All Forum Posts by: Chad Gibson

I do own the house actually. I was the only one allowed to be on the mortgage because their credit was so bad. And I've owned the property a month and a half, almost 2 months now. We started trying to get into this house way back around mid May before the coronavirus really hit the U.S. After it did though it didn't take till just recently for use to actually close on it. Everything was backed up so bad that we were starting to feel like we would never get the house.

Technically I don't want to own it. The house is meant to be theirs anyways. I just provided my credit to help them get it. They had guaranteed money to be able to afford to buy the house from military and regular disability. But their credit was ruined by some poor decisions in the past. 

And since I was living with them I figured why not. But in retrospective it put me if a bind if I ever wanted to take out another loan for a house to get my first rental property. This would negatively effect me being able to because my income to debt ratio would be horrible. I mean I guess I could go a more owner financing route to avoid the issue of going through a bank for a loan. I just like to have the option to take out a loan if I needed to.

If I owned a house and wanted to show proof that someone else is paying the mortgage on the house. Would a Lease Option be the best bet?, you know apart from maybe a bank statement. Because I have a $190K house on my credit that I'm not paying for. I live with my brother and sister-In-Law in this house and they are the ones paying for the house. The only thing they ever ask of me for is to help pay a few stray bills and to get some groceries. So I think of it as a win win. Oh and also, this maybe a stupid question, but if a lease option would work as proof in this manner. Do I legally have to show I'm making any kind of rental income off the property?. Or would it be fine if it just show in the lease option agreement that they are only paying the mortgage, property tax and homeowners insurance?.

No. Me, my brother and Sister-In-Law  and their kids are all living in the house.

I'm an aspiring real estate investor. And I wanna start with small rental properties and work my way up from their one small deal at a time. But I was just wondering. Would a bank give me an FHA Loan if I already have a hefty loan on my credit?. I own a $190k house which is technically in my name but is meant for my brother and sister-in-law.

And I know what you're thinking "You idiot!, don't tell me you took out a loan in your name for someone else!". But understand in any other circumstance I wouldn't. But since my Brother and Sister-In-Law make $7k a month in military and regular disability. Unless the U.S. Government completely collapses I'm confident that they could easily pay the mortgage on time. And since I live with them and they never expect anything from me except to help with stray bills and groceries. 

I figured it was a win win. They pay the mortgage, boosting my credit score and giving me a nice cozy place to live. Hell I'm single, no kids and the only bill I pay is a $380 a month payment on my $17k in student loans, car insurance and gas. So I kind of got it made right now. All though I kind of wish I hadn't done this next one. I co-signed for a $40k car for my Sister-In-Law, that they too are paying on. 

Now I make roughly $2.5k a month from my day job. I'm thinking with my income to debt ratio a bank wouldn't even think of looking at me. But if I show the bank proof some how that none of my personal income is going to paying the mortgage or this car. Would a bank still approve a loan on a small property under $100k?. I was thinking about starting with something around more of like $80k. 

Or would I have to do some sort of creative real estate subject-to, land trust switcheroo?. I'm just wondering if I put myself in a deadlock. My only option is to maybe hold out and keep the house in my name for a about 2 years. My brother and Sister-In-Law fixes their credit in those two years. And they take out a loan themselves to buy the house back from me and out of my name. 

And then I can pocket a nice chunk of change tax free after paying off the original loan. I'm just anxious to get started on my journey into real estate. I don't want to wait. I mean obviously I gotta save up a small chunk of change for a FHA downpayment. But I can't help how impatient I am right now.

Problem with that is that there aren't any wholesalers near me that are willing to help me. And when I get a response from one it's usually some jackass trying to sell me their webinar. I'm extremely limited on funds for the first deal I choose to take on, let alone paying for a webinar, so obviously whatever deal I find I'm gonna scrutinize till I'm 100% confident it's legit. I do have an experienced real estate agent who's one of my best friends to help me out and give me advice though.

@Account Closed which one drives you crazy, the ads that are fake, the one I suggested, or both?.

Since I don't really have much money I was thinking about using craigslist to get my cash buyers list going so I can have my exit strategy ready ahead of time before I attempt to make my first deal. But what are your thoughts on this. I keep seeing people on youtube that post fake "for sale" ads to attract cash buyers. But why not post something straight and to the point?, like "****ATTENTION REI'S**** are you looking for that next big deal?. Then here's your chance to be on a list for great deals in your area." Or something along those lines.

I'm just new to investing and I want to go to one just to see what I can learn. And maybe if I connect with some people who could possibly do business with me in the near future that I can benefit from a partnership of mentorship with. I'm generally an analytical type and can usually spot the signal from the noise fairly easy.

I keep hearing that REI clubs and meet ups is a good place to learn more and network in the real estate industry. But is there any in Fayetteville NC or the following counties; Scotland County, Robeson County, and/or Cumberland County. Just looking for any in my area.