My Investment Idea

**mikrosoft077** · 07-28-2008, 02:12 PM

Good day to everyone!!!
I am 18 years old, a sophomore in college and I want to invest in apartment units. There are several large apartment complexes for sale in my area, I just do not know if it would be smart to make an offer since I only have the money I have earned from going to school($700/month). I am also in NO DEBT and I have good credit.
-I know there are loans available to start with 0 down, 100% financing, but I am interested in the large units ranging from 20-300 units.
-Is this reasonable?
-Are there large loans out there that would help me cover the down payment if 0 down, 100% financing was not available?
-And would such large loans be able to be given to someone who is so young and makes $700/month?

I have received information about several of them and they are costing anywhere from $2M to $25M with an NOI of $150,000 for the 20 unit ones and an NOI of $1.5M for the 300 unit ones.

I am reading real estate investment books all the time, trying to learn how such a deal can be done with no money down. I really want to start NOW and I AM ready to start heading towards financial freedom; all I need is THE one deal that will get me rolling, and it will all exponentially grow from there.

Please, if you have tips/comments/suggestions/etc. let me know by message, PM, or e-mail!

Thank you all!!

William
mikrosoft077@yahoo.com

**mikrosoft077** · 07-29-2008, 09:56 AM

Would it be smarter to start smaller first? Like little 5-7 unit complexes?

**chris_velazquez** · 07-29-2008, 11:44 AM

where are you located

**mikrosoft077** · 07-29-2008, 11:59 AM

I go to school in Colorado but want to buy in Sacramento, where I go for my breaks(I would hire a property manager of course), or Colorado.

**chris_velazquez** · 07-29-2008, 12:29 PM

i sent you a pm

**chris_velazquez** · 07-29-2008, 01:40 PM

but yeah some of my friends are investors and i can have them look this over and let you know what they think and if its a smart thing to do

**VancouverRealEstate** · 07-29-2008, 11:44 PM

Yes. you can no money down an apartment. Does not happen frequently but you may in fact run into a seller that is free and clear and would be happy with an installment sale.

A hypothetical scenario might be purchasing a property under valued due to delayed maintenance. The seller may be in a financial bind and not able to get a rehab loan and has to sell as is. So, you pick it up at .65 on the dollar and rehab the place. The value has increased and now the cltv is 75% so he is sitting on some equity in case of a default.

He has risk initially because you have nothing invested. This deal will be rare in a healthy real estate market but not impossible. Keep in mind that taxes play into the sale of rental properties and can lead to some creative ways to sell.

**SellMyDigs.com** · 08-05-2008, 08:43 PM

The main thing going against you is little credit history and nothing to back up a loan. You'll need to start smaller but you're going in the right direction. As for 100% financing, well that is slowly being destroyed, you'll be hard pressed to find that in our current situation especially in California. Down payment assistance is a good idea, if you buy before October 1st you might be able to work out something with the seller. Look into the Nehemiah program.

**foreclosurelook** · 08-06-2008, 12:12 PM

you should start smaller, maybe a duplex? but regardless of all that, if you don't have a long credit history and full time working history, it'll be tough for you to get a loan, funding is probably one of the hardest part in real estate right now, all the credit standards have tightened

**TubeMyHouse.com** · 08-22-2008, 05:36 PM

My advice would be to start much smaller and work UP to apartment complexes.

I tried to flip a house with a partner while I was a sophomore in college and went from debt-free to $20,000 in debt, basically OVERNIGHT. I didn't recover until AFTER college.

Besides, unless you have a cosigner it'll be nearly impossible to find a 100% loan.

Here's a better starting point... foreclosed condos. They're cheap, easy to rent out, and you might even be able to double your monthly income.