if a lender gives you 160k to purchase and rehab a project, it has to appraise at 200k or above for you to qualify without bringing extra money to the table to close.
The 20-25% LTV is for Single Family Investment Properties. Multi-Family is 25%.
You can go a couple routes here:
1. An under the radar strategy that's great for first time home buyers - purchase a property with hard money through a wholesaler (or other lead source), fix it up, and refinance into an owner occupied loan. You only need 10% LTV to qualify for this (confirm with CO lenders). This is a HUGE advantage because most investors need that 20-25% margin and most people don't shop for a fixer upper project when they want a new home to live in... You only need a 10% margin if you'll live in it for the next year. Any extra beds is a house hack!
2. CO is booming with tech companies. If you're new to it, get an SDR/BDR role at a startup that offers a salary and equity. Lenders need 2 years of work experience to average your hourly wages for you to qualify, BUT if you get a W2 job with a salary they'll use that to qualify you as long as you've been in seat for 6 months. I want to work for my self and I know I will, but I got 2 properties in the past 6 months because my W2 allowed me to qualify for the loans... And I know I'll qualify for the next one.
If you have any questions feel free to PM me. I'm well versed in Hard Money Loans and also know how to land a tech sales gig in a few simple steps.