All Forum Posts by: Andrew Emery

So this is my story: I just graduated from college and have been extremely interested in REI for about 2 years now. My original plan was to purchase a house using an FHA mortgage and then rent it out while I lived there. However, I got a pretty awesome job offer in Chicago that I really can't refuse so unfortunately I will be paying rent in an apartment. My desire to invest in real estate is as strong as ever but I don't think it would be responsible to do a traditional buy and hold from out of state as my first investment project (and I don't have the down payment that would be required).
Recently I came across the concept of wholesaling lease options and am extremely intrigued both because I feel that it would be an awesome way to enter the game with little to no risk or money out of pocket and it seems like it can be done in any market/economy/state regardless of where I live.

I ask, what do you guys think about wholesaling LO as my first RE venture from Chicago? Thoughts on Adam King's program or others? Would I have problems with my credibility when talking with sellers/investors/buyers/agents as a young and inexperienced investor? Am I way off in my logic?

This forum has been such an awesome source of RE knowledge for me and any feedback is greatly appreciated. Thank you!

Michael Pilarski,

Ideally I would like shortly thereafter to mean 3-6 months, but within 1 year would still be satisfying.

I have not yet begun the FHA financing research or property search because I don't even know what state I will be working in upon graduation in the spring. Right now I am in the process of securing the student loans we've been discussing, saving money from this internship, and educating myself on BP and through books.

I do plan on learning more about FHA in general though once the summer is up. If I get offered full time at this company I will also begin searching for properties.

Sorry for the late response, but thanks a lot guys this is all very helpful information.

Michelle Marty,

I am definitely thinking that taking the loans for my last year is a good idea...however I am wondering, if I am able to secure an FHA mortgage for my first house and then look into getting approved for a second investment property relatively shortly thereafter, would the combination of student loan debt and the FHA mortgage be enough to completely disqualify me from approval despite the increased capital I would have? I completely understand the advantage of increased capital, but fear that the increased debt would make that advantage for naught due to mortgage restrictions.

I also realize that the answer to this question can be specific to the bank, the project, credit, the student loan balances, among other things.

Thanks Jon,

I'll definitely keep that in mind

Brian Hoyt,

At this point I am just brainstorming, but why exactly do you think such a partnership would be so undesirable? Any specific experiences?

Thanks everybody

Lynn M.,
That sounds great. My employment location is not set yet, but when I find out I will definitely look into special programs like that.

Brian Hoyt,
I am starting to think that an FHA mortage may be the only type that I will qualify for given my student loan situation and lack of employment history. If I can qualify for FHA, my biggest concern would be acquiring a second property not too long after. I have been reading about lease options and have become pretty intrigued...

I was wondering what everyone's thoughts were in regards to FHA mortgages. I hope to finance my first home with an FHA mortgage, but would like to acquire investment properties relatively shortly after moving into the first home. Aside from the more lenient standards and lower interest rate, what could be some additional benefits of an FHA mortgage? Also, what could be some negative consequences of this type of mortgage in terms of their effect on my ability to acquire additional properties in the near future? BTW I am a soon to be college graduate (2013) who will also have student loan debt. I hope to first acquire a duplex that I will occupy, with the first investment property being either a SFH or small condominium.

Thoughts or criticism of my plan are encouraged

Michael Pilarski,

I never really thought about anything more than a duplex. I guess I am just intimidated by the potential for much more maintenance...

Also I'm not sure if FHA mortgages allow for anything more than a duplex...but definitely something to reconsider

Michael Pilarski, thanks for the reply...

What I'm about to say may be laughable in the eyes of an experienced investor, but my logic is that by delaying the repayment of the student loans, I will have more capital that, once I (hopefully) close on a mortgage for the duplex, will assist me in purchasing another investment property in the relatively short period of time following my moving into the duplex. By using money earned this summer to pay for my last year’s tuition I fear that I will not have sufficient capital to consider an additional investment property in the short term. Do you think the improvement to my debt to income ratio from repaying the loans surpasses the value of the excess capital I could have from taking out the loans?
(my goals include owning an at least 1 investment property in addition to the duplex within 1 year of graduation)

Thanks John,

So given that each of our incomes qualify for the mortgage individually, this is a possibility?