All Forum Posts by: Max Ferguson

Understand that you are tying yourself financially to someone here, I would personally create a partnership agreement first and foremost. This outlines the plan, if things go wrong, and exit strategy. Worst case scenario one of you gets sick/accident/etc.... and NEEDS the money that is in the property. If you can manage to purchase by yourself (parent cosign hopefully?) then that will be far more advantageous to you than partnering. 

Your market could be far different than mine, but if you two occupy two units, the DSCR loan would be hard to push through. If you plan to occupy one unit with your partner as a roommate, you may be able to pull it off.

Another avenue would be to purchase a house together, househack or additional ADU, wait a year or so then you will be in a far better position to purchase a quad.

Tons of fun stuff to consider, keep us updated and good luck! Reach out if you need help. 

Very hard to start investing while unemployed. You do have some fantastic avenues for you to get started however! One of the biggest investors I know is a CPA that specializes in Realtor and investor Taxes. This would be a great way to not have to pivot into a completely new career. After you establish a good w2, or somehow get approved for lending, the world is your oyster. Especially with access to VA loan, Focus in on househacking for a year or two and that will build your base while keeping your monthly costs down or hopefully negative! A good Quadplex would be a great springboard into investing for example. Good luck, keep us updated!

Yeah, huge mess to keep it in their name. If you plan to rent, or know it would command good rents, you could possibly do a DSCR loan. Another avenue would be to bring in a cosigner and offer them a stake in equity, return on down payment help, etc... To get your through closing. Good luck, keep us updated!

Depends on state and situation. I would start by contacting your local bank and they can at least give you a scope of commercial or other options for the property. Next I would seek out an independent investor who has done similar deals, they will know a lot more. Either of these steps could be done interchangeably but you need some guidance on the local market. How you assume the property, money down, entity structure, all affect what the loan will look like. Good luck!

As others have stated, it really depends. I believe that a lot of newcomers think that wholesaling is an easy process which only takes 2 weeks to create massive wealth from. As we all know, this isn't the case and Real Estate is the long game for most. Having no capital when wanting to invest isn't the most fun, so people see this as an out, not understanding the true scope of how much research it can take to adequately pull off. 

With that being said, a good wholesaler is worth their weight in gold. They benefit everyone with a transaction and aren't just trying to make a quick buck. As always, relationships make money in Real Estate, not screwing someone over on a crap deal. 

Couldn't imagine why this wouldn't be a viable form to send/receive payment. Unless your state laws do not allow this for some odd reason, it is a verifiable transaction where monetary value was exchanged. I have received my last rental's security deposit via paypal with no issue. As they are the same company I would be hard pressed to believe there is any problem. Especially now with the gov't keeping track of transactions over $600 in that space. 

Great post with tons of information! I started my journey last year as a "Young" investor but the family business growing up was centered around it so I was fairly comfortable. I used to be a multifamily acquisition analyst and our goal is very similar, multifamily is what I'm most comfortable with. 

Some of my thoughts:
-Jumping from Digital ads to wholesaling is largely different. While you have studied wholesaling, most people aren't cut out for it. If you mess up/see no success in 6 months you could royally shoot yourself in the foot. Cold calling/Doorknocking/following up aggressively are all skills that take time to curate and implement effectively. 

-Buy as cheap of a car as you can for now. Like others have said, financing makes no sense. Look for something reliable, no one cares about what you drive. I chose a 2008 Lexus LS460, my multimillionaire clients appreciate it since it is clean and comfortable. It only cost $10k however provides some snazzy features like heated rear seats. 

-Becoming a Loan officer right now would be tough also. A huge amount of the industry has quit due to the mortgage applications dropping so drastically. While you could do this "part time" and learn the ins and outs for the next bull cycle or when business picks up for you, there are other avenues that would be far more advantageous to spend your time in.

My recommendations:

-$125k is a fantastic salary so keep Job and Save Save Save

-Buy a car outright

-Save up for a downpayment after, get a home with at least 2 units. OR if you can somehow save up for a buildout, convert a basement/attic/whatever of a single family!! (this is a way to keep list price down in most instances) CHECK out FHA 203k loans. I haven't used one yet, but these allow you to borrow construction costs. You need plans/quotes/etc to show the lender but you may be able to get a whole buildout financed if done correctly!!

-Go slow for a year, retain your current job and relax a bit. This will allow you to get used to what home ownership is like. It is important not to overextend yourself, sometimes sitting back is best. 

Please reach out with any questions. I have contacts in the Phoenix area as well. Love to help people like me and you are definitely on the right track! Keep us updated!

Zeona Spoke at the House Hacker Mafia meetup in Colorado Springs. She was fantastic! Anyone around Boulder should check this out. 

Any local experts in the area you can talk to? Sounds like some very light analysis on the property. Have you ran comps yet? Is the area going up or down in list prices? 

Dive a little deeper before pulling the trigger on something. The more people you talk to the better you will be able to analyze deals. I'm sure there are also people here on BP in your area you could meet with. Good luck!

I am in Colorado so can't speak on the northeast too much, however, are you planning to Short term or mid term rental the property while you're gone? 

I have a lot of clients that do that with their second homes. Defining your criteria will help a lot. For example: What activities, what price point, appreciation of the area, investment goals, etc... These will all help to narrow the search. While Colorado is quite a bit a way, reach out with any questions!

I would say your next step would be to Narrow the search to at least a couple towns, figure out price point, then reach out to some of the great agents on here to help.

Good luck!