All Forum Posts by: Brad Pietrzak

so I know you go through inspections and all of that and I also know that the agent and the lenders do a lot of heavy lifting during the close when mortgages are a norm. but what about when it is a cash buy?

I have some strong savings that will propelling into that direction in a relative amount of time but I don't even know how the close works with a cash buy.. lol. do I write a cashiers check? probably not.. should I start of with the money in the bank and a mortgage to just go through the transaction for experiences sake? then pay it off?

assuming you have a income goal of about 500,000 and an annual average savings rate of 40 to 60k. would it be faster to leverage 50 or so property's or pay in cash one by one and just save the cashflow each year

not really, most are busy. and the amount of time it takes to court them into teaching you, you could just teach yourself. most people seek a mentor because they are afraid to jump and want someone to hold there hand on the first move. once you jump and you just have to jump and do it feel the fear and do it anyways, and have progress then maybe start looking for a mentor because you may at that point have something of value to them. make sure you have results first so they know they are not wasting there time and energy.

finances are on the check mark in my area. running the math I will have either a few hundred grand in savings, stocks, or equity in 1-4 unit property's within a couple years going at my pace. however while I am saving this massive load of cash and sacrificing a great deal to do so. I don't want to start small, what do I do to start with large apartment complexes. 

is getting lending for those deals more of a sales game. or is it more strict like smaller units and investors where they don't budge on your ability to sell them.

I can get the down payment. do you think I would be able to convince a bank to lend to me if I find a deal that makes sense? 

I know I don't have property management experience I figured I would just hire a company. or do banks usually not lend on these? should I be seeking private money?

@Michele B. thanks so much!

awesome! appreciate the support. ive been saving so hard for o long so I can buy my first property in almost cash, ive been starving myself, ive chosen to live in a warzone ive heard peoples screams as they have clutched there children as ive come home from school from drive bye shootings  I just cant wait. only like 8 more months or so till I can own one almost free and clear and I have a super stable rock in my life. I will finally be able to move out of this **** hole and save more then when I lived in it! so excited I can almost taste it!

@Michele B. I have enough right now for about 50 percent down. I cant get a va loan because my income is not considered permanent. ie I am living 100 percent on the stipend form the gi bill about 1600 tax free a month. my sweetheart is done with college but lives with family for cultural reasons most people would not understand. she saves all of her money and I save a little more then half that 1600. every month. together we save around 3500+ a month

we would be using the student loans because I would not qualify without "permanent income" of my own. now I know that the rent checks can be included in qualification I am unsure how much it would add here don't think they would be happy with just that being used to be qualified. I am considering student loans because it allows me to just do it and not have to go through all the process of getting me preapproved and allow me to close faster with cash. it also allows me to save up all the rent for the time I am in school and invest it at higher rates of return then the loans and defer the loan payments. it also allows me to live in a better area. which I am not moving to until I can almost pay cash 40k would not be much compared to my overall savings and amount I would be paying. so I feel it would not be to risky specially seen the duplex would not be tied up as collateral for the student loans, I may not be able to bankrupt them but they can also not take away my property. I'm just seeing multitudes of benefits for this first property sense I only need to do a tiny bit of the value of the property like 25 percent or so. I just wanted to ask some investors there thoughts on the process. our plans after this would be to save and buy another then after school use my VA loan once I have a job as an engineer and use the to qualify for a duplex in a B class area we can raise kids in.

@Sam Shueh was that an insult? or are you actually trying to help me? I cannot tell(honestly). and I don't want to be rude and bash you if you were not inherently trying to be a keyboard warrior.

if you were not, that's the plan. I am just wondering weather I should stay in a bad area saving more and just not use the loans and pay with straight cash or get out and get something sooner with a little debt. either way ill graduate as long as I keep my **** together studies wise ill keep my good grades and graduate on time so far my lowest test score is 88.5 percent and highest is 101 percent. I enjoy my engineering classes and the mathematics quite a lot, but it is not the end goal. the end goal is financial freedom that is why I joined the military so I could save for 4 years and get a free degree and set my life up how I want to. I don't plan on working as an engineer more then I need to unless I find the corporate engineering world enjoyable. I will work for myself to get the life I dream of and chew and spit anyone out who gets in my way or die trying. period. 

@Michele B. I am not using the va loan because me and my fiancé are not yet married. my income from my living stipend is only 1600 and only as long as I go to school for my degree. it is considered temporary so I cannot use it to bust out a mortgage. we could get a mortgage in both our names but we do not want to do that for various reasons family wise(her side) that most people wont or are not willing to understand. 

should I use this years student loans to assist me in buying our first duplex outright? or should I just sit and wait it out the extra year to save the 40k. give me reasons for your choice.

hey bigger pockets community. I am considering using my student loans to buy my first house hack, now here is why I am considering this and will be seeking your guidance first.

I am a veteran, my school is 100 percent covered. school calculates tuition and cost of living to be around 83k a year not even close for me but I use it to my advantage. this allows me to take a maximum of 40k out per year. between me and my fiancé we are saving about 3500 a month, and we have a good amount in stocks currently.

if I take out the maximum this year by this time next year we would have enough in cash our own plus the 40k student loans we could just buy the duplex outright meaning the 40k would be all the debt we have and use to buy it. -no bank loans-. 

a big reason I am considering this is because currently I am in the ghetto currently and man it sucks with a capitol S for a multitude of reasons. my bills all in run about 700 currently after that I am free and clear that is how we are saving so much, but the stress of living here takes its toll. and I am not willing to move until I own a duplex I would rather eat dirt then not hit our goals and make our dreams come true of truly owning our lives and time.

I would just get a mortgage but due to all my income currently being from my GI bill stipend it is not considered permanent, thus rendering me unable to get a conventional mortgage, and due to her culture until we are married. which we are putting off until I am done with school because of how rough engineering is we don't want to get a mortgage in her name. making all other options pretty difficult making this one an actual viable option to do.

I have done the math with out saving rate, and how it would increase when we bought the duplex. by doing this we could have two duplexes with large amounts down mixed with my student loans in a working class area by the time I graduate making cashflows well over the amount I need to pay the loans and then some, then use my va loan for the third and rush to pay those student loans off. 

doing this with at least this first one if I never used student loans again would make my housing situation infinitely better and help us save and invest even more then. and I wouldn't have to sleep with my gun under my pillow every night. so I am really sold on doing it once so far sense I don't have many other options and am in a unique situation.

I am really moving towards doing it just this once. and seeing how it goes before I do it again. 

what do you all think? poke as many holes in this as possible technically these 40k would be being used for my housing, I just wont be paying rent with them, but from my knowledge anyhow there are no rules against investing with them.