All Forum Posts by: Tommy Feraco Jr

As a college student without a W2 income, getting pre-approved for a home loan can be more challenging. However, there are still options available for students to obtain a home loan.

One option is to apply for a loan with a co-signer, such as a parent or relative, who has a stable income and a good credit score. Having a co-signer can help to offset the lack of a W2 and demonstrate to the lender that the borrower has the financial means to make the loan payments.

Another option is to provide alternative forms of income documentation, such as proof of scholarships or grants, or a letter from the college or university confirming the student's enrollment and financial aid.

You can also consider applying for a government-backed loan, such as an FHA loan, which may have more flexible underwriting guidelines and may not require proof of income. Especially if you decide to move into it and house hack.

You can also consider applying for a portfolio loan, which is a type of loan that is kept on the lender's books rather than being sold to the secondary market. These loans are often more flexible and can be tailored to the borrower's unique situation.

It's also important to consider that depending on the lender's guidelines, having a good credit score and a low debt-to-income ratio can also help to make up for the lack of a W2 and income. So it's important to see where you sit with that. Try checking out Equifax or credit Karma to give you some insight as to where your credit score is.

It's important to note that as a student, your income may be limited and the lender will consider your future earning potential, your credit history, and the amount of money you have for a down payment.

Overall, it's important to start building a good credit score and save up for a down payment before applying for a home loan, and to have a clear plan and understanding of your future income and expenses. It's also advisable to consult with a financial advisor or a mortgage professional who can help you understand the different loan options available to you and help guide you through the process. Definitely speak to multiple lenders to see what they offer. This is a great question to bring up to other investor meetups about which lenders they recommend. You may even see some lenders come to these meet-ups so have a discussion with them!

Hey Liam, 

I was in your place a few years ago. I caught the real estate bug from a college roommate my sophomore year and dove into reading and listening to everything about real estate. For your beginning steps you can start taking action with would be to analyze properties on the MLS DAILY. Most banks, especially when you're just starting out with little to no income may require 20% upfront and may even need someone to cosign for you with a conventional loan. Now, as you mentioned, househacking could lower your down payment(3.5%) as well as your monthly expenses if you find solid tenants/friends to live with you.

How I got started was through getting to understand my market by looking at what properties are going for as well as what the average rent is. Factor these numbers into your monthly PITI payments amongst other costs (insurance, taxes, CAPEX, vacancy, etc) and run those numbers through a calculator on BP or make your own spreadsheet to see if you will cashflow monthly. Even if you aren't cashflowing, you still would have a property that you are paying less for (through renting it out) and getting into it at a much lower upfront cost.

Another thing you could be doing would be talking with a realtor. They have access to the MLS and can get you on an email list that can notify you immediately when a property that meets your criteria hits the market. Part of finding what exactly your criteria is would be how much you are able to spend so it wouldn't hurt to talk to a lender to get pre-approved as well!

Go to meetups. With such a populated area like Charlottesville, there have got to be real estate investor meetups where you can network with some big hitters in the industry. You can find a lot of these meetups through Facebook groups. These groups are great to be a part of for the ability to ask specific questions about issues you are facing because chances are, many others have faced the same. 

You are starting earlier than me and I started fairly early. If I were in your shoes right now, I would spend the next few months saving, planning, and networking to find a property close to campus (SFH or multifamily) where you and a couple of buddies could live while you finish your degree. Also, do not buy a deal for the sake of buying a deal. Make sure the numbers work!

I hope this info helps. This is from an outside perspective looking in so conduct your own due diligence and analysis to make sure it works for you. If you have any questions, don't hesitate to reach out. I have a couple of properties so I am no expert but I do have some experience!

Goodluck man!

I did not ask the question very clearly so I apologize for that. I am not looking to make multiple offers on different properties but instead different offers on one. But yes, this was more the information I was looking for @Steve Vaughan. How do you like to structure your 3 scenario letters? Especially in today's market?

