All Forum Posts by: Camron Cottam

Hi James,

We are in a very similar situation. Check out the biggerpockets podcasts, some great information on there. They have guests on the show all the time and one commonality I've picked up through hearing all the stories is that on their first deal they just did it. They found a way to make it happen, made mistakes, learned from them, and got it done one way or another. So my advice to you is, prepare as much as you can, but more importantly just get out there and do it.

With that being said, things like tenant screening, lease agreements. and financing are some things that they talk about on the podcast as being some things you don't want to take lightly. 

You have to live in the property for at least one year. The only exception is something that would be considered a viable reason to move out of the house earlier. It's pretty much things you would consider common sense. For example, someone get's sick and you need to move to care for them, work, or other things that life can throw at you. 

@James Masotti - Why is refinancing a different story? Could you explain further? 

@James Masotti ^

James Masotti That's a very good point in terms of that changing the whole economies of the situation. It is my parents though and they would be pretty generous in terms of who gets paid and so forth. My general idea was that they loan me the down payment and after a year I refinance the house and give them a return on the investment. Meanwhile I would be collecting any cash flow from the property. Does this sound like something that is realistic?

@James Masotti - Thank you very much for the insight James, I appreciate it. Seeing the structure for how the money would be split up is useful. With that being said, the only problem is that coming up with 30k and then still having some room for capital expenditures and other expenses would be tough for us. I plan on owner occupying so an FHA loan with that 3.5% down payment is crucial for me.

I am in a little bit of a puzzle and not sure how to put the pieces together, but I'm sure there's got to be a way to make buying my first deal work.

My situation is that I'm currently a college student. I wait tables and work construction on the side in which I get paid under the table. In other words, I don't make a lot on paper. BUT I have a person who is potentially willing to put up around 10-20k. Also if I wrote out a business plan and showed my parents numbers that work, I feel like I just may be able convince them to loan me some money as well. 

About a month ago I saw a property I liked, which in my area was a nice duplex for about 150K, so I went and tried to get pre-approved for a loan, knowing that I would probably wouldn't get approved but wanted to see how the process went. Long story short the guy I spoke with said I was a little ways away from getting approved. I didn't make enough money on paper. 

My thoughts on the whole situation is that even if I can make it work it is a risky situation using someone else's money on my first deal. With that being said the go getter in me wants to make this work one way or another. I know that this is what I want to do and I'm tired of paying someone else on the first of the month. 

So I guess my questions would be:

How do I get approved for a loan (FHA) with my situation?

If I find the right property is it realistic to be able to give a return on investment to my friend/business partner and my parents? 

To my understanding you are only able to get another FHA loan if you don't have any other currently loans. In other words you can't have two FHA loans at the same time. Once the first one is paid off I'm pretty sure you're able to get another one. In terms of living in the home, you are suppose to live in the home for a year. To back Christopher here you are able to move out under some circumstances. Lenders I've talked to who know you are looking at these properties as investments are very careful in who the lend money to and why.

Alright Bigger Pockets community, I need all the advice I can get on this one.

I am soon to enter my last year of college and have a loan that I use to pay my rent. I want to get into a multifamily home this summer. In my area a decent multi-family will go for around 150-200K. I have great credit and my parents are willing to be co-signers. I currently serve tables and don't have much income to show on paper. With that being said I have someone who is willing to give me anywhere between 20-50K given I can prove to him that it would be a good investment with his money. My idea is that I get an FHA loan and live in the property for my last year of college. I don't personally have access to a lot of capital but feel with the money of the investor and my college loans that I may have enough to make this work.

So my questions are how do I make this work?

How do I structure a deal with my investor in order for it to be worth it for him as well? 

David Stafford No, please keep talking! Haha. My question is if your strategy is buy and hold, what would a realtor benefit from that. The only thing I could think of is getting a commission for finding tenants? Is that something real estate agents do often, or at all? If that's not the case what's the motivation for the realtor giving you leads if you don't pay commission when buying?