All Forum Posts by: Angel Sledge
Angel Sledge has started 2 posts and replied 8 times.
Post: 21 Year Old's First Real Estate Deal
- New to Real Estate
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- Votes 2
Originally posted by @Matthew Brill:
If you are both signing on the loan together then they will run both of your credit and use whoever's is better (but you should start building up your credit). I would try to find a lender to do a FHA or, better yet, a low down payment conventional loan. You will definitely want to do some research on the potential rents to make sure it is cash flow positive when you move out at the least.
I am working on getting my first credit card next week. Do you know a useful tool that reveals potential rents? Thank you for replying!
Post: 21 Year Old's First Real Estate Deal
- New to Real Estate
- Posts 8
- Votes 2
Originally posted by @J Zev J.:
I agree with @Jon Reed - just have your financial information ready and credit score ready when you talk to the banks. You don't want each bank running a hard credit check so just talk to at least a few of them first before picking one. Mortgage brokers are also good resources to help you accomplish your househacking goal.
Thank you guys for these suggestions. I finally have a sense of direction now!
Post: 21 Year Old's First Real Estate Deal
- New to Real Estate
- Posts 8
- Votes 2
Originally posted by @Jon Reed:
The best way to finance this property would be to go to a half dozen local banks in your area and ask them. They will help you more than any forum reply.
Thank you so much for the suggestion! We will be calling around the rest of the week.
Post: 21 Year Old's First Real Estate Deal
- New to Real Estate
- Posts 8
- Votes 2
Originally posted by @Chris Pasternak:
Hold on. Did I read that properly that you signed a contract with your "significant other" to use his credit as long as you make due on your portion of payments?
Now you know I have to ask what is in this contract and why did you make this contract? Are you married or what is a "significant other"?
Hello Chris,
He is my fiance but we are waiting a few years to get married because he wants to finish his PhD first and earn some money for the wedding. So I just find it easier to say significant other. I will probably say fiance when we get closer to the date. I made this contract to make him feel more comfortable as business partners. My words are just that words. In the contract, he is allowed to take over operations of the property which means he can sell it or continue renting if he wants, if I fail to or cannot continue payments. This gives him a safety net so I do not wreck his credit by failing to pay my end. It was my suggestion because I felt like I was kind of freeloading off of him. But also contracts are important among business partners because it holds the other accountable. We are having it looked over by a lawyer to see if they suggest we add anything else. So we are open to any suggestions if you have any. Thank you for your questions.
Post: 21 Year Old's First Real Estate Deal
- New to Real Estate
- Posts 8
- Votes 2
Originally posted by @Blake Park:
I bought my first house at 21 as well. I found someone to partner with me that brought the lending ability. I would start building up your credit. If you are looking for a multi-family you should check out Columbus Ohio.
Thank you for the locality suggestion. We will definitely take a look into that suggestion when we considered where to move next. It seems that I should look into private money lenders since you are the second person to suggest that. Thank you for your reply to my message!
Post: 21 Year Old's First Real Estate Deal
- New to Real Estate
- Posts 8
- Votes 2
Originally posted by @Stephen Brown:
Get a property manager to verify rents for you. That's very important. I think you should go about financing this deal with a private money partner like you mentioned... but if you can afford an FHA loan then you can do that. Sometimes there are ways to get around no credit history. Do you have any other assets to show your lender?
I have will have more than $10,000 cash saved up, but this house purchase will be my first asset besides a paycheck from my job. Thank you for the suggestion about a property manager! I will look more into the private money partner suggestion as well.
Post: 21 Year Old's First Real Estate Deal
- New to Real Estate
- Posts 8
- Votes 2
I am trying to purchase my first real estate property with my significant other. I am graduating in May and I will become a financial advisor after passing my certifications. I currently do not have a credit score because my mom refused to allow me to obtain a credit card. However, I have signed a contract with my significant other, who is a Ph.D. student, that allows us to go into real estate deals using his credit as long as I hold up on my side of payments each month. We currently live in West Lafayette, IN. Deals for multi-family properties are not abundant which is why I am so excited about this deal. We want to purchase this property to house hack it for two years then move on to our next house. It is a level, single floor, 4 bedroom condo with HOA fees of $180. We might have to upgrade the kitchen because it looks dated. We are not really sure what financing would best fit with a condo but the best scenario would be a loan that allows us to put less than 20% down. This will be an investment with long-term leases. The owner is asking for $83,500. We are looking to put down at least $5,000, we could do it with cash as well if it helps. We do not know what it currently rents for but apartments in West Lafayette usually go for $700-1000. He has an above-average credit score. The only issue we face is that I do not have a credit history. So my question is what would be the best way to finance this property? Thank you for your help in advance!
Sincerely,
Future Real Estate Investors
Post: 21 Year Old's First Real Estate Deal
- New to Real Estate
- Posts 8
- Votes 2
I am trying to purchase my first real estate property with my significant other. I am graduating in May and I will become a financial advisor after passing my certifications. I currently do not have a credit score because my mom refused to allow me to obtain a credit card. However, I have signed a contract with my significant other, who is a Ph.D. student, that allows us to go into real estate deals using his credit as long as I hold up on my side of payments each month. We currently live in West Lafayette, IN. Deals for multi-family properties are not abundant which is why I am so excited about this deal. We want to purchase this property to house hack it for two years then move on to our next house. It is a level, single floor, 4 bedroom condo with HOA fees of $180. We might have to upgrade the kitchen because it looks dated. We are not really sure what financing would best fit with a condo but the best scenario would be a loan that allows us to put less than 20% down. This will be an investment with long-term leases. The owner is asking for $83,500. We are looking to put down at least $5,000, we could do it with cash as well if it helps. We do not know what it currently rents for but apartments in West Lafayette usually go for $700-1000. He has an above-average credit score. The only issue we face is that I do not have a credit history. So my question is what would be the best way to finance this property? Thank you for your help in advance!
Sincerely,
Future Real Estate Investors