All Forum Posts by: Adam Tamer

Hey everyone,
I'm looking to make my first investment into real estate this year and love the BRRRR strategy. To give a little background, I have about 6 months of historical W-2 income (just graduated from college in December) with little money saved up, and my partner has a nest egg of cash on hand but no steady historical income. That being said, neither of us can qualify for a loan from a traditional lender.

Do private lenders generally look at the investment opportunity more so than individual financial history? Also, when refinancing the home after the rehab and lease-up, will conventional lenders still refinance the property even though we would not qualify for a home purchase initially? If so, are there any stipulations that come with being in the situation that I described above?

Lastly, I would greatly appreciate any advice/stories from someone who has done used the BRRRR method to start out their real estate journey!

2 Votes

Cleveland, Ohio

Quote from @Anthony L Amos Jr:

Quote from @Adam Tamer:

I live in Chicago but am looking to invest primarily in Columbus, Ohio. Because I don't have a lot of capital saved up yet, I'm trying to partner with someone who is able to help finance the property.

To the bigger pockets community - I would love any advice on partnerships and financing with having little money myself (or any general advice!). More specifically, should I look for someone to be put on the mortgage with me? Or what is your experience with lenders when you have a cash partner for the down payment? Any insight is appreciated! Thanks!

Hello Adam! This is a good start. Continue to post and get to know people in the Columbus area. There are plenty of active and passive real estate investors here who would be happy to partner on a good deal. I'm currently lending to two investors and have raised money for my most recent flip myself.

Until you save up the capital continue to research the market, network, and find deals. In this business you either have money, knowledge, or time. Use what you have and the rest will work out

Hi Anthony! Thanks for the response. It's refreshing to hear from a fellow Ohioan on here in the Columbus market. I would love to connect with you and learn about your experiences - who knows maybe in the future we may work on a deal together!

1 Vote

Chicago, Illinois

Quote from @Paul De Luca:

Quote from @Adam Tamer:

Since you have limited capital, I would recommend considering house hacking.You only need 3.5%-10% down to get in the game, depending on the loan you use and you'll get a better mortgage rate. You need somewhere to live anyway, so you might as well start investing in your own backyard.

Keep in mind you'll likely need to put down 20-25% as a non-owner occupant and if you find yourself gravitating toward "cheap" properties remember that they are cheap for a reason.

Thanks for the response, Paul! I currently live in Chicago, IL, and am not entirely sure how long I will be here (originally from Ohio and plan on investing in Columbus). This makes me a bit hesitant to buy a property in Chicago to house hack due to the uncertainty of my future here. However, I do have a friend/partner that lives in Columbus. Do you know if it would be possible to have him house hack to get the loan benefits while we are both financially invested in the property? I understand that we would have to smooth out a lot of details in a partnership agreement and run numbers to see if it's feasible, but I am trying to think of ways to creatively dip my toes into the water.

0 Votes

Chicago, Illinois

Quote from @Bryce Jamison:

If I were in your position I would spend the next few years busting my hump at my W2 job so I could increase my income as much as possible, as fast as possible. At this early stage of your career you're going to see a far greater ROI doing this than somehow getting into a deal with no money and experience for $100-$200 in cashflow. For example, if you make $75K a year now you'd be better off spending a year getting a raise, or new job, that pays you $85-$90K than staying at $75K and getting into a deal that only nets 1 or 2K a year. Also be sure you don't get tricked into the "company man" mindset. As soon as the numbers don't work for a company they will lay you off, so don't let them guilt you into loyalty. You don't hear many people talking about this, but you'll get much bigger pay jumps (10-20%) switching companies every few years compared to staying at the same company to get the standard 2-4% a year with an occasional 8-10% raise.

In tandem, I'd continue to educate myself through websites like this, YouTube, podcast, and my local library, and go to every meetup I could to build my network and hopefully get connected to the vendors I'd need like realtors, CPA, lenders, contractors, closing attorneys, and wholesalers. I'd get on a budget, pay off consumer debt, and save an emergency fund then start saving for a down payment so I wouldn't need a partner. Like I alluded to earlier, you may find it difficult to find someone to give you tens of thousands of dollars to invest in a property when you have no experience or money in the deal yourself. And although it's unfair, the reality is you'll probably be discriminated against based on your age.

I know this probably isn't the "get started today" advice you wanted, but looking back on my life this is what I wish I would have done. It's tempting to want our real estate empires today (I know I do!), but I try to play the long game and think about where I want to be 5, 10, & 15 years from now.

Thanks for the advice, Bryce! I'm aware that I am probably a bit early based on age/income, and extra income and savings are most likely needed before I get started. It's just hard for me to think about not getting started as soon as possible! However, I really appreciate you telling me some of the hard truths about getting into real estate this young.

0 Votes

Chicago, Illinois

9 Votes

Chicago, Illinois

Hello everyone,

My name is Adam Tamer, and this is my first post on Biggerpockets.com despite being a listener to the podcast for the past few years. I'm 22 years old, currently in my first job (CRE) out of college and am looking to buy my first investment property. I live in Chicago but am looking to invest primarily in Columbus, Ohio. Because I don't have a lot of capital saved up yet, I'm trying to partner with someone who is able to help finance the property. To the bigger pockets community - I would love any advice on partnerships and financing with having little money myself (or any general advice!). More specifically, should I look for someone to be put on the mortgage with me? Or what is your experience with lenders when you have a cash partner for the down payment? Any insight is appreciated! Thanks!

3 Votes

Columbus, Ohio

All Forum Posts by: Adam Tamer

Adam Tamer has started 3 posts and replied 6 times.

Post: First time investor looking for advice!

Post: Partners, Financing, and First Deal

Post: Partners, Financing, and First Deal

Post: Partners, Financing, and First Deal

Post: Partners, Financing, and First Deal

Post: First Deal - Financing/Partners