I am fairly new to BP but I am familiar with the real estate industry. I'm currently an accountant for a contracting company and do the books for the owner's 3 property investment companies. I'm really interested in purchasing a MFH, probably 2 unit, but I don't have the available funds to make the downpayment and all the closing costs.
What are your thoughts on getting a loan from my current employer to cover those costs? I believe there is a 95% chance he would do it but I'm hesitant to put myself in his debt considering I'm young and possibly not staying with his company forever. On the other hand this could be my doorway to less financial stress and a start to my future.
Here is my predicted scenario.
MFH 2 unit
Purchase price $60-$90k, FHA loan
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Best of luck with your Real Estate Investing Career.
Rachelle R., BiggerPockets | [email protected]
Banks will likely require you to have had the down payment money in the bank for at least 60 days (seasoning period). Also just make sure that you can find a property that will cash flow at 100% financing. Lastly, the bank will likely have you sign a document that says there is no other financing in place in connection with the purchase. They could call the loan if your employer records a mortgage on the property and the bank finds out (highly unlikely).
I'm trying to think of any angle possible to start creating some capital for myself. Realistically how quick can I educate myself and wholesale even one property?
Find a Real Estate Investment Association or club in your area, go visit and see if you like it enough to join.
BP podcasts, download them to your phone and listen to them on the drive to and from work.
Networking and working the numbers, You can find the money if the deal is real. You can find people in your area willing to give you money if you have worked the numbers and have not massaged them to fit. Very important, If you think you have a deal and someone with money says no listen to them and go redo your math. You may very well find that a duplex is just too hard to get the numbers with but a 4plex or 8plex gives you the profit margin.
Read and learn. ABC's of real-estate investing is a good book for this section of the market.
Webinars at BP usually one a week.
All of the above are well and fine, doing teaches you more than all of it combined.
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