All Forum Posts by: Brice Aldrich

Hello, I am interested in raising capital to purchase multi family homes. To do this I was going to ask my family if they would be willing to loan privately at a competitive interest rate. I intend to use the private loan(s) as a downpayment.

Typically when applying for a mortgage banks will ask if the funds for the down payment were borrowed or gifted. To my understanding most banks will not loan if the downpayment is borrowed, and if the money is gifted there are stipulations.

My questions for you are:

1. Is it true banks will not loan on a borrowed down payment?
2. If the above is true, couldn't I just say the money is gifted?
3. If I say the money is gifted how does that protect the private loan(s) relationship(s) between my family and I?
4. What are the stipulations of a gifted down payment?

Thanks in advance for any help/advise!

I am 21 years old, and looking to buy an a multi-unit property to live in as my first home. I understand that this can be done through an FHA loan with a 3.5% down payment. My question is what if the multi-unit property is fully occupied? Will FHA still loan on the property and just expect you to move in when one of the leases retire, or will they not loan at all?

I have a couple general questions about investing in real estate for the first time. I'm in college and I am trying to convert my living expenses into an investment. I currently rent, and am looking to move out of this scenario. 

One approach would be to find a realtor with an eye towards flipping houses. I wouldn't mind living in a house while flipping it for my first flip. I was thinking this time frame would be no longer than a year, until I moved on to more projects. Another approach would be to buy a duplex, live and one side, and rent the other. 

So my first question is what would be the best choice? My goal is to raise capital in a fast pace way that is risk tolerant. I have limited funds as most of my assets are in stocks, but I could make a down payment of sorts, and my credit is excellent. 

I have a steady supporting income from software development that would allow me to afford my rent and a mortgage at the same time if I need to buy sooner rather than later. 

My next questions are about the loan. Would it be better to do traditional financing on a house flip verses getting an LLC and getting a commercial loan. Or can I get a traditional loan and put it in the name of an LLC? Or should I just take personal limited liability insurance out, and wait to get a business license? Any general help or suggestions would be greatly appreciated.