All Forum Posts by: Jt Marting

@Kevin Kohler Oh thats pretty cool! On your profile it looks as if your affiliated with Keller Williams right? I’ve actually talked Monika Kowalski, I think shes also affiliated with Keller Williams in the Jupiter area!

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Hi! I’m and 18 year old planning on getting my RE license in the next few months, and am trying to balance all my options. Their is plenty of content online about being an agent, but not much about how to become an agent at an investment brokerage or a commercial brokerage. Is there anyone who has tips on getting into this space? Thanks!

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Originally posted by @Kevin Kohler:

@Jt Marting i seriously wish I had the idea to invest at 18 years old! That's awesome! I just went throught this with another client. The 203k process takes a little longer to close and you just need to tie in with a great lender that has 203k experience. Contractors will have to be paid subject to draws from the bank and other coordination and it is all doable! I have a bunch of friends that are in the real estate industry in Cleveland and Cincinnati.

Thank you! I'm actually planning on moving to Jupiter, FL in the next few months, so that's pretty close to you!

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Originally posted by @Brandon Sturgill:

Yep...that is the best case. A HELOC would be the way to go...you can always re-fi out of the FHA loan at year 1...lose the MIP they charge...its a scandal.

There are a lot of variables...and no appraisal is guaranteed...I think you'll get a much more favorable appraisal on the HELOC...credit unions are lending 95-97% LTV...in the above example you could possibly get a line of credit around $40k for your next deal...or turn the property into a rental and buy your next investment with a 5% conventional loan.

It's really awesome you are getting going this young...you will have a lot of success in this business.

Thanks so much for the explanation and the kind words. Hopefully starting young will pay off!

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Originally posted by @Brandon Sturgill:

@Jt Marting Typically the loan value (LTV) is the after renovated value...so, you buy a renovation project for $100k that needs $50k in work and you have a $150k property with a $150k mortgage. The only real benefit is you get all your renovation work rolled into the loan and pay for it over a longer period...

That said, the dollar-for-dollar renovation and value add are different everywhere...so, that $150k property with a $150k mortgage might appraise for $200k...

Like Brad said...some contractors will avoid this loan type because the draw schedule can become complicated with delays...but you just have to ask the contractor how they feel...some lenders may even have a contractor referral if they do a lot of these FHA 203K loans

That makes sense. So with the LTV and your example, if I find a property for 100k, with 50k in renovations, and it appraises for 200k, would the "extra" 50k just be in equity in the property? I don't think I'd be able to refinance, because with an FHA loan i'm pretty far under the 80% debt maximum it sounds like most banks want to refinance. I'm not sure if I worded that appropriately, feel free to let me know if my logic was confusing.

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Originally posted by @Brad Hammond:

Hey JT, I grew up in CLE near Warrensville Hts. (it is a great place to be from). I have worked with a client who used a 203k loan. It is an FHA 203k loan so that means it is under the umbrella of an FHA loan. Here are some things you want to think about.

1. Make sure your lender does these. Not all work with 203k loans.

2. Know the process and timelines. You need to have quotes of all work done by the time you are done with inspections (about 2 weeks).

3. You have to use contractors for everything, you can not do any work yourself.

4. Not many contractors will do 203k work. It is more paperwork and they need to wait to get paid. If they are busy, they won't mess with it. Hopefully, your lender will have a list of contractors they have worked with in the past.

You can do this, just know what to look for.

Wow! Thanks so much. That was exactly what I've been looking for! Do you have any suggestions on how to find a lender that works with 203k loans? From my understanding they're pretty hard to find. Is it as simple as a google search? Also I'm currently a HS senior at Chagrin Falls HS, and am planning on taking a gap year and living with my grandparents in Jupiter, FL. I'd like to get my RE license just to learn more about the industry and use the year to my advantage to build up knowledge. I'd also hope to make enough money to be able to put a downpayment on a house hack property, but the idea of getting a 203k loan in order to either fix up a trashed property or add an additional unit to build up equity in the property in my youth seems like a pretty lucrative idea. I just kind of wanted to walk you through my logic so someone as experienced as you could make sure I didn't have any fatal flaws in my thought process. Thanks for the help!