Hello everyone,

I am currently looking to invest in multi-families and was wondering if anyone has experience or insight on how to make multiple offers at one time in the current real estate market.

I have been doing my research and have found several properties that I am interested in, but with the current market trends, I am not sure how to approach making multiple offers to make the deal work.

I would greatly appreciate any advice or tips on how to navigate this process, such as how to structure offers, how to communicate with sellers, and what to consider when making multiple offers simultaneously.

Any help or insight would be greatly appreciated, Thank you in advance.

Hello Burak Kilic!

It sounds like you and your wife are interested in investing in real estate in order to generate cash flow. Investing in out-of-state markets, such as Florida, Texas, and Connecticut, may be a good idea as these markets often have lower prices and higher potential for rental income compared to the Brooklyn, NY market. However, it's important to do your own research and due diligence before deciding on a specific market or property.

In terms of researching markets, you can start by looking at data on population growth, job growth, median home prices, and rental prices in the areas you're considering. Additionally, you can also look into the local real estate market conditions and trends, such as the number of foreclosures, new construction, and overall supply and demand.

You can also reach out to local real estate agents and investors for their perspective on the market, and consider visiting the area in person to get a better sense of the neighborhoods and properties you're interested in.

As for short-term investments specifically, you may be interested in looking into short-term rental properties such as vacation rentals or where there is a driving need for short term occupancy. These types of properties can generate higher rental income than long-term rentals, but they also come with more management responsibilities, may require a larger investment upfront, and more month-to-month expenses.

Finally, since you're in a position that affected by the recent layoffs, it's important to be realistic about your financial situation and make sure that you can afford the investment, as well as manage the property effectively. It may be beneficial to seek out mentorship or advice from experienced investors or real estate professionals (thats where meetups come in!), as they can help you navigate the process and avoid potential pitfalls.

When looking to start raising capital for multifamily deals, what are some important planning factors when creating a general business plan to create a real estate investment firm?

Having my first tenant turnover in a little less than 90 days. What checklists does everyone follow and what kind of tips & tricks do you all have for making this process as smooth as possible?

Hello All!

I am writing this post in an effort to gain some insight into effective methods to manage my time most effectively. I am currently on active duty as well as a Realtor and managing an Airbnb flip. I have some strong aspirations to grow a real estate business by raising private capital and vertically integrating a brokerage, property management, and contractor. I have been working on a business plan for this and realize that this is a long-term goal that will take years of building. I am looking for some insight as to where the majority of my focus should be! I apologize if this may be too vague so please if you need me to clarify away! 

Thank you for your help. 

It is going to be very time-consuming and tedious in the beginning. So much so that it may not feel worth it. But once you can take those calculations and put them into a spreadsheet (I use google sheets) and get reps looking at homes on Zillow, realtor.com, redfin, etcetera it will become second nature! 

Now, where it becomes challenging is if you will need to estimate rehab costs as well. That will take into another factor where you will have to estimate what it will cost to get the property up and running. This typically is hard to do if you do not have familiarization with renovations and working with contractors (speaking from experience). Big factors to determine if it's worth the investment would be your cash-on-cash return (CoCROI) and your capitalization rate. 

Take time to look in your area and see what the average tax rate and insurance costs are. I will take that and combine it with what I will be paying month to month with principal and interest to get a baseline. Then obviously include utilities (5%, CAPEX 10%, vacancy (7%), and even prop management(9-10%). These are very standard percentages and have held up their accuracy for me in the past. It wouldn't be a bad idea to call around or even talk with a local Realtor to gain more info on what those other expenses with utilities, taxes, and insurance look like for people. Realtors are a good asset to have when you are first starting out because they can explain a lot of the transaction to you. They also see how much taxes people pay on properties as well as typical insurance premiums.

I know this is long-winded but try these things and see if they help; it has worked for me! 
 

To caveat off of this, I am also trying to work an investor mastermind that will be held monthly where investors and like-minded people can hop on and discuss deals, network, and even form accountability partners. I know this is something that many people on this platform will benefit from including myself!