LOOKING TO OWNER OCCUPY WITH LITTLE 2 NO MONEY DOWN
Realtor · Portsmouth, NH · Member since 2019 · 5 posts · 3 votes
Hey Guys, so being new to real estate and just becoming a realtor im realizing that investing in real estate is the thing im interested in most.
im in the process of rebuilding my credit and im curious if you guys have any insights on where i should be looking for help to get into a property as soon as possible! im really looking for a multifamily property and i see some in markets im interested in! THIS IS SOUTHERN NH AND SEACOAST NH!
i've started to analyze deals i pull up on the MLS thanks to information ive gotten from bigger pockets directly!!
i had a hard money lender reach out to me today and plan on returning his call tomorrow. i just really don't know what i should be looking for and could use some help since this is all foreign to me.
PLEASE ADVISE! you guys rock!
-Luke
You want to owner occupy a multi family property, and do so with no money down and by borrowing from a hard money lender, and you want to do it in a hurry?!? That sounds like a recipe for a disaster. If you're doing this for the first time, why don't you try something easier? My first property was a multi family that already had good tenants, was in a good area, and looked like it was in fairly good condition. I put 20% down and had plenty of savings. If you're a first time homeowner, you could get a rural development or FHA loan where you put almost nothing down, but even if you could do that i would still recommend having reserves. You never know when you'll have an emergency $1,000 + expense. It's hard to tell how much you know, but make sure you've read Brandon Turner's books- the book on rental property investing and the book on managing tenants. Rental property investing is the combination of several areas of knowledge. There's the property manager stuff (buying in an area that can get good tenants, knowing how to vet them, etc), the contractors stuff (being able to assess the condition of things), and the realtor stuff (knowing when something's a good price). My opinion is to make the first one easy on yourself.
You want to owner occupy a multi family property, and do so with no money down and by borrowing from a hard money lender, and you want to do it in a hurry?!? That sounds like a recipe for a disaster. If you're doing this for the first time, why don't you try something easier? My first property was a multi family that already had good tenants, was in a good area, and looked like it was in fairly good condition. I put 20% down and had plenty of savings. If you're a first time homeowner, you could get a rural development or FHA loan where you put almost nothing down, but even if you could do that i would still recommend having reserves. You never know when you'll have an emergency $1,000 + expense. It's hard to tell how much you know, but make sure you've read Brandon Turner's books- the book on rental property investing and the book on managing tenants. Rental property investing is the combination of several areas of knowledge. There's the property manager stuff (buying in an area that can get good tenants, knowing how to vet them, etc), the contractors stuff (being able to assess the condition of things), and the realtor stuff (knowing when something's a good price). My opinion is to make the first one easy on yourself.
@Luke Zagrodny Welcome to BP and I applaud you for wanting to take action right away. While action is super important I second what @Sasha Fukuda says you need to learn first. You are still rebuilding your credit which probably means you don't have a lot of excess money to spend/lose. Typically if you don't have the money you either have to partner with someone who does, or get creative on the deal. Not having a ton of liquid capital is not always a bad thing, this will mean you will have to learn to be resourceful!
It seems like you have two wants/goals. #1 Being a realtor and #2 being an investor and buying an investment property.
I would firstly start or continue to read and learn about investing and being a realtor. Being a successful realtor is not easy whatsoever so I would focus on that first and foremost if you truly want to do that. Something like 80% of realtors quit in the first year, so I would find a good mentor or resource to make sure you aren't a part of that 80%. During this learning time NETWORK! Join Real Estate/Investing FB groups and meet ups in your areas, see who is purchasing deals around you and call them!
Ideally once you start getting some deals closed and have liquid capital and some experience you are ready/confident enough to take one down! Wish you the best of luck and if you are ever in San Antonio I'm happy to connect!
@Luke Zagrodny
Welcome to BP! In addition to the great advice provided already I'd just remind you that being an investor is a journey and not a race. I would encourage you to find a mentor or perhaps a partner to help kick-start your journey. I know it's hard because you want to take immediate action.