Hi, I am a newbie that needs a few questions answered about financing. I am looking to locate a duplex to buy. The problem is that I am a college student. I just finished my last year of football and have one more year of school left. Because of football I could not hold a job. I am now done with football, and I have a part time job I work 32 hours a week. I make about 1000 dollars a month and have about 350 in expenses.
What are my financing possibilities??? I live in Indiana and want to invest there. Duplexes in my area tend to run anywhere from 30k-60k. Is it even possible to start, or should I wait???
wait until you have a basic working knowledge of real estate and investing.
how much money do you have saved roughly - if any.
buy carleton sheets and see if you can start buying duplexes with no money down - you’re in the heartland - i think the whole no money down stuff really works best in middle america, but that’s just my opinion.
just buy from “motivated sellers” - properties in distress - for like .65 cents on the dollar (below market).
but again, only do this after you’ve started to really get a working knowledge about real estate and how it works. especially financing. know this - banks don’t usually lend without some money being in the deal meaning you’re putting down X%. they like to see you with steady income, credit, etc.
other types of lenders might take into account an income-producing property - but if it’s residential (less than 5 units), this may be very hard to do. there are many variables to consider when discussing financing.
other lenders will do “nodoc” loans - no documentation - but your interest rate will be HIGH - as it should - because the lender is taking a risk lending you the money without really verifying if you can repay the debt.
have you done any studying on real estate? what are you going to college for (major)?
Thanks for the reply. I have read a couple of real estate books, and have gone through the whole house buying process because my fiancee and I bought a HUD home, but it was all under her name since I didn’t have a job and it didn’t help. I feel like I am now at the point of diminishing returns, and more learning will need to be done through experience.
I am an accounting major. I played ball at the University of Saint Francis. We were three time national runner ups while I was there, so we were basically the Buffalo Bill of the NAIA. haha.
I only have about 1k saved.
Is finding owner financed properties hard? I have read about this, but I do not completely understand it.