First Time Property Loan

[Nathaniel MacHugh]

Hi, I'm Nate. I'm 19.

I have been actively reading and learning about real estate and investing with a greater appetite each day. 

Through my research I am very excited about the first time home buyers loan. Using a FHA loan or a 203k, I can invest up to a four-plex, since more than four is considered commercial property. My question is, what, in the experience of you more sophisticated investors is the best strategy for my first investment? If I start a legal entity to buy my first home can I still use the loans or are there legalities that prohibit that? I am definitely looking to invest for cash flow and buy-and-hold properties.

Any insights would be greatly appreciated and valued very highly!

Thank you for your time:)

Nathaniel

[Brandon Rush]

Nathaniel,

Glad to hear you are jumping in head first. This is a simple one here, do not worry about forming an entity for your first purchase. I say this for two reasons:

1) The bank will not allow it on an FHA or 203k FHA loan

2) You will get better terms (ex. interest rate) do it in your own name

For now, just worry about getting a property and that's it. Unless you have hundreds to millions of dollars in the bank (which you may have) you do not have anything to worry about. Don't think too hard, just jump in my friend. Get the first one, learn from it and then decide what is necessary for the second one. 

Feel free to reach out for any questions and good luck!