I’m a Beginner Looking To Get Started

[Jalen Chanthaboury]

Hey BP community,

So I’m 19 years old with no job. I am self employed basically as I run my own e-commerce business. That’s been my main source of income for about 4 months now. My income is based off the sales I generate so it’s not guaranteed. And I plan on shutting that store down soon as well...

To get started, I am looking to invest in a multi-family (2-4units) and profit off of that by house-hacking/renting it out to tenants. I know you need a true source of income in order to qualify for loans, and I don't have a job. So I'm wondering how does one get started investing in real estate at such a young age to where he/she doesn't have a job like myself? I want to get started ASAP. I have about $20k saved up; I've been saving up to use for an investment property. I refuse to work for someone/be an employee in order to qualify for an FHA, conventional, etc... But if that is my only option, I guess I'd have no choice. Also have been looking into hard money lenders, but not sure if that's the way to go unless someone proves me wrong. I need some advice!

Any help would be much appreciated! Thanks BP.

[Dan Sheeks]

Hey Jalen.  Kudos to you for trying to get started in real estate so young!  Pretty much everyone on BP wishes they would have started at age 19.  As for getting a loan.  Pretty much any bank is going to want to see 2 years of income from a W2-type job.  They won't give you money unless they know you can make the payments.  The other two things they look for are a good credit score and sufficient down payment.  You seem to be good on those two.

At 19, you do have another option.  You could have a parent co-sign on the loan.  That would probably be the easiest solution.  You can always contact a lender and ask them your questions.  In my experience, lenders are always happy to talk to a potential client.  If you have no lender in mind, start with the bank where you have your checking/savings accounts.

Hard money lenders may be an option.  I'm not experienced with that avenue so I will defer giving advice on that route to others.

Whatever you find out, keep on working towards getting your first property!  Don't let roadblocks stop or deter you!  Best of luck!