Jersey City, NJ · Member since 2018 · 11 posts · 1 vote
Hi,
My name is Maicoll Gomez. I just graduated college a year early with two degrees so I can help my family. We live paycheck to paycheck and we have saved up some money (50k) so we can put a down payment on a house hopefully in Jersey City, or Bayonne. I have a good credit score 750+ but no job or income at the moment. How do you suggest I go about this?
Thank you in advance, I appreciate that you took the time to read this.
Jersey City, NJ · Member since 2018 · 28 posts · 16 votes
8y
Welcome Maicoll
My personal suggestion is to get pre approved for a mortgage. Explore your different types of mortgages/loans. Also, see what you can afford. Unfortunately, Hudson county is expensive. I would start with some type of house hack and purchase a multifamily, that’s how i started. Good luck
Jersey City, NJ · Member since 2018 · 28 posts · 16 votes
8y
Welcome Maicoll
My personal suggestion is to get pre approved for a mortgage. Explore your different types of mortgages/loans. Also, see what you can afford. Unfortunately, Hudson county is expensive. I would start with some type of house hack and purchase a multifamily, that’s how i started. Good luck
Attorney · Rutherford, NJ · Member since 2015 · 132 posts · 168 votes
8y
Hi @Maicoll Gomez Noriega welcome! Are you looking for a place for you/your family to live in, or as an investment? I second @Juan Cabrera's advice, though it may be difficult to get approved for a mortgage if you don't have a job/income. Most traditional banks will want to see at least several years of job experience or equivalent (although if you were in school, the time you spent in school can count towards this). Point being: you may be best served by finding a traditional/W-2 job and working in it for a bit before exploring buying a place with traditional financing. Assuming you're going to be living there, you could hypothetically qualify for loans where you could put as little as 3.5% down (an FHA loan), though it depends to some extent on your income/debt-to-income ratio.
If you're looking for something a little less traditional: $50k probably won't go very far in Hudson County, even if you're looking at a small condo or a place that requires substantial work. If you're willing to go further out into New Jersey (say, west or north/northwest) it's conceivable that you could find a place you could buy all cash for $50k. If you're thinking about this as an investment, you could hypothetically partner with other real estate investors who might be able to qualify for traditional financing but be looking for cash.
Flipper/Rehabber · Wilton, CT · Member since 2015 · 4k+ posts · 4k+ votes
8y
Hey man. 2 degrees is awesome!
I would really make getting a good job a priority. Once you have a steady income THEN focus on getting established as an investor. I really think this is the smartest thing to do. You are 20. You are young. You have plenty of time. And doing this will really will cause you to make it as an investor faster than if you dive into it right now.
Jersey City, NJ · Member since 2018 · 11 posts · 1 vote
8y
@John Errico, it would be for us to live in. Thank you for your perspective. What would you suggest in regards to the following idea: buying a 2 family home at my father's name (has a job and income), rent the upper or lower floor to another family and then ask to refinance? Also I don't really know if this matters but I worked as an RA during college and got a W-2 from my university. The stipend was $3000 and didn't have to pay for living. We would like to stay in the JC-Bayonne area because it is most convenient for us!
Thank you once again. You are very knowledgable John, I hope to be as experience as you one day.
Jersey City, NJ · Member since 2018 · 11 posts · 1 vote
8y
@Odie Ayaga, I want to put my family in a house, be financially independent and hopefully get a job soon (currently looking). In regards of your second question, I want to understand Real Estate to a better level. I don't know how to even go about buying a house without contacting a realtor, etc. So I want to understand this industry better so I can minimize costs and increase investments opportunities.
Thanks for replying to my post Odie, I appreciate it!
Investor · Taylor Mill, KY · Member since 2016 · 2k+ posts · 964 votes
8y
@Maicoll Gomez Noriega Gonna be hard to buy a home with no income, unless you buy one for less than $50k and pay cash. I recommend getting a full time job and using that income to get a mortgage.
Jersey City, NJ · Member since 2018 · 11 posts · 1 vote
8y
@Jerryll Noorden thank you, it was very hard but I think the sooner I can help my family and others, the better. @Caleb Heimsoth Unfortunately, getting a job has not been easy. I have applied to positions here in the NJ, NYC area and so far nothing. I also speak three languages so hopefully someone will see my potential and allow me to join their team. Anyways, thank you for your advise! I will strive to do what you suggest!
Attorney · Rutherford, NJ · Member since 2015 · 132 posts · 168 votes
8y
Hey @Maicoll Gomez Noriega: yea I think your suggested idea may work (obviously, if your Dad actually wanted to buy a house in his own name!). As you might be aware, banks will look to your (or your Dad's) debt-to-income ratio: so basically how much debt you have or will have after the mortgage relative to how much money you make. Most bank won't lend to you if this ratio is above 43% (there are some types of "debt" that may not count towards this ratio, and some types of "income" that won't count as well, but that's the basic rule).
But conceptually: if you or your Dad had sufficient incomes and little existing debt, I think your idea is great--it's what people on BP call "house hacking" (living in one unit and renting out the other). It'll be hard to find a good deal in the area but conceivable. If you're willing to look a little bit further out, like closer to Newark, there are probably more attractive deals for doing that, and you could still hypothetically be on an NJ transit line to Manhattan and/or the JC area, or you could pretty easily drive.
