All Forum Posts by: Account Closed

Awesome. I am 22 now- you are ahead of me! From North Shore MA- not far from Manchester, went to Saint Anselm College, good to see fellow young people in my area doing so well. Keep it up!!!

@Andrew D. Welcome to BP! 

I'd check out Haverhill- it has some nice parts where you can get some good money on rent. Look in the Bradford Area specifically.

Lowell is tricky but there are good investments- the University is there and you can usually charge students higher rent and have their parents cosign on the lease, but you will deal with turnover every 2-3 years (at least) which can be costly. 

There are rough sections of pretty much all cities, just be cautious, finding a local broker you trust will be a huge help! 

@Account Closed That is very frustrating about your schools careless mistake. 

Even though this is the advice you don't want to hear- be patient. Lenders (both conventional and unconventional) are taking a risk every time they approve a loan. Put yourself in their shoes. Even a great credit score and little debt isn't the kind of security they need to be comfortable. In a few months when you have your job situation worked out, you will have no problem getting a FHA loan or using a private money source! Spend the time until then working, saving as much money as you can, and keeping that credit score high. Best of luck on the job hunt and REI!

Hi Luke, 

It sounds like you have some great ideas. I am young as well, 22, and work for a private money lender in Newburyport MA. Your alternative plumbing idea is very interesting. I have seen septic replacements costs 40k easy! A solution to this would be great for profits and the environment. Real Estate Investing is great for someone like you who has background in construction and is motivated to work hard... Good luck!

@Jon Sidoti We aren't too far from each other, I think we could benefit from connecting & discussing opportunities!

-Julie 

I am in the minority here, but I think it's a good idea. 

You are new to investing. This would be a chance to gain some experience in REI, plus it is a win-win situation for your parents and yourself. It is hard for young people (myself included) to get into the investing world without any experience. Your parents already own a home, and you currently live with them, you seem close to them and you know better than anyone else what their financial situation is like. Obviously a renters agreement should be signed, and you can build equity and your portfolio while living there and helping your parents out!

Good Luck!

Hi @Corey F.. Congrats on moving towards your first investment! 

I would say the 100k reno budget is a little light of an estimate for a house that size and how much work you think will need to be done. I have found most moderate rehab budgets fall somewhere between $35-60 a square foot. So for a house that size you could figure $35 x 3,500 sq ft= $122,500 BEST case scenario, but I have a feeling with a new roof and asbestos removal it will be on the higher end of the spectrum. Heavy renos (gut jobs) usually are around $75/sq ft. 

Doesn't mean it isn't a good investment, but definitely do your due diligence and budget wisely! Good Luck!

@Jay Hinrichs like you said, I am new to BP (and real estate investing as a whole). I graduated college a few months ago. I am on this site to learn about the industry as a whole, so all input is appreciated. 

Thanks!

Julie

@Ben McMahon I don't blame you for sticking with your private lender- those are great terms!

@Jay Hinrichs You're right. 0% down lenders are taking a huge risk and aren't going to lend to newbies. We usually look for a solid 2+ years experience. We don't charge any fees up front, but I am sure it happens elsewhere. We are certainly picky about what we fund on: because of the risk we take on a bad investment hurts us as much as it hurts the flipper! I kind of like that about our model though: we are partnered with the investors success. If they lose, we lose, so we do our due diligence before funding anything. But, when we do fund a deal, we are endorsing the deal as a smart investment.

@Sean Blomquist Interesting model! Thanks for sharing.