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My name is JT Marting, and i'm an 18 year old from Cleveland, Ohio, about to move to Jupiter, Florida. I've been looking into the 203K loan paired with an FHA loan, and I'm struggling to find info about it. Has anyone done one of these? Or knows anything about it? Thanks. I'd like to basically BRRRR a property but with this method so I don't need much money down.

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Originally posted by @Kobe Xin:

@Jt Marting

That’s awesome! Glad to see that you’re wanting to get in the game so early! Taking a gap year before college and getting licensed is exactly what I did to learn about RE and investing. Even with the restrictions of covid I was able to learn a lot working with experienced investors and real estate professionals. The networking opportunity is great also!

Wow that's really cool, seems like i'm planning on taking a similar path! I just send you a message if you'd be interest in connecting further.

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I'm considering taking a gap year prior to college and becoming an agent to learn as much as possible about RE. Does anyone know much about working on a team? I understand they are each structured really different but any insight would work. As a new agent would I learn a lot? How are the salaries structured? Should this be something I consider as a new agent? Thanks for the help!

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Originally posted by @Christopher Blanco:

Originally posted by @Jt Marting:

Originally posted by @Kayo Sousa:

@Jt Marting

Hey man this is Kayo from Framingham, MA. I feel you 100% bro I’ve been listing a lot to BP podcast but I’ve been told by the bank that I need to pay a year of credit and have 3 credit lines to be able to buy a duplex for me to live in house hack. Although I have a feeling that there is a way for me to house hack right now. Is there something I’m missing?

Honestly I'm not really sure, but I bet there's someone more experienced than me on here who defiantly has the answer to the question! From what i've learned, banks really, really, want to lend you their money, you just have to make it easy for them. When did you get your first credit card? All have you tried talking to other banks or smaller credit unions? I think if you look into it more you might find some sort of loophole. Do you have a family member who would co-sign? You defiantly took the right step by taking action and going to the bank, which is admirable!

Credit is tight now, but that doesn't mean you are out of luck. Here is what I would do if I were you:

Don't buy anything based on where YOU want to live. You need to buy where there is demand
Educate yourself for a good while. Try and read a book or two a month, more if you have the time. Rotate the books between Personal Growth, Business, and Real Estate
Join a REIA group, greatlakesreia.com is the one I belong to.
Find a way you can be helpful to an existing investor (are you handy? Good at marketing? Can run errands? What ever it is, find that and start offering that service to current investors
Start with 10 years, where do you want to be, what does your business look like? Now work back to 5, then 3, than 1. Once you get to your 1 year goal, work out 4 90 day plans to get you to that goal. Update each year.
Start looking for money partners, banks are fine, but they aren't the only source of capital
Start visiting local banks and credit unions and talk to them about your aspirations.
Build some credit, buy a SMALL car (one you can easily afford), and get 2 or 3 credit cards...secured cards are great. Be disciplined and 2 of the cards, put small expenses and pay them off each month. On the other card, purchase something a little bigger and pay it off over 4-6 months. Make whatever you buy useful to your business.

That should be enough to get started. :D

Wow! That helps a lot. Breaking it down into manageable steps makes it seem considerably less overwhelming!

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Cleveland, Ohio

All Forum Posts by: Jt Marting

Jt Marting has started 17 posts and replied 52 times.

Post: 203K Loan (18 y/o, Cleveland -> Jupiter)

Post: 18 y/o Aspiring RE Agent (Commercial/Investment)

Post: 203K Loan (18 y/o, Cleveland -> Jupiter)

Post: 203K Loan (18 y/o, Cleveland -> Jupiter)

Post: 203K Loan (18 y/o, Cleveland -> Jupiter)

Post: 203K Loan (18 y/o, Cleveland -> Jupiter)

Post: 203K Loan (18 y/o, Cleveland -> Jupiter)

Post: 18 Year Old Aspiring Agent

Post: 18 Year Old Aspiring Agent

Post: 18 Year Old New to RE