Newbie with questions - Minneapolis, MN

[Long Thao]

Hello Bigger Pockets community,

This is my first post on Bigger Pockets so here is my story and I also would like to some tips or advice on my current situation.

I'm 25 years old and currently a student who will be graduating in two years with my bachelors degree. Coming from a poor family, the idea of financial freedom and real estate investing has never came out of the mouths of my family. I only found out about the possibility of financial freedom through a multi-level marketing company presentation. I never really got going in the company but then bumped into our guy Tai Lopez online and found his recommended books. Out of those recommended books, the first book I saw while walking through Barnes and Noble was Rich Dad Poor Dad by Robert Kiyosaki! This book got me on the path of REI and here I am.

Right now I don't make much money working part time and I'm currently living with my parents in my brother's house. My brother wants me to take over the house title so he can buy a new house for his family.  My plan was to save as much as I can and look for a small multi-family home to house hack but I don't know what is the best way to go about this.

My Brother's house I'm living in has around $130,000 on the mortgage but is currently valued at around $230,000 right now in a great neighborhood in Brooklyn Park, MN.

My plan to finance a multi-family home was to utilize my VA home loan and put about a 10% down payment. I also need to study a lot more about real estate!

Let me know what you think I should do to get started in REI and thank you spending your time out of your day to read my story!

-Long Thao

[Tim Swierczek]

Hi @Long Thao Thank you for posting & thank you for your service.  I'm so glad you did because there are so many reasons that I feel you need guidance.  

First, your brother's plan to put the title in your name WILL NOT do anything to improve his odds at getting a new mortgage.  I'm guessing he is just speculating that it would help, however, if he got that advice from a loan officer or Realtor he should fire that person for giving such irresponsible incorrect advice.  His qualification or ability to qualify for another home has to do with his debt and obligation to pay the current Note on the property, deeding ownership to you will not change that obligation but it will cause other issues for him.  It's an awful idea for him. 

If he sells it to you it would use up a huge percentage of your VA entitlement and prevent you from reaching your goal of financing a multi-family home.

Lastly and possibly most importantly you should not waste your one chance at a zero down multifamily property by putting 10% down.  The beauty and benefit of a VA home loan is mostly the zero down payment option.  If you put zero down on this purchase you will have enough left over to purchase 2 more owner-occupied multifamilies without any additional savings, in fact, you will have 1.5% left to save toward your first "large down payment" non-owner occupied property.


I'd love to meet up for coffee and talk in more detail about this.  In the meantime keep up the research so you are already when you get that first career job.

~Tim