All Forum Posts by: Nolan Brendese

Hello All,

I'm looking for a little insight around my first home buy. Long story short, i'm currently in 24, living in Charlotte NC and looking to buy my first home to rent out to a tenant to help pay down the mortgage while I simultaneously build equity in the home so in a year or so I can take out a HELOC and use that as a down payment on my next home.

I've applied to get pre approval from a few lenders and i'm running into some issues. I only have 10,000 dollars to put down as a down payment. I just resigned a lease to my current apartment (so buying out the rest of that lease would be pricey) so I would not be able to obtain an FHA to put 3-5% down and my apartment complex does not allow subleasing. What one of my mortgage lenders explained was the following.

1: Get out of lease and use this house as primary residence: If I were get a loan amount of around $200,000 is about where I would need to be to get Pre-Approved. That is estimating a 30-year fixed rate in the 5% range. I would also need to have about 6 months reserves saved in an account (in the event any repairs should be needed or something unfortunate were to happen), and would need about 2-4% of the Loan Amount for Prepaids (Property Taxes, Hazard Insurance, etc.) and Closing Costs (Title Commitment, Attorney Fees, Application Fee, etc.)....I do not have the extra 2-4% of the loan saved up to afford this.

2: The pricing on an investment property would likely be in the 7% range. That would be big negative impact to my DTI and I would need to put at least 15% down.

With all that said, i'm curious what other folks with more experience would have to say about how to pivot from this scenario. Thanks to the podcast and my own due diligence i've thought of a few ways to better get started.

1. Continue saving money (last case scenario)

2. Start smaller: HUD home or mobile home

3. Partnership

4. Find someone else's money to use.

If anyone has had a similar situation or knows how to best tackle this problem. I would greatly appreciate the insight.

Kindly,

Hello All,

I'm looking for a little insight around my first home buy. Long story short, i'm currently in 24, living in Charlotte NC and looking to buy my first home to rent out to a tenant to help pay down the mortgage while I simultaneously build equity in the home so in a year or so I can take out a HELOC and use that as a down payment on my next home.

I've applied to get pre approval from a few lenders and i'm running into some issues. I only have 10,000 dollars to put down as a down payment. I just resigned a lease to my current apartment (so buying out the rest of that lease would be pricey) so I would not be able to obtain an FHA to put 3-5% down and my apartment complex does not allow subleasing. What one of my mortgage lenders explained was the following.

1: Get out of lease and use this house as primary residence: If I were get a loan amount of around $200,000 is about where I would need to be to get Pre-Approved. That is estimating a 30-year fixed rate in the 5% range. I would also need to have about 6 months reserves saved in an account (in the event any repairs should be needed or something unfortunate were to happen), and would need about 2-4% of the Loan Amount for Prepaids (Property Taxes, Hazard Insurance, etc.) and Closing Costs (Title Commitment, Attorney Fees, Application Fee, etc.)....I do not have the extra 2-4% of the loan to afford this. 

2: The pricing on an investment property would likely be in the 7% range. That would be big negative impact to my DTI and I would need to put at least 15% down.

With all that said, i'm curious what other folks with more experience would have to say about how to pivot from this scenario. Thanks to the podcast and my own due diligence i've thought of a few ways to better get started. 

1. Continue saving money (last case scenario)

2. Start smaller: HUD home or mobile home

3. Partnership 

4. Find someone else's money to use. 

If anyone has had a similar situation or knows how to best tackle this problem. I would greatly appreciate the insight.

Kindly,

Henry,

I appreciate the detailed/step by step reply. Like you said above, "leap" into the deal, knowledge that is not applied in the real world won't get me very far. Thank you for that realization and I will keep this info in my back pocket moving forward. 

Hey All,

I'm looking to further my education in regards to the analysis of real estate deals, specifically around residential investment properties. One thing that i've learned from BP posts and webinars is that the ability to analyze a deal quickly and thoroughly is integral component to finding great deals.

I understand BP has tools, videos, podcasts and books around analyzing real estate investment deals but, I'm wondering if anyone knows of any quality courses that take a deeper dive into the understanding and analysis of investment properties and if there are any certifications you can receive by completing these course(s). Considering i'm still a rookie in the investing game I believe a course or certification will help establish more credibility when approaching investors, lenders, agents etc. Plus I can always use the extra practice on analyzing deals.

Any and all info is appreciated.

Hello BP Universe,

I'm here asking for any guidance, tips and tidbits of information that may be able to help me get started investing in Real Estate. Quick background, I'm 23 years old currently working in the tech industry out in Charlotte NC. I've decided to take the plunge into the real estate world because I've quickly realized the corporate environment is not the way to create generational wealth. 

My original goal was to purchase a single family investment property in an up and coming neighborhood in the Charlotte Metro area. After speaking with both a real estate agent and a mortgage lender a single family investment property had to many up front costs for me to afford off the get go. I spoke with some folks I know who dabble in Real Estate Investing and they suggested purchasing a duplex, and that it would be best for me to live on one side while I rented out the other. I was told this would decrease the barrier to entry but I was hoping for some clarification on that (hence one of the reasons for this post). 

I've done some research into contract selling and even REIT's but with all these articles, blogs and posts i'm experiencing a little bit of information overload. Everyone seems to have a different opinion on what would be the best way to start out. Since there are folks who may have recently been in the same position as me along with others who have an extensive track record in this field, my question is, what are some good strategies to get started in the Real Estate biz given my current environment? (Preferably ones with lower barriers to entry) Although, I'm open to any and all suggestions. For those who made it this far, I thank you and hope you've been safe/healthy during these uncertain times.