Like this….
But for 500K.
This is what my friend texted me along with this reel.
He lives in the DC metro area and keeps saying that houses are expensive, so he can’t buy a house.
The reel that he sent is a tour of a 3 million dollar house.
This house is pristine.
All the finishes are modern.
The wood is polished to a perfect glow.
The balcony view is insane…
And the house is humungous!
The bathroom alone is bigger than my whole New York City apartment 😅
This house is a DREAM house.
I don’t have to look at the listing details to be fairly certain that you aren’t getting into a 3 million dollar house for 500K anywhere in this neighborhood.
But also…
not all houses in DC are 3 mill.
So what I told my friend is…
you have to decide what you are willing to sacrifice to get what you want.
Do you want a house that looks perfect OR do you want a house that will build you wealth…
Do you want the house that people talk about and say is amazing, or do you want the house that lets you quit your job in the next 10 years?
Do you want to be in the perfect neighborhood now, or be hood adjacent for now so you can level up to where you want to be later?
The closer to perfect you want your house to be, the less likely you are to get a deal on the house.
It’s a matter of supply and demand.
99% of non-investor home buyers are looking for a “perfect house”.
So if that’s what you are looking for as well, get ready to pay up and likely overpay.
But the answer isn’t to just give up and say you can’t buy a house in this expensive market.
Instead of throwing in the towel, ask yourself HOW.
How do you get a deal on a house in an expensive city?
The answer is to do the opposite of what everyone else is doing.
Think like an investor when you are buying your own house.
Copy the people that buy houses to make money.
Not the people that buy a house, just to buy a house.
Instead of looking for the perfect newly renovated house…
Find an ugly house in a nice neighborhood.
Then renovate it to your liking so it feels like the million-dollar gem you saw on IG.
But Nobu…
I am not rich and don’t have money to renovate a house.
I hear ya!
You don’t need to be rich to buy and renovate your house.
The 203K Mortgage will Fund Your Dream House
There is a version of an FHA mortgage loan called a 203K loan.
This 203K loan allows the home buyer to borrow the money to purchase the house AND also add home renovation costs.
The loan has the same loan requirements as a regular FHA loan.
The only addition is planning the renovation and submitting contractor details as part of the mortgage approval.
The beautiful part is, the renovation loan and home loan are rolled into ONE mortgage payment.
Essentially the bank pays for the renovation…
you pay back that renovation money over the lifetime of your loan.
But the bank funding your reno isn’t the best part…
The best part is you still only put a 3.5% down payment on the mortgage. 🤯
This essentially allows you to buy and fix a house with the bank’s money and add in very little of your own money.
And as soon as the renovation is over you have increased the value of your building.
This… friends is one way you create your own dream house, instead of searching for one.
I used a 203K loan for my first house.
When I finished the renovation I had increased the value of my house by 300K.
All because I got the ugliest house on the block and found a contractor to fix the house for me.
Oh, and I only had to put in 22K in closing costs to make that 300K…
Buying and renovating your home is just one way you can create a deal for yourself when buying your first house.
I walk through less intense options for buying a multi family house that generates income from day one in my coaching program CASHflow. (Next cohort is starting up soon btw!)
What’s your next move to buy your first house sooner?
Are houses expensive? Yes.
Are interest rates high? Yes.
Is it hard to find a deal on a house?
Absolutely.
But my question to you is HOW are you going to find a way around it?
Are you going to keep dreaming and watching more IG reels of the perfect house OR are you going to start asking HOW and make a plan and take action in spite of all the barriers?
DM me and share some of your ideas on HOW you are going to buy your first house!
Not quite sure about the how… tell me what you think will get in your way!
