BP COMMUNITY IS HARSH but I LOVE IT! HERE IS WHY?

Question

The BP community gave me advice on not getting started in real estate right now and focus on a job and save some capital and travel a little while making as little liabilities as possible. I didn't want to share my actual finance with strangers but Im a grown man and how someone is going to give you advice if they don't know your situation? Im thinking about house hacking and wholesaling though. I have a question about house hacking Im thinking about. I have a brother that I live with that is on section 8. He will be able to move anywhere in the country with section 8. Since I make money by traveling on the road, Im thinking it would be a good idea to buy a multifamily home and me and him stay on one side while renting the others out. While I'm gone on the road and can watch the property but can't do any maintenance work. Live in that for a year or two and invest in another multi/sfh. I want to know how this can work and NOT WHY HE WONT. ANY THOUGHTS?

To see my first post in the BP forum copy the link below:

https://www.biggerpockets.com/forums/12/topics/274533-this-stuff-is-very-hard-for-me-investment-stories?page=1

To see my first post in the BP forum copy the link below:

https://www.biggerpockets.com/forums/12/topics/274533-this-stuff-is-very-hard-for-me-investment-stories?page=1

Mindy Jensen · Answer

@Antonio Evans, I wouldn't say BiggerPockets is harsh, more like BiggerPockets is filled with realists. Having 60k in debt is going to hinder your ability to qualify for a loan. I read your other post, and it appears that every single person is saying get rid of the car payment. That is solid advice.

Regarding the section 8 brother, you can rent an apartment to him, but section 8 comes out and certifies the place - so you have to pass inspection. Living with him would most likely disqualify him from the program.

Wholesaling sounds easy, but it is tough to get started. Let's say you have a property under contract, who are you selling it to? Do you have a list of cash buyers?

I think house hacking would be the best way for you to get started. You may want to rethink your plans of having your brother live with you if he plans to keep his section 8 voucher.

Michael Garrison · Answer

Although I have some associates that have totally crushed the wholesaling game in their first year i was not one of them. It took me that long to do a deal that was really worth while. Wholesaling is hard and time consuming if you are going to do it right. Its not just getting a house under contract and finding a buyer. Theres a ton of research that goes into each property to make sure youre actually getting a deal and that your actually passing along a deal.

Direct mail or putting out bandit signs and networking takes a huge amount of time, effort, dedication and expense. If you dont plan to carry through dont even start.

Building a real buyers list wont happen until you have established a great deal of trust with your local buyers. They have to know you, and you have to make their life and choices easy. Do all the work for them before you ever present a deal.

As far as your debt, well, a car is the last one you want. Get something that serves the purpose and drive the wheels off it. Your sellers will appreciate it too. Look like the working man and you will appeal to them.

Section8, could be a great way to get paid. No hassles. Make sure your place is up to par and will pass all the inspections. Dont try to fool the Government, you WILL get caught up. Do it right. Find something that needs a little work and use some hard money to fix it up and refi. Your place will qualify and you will be happy about living in it. Your brother will too.

Nate Burnett · Answer

Well something to remember, if your brother is on Section 8, he won't be able to live in the unit you do. Your income more than likely will disqualify him from the benefit. If you try to make it appear as if he is legitimate renter it could be classified under fraud and cause more issues for both of you. I would just approach this carefully.

Maybe you get a triplex and it has a smaller unit in which could be approved by the program and he could rent it, still not sure on the legality of it.

Brian Gibbons · Answer

No banks and no credit

Search biggerpockets "Brian Gibbons lease option wrap sub2 lamnd contract private lender joint venture"

https://www.biggerpockets.com/search?utf8=%E2%9C%9...

"Banks and credit? I dont need no banks and credit! I need to study creative financing!"

Antonio Evans · Answer

Yeah I think Ima try house hacking and lease option first! I think lease option is where you have a homeowner who have a vacant home and you pay them the note and do the maintenance work all find tenants? You soon buy it from them once its paid off while they sit and collect a months check and all you have is a contract with them. No bank involvement.

Antonio Evans · Answer

Thank You for your response! Very Useful Information

Antonio Evans · Answer

Right right right! Well maybe the triplex thing my work and him getting his own unit. Im sure you can rent to family members but A lot of investors say its a no no.

BP COMMUNITY IS HARSH but I LOVE IT! HERE IS WHY?

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