How fast can I start

Question

I’m 17 years old I have about $22,000 saved in the bank I’m trying to learn as much as I can and I wanna buy rental properties. What do I need to do to be able to get a loan? would I even be able to start at 18?￼

Victor So · Answer

@Blake Bittner Are you looking to go to college? If so, you may not qualify for a loan on your own since your income won’t be high. But if you can have a parent or family member go 50/50 with you, you can buy a property with a fha loan and pay only 3.5% down and then rent out extra rooms!

David Robinson · Answer

@Blake Bittner Yes, do you have a relationship with local banks or credit unions? Its always good to know the people that run the business your money is going into and they may have options and loan products that you didn't know was available.  You can absolutely buy your primary residence with fha or conventional and then house hack to cover the mortgage and cash flow.  I have seen conventional loans at 5-10% down, and the monthly pmi is a lot less, 20% down and the payment is even better. If you have any mortgage questions I will be glad to help,lets connect. I work with commercial lenders, fix and flips,buy and holds,multifamily, and commercial business need, I can help.  Commercial lending can also include buying residential properties with an LLC based on the assett and cash flow, and may come in handy if you will be considered self employed in the family business.

Aileen Yu · Answer

Referring to your comment on "cashing out a few months later", my lender has said cash out refinances are definitely available but they only cash out at 75% LTV right now due to the uncertainty due to  COVID (usually 80%, have seen some at 90%) so keep that in mind, that you will only have something to cash out if you have 25%+ equity in the home either through appreciation or downpayment.

I'd recommend calling a few lenders and just telling them your plan and you can hear specifically for you situation if you're a candidate for a loan try big places like loandepot and smaller credit unions as well. Also if choose to get preapproved, you have a month (I think? It's been a while) to go to as many places as you want without dinging your credit score multiple times, they'll know if it happens within a certain amount of time you're shopping for rates rather than actually looking to get that many loans.

I'd recommend really figuring out what your needs/goals are and figuring out which method words best. The BRRRR, Fix & Flip, House Hack, Rental, Commercial all work for building wealth but for different needs and preferences. For example, I live in an expensive area and want to make my savings take me as far as it can so my primary goal is to reduce my expenses by house hacking then going into BRRRR or flipping. Maybe if you're trying to make money first and you have a place to stay, like your parents, maybe flipping would be a good option to build that capital first.

BTW soooo freaking awesome you're starting so young. Good luck, and looking forward to seeing what you end up choosing.

Devan Wilson · Answer

You are starting at a great place! The others' advice is great I would also add, you should try to build relationships as soon as possible. Agents, banks, other investors, etc. The more relationships you have the more options you will have. You may have opportunities to partner or use other creative methods to build your portfolio. At the same time remember that real estate is a long-term play, so be patient while you build momentum. Just get that ball rolling!

Joaquin Camarasa · Answer

If you have a job. The moment you are 18, You are ready to get started. Get an FHA or conventional loan 3% downpayment, househack a house , live for free and start saving up to scale and go for the next one a year or two later.

Blake Bittner · Answer

@Victor So, no I don’t plan on going to college I’m going to work for my dad at his business after high school. If I have to I am able to get a loan from him. Would it be possible to get a FHA loan on a house then a few months later pay cash for a house to flip?

How fast can I start

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