21 year old student - newb in the business - Posted by Chris

Posted by bob on October 17, 2003 at 06:46:22:

It sounds like what you’re proposing is a $50,000 unsecured loan. And no matter how high your score is (720 is pretty good, by the way) you are going to be hard pressed to get that much of a line of credit without some investment history, solid verifiable income (which being in school you proably don’t have) and a sound business plan.
The only way I could think of to make this work is finding a lender that will lend on the appraisal amount rather than the sales price. Even this will be a stretch. Say this condo will appraise at $50k and the seller will accept $35k. You then get a %80 investment loan in the amount of $40k. You know have $5k left to pay closing costs, attorney fees, etc. Paying off your car and credit cards is now not a reality. You may as well take what ever remaining money you have after costs are paid, if any, and go to Spring Break next year! All joking aside, I’m only 22 myself, this still sound like a good deal. Buying is property at 70 cents on the dollar can usually be a great investment!

21 year old student - newb in the business - Posted by Chris

Posted by Chris on October 16, 2003 at 15:56:40:

hi everyone, i’m a 21 old student from Houston, Tx and was thinking about investing. i have a pretty good credit score (720) and a good friend of mine is a loan officer. he says i’ll have no problems getting a $50,000 loan.

Here’s my idea: buy a 35k condo. with the 15k remaining, i’ll pay off my car loan ($5700) and my credit cards ($3000).
i’ll rent out the condo, which will pay for the loan, also paying off my car and credit cards.

Does this make any sense? it sounds really simple in theory but i’m sure it’s harder than that.
anybody could give some advice? thanks a lot!