Getting a loan

Getting a loan

Hi Dean,

Your book is great and inspiring. I've just started chapter 14 and I have a question. Two of my buddies and I are planning on getting an apartment this summer, but after reading your book I was wondering if we could purchase a triplex, or apartment complex and live for cheap or free, like you did. The only problem is we have barely any credit since we are only 20 years old. Currently combined between the three of us, we make around $1500 ($500 each) a week. We all live in Foxboro, MA, and hope to find something in this area around 200,000. We are looking to get a loan but I have a few questions:

Would it be easier to get one loan with all our names on it or three different loans?

Who would be the easiest lender to approach?

and, is it possible with a cosigner?

Thank you for your support.

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Getting a Loan

Look under my topic first time buyer. If you are a first time buyer you qualify for FHA or VA loans which are the minimum downpayment something as low as 3% and 10%. You start with your banker and approach him to get a loan and what are the prevailing interest rates on them. Then he will qualify you based on your income. Use the calculator on this site and calculate your monthly payment on the property. Add the income from the two other apartments if you found a triplex. Say your friends will share the third apartment with you. The three of you can cover the difference between the two aprtments rental income and the total mortgage payment on the property. The only dificulty I would see in your case is qualifying for a loan with such a low income.

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Ali


Don't get a loan

One of the easiest things you could do is to find a motivated seller and do a lease option. I am helping a friend of mine right now who is 20 years old with no credit buy 2 duplexes and a 4 plex. Trust me there are a lot of owners out there who are burned out on managing properties and would like to get out. You won't know unless you ask. Call a real estate agent and ask them to pull a list of properties for sale and have them use the key words in the search like: OWC, lease option, seller finance, motivated, must sell, etc. You will be surprised how easy it is. I bought a 3 plex from a motivated seller that needed no work for 40 percent off retail.

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You've got to find your obstacles and call them out! Unsheath the sword, and do battle with whatever it is that holds you back!


YOU ROCK!

YOU ROCK!

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Challenges are only challenges if you view them that way. Try looking at them as OPPORTUNITIES instead and success will follow!!! "ME" Eye-wink


Don't get a loan

I agree with cbrpower. I have bought numerous properties this way. Remember, if you approach the deal and help the seller solve a problem, you will be amazed. Be creative and you may find that they may have multiple properties they want to sell. A higher interest rate isn't unreasonable to get into the deal as long as the numbers work. Then once you have control of the property you can always go get bank financing on the new valuation. You'll never know unless you ask. Remember real estate brokers are really sales people and very few are investors. There is a strong chance that they will say the owner will never go for it. Don't take their word for it, have them ask the seller. The worst the seller can say is no.
One other thing to consider, you may want to by this property on your own. Three way partnerships can be very hard unless your two friend are willing to be silent partners. Realizing you need to show the ability to pay the mortgage have your friends sign leases to you showing how much they are going to pay. This will help you in securing financing.
Go for it!


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