All Forum Posts by: Justin Bearce

@Jaysen Medhurst, I have a friend who processes loan applications and he was telling me the FHA is their most commonly denied loan and he has never seen someone in my situation get approved. he has only been there a few months but that makes me feel uneasy about it. Despite the 580 minimum it looks like they still want a higher credit score (Mine could easily be increased to a 630 but would set me back on the down payment). As I said i plan to look into doing this but i'm just wondering if this falls through (which I expect) are there other creative options that work in this scenario?

Thanks

Hello, So as the title says I am thinking of buying a house for personal use and use the BRRRR minus one R at least for now. I am looking for a place for my girlfriend and I and found an amazing property for 40K when its estimated worth is over 120K. it needs a new leach field but if i can bundle that all in to a loan and refinance after 6 months or a year it should give me enough to move on to the next property right? Ideally from there I would use the full BRRRR method to build my portfolio.

If this all sounds reasonable then my follow up question is this. With little to no credit how can I get the property financed? I plan to talk to a couple banks on Wednesday to see if there is anything I can do there but my assumption is it wont work out especially since I cant afford a large down payment currently.  Given i plan on the first home being for personal use i cant imagine I will easily find someone wishing to invest. I'm just looking for any help I can get to push me in the right direction. Thanks!

@Christopher Phillips Okay so my current plan would definitely be to buy something else when the time comes. I also would plan on moving myself into a single family within a couple years.  My goal is to buy and hold rental properties to create a passive income.  So I will be missing out on this exemption for most of them anyway.

So if I understand this properly, I could have him Co-sign the loan with me and he could pay the down payment and I could pay the closing fees. And I could agree to give him X percent of profits from rent as a partner?

@Christopher Phillips So if i were to receive a gift or a grant and I was able to fully cover closing costs than that would be fine? Is there another option that you think would work out better for me?

@Christopher Phillips is there a way around that? 

Also with an FHA loan I believe I can bundle the closing costs in? and if not if I have the additional cash he is offering I will have plenty for closing costs when the time comes. I make a decent income so I can cover most things that will come up in the short term and plan on putting all income from the property into an account for the property including paying rent on my own apartment as a way to save money towards this and future properties.

@Ryan Blake Thanks, I will continue my negotiation with him.  

Thanks for the tip on bundling the renovations into the loan.  I will look further into that!

@Ryan Blake Thanks!  So the terms may be slightly unreasonable in the deal I mentioned but the overall concept is reasonable?  One reason I like the idea is it leaves me with more money to do renovations on the property.

Hello, I am looking to get into an FHA loan on a multifamily home. My friend is offering an investment just for the down payment. I could have the down payment in a few months but somewhere near the finish line I'll be couch surfing as I am moving for my job, and will also need to Uber for some extra cash.

So the homes I am looking at are around $125k. With an FHA loan I would need just over $4k. This will be my first property and I will occupy a unit. My friend wants to build his money and would like me to keep it for 5 years with a 12-15% APR.

I am wondering if this is a reasonable idea or if it makes a lot more sense to couch surf and save. The cash on cash ROI would be about 60% for the property since the FHA requires very little money to get up and running. I personally like the idea of not couch suflrfing, but o really don't want to put myself in a situation I may regret. It seems the cost has a minimum impact on my yearly take home.

Hello, my name is Justin and I am from Maine. I am soon going to be entering the workforce as an engineer, and thus will hopefully have a decent income coming up to start investing in real estate. I have been doing a lot of research including reading "The book on investing in real estate with no and low money down" by Brandon Turner as well as watching some informative videos on youtube. Which is obviously the most reliable source of information.... right? 

Anyway I am looking into the markets of Wholesale and Rental properties. Right now I am just trying to learn more about the game before I try an play it. Though I have been thinking once I get my feet firmly planted in a good job I may look into buying a multifamily home. And see if I can learn a bit more through working with that.

I have heard and seen many strategies through the sources I have looked through thus far, but what I am still very unfamiliar with is the "paperwork" portions of everything. Or where I look for a good contractor or attorney. What does it cost for an attorney and is that an upfront cost you need to have with every deal? 

Clearly I have a lot of questions and more even still. I don't want to ask anyone to sit here and try and explain all of this to me, so I was just wondering if anyone has a good recommendation for a book or video to help me answer these questions.

Thanks!

Justin