Getting into REI.

Hi guys,

I’m currently still a student in college, but very interested in investing in multifamily apartments. I saw a few rather new 4 unit buildings by my school for sale at a great price (300K, 800M rent each unit)…but the only problem would be getting a loan. I have about 40K in assets, my parents make almost 300K a year, all have excellent credit, is it possible at all if they were to cosign with me that I would be offered a loan? My credit rating is excellent as well.


I’ll be blunt, because I’ve found that it doesn’t help to pee on someone’s back and tell them its rain.
-How do you know these four units are priced correctly? Have you done a financial analysis on the buildings yet?
$300K @ 6%interst over 30yrs is about $1800/month just debt service. That doesn’t include taxes, utilities, maintenance fees, etc.
Plus, do your parents have 20% to put down on a $300K loan, or about $60K? Because if you go through a conventional lender, 20% is about average down payment.

My point in all this naysaying is not to get you down, but rather to give you a reality check. You’re in college and interested in REI-that’s awesome, I wish I had known about REI in college, I’d probably be alot further ahead in my business than I am now. Start taking business, accounting, RE classes, whatever you can to learn about the business. Start reading this forum, join your local RE investment club, and start networking with investors. Maybe then, when you have a better handle on what you’re getting into, should you go ask your parents to help cosign on a loan to get your business running. Again, its great you’re already realizing the benefits of REI, most adults don’t even get it, just don’t do anything stupid before you’re spent some time learning what you’re getting into.
As another contributor to this forum likes to say: You should probably get your feet wet in the shallow end of the pool before you jump in the deep end.

I appreciate the insight,

As for getting my feet wet in the shallow end of the pool, I am not completely unfamiliar with REI - my parents/family have owned a few condo units and I have gone through the process with them. and i think it’s fair to say i know a bit about the housing industry over the average person. (whether from a material or financial view) And as an Econ major (minor in finance and mgmt, as well as getting an entrepreneurship certificate) I have taken plenty of courses in finance, accounting, starting your business and what not.

But yes, I know there is alot more to learn and not saying it’s easy which is why i joined this forum and bought some books on REI - couldn’t really find anything useful on how financing works which is why i asked.

It’s good that you’re an Econ major etc then hopefully you can find a way to apply that knowledge to your business. You admitted that you don’t know a lot about financing properties, which is pretty much the heart and soul of REI. First, make sure you understand the basics of mortgages, which you’ll have no problem finding a plethora of books on. Second, go to the bookstore/library and just start reading everything you can get your hands on regarding real estate-investing, financing, buying, rehabbing, et. With the industry changing so much over the last couple of years, the newer the books the better, but the classics still have a lot of lessons in them too.

While you’re studying these books, join your local REI club and meet some like-minded people. I CANT STRESS THAT ENOUGH. My partner and I were pretty much dead in the water when we started until we met an investor who saw our passion and knowledge and decided to give us a chance and help finance our first couple properties.

Do these couple of things and doors will start to open for you. You’ll begin to see opportunties that may have not existed before, or at least you didn’t recognize then as opportunities. Lastly, continue to build your own personal credit scores and make sure your personal finances are in line-it will make obtaining biz credit/capital SO much easier than if u were in a personal financial mess. :beer

I bought a few books the other day…basically just got the ones that people on amazon said were good. They are:

1)The Wall Street Journal. Complete Real-Estate Investing Guidebook

2)Secrets to Financing Your Real Estate Investments: What Every Real Estate Investor Needs to Know About Finding and Financing Your Next Deal

3)Financing Real Estate Investments For Dummies

4)The Real Estate Investor’s Handbook: The Complete Guide for the Individual Investor

Anything good reading im missing??

It’s tough to say for books, theres sooooo many out there that i could never give you a comprehensive list, but you’re DEFINETELY on the right track. couple of good authors- anything by Robert Kiyosaki, Robert Allen, skip Trump…