How to Obtain a loan at 18?

Question

Hi, my name is Abraham Cardenas I'm 16 and I want to invest into a property right away at 18. But how can I finance that at such an early age if I need to build my credit score ? are there alternative ways ? Let's say a loan of $112,000 for a mutifamily home with 5% or less interest ?

John Bartlett · Answer

@Jagnoor Gill I agree with that book recommendation,I was going to say the same thing.

Jagnoor Gill · Answer

Read a book ( NO AND LOW MONEY DOWN) by Brandon turner. This book will definitely help you!

Abraham J Cardenas · Answer

Thanks for the advice !

Dominique Chamberlain · Answer

I was in the same boat as you at one point. what I Did when I was 16 was save up as much money as I could first, try not to touch it,<--- (The most important thing in the early process)  you can get a Secured Credit Card Right now at 16 (Check Capital one's website) That's where you got the best chances most likely, Don't put any big bills in your name like any That could screw you over just get ones you know you can afford to pay until you open your actual Credit Card (Utilities, Internet, etc) Because If a payment is missed or it doesn't get paid you will regret it trust me lol, just stick to the casual Phone bill, Netflix bill, things like that.

P.s. I Wondered this same thing at 16yrs old but I Didn't even bother to get a Secured CC at 16 because I just didn't care at the time, but when I turned 18 and I decided to finally get one, after 1-2months without a credit score it came back as a 666 which isn't bad as a starter score to me now this could have been way higher had I Maybe Got a secured CC? Yes, maybe but I got a 666 which I was satisfied with cause after only 3 months of Consistent payments it's at a 678 and 678 FICO Score.  (The only downside to this is that my credit card age is only 5 months going on 6) Which Might Effect you if you want to invest RIGHT AWAY.)

-Take away-*Get a secured Credit card

*Make payments with it for 2 years (That you can afford) (Don't overload yourself with bills)

*Save Up a lot of money (This is gonna be your biggest advantage at the time/ Besides your cc Score)

* Also Look Into BRRRR and Hard money lenders (Most likely what you're looking for trust, me.) and study the heck out of both.

* I'd also watch some YouTubers who go through the BRRRR Process with hard money lenders Which helps answer a lot of questions here's a Link to a YouTuber who helped me understand a lot she's awesome! If you have any more questions just let me know :)

Abraham J Cardenas · Answer

Okay thank you . Currently I'm reading "rental property investing" by Brandon turner and then when I'm done with that I'll check it out ! Thanks.

Jagnoor Gill · Answer

It is really hard to get loan at 18 because ,we don’t have any solid income stream or credit score. So go for other financing options like seller financing, private lending , partnership and combination of them.

Dominique Chamberlain · Answer

Yeah lol you're on the right track then trust me, haha just don't stress time and patience are key right now for you. But yeah diffidently look into Hard Money Lending and learn the ins and outs, and Pros and cons it will help you, in the long run, apply them to your strategies.

another tip I could give you though (A mistake I made) Is get a job and keep it for the next 2 years and (MAKE SURE) at the end of every year when you get your W2's You Have someone Turn them in for you, you don't even need to get anything back just turn them in for proof of employment once you turn 18! T-T

How to Obtain a loan at 18?

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