All Forum Posts by: Isaac Pyle

@Shiva Bhaskar Thanks for the encouragement! I feel the same way, if I have been offered help to make something happen, and I do enough research to make sure the numbers are as solid as they can be, then why not start now? And if I had a job that allowed me to "pull myself up by my own bootstraps" then that is definitely what I would do, but as a college student I don't have that kind of job. This seems like the next best thing. Thanks for the input!

@Caleb Heimsoth I was aware of both of those actually. It's a good reminder though. I'm not just jumping into a property like it probably seems I am. Thank you for the heads up. Definitely helps.

I'm sorry @Caleb Heimsoth I should have worded that better. It wasn't an "I will run that by them to see what they want to do", it was an "I will have to run it by them that they can't loan me money, only gift it". 

As for borrowing for the down payment, I won't be borrowing more than 1/2 of the down payment, as I would want to make sure I have a good portion of my own money invested as well. Not that it changes my "financial readiness", but I would have that going for me. I also likely will not be doing any of this for at least a good 6 months or year, I am just trying to be prepared for when an opportunity arises later on. Thanks for the input.

@Scott Bossman Firstly, yes, my parents are the best. Secondly, while I would love to look into land investing, the whole appeal of house-hacking a duplex is that I have somewhere to live as well as pay less rent or maybe break even / make a slight bit of cash. If I invested in land, while it would be a good source of passive income, would not provide me with a place to stay.

@Caleb Heimsoth I did not know this, that's a good clarification. Obviously I will need to run that by them as well.

@Matthew Irish-Jones interesting.. that could be a potential setback. Do you happen to know what the minimum down payment on a commercial loan is? I was going to use a FHA because it was only 3.5%, and if I remember correctly, it is 5% for commercial, yes?

Thank you @Anthony Wick, that means a lot. The fact that I have been presented with this opportunity is astounding. And @Taylor Roeling I agree, that was my thought process! Take on less debt, and begin investing sooner rather than later at the same time.

@George Despotopoulos Interesting. So if we decided to initially go 50/50 on the down payment, would we both sign the loan documents? Or would we need to put those funds into one account (theirs) and they are the only ones signing it? 

Also just an FYI, you tagged a different Isaac in your last post.

@George Despotopoulos That makes sense.. in order for you to see the source of the funds, does that mean having my parents co-sign? Or seeing previous tax-documents to show income? What does that mean?

@Peter Tverdov I understand why you would think that. That would not be this, however. I have a good relationship with my parents, but they would make sure that I pay them back in full once I was able to. They are not just giving me money to play with. I have to show them what I am going to use the money for, how long it would take me to earn it back (to the best of my knowledge), and then I would likely need to give them a slight amount of interest (not anything like borrowing from a bank, but they are investing in this project of mine). Furthermore, I definitely know the sacrifice of saving money to start something. I took a gap year between highschool and college to wait tables and work a construction job in order to save money for college so that I could go to school and take on no student loan debt. My friends were not. My girlfriend hated (and still does not really like the fact) that I worked so much (50+ hours a week). I feel like you tried to judge my entire life thus far based on a post I made questioning whether using my parents' resources is a smart decision.

@Cory Carlson That makes sense. I am curious though, does co-signing with them / using their credit score hurt them at all? And when the loan becomes refinanced after reaching 20% equity, does it get "re-signed"? Meaning that they could "unsign" from the property and I would be the only name on the loan? Is that what you meant when you said "getting them off down the road"? And I am curious about the credit as well, because my credit score is in the high 700s, but is less than a year old. My parents is only slightly higher than mine, but is over a decade old. Would that decrease the PMI by a significant amount? I guess I just thought that all credit scores were the same if the number was the same. Sounds like that may not be the case.

@Peter Tverdov at this point I am looking into my parents helping me because 1: they offered. They told me I could use them as a resource to get my foot in the door, so that I could potentially get started while in college, instead of waiting until I am done and 3+ years older. The value of my money being invested now instead of waiting 3 years is worth making the effort now. 2: If I am able to do this properly and use their resources instead of my own, I/we can actually be making money from my housing instead of paying hundreds if not thousands of dollars. I could not make that happen while being a student at a $30,000+ college. 

I guess I am confused as to why it’s sad that they help me do something productive with my time and money...