All Forum Posts by: Ethan McRae

@Alex Olson ah I see, thanks. Any ideas on good ways to find lenders that would want to work with first-time investors?

I am a college student who is interested in purchasing a property to house hack with a friend. As of now, I have a job lined up for after graduation, I will start working in June and my friend is in the same situation and we would like to apply for loans together. 

I have two questions: 

1. How feasible is it to apply for a FHA loan when we haven't officially started work, and haven't graduated yet?

2. Would getting preapproved for a loan before graduation/starting work vs. after starting work somehow affect the rate we would get on the loan once we start making offers?

Many thanks! and any advice for someone in my situation is greatly appreciated 

@Account Closed would you be able to clarify why exactly? Is it mainly because it takes longer to close on a property when you aren't paying fully in cash and these properties get snatched up quickly?

I haven't done any wholesaling myself but that gives a nice overview of the process.

@Nate Marshall 

@Weston Couch

Going back to @Daniel DiCosimo's point though, how can a new investor expect to get to get a loan for his first property with an llc if lenders are looking for collateral or a proven track record which a new investor wouldn't have? Is it still best for a new investor to get an llc and if so, how can you get a loan this way

So I'm a college student going into my final year. I'm in a finance oriented major that focuses on commercial real estate finance, and so I have had a chance to get my feet wet in the commercial real estate industry through internships, extra curricular activities, and of course the school work. 

However, I have always been interested in getting involved in rental property investing on the residential level.

Now that my college career will be coming to an end in a year, I am really trying to figure out exactly what I want to look for in a career for the first few years out of school. I will likely end up following the commercial RE path to get a job in that industry right out of school but ideally, I want to find a job in commercial RE where I can learn some skills that can be applied to residential RE investing as well.

What I want to know is, what could that job potentially be? For instance, I have considered trying to take up an analyst role at a REIT another RE company that ideally looks at large apartment complexes so that I can see how those deals come together on a large scale.

For kicks and gigs, if there were other careers more specific to residential RE investing where I can learn more about the business I would love to hear ideas about those jobs as well.

Thanks a bunch!

@Joe Prillaman Congrats man! For someone who is just starting out, this is very inspirational for me. 

Can I ask how exactly you went about getting so many houses so quickly with no money down? What type of loans were you using? Or is there a post you have made at some point that addresses this? Thanks!

I have heard from various sources that you need 2 years of work experience before you can apply for a FHA loan but I have also heard that this is not always the case.

Thoughts?

Thanks!

@Michele Wax that's a huge help thanks.

I didn't know you could get a FHA loan for 0% down.

@Michele Wax this sounds like an incredibly creative strategy that could certainly work well for buying properties at a relatively fast pace. Very cool. 

However, when you buy your second property with the heloc as a down payment, wouldn't you be essentially be taking on 100 percent debt for this second home since the 20 percent heloc is a loan and the remain 80 percent would be the second mortgage? I suppose if you were getting enough cash flow from the second property, this could justify the risk but even so it seems pretty risky. Or am I just not thinking about it the right way...