Real Estate

[Ciggalicious]

Have any of you ever bought property at a young age?Did you have credit when you did so?How did you do it?

[Powerpress]

Re: Real Estate

Yes I bought my first house at 22.
I didn't have any credit but I had a steady income.

[6p6]

Re: Real Estate

I bought my first house at 28...with bad credit problems! lol

[T-Man007]

Re: Real Estate

If you have had the same job for at least 2 years, you should be ok. Lenders know that people have to start somewhere. But, most lenders will require that you have had two lines of credit (car loan, credit card, etc) without nay lates before they loan. It's one thing if you are older and have had the same job for several years and messed upon credit because the job shows you are stable. But, if you've had a job for a short period and you have no lines of credit, it's going to be very hard to get a home. Foreclosures are high nation wide right now and lenders are cracking down big time. There are several BIG lenders that have completely done away with 100% loans, meaning you will need at least 5 to 10% down plus money to cover closing costs. Which, IMO, is how it should be. Back in the day there were no 100% loans, ever. People learned to save and put 10% down. That's the way we did things but credit cards have caused people to lose touch with the importance of saving money and so banks started giving 100% loans to make more money. But, all they really did was enable foreclosures to increase. When a home is maxed out and the people default, the bank loses. But, if the people put 10% down and they default, the bank can walk away without losing money, in most cases. Some dead beats though will tear up a house that 'they' couldn't afford. As if it was the banks fault they couldn't pay their bills. I just don't understand that type of low life thinking. But, it happens all the time. In those cases, the banks can garnish wages and other things if they choose to because the people basicaly damaged a house that the bank owned. Until you make the last payment and the title is in 'your' name, it's really someone esles property. Same thing with a car. It's not really your car until you have the title, until then, it's the bank's car.

So, if you are looking to buy, then do FHA with CHAFFA. FHA has much stricter guidelines on their appraisers and that way you don't end up paying more for a home than you should. And, an FHA appraiser will check the electrical and insulation and other things too if you can't afford a home inspection. But, if I was you, I would never buy a home without a home inspection by a certified home inspector. No way, no how. This way, if something is missed, it's not coming out of your pocket and a goof certified home inspector won't miss anything. In my state you don't have to be certified, you can't be a general contractor and do a home inspection, which is a total joke IMO. You need someone to do the inspection correctly, not someone who will walk through turn on a few things and say 'yep, looks good to me.' and then have no liability.

The first step is to get pre-approved. Have a bank or lender pull your credit and see what you can afford. From there, you find a Realtor and go looking. Now, I'm a licensed Real Estate Appraiser so I have access to all the homes on the market and I would just find what I want and negotiate the price lower for not having a Realtor. But, without access to the data I can get, I would never buy a home without a Realtor, you need someone on your side.

[daved150]

Re: Real Estate

first home at 20. had a decent down payment and had paid on a car for 2 years. it was only a 30k mortgage on a 48k home

[Ciggalicious]

Re: Real Estate

Well I'm almost 19 and just got a credit card.I paid off my truck right away so I have no credit.I've been in the military since october of 2006.Me and a buddy are looking to buy a house for investment purposes.We figured we could get a hard money loan through a broker and then refinance once we have the house to lower the high interest rate.We can afford right now to put down about 7 grand.

[solidground]

Re: Real Estate

^ you can probably do it..if you have a good broker they can find a way to get you a house.

[daved150]

Re: Real Estate

there's tons of financing avanue's...t-man (or some others) should have some way's to go...

[VveTTe917]

Re: Real Estate

Bought my townhome at 20, then bought my 1st house at 23, sold that when I was 25 and bought a big house, and recently bought a 2nd home in South Carolina, Im 28 now.

[solidground]

Re: Real Estate

you wont be able to get the house as an investment most likely, so if your going to a bank for the financing just tell them your going to live there..being in the military will help..i bought my first 2 houses last yr at 23, theres a way around everything..i bought one with only 10k down too..Also youll get higher rates if you tell the bank its for investing purposes..just make sure you dont sign a prepay penalty if you plan on flipping.

[Merc]

Re: Real Estate

If you are in the navy the Navy federal credit union has some good programs

[space mountain]

Re: Real Estate

i did when i was 25 .

[T-Man007]

Re: Real Estate

Well I'm almost 19 and just got a credit card.I paid off my truck right away so I have no credit.I've been in the military since october of 2006.Me and a buddy are looking to buy a house for investment purposes.We figured we could get a hard money loan through a broker and then refinance once we have the house to lower the high interest rate.We can afford right now to put down about 7 grand.

From my experience, the job thing will be your only hold up. Most lenders require 24 months but some will do 12 months. However, I like the hard money idea but my experience with those guys is they only give you about 70 to 80% of the 'fixed up' value. For example, if the home is worth say (for easy numbers) $100k fixed up, they will give you 70k to 80k in cash. Now, if you can buy if for less than that, you are in good shape. I know this because I'm working a deal with a hard money guy to get some fix and flips in a city to the south of me. This guys gets 4% up front as a comission so to speak and the rate is high. The trick is to fix it quickly and then offer a nice incentive to the agent that sells it within 30 days. They will show the house more than any other if they know they will make an extra grand or two. I'm talking low end homes, but I will be able to make anywhere from $10k to $20k per home. It's a crap shoot, but as long as I come out with no less than $10k, I'm happy.

Investment properties are the way to go. 80% of the millionaires in this country go there using Real Estate investments, and that's a fact. Less than 5% of millionaires in this country got there through the corporate world. You are taking the right path. Now, let me let you in on a little secret. If you live in the home 2 years out of 5 and then sell it, you are exempt from capital gains taxes. So, the trick is, buy the home, live in it for two years, rent it out and move on to the next one. Three years later, sell it and pay nothing in capital gains. For me, that's not feasible because I'm married and my investment properties will cost less than my primary residence and so it's very hard to convince a bank that you are down sizing your primary residence. At least, at my age with young kids, it's not practical so I just play it honest.

Let me know if you want to talk more about it, this is what I do so I will give you any info I have. Also, because I'm an appraiser, I know a good deal when I see it so that gives me a big advantage.

[trip]

Re: Real Estate

first off,

super super congrats on having saved some money at your age and thinking like this, starting early is the greatest benefit

22 here, it was investment prop, had a job and cosigner

hmmmmm, find a piece of total junk 40-50% below market in a decent area, get your hard money loan, put in the sweat equity, refinance it, and once the work is done, you should easily have 15-20k instant equity, it also keeps your payments low

be patient, go look at 30-40 junkers, put some effort into it, don't be afraid of foundation work, unless it's got a ton of cracks and sags etc.

kitchens and bathrooms, put the touches in there

good luck

do the first deal 100% correctly and that sets you up, too average up and up and up with confidence

[SpyWizard]

Re: Real Estate

Have any of you ever bought property at a young age?Did you have credit when you did so?How did you do it?

19 yrs old.. $69,000 new construction.. 1981 colorado springs.. 13% interest, that year the interest went to 16% on new housing starts..

$1 buy in.. VA financing..