With a W-2, sometimes work experience counts towards that. Say, for example, I work in personal loan cosigner finance, you have two years of school experience, so you can be qualified as a primary residence. And then with my apartment complex, I was actually able to find a sublessor. Ashley:When you say primary residence, you mean getting like an FHA loan and getting that low down payment? Andres:… I say primary, it can either be a conventional or an FHA. The huge benefits of a primary is that you get lower interest rates and you can get a lower down payment. Your intention has to be to live in it for a year in order to be a primary. Andres:I had been part-time, and as a payday loans barrie 1099, you need really like a year and a half or two years of steady income. With this, I needed a co-borrower and my mother was a co-borrower. With a new build, I just put it under contract with an earnest deposit. My home close in April, so I had instant equity of like 5,000 to 6,000 without doing anything because I locked the price. With the market as competitive as it was in Austin, just putting an earnest deposit was ideal and I love that. I am buying houses sameday loan that are 100 years old most of the time, so I love all of this and definitely to ask if they have a preferred lender that you can use and get discounts like that. Ashley:One thing I wanted to touch on is what happened with your apartment? If some of our listeners are in the same boat, what did you do to overcome that? I think your point about thinking of the worst case scenario is critical. I just want to point that out because I felt like that was a big point too. But yeah, it was a lot of the mindset stuff as well. I put on Instagram, I contacted my leasing friends and I think I got it within the day or two days after I had a guy under contract. And my roommates, they all got along with that person because they knew him. When you did that, was there any other options available? Now that you have your first property moved out, your apartment you were renting, got your first house hack, how was it going from renting to actually now being the landlord and renting out your rooms? Andres:Well, I feel like that transition definitely helped.
They pay a base rent, then I get all the utilities in my name and I just Venmo between four. I divide it by four and just Venmo everyone for utilities. And remember, we set these expectations right off the bat. Ashley:That is such an important piece is to follow your lease and to stick with it and use that as the bad guy, because they had the opportunity to read the lease, they signed the lease. When I was doing my own leasing, every once in a while, usually every personal loans without credit check quarter, I would go through and I would look through it, see if there was things I needed to update, have my attorney comb through it. Andres:The fourth room is going to be around 800 for the rent and rent by the room. You look at that through Craigslist or Facebook marketplace, but also know what you can run for the unit. Then going into this next house, I love this story. With this one, I really wanted to get another house right after I got my first house how to find private money lenders hack.
She qualified me as a primary because it close sameday loan in April of 2021.
And now I legit-check this yesterday, the same home is selling for 398,000.
You really have to ask yourself how bad do you want it? The lender is going to give me like 5,000 in closing costs. Did you have a fear at all that maybe the market would go the other way that with coronavirus and the change in the White House, anything like that, that the housing market would crash and your value would actually depreciate? Once you answer that, best place for a personal loan you can answer a lot of the other questions.
That sameday loan is like a perfect answer and I want everyone to really take that away. You get presented with a problem, and instead of letting it stop you, you find a way around it.
You were restricted to living in that first house hack for at least a year. On the second deal, you had to wait that one year to finish that first primary residence. If you find a good deal, sometimes it makes sense to get it under contract anyway and figure everything else out afterwards. Airbnb, so I get excited whenever I hear that word. I mean, what are homes based off of, the single family homes, the comparables? First phase, imagine in the sixth phase if your home is still selling the same floor plan, increase your price by a lot. So got under contract, I went to a design center, this and that. Two, builders would typically help with your closing costs.
And need to borrow money fast if you go with their title, they offer title policy, which is usually in Texas around 1,000 to 3000. The thing with this, a lot of people are skeptical.
You get that, you get incentives towards your closing, you get warranties. I think you mentioned a 10 year- Tony:You get additional warranties. Andres:The earnest deposit is essentially just a payment to get your home locked, get it under contract.
And then when you close, which is when you get your keys, you sign all your awesome autographs and whatnot, you put that down payments.
Ashley:Yeah, this whole new build has been really interesting to me places to get a loan with bad credit intriguing.
Ashley:Yeah, thank you for all of the valuable information. Which one of sameday loan those properties did you want to pick? We want to get into the nitty-gritty of the actual numbers. My PITI is 1,850, so the principal interest taxes and insurance. Then the rent is 2,150, so renting out three other bedrooms and living for free. Andres:Right now, sameday loan I spoke with a builder a week ago and homes in this neighborhood are starting for 325. But a lot of people get caught up in, "No, I just need a cash flow and this and that.
Diego, I called him and I ended up being on his team three months later. And just to give both of them a little bit of a plug, they were both on the BiggerPockets Original OG Real Estate show. I highly recommend taking listen to episode 352 and 329.
Next question is how does somebody find a mentor like that? Andres:Finding a mentor like that I feel it really goes into narrowing down what you want to do. And then from there, you see what people are killing in that industry. I want to get into the psyche of Andres a little bit, man. If you go back to Andres before your first deal and you maybe think about some of the assumptions that you made, or maybe some of the misconceptions you had about real estate investing, what were they and how did you get past those? But it really halted some of the things that I could have done. I really attribute that surprisingly to having a morning routine. You can change that just with a tweak of I am good enough and telling yourself that.
Apply Online and Get up to $5000 in 5 Minutes!GreenLightCash