All Forum Posts by: Justin Raddatz

Kevin and Travis - thanks for your notes. I've learned that Colorado grants don't apply to 2-4 unit properties despite their FHA eligibility. It appears the first time home buyer can take gift funds for down payments, but must sign agreements certifying that they don't have some side-deal for those gift funds; they must be true gifts.

More questions to scratch at - and thanks guys.

Thanks Clayton, that's great feedback.  The 4 Hour Work Week has come up a number of times; it's time I pick up a copy.  Really appreciate the help, best wishes for your balance sheet.

Like many folks, I desire a future of financial independence.  However, I want to give special consideration to the time demands of building a portfolio.

For folks who have completed more than a few deals, I would love your candid feedback regarding whether or not it makes sense for me to step into the game given my resource constraints.  A few highlights below to frame the situation:

• I am in my 30s, married, with our 5th child on the way.
• My learning curve is shorter than most:  I work full time W2 developing for and managing a 1,500+ unit low-income housing portfolio.
• I have access to capital (initially up to $75k friends and family, up to $40k of my own).  My private money network is much bigger after proof of concept with the first deal.
• The "Why" attached to my reasoning for considering RE is to create time, flexibility, and funds so that I can be present and participate in my family the way I want.
• I need to ensure I make family time a current priority, even during the initial stages of building a portfolio.  Until I am financially independent and can leave my W2 position, at the very most I could commit 4-6 weekday daytime hours, 3 late-night hours each night, and 3 hours each Saturday.  

Again, if you are a seasoned investor and recall the demands of getting started, would you advise someone like me towards or away from jumping into the RE game given my conditions?

Thank you.

Thanks for the tip Mark - I'll look into him.  I've seen some nice press about his work.  

My brother-in-law qualifies for, and is pursuing, FHA first time home buyer financing. I believe this requires a 3.5% down payment and no mortgage insurance. Nice terms. Colorado also offers grants applicable to down payments and closing costs.

His intention was to buy a single owner-occ townhouse. However, I understand that this financing is also applicable for up to 4-unit properties if he resides in one of the units for one year. He is open to looking at 2-4 plexes with me as long as he can still secure the FHA financing program and/or I bring all additional capital and effort to the deal above and beyond what he would incur by just buying a single unit for himself to live in.

Is anyone aware of a way for a first-time home buyer to partner with a non-first-time-buyer, using the FHA program on a 2-4 unit transaction? He could not income-qualify or support a down payment for a 4-unit on his own.