Draft 2

So far in this course I have been forced to focus on areas of my topic that I am not as comfortable with. It has really made me a more well rounded individual in the real estate market and it has increased my passion even more for this topic. I really want to stay focused on financing in the real estate industry. Weather it is someone's first home or their fifth home financing is always a huge question mark, and it is a question mark that holds a lot of people back most of the time. For me personally, I have been working with my dad my whole life in the real estate industry and not even realized how much I have learned from him. He has a full time job, and he still manages to finance not only the money for real estate projects, but also finances the time in his busy schedule. I am 23 years old and it will be time for me to begin my own personal entrance into the real estate market, which will probably mean buying my first house. This does not seem to scare me like it does a lot of other people because I have been dealing in this industry my whole life and learning. I can only imagine how people who don't have any experience in this field feel when they think about purchasing their own house. People who are just graduating college, who have limited cash flow, can find ways to finance a house and prevent renting.

            People graduating college really need to capitalize on their resources that are right there in front of them. For example, college friends and family. My brother just split the deed on a condo with another couple and was able to purchase the property up front with a low mortgage rate. It was a five year mortgage and at the end of the five years they will probably sell and go their own separate ways. This is a much more wise decision than renting because you are paying for something that will eventually be yours. Once the two couples are done paying off the condo they will then be ready to move on to the next chapter of their life and possibly have kids. They will also be much more financially stable and be able to afford a house that can be only theirs. There are so many other ways to finance projects like this if people are willing to exploit the resources that are available to them.

            Another solid resource that people can use is their families. A lot of times parents would be more than happy to finance a real estate project with their loved ones. This means that their name goes on the deed to and is split up fairly between the two parties purchasing. This is just another way to make the burden lighter on graduates who do not have the cash on hand to purchase a house up front. Although the bank may not trust a couple of graduates, the graduates families would certainly be the opposite. I have worked along the way with my father in his real estate business and he has a number of different partners and investors that he has built strong relationships with. Often times he splits the house between three or four people, and when it is ready to be re sold the profits are evenly shared between the existing parties. This divides up the risks and helps people not feel as overwhelmed with projects like this.