THIS IS MY CALLING!
First of all, I am very open minded!! any comments and suggestions are very welcome!! I am currently a renter.... I have been for about 4 years. I have never owned a home because of the positions I have held in the corporate world weren't to my best interest. I have always wanted to better myself financially, and have realized that my first choice (real estate) was my best choice, of wich I never persued. I have changed career fields all together and I am starting over at the age of 22 because I know there is a better way with real estate investing!!
I am currently looking to buy a home to build some equity, but I don't want to waste my perfect credit score and credit line to a mortgage. However I would like to purchase real estate, such as a duplex. Does anybody know if it is possible as a first time home buyer to purchase something like this with little down? Are there mortgage companies out there that will do this? I have looked around, but I don't think I am getting anywhere. I know there is an answer, but I just can't find it. I am looking for a good starting point on my first real estate purchase that will also provide a return on my investent, or at least pay for itself by renting it while I live on the other side.....such as a duplex.
I have also considered renting for a while and purchasing tax liens to try and turn some profit, but I am not sure where to start. I read books and investment guides and some of the ins and outs, but I guess I am having a hard time making the first step!!! I want to make sure it is the right step so I don't fail.
If anybody has been in my position or has a better way for me to use my credit, please let me know!! It is greatyly appreciated.
Thanks,
Jace
hi jace i was able to purchase a triplex in 2002 w/ 5% down i would go w/ a triplex -4plex cuz the wasnt enough income to put the nbrs where i wanted them. dont forget to look for a sfh w/ a guest unit also u can go owner occ for little to no down.
Hi Jace, hope your having a good Friday. I am also a new player in this game called REI. It is exciting but then again scary for a beginner, I still have the fear but Im putting that fear to work for me and thrive off it to purchase my first 4-unit in which i put an offer on. To your question, YES, you can buy a duplex or triplex with NO MONEY down. My current loan through my mortgage company Im getting 100% financing and my closing costs are thrown in also so I pay NOTHING. It is an %80 - 20% loan. The 80% pay 6.5% and the 20% side I will pay 11%. Yes that 11%APR is high but as far as investment property loan goes and paying nothing out of pocket, I think it is great. There are allot of knowledgable people on this website and they are eager to help out so they will be able to give better output than myself. But if you do anything, do your investigation with mortgage companies, properties and take that first step, you will never look back. Have a great weekend!
Proactive1
A good broker will get you 2-5% down. Some can even do 100% fin. I work in the mortgage biz so email me if you need some advice.
With good credit you should not have a problem getting a owner occupied 100% mortgage.
jmcurley,
Thanks for your advice. I would like to get your email address so i can learn more about loan types. I am a first time home buyer and I have recently been approved for 100% financing on a home, but I want to buy a duplex. Will a bank loan me money as a first time home buyer at 100% financing if I occupy the home? Thanks again for the advice to everybody who replied.
Jace
Hello Jace,
If your going to go conventional you might want to check out the programs in Ia. for 1st time home buyers too. you can only use that once, I think? I used that for my 1st triplex I never lived in, I did have a mailbox there though,lol.
Marv
I am in a similar situation, I am 21 years old and have recently come to the conclusion that my computer science degree will not help me with my real estate which is what I want to do. I spent this past summer before my last year of college helping my brother find a three family place. He managed to get one which turned out to be a great deal and when all is said and done he will be paying a little over $200 to get a $275000 house and that is with PMI. Along the way I learned a few things. 1) it is always easier to do an owner occupied house 2) you can get 100% financing but be prepared to pay more in interest but if it cash flows who cares 3) don't be affraid to talk to a few banks not just brokers. We found a bank who gave us a CRA (Community Reinvestment Act) loan since my brother went for a good neighborhood where he was considered low income 4) if the mortgage broker tells you he can do something and then comes back and says that he can't get you a deal you want then he might not be knowledgeable to get you a good deal. The first broker went from saying that he could do a 100% loan to saying he could do it for 10% down which is a big shift. The long and the short is anything can be done and it is always easier when dealing with people who are knowledgable. There are always more people out there who do know. I only did one deal and I didn't even get the place but I made just as much this summer as I have in the past two and I never got up before www.11a.m.
I feel the same bud. I haven't closed any deals nor have I tried to as far as investing goes. I don't have any cash to put down since I blew it all moving all the time, then changed jobs twice.( Which is not like me to do!!) I know my future is in my own hands and I seriously have the drive to be retired by the age of 30, but I NEED to learn it all first ( or at least the vocab and the understanding of how different deals work in real estate) I recently enrolled in a course offere from The Real Estate Investment Institute. I talked with them for a while and asked myself "what do I have to lose???"
The only thing I can think of losing is my own financial freedom because I didn't take action for myself. I am determined to make REI work. I just need to learn it!! kepp me posted about your ventures. We have a similar age and I am guessing we both want more to life as far as freedom goes and will stop at nothing til we get it!!! Good luck and have fun doing it!!!!