All Forum Posts by: Christian Estrella

Before COVID, I was looking in the NJ (Elizabeth and Newark) market for a multi-family property. I wanted to take advantage of my FHA and house-hack as an owner occupant. My credit is at 650, due to an old collection and late student loans (-__-), FHA was perfect for me because of my low credit score. I have been working with a credit repair company to boost this but it is slowly working.

I have been reading that the lending guidelines have gotten stricter with the this pandemic, they are looking at higher scores, reserves, etc.

My question is:

1. Should I wait to build my credit score and make use of my FHA loan, even though it might take a while. (This strategy requires a househack)

2. Buy an investment property with conventional financing or an off-market deal with cash/credit, to use the BRRR method, and forfeit the chance to use FHA. (This strategy i would not house-hack, as I am living in queens NY)

I been waiting on the sidelines and would like to make a move sooner than later.

Any insight is appreciated. Thank you.

1 Vote

@David Bokman

@David Bokman @David Bokman @David Bokman @David Bokman I am looking to complete a BRRR deal in North Philadelphia. I am looking for:

1. Off-Market deals (I can find these)

2. Contractors ( to appropriately estimate rehab costs or partner who can take care of the construction side)

3. Partner ( Offer money or knowledge)

I have some money to invest and I would like to work with someone who has done this before.

We can both cashflow or set up a deal in a way it works for us both.

1 Vote

I'm located in Queens, NY but would like to be a part of one of these Meetups!

0 Votes

Westchester County, New York

@Zachary Olley

Thank you

0 Votes

@Zachary Olley

Would you mind sharing who your lenders are, I got pre-approved 350K for a multi-family property but after I run the numbers, I would be negative cash flow each month. NJ TAXES are super high.

I would like to look at the 203K loan lenders. My pre-approval was for regular FHA .

1 Vote

@Zachary Olley

Elizabeth and Newark.

How about you?

1 Vote

@Edy Lagares look into the 203K loan. Low down payment and you wrap the rehab costs into the loan.

2 Votes

@Zachary Olley why don't you look into the 203K loan, it's the same as an FHA except it is a "rehab" loan. You can't buy fixer uppers with an FHA loan, the property has to be liveable already.

Im also looking into new jersey to buy my first 2-3 family home. I'm looking into using my FHA for a low down payment.

1 Vote

Originally posted by @Frank Patalano:

Originally posted by @Christian Estrella:

Originally posted by @Frank Patalano:

Originally posted by @Christian Estrella:

While i am educating myself, my credit got hurt recently due to an old collections charge that just popped up on my report. What way can i go investing if i have the money but not the credit to even make a purchase? Any suggestions/ideas help. Thank you in advance.

How old is the collection? Besides that if you have the cash you just need to find a partner with credit. If you don't want to fully partner with someone you just need to find a cosigner. I think having a partner is a better option.

The collections is from 5 years ago, however, its been transferred from collection agency to collection agency and the last one reported it to all the credit bureaus last month. So its an old collection but its brand new on my credit report. I have an appointment with a credit repair company for tomorrow, so ill see what they say. Thank you for the quick response Frank. How does a partnership work, in this instance I would provide capital and my partner the credit. Should profits be split 50/50 as we would both have separate roles towards the same goal? What about the losses in a deal? I would take the loss in capitol.

You can be as creative as you want on the splits Etc.

One example is that the Capital Partner could give the credit partner a zero-interest loan. Whatever you guys decide to have distributions you could get back his portion until the loan is paid off. Or you can get 100% of your portion and 50% of his portion until the loan is paid off. There are plenty of options. The credit partner is just as essential as the Capital Partner.

Another option is you could use your money as a down payment with a hard money lender and do a flip. Hard money lenders don't really care as much about your credit. They care more about the deal.

Thank you for the suggestions, really opened my eyes on how creative one can get.

0 Votes

Be careful with not paying back your loans, you will hurt your credit score if you default on enough payments. Take this from experience -__-

0 Votes

All Forum Posts by: Christian Estrella

Christian Estrella has started 7 posts and replied 43 times.

Post: Take advantage of FHA or not

Post: Investing In Philadelphia

Post: Real Estate Meetup Interest?

Post: FHA loan to start a BRRRR

Post: FHA loan to start a BRRRR

Post: FHA loan to start a BRRRR

Post: FHA loan to start a BRRRR

Post: FHA loan to start a BRRRR

Post: So what's holding you back?

Post: Pay back Student Loans or Save for First Rental Property ?