Jersey City, NJ · Member since 2018 · 11 posts · 1 vote
8y
Mr. @John Errico, thank you for helping get a better understanding of Real Estate. There is no way we can make the right decision for us if it wasn't for the information that you and the BP community has given me. John, you also brought up great points that we have not thought of previously we are thankful for that.
In regards of what work I am looking to do, I am open to possibilities in the financial, HR, legal, and marketing industry. I have experience in those areas and believe that I can benefit whoever welcomes me to their team.
Once again, thank you for taking the time to advise my family and I!
Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes
8y
Maicoll Gomez Noriega how many jobs have you applied to? I once applied to over 200 internships and didn’t get a single one. Found one eventually but got rejected over 200 times first
Rental Property Investor · Dayton, OH · Member since 2015 · 312 posts · 273 votes
8y
Here is my suggestion, its what I did with my first deal: I would research and look for a place that had the right combination of big enough for your entire family, distressed (but fixable), and move into it while rehabbing it yourself. If you are accustomed to a dorm room, this style living may not be too bad for you. Learn how to repair, paint, landscape. Look into carving it up into an inlaw apartment if zoning allows you. Then rent that part out, maybe to family or someone you can trust. That can be so much work you won't need a job for quite awhile and you would learn so much useful stuff for a career in real estate. Sweat equity is great to have! Good luck, the future is wide open for you to navigate.
First off, good job on 2 degrees! Hard working to say the least.
As other people have noted, it would be good to get a W-2 paying job first to get your foot in the door. In the meantime though, it might be good to develop a relationship with some good loan officers so that way they can steer you in the right direction and let you know what programs would work best for you. They might have some great loan options for you after "X" amount of time in your current career. It's something I wish I would have done right after college to get my foot in the door for Real Estate. Good Luck!
Rental Property Investor · Edison, NJ · Member since 2016 · 753 posts · 565 votes
8y
I would focus on getting a job first. You may end up working farther away from home and then this may change where you want to live.
Also I would not buy a house with your family even when you are employed. Let your dad buy a house if he wants to and can afford it. If you continue living there help out your family by paying rent to him and he can use that towards the mortgage. But do not get tied up in a mortgage with him. You are young and may want to get married to someone who wants to live apart from your family. But if you are on a mortgage you will likely not qualify for another mortgage. Or you may end up being transferred out of state with a company or some other change in family dynamics at home may make you want to move out. It will be harder to do that if you are financially tied to them on the mortgage.
My name is Maicoll Gomez. I just graduated college a year early with two degrees so I can help my family. We live paycheck to paycheck and we have saved up some money (50k) so we can put a down payment on a house hopefully in Jersey City, or Bayonne. I have a good credit score 750+ but no job or income at the moment. How do you suggest I go about this?
Thank you in advance, I appreciate that you took the time to read this.
-Maicoll
Congratulations and good luck. First you are looking at a 2 family home to help qualify for a loan. With that in mind do you know what the prices are in the area you are looking in? If the starting price is is $600k that would be problematic. Start of with that. There are options out there that has not been discussed.
Jersey City, NJ · Member since 2018 · 11 posts · 1 vote
8y
@Gordon Starr thank you for sharing with me and the BP community your personal experience and for the extra piece of inspiration at the end. I really appreciate it!
Jersey City, NJ · Member since 2018 · 11 posts · 1 vote
8y
@Account Closed thank you! I will keep finding ways to minimize my expenses. Would you mind on elaborating what kind of things I could deploy my saving on?
Jersey City, NJ · Member since 2018 · 11 posts · 1 vote
8y
@Travis Rasmussen thank you. Being hard workers is something my parents made sure my siblings and I did in every aspect. Do you think those loan officers would have check my credit score every time? Also based on your advise, I'd say that you found a way to make it work. Thank you for getting into real estate at the time you did, because maybe you could have never seen this forum haha!
Jersey City, NJ · Member since 2018 · 11 posts · 1 vote
8y
@Amy Beth thank you. You brought up points that I had not previously thought of and you're also right. You're also the first person to bring that point up in this forum. Amy, thank you for helping me make a more educated decision.
Jersey City, NJ · Member since 2018 · 11 posts · 1 vote
8y
@Calvin Lipscomb Thank you. We have been looking and will not reach over our heads for a house that we cannot afford. Do you mind elaborating on the other options that have not been discussed?
@Calvin Lipscomb Thank you. We have been looking and will not reach over our heads for a house that we cannot afford. Do you mind elaborating on the other options that have not been discussed?
Thank you Calvin, I appreciate your input!
Hmmm, When you do something like this the affordability of the home is not what cause the downfall. It is buying the home and then financing a expensive car and other spending patterns that is fully in your control that causes the problem. Look into first time home buyers programs. Some help with down payment, closing costs, and even help you get the best interest rate available.
Realtor · Murrieta, CA · Member since 2016 · 373 posts · 203 votes
8y
@Maicoll Gomez Noriega, there's a good chance they won't need to. You just want to dive into their loan programs because I have always been surprised and what some loan officers have been able to offer (higher interest rate, but lower down payment, offering loans sooner to people just out of BK, etc.) they might be able to get you a loaner sooner than you think. Again, not sure of it, but it would be wise to start making some relationships.