Wholesaler(s) in Colorado

[Reid Siders]

Hi there bigger pockets! I’m in Colorado and I’m just getting into real estate. I graduated from Colorado State University with a finance degree 2 years ago. I have my real estate license as well. Trying to wipe out those student loans I piled up just to figure out real estate investing is the path I’m taking. For my first deal I think I would like to buy from a wholesaler with a private equity loan. I probably don’t qualify for fha or conventional because of my student loans and lack of two years of employment. Does anyone have any suggestion, opinions, and/or any dependable wholesalers in the Denver/South Metro/Colorado Springs area? Thank you!

[Matt Camilliere]

Hey Reid, I'd recommend connecting with some Hard Money Lenders to gauge terms and see what you can actually afford with the cash you have. 

Typically - to refinance out of a HML you need a 20% (25% preferred) Loan To Value. Example - if a lender gives you 160k to purchase and rehab a project, it has to appraise at 200k or above for you to qualify without bringing extra money to the table to close.

The 20-25% LTV is for Single Family Investment Properties. Multi-Family is 25%.

You can go a couple routes here:

1. An under the radar strategy that's great for first time home buyers - purchase a property with hard money through a wholesaler (or other lead source), fix it up, and refinance into an owner occupied loan. You only need 10% LTV to qualify for this (confirm with CO lenders). This is a HUGE advantage because most investors need that 20-25% margin and most people don't shop for a fixer upper project when they want a new home to live in... You only need a 10% margin if you'll live in it for the next year. Any extra beds is a house hack!

2. CO is booming with tech companies. If you're new to it, get an SDR/BDR role at a startup that offers a salary and equity. Lenders need 2 years of work experience to average your hourly wages for you to qualify, BUT if you get a W2 job with a salary they'll use that to qualify you as long as you've been in seat for 6 months. I want to work for my self and I know I will, but I got 2 properties in the past 6 months because my W2 allowed me to qualify for the loans... And I know I'll qualify for the next one.

If you have any questions feel free to PM me. I'm well versed in Hard Money Loans and also know how to land a tech sales gig in a few simple steps.