What to do??

Question

Hello BPers!!

Now I am working on my first flip ever (have a few deals already analysed) I am 21 and in between jobs decided to take this time off and read into real estate investing instead of sitting around and watching T.V. Now here is my issue, since I don't have a job getting a loan can be rather hard (tried local small banks no go) and even though I have found some deals below market value in areas that have a good market just not budging with traditional loans. So read into other types of loans such as hard money lender, 203k loans (still not sure about this one) FNMA loans, etc and just kind of need your opinions on what loan I should go after? Also do have a cousin going in on the deal so may be able to get some cash but for the sake of this forum lets say a broke 21 year old starting off in his dream to invest in real estate. Thanks!!

Gustavo Perez · Answer

I'm going to look into hard money lending a bit more just started looking into that, would be a way to get my foot into the door and if need be do some the work myself on the flip.

Gustavo Perez · Answer

I'm going to look into hard money lending a bit more just started looking into that, would be a way to get my foot into the door and if need be do some the work myself on the flip.

Gustavo Perez · Answer

My whole family are contractors, welder, plumbers, navy seabees, and hvac techs. So to answer your question I do have skills and if not can and will figure it out but that wasn't my question. Was just curious to see what could be done in my position.

Gustavo Perez · Answer

Well I have been reading just bought a few books on the topic but the whole point was to hear other peoples point of views on what they would do better to hear it from someone whos done it than in a page of a book you know. But nonetheless I have bought a few book (the book on no and low money down) and have read through some of the investor financing forums here on BP and youtube, I've really thought about hard money lender   have a few plans written up one of which the MOA is higher than the purchase price and is in a area that is selling lots of 3 bed 2 bath, I do have some construction skills but also have a lot of former employers who I know can get the job done right.

Mark Holencik · Answer

First, get any job. It is easier to find a job when you are employed. A person with a job will always get a closer look.

The reason for this is an employer does not get rid of his best employee's. So the person that is working is looking to improve his circumstances. This will put his resume to the top of the list.

If you have gaps in your employment history and the other applicant does not have any regardless of the type of job, shows he always works,

These same things will help when getting a loan.

Shannon K. · Answer

I'm currently working toward finding our first flip. I'm planning on using a hard money loan to get our first official one done. I say "our first official" because my partner already performs repair and renovation operations daily for the last few years at his job. He's bringing the construction knowledge. I'm bringing $15K cash and searching out a HML that will work with us. It seems HML are looking for a combination of liquid cash and experience. Perhaps hard money is something you can look into if you've got some renovation skills or your cousin has cash. Just be sure to account for the cost/expense of the hard money when building your budget though! Some people advocate using hard money to get your first one done, some don't. I'm going to take that risk and am planning for 6-8 full months of holding costs/fees. My numbers still "work" properly even with hard money.

Lydia S. · Answer

@Gustavo Perez

Welcome!  Since you have the spare time to read and watch everything you can here on BP,  you should continue to focus on that and get some insights on what others have done in your situation.  Make some connections, get to some meetings, see if you can make yourself useful to someone else investing or on-sight at a flip, and who knows what will come of it:)

All the best!

Joel Owens · Answer

Are you a contractor? What skills do you bring to the table when you have no money?

You have to be valuable or you won't be needed. If you are having great success finding properties  you might look into assigning contracts for a fee and building capital. Look up Jason Scott on here and also look for his book.