All Forum Posts by: Abraham Bakre

Hi BP!

My question pertains to my local REIA the RICH Club. I have a person that is willing to mentor me (for a fee of course) through classes, dvds, etc... I am skeptical of this since the club itself is non-profit. I understand that these people need to make money but can't they benefit just as much by training an "apprentice" (me) their method for a trade of my time and efforts in finding them deals or helping with rehab, or anything that a young person with no money can provide other than what I don't have!!!

I'm beyond eager to get started in real estate and I feel as though having a mentor would allow me to learn from someone that is already successful. I understand I can learn on BP from countless of successful people on here, but its impossible for me to gain "hands-on-experience" through a computer screen.

I rely on the insight I have received from the members who have taken the time to answer my questions I've presented this far. I will not let having no money stop me from attaining my goals!

Al: Thank you for the response. I'm looking forward to getting started as soon as possible. I will consider partnering with a friend. That maybe a good way to get started.

Question: is it really that big of a deal to owe a lot of money assuming your assets exceed your debt. Ex: If I own 5 4-plexes at 100% financing for 200K each then I would be looking at $1,000,000 in debt. But if each property cash flows at around $500+ a month along with the fact that each property is worth about 250K, then I'm looking at a nice $2500+ a month passive income along with 250K in equity.

Overly optimistic? Unrealistic? Please share the criticism.

Kyle, I forgot to thank you for your response. I defintely want to have some reserves for those "just in case" moments! I just don't have the capital right now to be able to do that. Thats why I am looking to find the cheapest money out there so that I can get started on my real estate aspirations!

Jon: Thanks for the links, I will check those out soon. As for the FHA 203K loan you mentioned in my other post, I read up on it and I think its a viable solution if I were to find a property in need of repairs.

Kyle: Thats too bad about the LIFT program! I hope to try and qualify for other programs including the 2 I mentioned before.

Anyone: Please critic my logic on this. If I were able to secure a loan that paid for my purchase price & closing I could obtain a separate loan secured by the property that I could then use as back up money for repairs & random issues with the property. I have also been thinking about increasing my credit limit on my cards to give me 10-15K in extra "what if" money. It seems to be very difficult to obtain 100% financing for a property, but I have to think there has to be some non-linear way of obtaining the financing through a lender.

Disclaimer: I in no way am a fan of being in debt and I loathe the idea of paying back so much interest on loans! But I feel as though my options are extremely limited to using OPM until I better my financial situation. What choice do I have if I want to get into real estate investing now rather then later?

Brandon Turner: thanks for the reply. I will find out more about those programs and post the results. Hopefully I come back with good news!

Hey there BP community!

I'd like to ask a question concerning OPM. I am looking to buy a multi-family home for my first property and live in one of the units while the other 1-3 units are rented. My only problem is... I HAVE NO MONEY! I've done some research and talking with friends and colleagues and it seems as though Houston has these programs that will help a first-time home buyer with financial assistance towards the purchase of the property.

So my question is how do I get my hands on this money?

Thanks BP!

Thank you for your candid response Jon! I wonder if I could obtain the upfront cost + closing cost via our "first-time home buyer program" I've heard about. I want to post a question concerning this since I'm assuming your not familar with this program (it being a Houston, TX program). I have very little reserves and obtaining the government assistance would be key in this acquisition.

From the pictures and description it looks as though the property doesn't need any major repairs. That could change of course once I view the property. I will research the 203K FHA rehab program you mentioned to see if it applies to my situation.

I was not aware of what the closing costs would entail. Thank you for that bit of information.

Hello BP! This is my first post and I am excited to hear the responses from all you fine folks!

My question is about interest rates on loans for a multi-family property here in Houston, TX. Could yall give me an idea on the kind of rates (monthly Principle and Interest) I could be looking at? I want to do a 100% no-money-down loan on a 4 unit multi-family property estimated around 150-200K? I plan on living in one of the units so that I can take advantage of the first-time home buyer program I heard about and so that I can obtain better financing rates being that I'll be looked at as a homebuyer instead of an investor.

[b]Some background info: I have a median credit score of about 725, I'm 26 with no real estate owned, at my job I gross about $3600 a month, I would live in one of the units, and my monthly fixed expenses are minimal since I live with my mom currently. They total around $500. Im interested in all kinds of money sources including private investors, brokers, banks, credit unions, etc... Also, what other money would I need to come up with other then the purchase price? I'm aware of inspections, repairs, closing costs, and earnest money. Can I cover all of this with my loan? Or do I need cash or separate financing?

I have a prospective property I'm looking at currently for $165,000 list price. Its a four-plex w/ all units being 2/2 each. I found out that rent in that area for a 2/2 is about $850/month. I can provide more details if anyone thinks they can help me analyze this deal.

Thanks BP community!

Abraham Bakre