Hello I am and 18 year old college student who is getting into investing. I have no cash and no credit.
Can I use student loans to buy property or at least make a down payment. I figure if I use seller financing they wont care where the money is coming from.
Is this ethical? I will be living in the property and renting out rooms, or fixing and flipping.
thanks
-Jesse
You could, but you should consider that student loans can not be forgiven through bankruptcy, and you would be stuck paying them if your business failed. Credit cards would be a better option.
that is something very important to consider. Thank you wil817
In my opinion, the way to go would be to try to buy the first house for cash. Save your pennies!
Using a private money source? I know a lot of parents friends have cash and are looking to invest. My only real issue is going to be if they will hand it over to a 18 year old.
Sure. It depends on what you plan to do. If you are planning to buy homes as rentals, then be sure to follow the advice of buying at a price, of which you can collect 2% or more in rents. And if you are planning to resell the property, paying cash will help you to save lots of $.
some good advice. thank you very much
When I was in college I used part of my student loan money as a down payment on a car. That car was long gone and meanwhile I was still making payments on my student loans. They are finally paid off now, but if I had the option of doing it again I would have worked a few extra hours a week to save up the money for that down payment.
But property and a car are very different. I would hopefully be getting the down payment money back in the future.