Starting out and wanting to get into first multifamily deal

[Ethan Dezzani]

Hey guys!

My name is Ethan Dezzani. I am 20 years old and going into junior year at ASU. My major is business communication and I have a minor in real estate. 

I have some money saved up and currently have it all invested in stocks. I want to transition out of the stock market and get into my first real estate deal. My goal is to buy a 3 or 4 unit multifamily that is in a good area with immediate value add potential. Then go ahead and possibly do some kind of househack it or just rent them out.

Being a full time student I am going to need to get creative with how I am going to fund this deal. I see my options as the following:

1. I was thinking I could partner with someone I trust and possibly qualify for some kind of FHA loan. The bank would be looking at my partner for whatever W2 and income verification that we would need to qualify for this loan. From my current knowledge my partner would have to live in one of the units. If I do happen to find a partner that would want this kind of agreement, I would be fine with it and just stay at my current residence. I am not even sure if this is possible. If this is possible however, I could potentially be able to control a very nice piece of property with what I have saved up.

2. Get very aggressive and put together some kind of seller financed deal. I have been thinking hard about this one and how I could make it happen. I would likely have to pay a pretty good premium to be able to have seller hold the note. I would be completely fine with this as long as I can make the numbers work. I immediately think of the phrase “I would be willing to give you want you want if you give me the terms that I want.” I am also trying to put a plan together on how I would be able to find a deal like this.

I am planning to make this deal a reality this fall or winter. I think that the market will soften a bit more and by that time I would be in a better position as a buyer. Especially if I am trying to do a seller financing deal.

I look forward to some great ideas and thank you in advance very much!!