What's goin on, Bigger Pockets family!

What's goin on, Bigger Pockets family!

Fredericksburg, VA · Member since 2016 · 28 posts · 12 votes
Well, now that I'm married to this opportunity of real estate investing, I can now introduce myself to my new in-laws; the entire Bigger Pockets family! My name is Raheem. I am 24 years old, and I am slowly, but surely learning everything I can about investing in multi-family commercial real estate. I would just like to share with you guys my plan of action to get my feet wet in the game and my end goal. First, I want to say, I will be attending school to become either a plumber, plumber's helper, or an HVAC installer very soon (I'm thinking HVAC installer) so I'll be initially working a full time job when I begin my investing journey. Currently; unemployed; no credit history; no car; live with mom (not ashamed to say it, but definitely not my ideal situation). Getting my feet wet- My first move in the game will be to do what Brandon Turner likes to call "House Hacking". I will probably put a down payment on a 5 plex. Now I have no idea how I'm going to go about finding the deal for this property (I live in Fredericksburg, Virginia so if anybody knows anything about this market, please by all means contact me or I may decide to move to a different location and invest there) or how I'm going to go about getting the money to make the down payment (maybe one of my BP in-laws can help me out here as well) End goal- I want to own enough equity and generate enough cash flow in my multi-family commercial real estate properties to be financially free to travel first class or by private jet, own an island or a really nice beachside modern luxury estate, a Mercedes-Maybach S 600 Pullman, a couple of luxury watches, and most importantly I want to be able to take my grandma to Canada (she has never been on a plane and has always wanted to go to Canada. Now, I do have a dollar figure in mind, but if I told you, you'd probably laugh at me or...maybe not...because we're all on the path to success together, right?! Hell! I want a 250 million dollar net worth by the time I'm 40!) Now, you may think I'm naive or you may think that that's great and really believe I can do it! Either way I really appreciate you taking the time to read my introduction and any feedback or advice; negative or positive, I'll accept and I will be very active on the BP forums. (: Thanks BP Family!
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Mindy JensenPro Member
BiggerPockets Money Podcast Host · Longmont, CO · Member since 2014 · 7k+ posts · 10k+ votes
9y

Welcome to BiggerPockets, @Raheem Jamaal . Always nice to have another Brother-in-Law!

I see only one slight issue with your plan, and that is the 5-plex you're looking at. You can get a residential loan for up to 4 units. Anything 5 and over is a commercial loan. So look at 4-plexes instead.

The midwest is filled with affordable markets. If you could move, you may be able to start your investing career more quickly.

If you're living with mom and have no down payment, continue to live with mom and save like crazy. Get a second job, make sure your credit is good and if it isn't, start now to improve it. Throw every dollar you can at any outstanding debt, then save save save.

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  • Rental Property Investor · Jackson, MS · Member since 2014 · 21 posts · 11 votes
    9y

    Welcome to the BP Raheem, I'm an investor in the commercial sector. I own office property and have owned multifamily in the past. 

    Just let me know what questions you have and I'll try to help you to get started. Look at my profile and I have a blog set up on BP, some of those articles may help you get started. 

  • Mindy JensenPro Member
    BiggerPockets Money Podcast Host · Longmont, CO · Member since 2014 · 7k+ posts · 10k+ votes
    9y

    Welcome to BiggerPockets, @Raheem Jamaal . Always nice to have another Brother-in-Law!

    I see only one slight issue with your plan, and that is the 5-plex you're looking at. You can get a residential loan for up to 4 units. Anything 5 and over is a commercial loan. So look at 4-plexes instead.

    The midwest is filled with affordable markets. If you could move, you may be able to start your investing career more quickly.

    If you're living with mom and have no down payment, continue to live with mom and save like crazy. Get a second job, make sure your credit is good and if it isn't, start now to improve it. Throw every dollar you can at any outstanding debt, then save save save.

  • Investor · Fredericksburg, VA · Member since 2011 · 36 posts · 9 votes
    9y

    First of all, Welcome! I have been investing in Fredericksburg for a couple years. One thing I know about this area is that there are not that many small multi in this area. You can occasionally find duplex but not much tri or quad. With that said, it doesn't mean that you can't house hack. I would recommend you start with a reasonable TH or SFR and try rent out a room or two. The rent you collect from the rooms should most likely cover your mortgage. It doesn't take a multi to house hack. Best luck.

  • Fredericksburg, VA · Member since 2016 · 28 posts · 12 votes
    9y

    This is great advice! Thank all of you guys that left comments! Now is there any particular reason why I shouldn't dive directly into commercial multi family and house hack? @Mindy Jensen And @Nick Ye I definitely feel you on this, man. There aren't many multi families selling in this area sadly, but that is also great advice, but by the time that I'm ready to invest, I should be out of this area if everything goes as planned. 

  • Mindy JensenPro Member
    BiggerPockets Money Podcast Host · Longmont, CO · Member since 2014 · 7k+ posts · 10k+ votes
    9y

    I don't have experience with commercial loans. I think they want to see a 6-month reserve fund and I believe there is a significantly higher down payment requirement. You can house hack with an FHA loan if it's less than 4 units with as little as 3.5% down. I think commercial is 20% down.

  • Julie MarquezPro Member
    Investor · Skagit County, WA · Member since 2016 · 1k+ posts · 807 votes
    9y

    @Raheem Jamaal Welcome to Bigger Pockets! I hope you get to take your grandma to Canada soon! I recommend Victoria, BC - they have a fancy tea service at the Fairmont, and it's beautiful!

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