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Updated almost 4 years ago,
Looking for creative mortgage ideas! What would you do?
This is a multi-part question. please let me know what you think in the comments!
I'm 22 and getting into REI full time. My wife and I take side gigs and between that and our savings we don't have to worry about any expenses for at least 6 months. We also have savings set aside specifically for REI. This led me to the exciting experience of literally having unlimited time to pursue REI!
These are the current steps I'm taking towards getting my first deal (going for a buy and rent most likely using the brrrr method), not including the finance aspect.
- *Listening to real estate podcasts (obviously bigger pockets)
- *Reading books (open to suggestions, currently in the middle of David Greene’s brrrr book)
- *Learning the community via the web (Zillow, realtor, etc.)
- *Learning the community via driving for dollars
What steps would you take if you were me?
The finance part is a bit complicated for me. I don't have a W2 and my LLC (that has only been open a few months) I write off almost everything. The specific obstacle I'm trying to get over is getting a mortgage. I've thought of a few ideas:
Idea a: Buy using a combination of personal funds and hard money. Rehab, refinance, pay back the hard money. this is basically the brrrr method. My question is: Isn't refinancing the same as getting a mortgage? Won't I have the same issue of no w2 or proof of self-employment?
Idea b: I have a family member interested in investing some of the money (at least enough for a down payment, maybe even the rehab). I can give him either equity or payback with interest. Is it possible to structure a mortgage that I can be on it with him? what are the potential pitfalls of this? If I do "idea a" can I refinance under him?
idea c: Find someone I know who is willing to put me on their payroll in documents only, so I can just show a steady W2. My accountant says that's not fraud, but I'm not 100% sure.
Final question: I got some advice to get my realtor license, both for the knowledge the course will give me, and the potential profit you can make when brokering your own deals. What do you think? Is it worth the money and time?
So there you have it. Total beginer looking for all the answers. Can't wait to hear from you guys!
P.S I'm in Broward County, Florida so if you're a realtor, investor, lender, broker, or anything else please reach out!