Associates,

In this issue, we are stepping into a new era of The Associate Report. After I did the initial "mindset work" assignments my real estate coach gave me, it was time to get to the brass tax: the pre-work for buying my first rental property. This is where the legit real estate and finance stuff starts. Dive in to learn where real estate investing all begins...

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HELPFUL LINKS

What Happened After That First Coaching Call?

When I first considered working with my coach, I really didn't think that it would be all motivation and mindset—the dreamy “woo-woo” stuff we have been talking about for the past month or so. I signed up and paid the fee because I wanted to take action. I couldn’t have been more wrong.

Right out of the gate, I had those 3 assignments.

First, I wrote out a vision for my life—a brain dump of every dream I could imagine. It wasn’t about having practical steps to achieve those dreams right away, it was about burning everything to the ground: thinking as big as possible, no matter how impossible it seemed.

Then I created a personal financial statement. This would come in handy for the action steps my coach assigned soon after. (You can check out how to do that here.)

And finally, the heaviest one: I wrote my own eulogy. That one was a monster energy drink for my motivation. (If you’re curious, I’ve written more about the power of this exercise here.)

After turning in those assignments, I wondered, What’s next?

Can we get to the real estate already?

Turns out, the real work was just beginning.

My coach kept pushing me to take action, and soon I had more tasks on my plate. He sent me books to read—books that completely changed my outlook on money, business, and life.

Here’s a few of volumes on the list:

I dove in and devoured them. These books weren’t just tips and theories; they were frameworks that shifted my thinking. If you haven’t read them yet, go grab a copy of each.

Reading was just the start.

What was the big goal? What was the reason I swiped my card in the first place?

My mission was:

To buy my first rental property, and in so doing, learn a simple real estate investing strategy that I could use as a tool to make my dreams a reality.

The Plan

Together, my coach and I worked out the game plan.

We weren’t just looking for any old property—it had to check a few key boxes:

Affordability: As I would soon find out, I couldn't afford to buy a 27 unit apartment complex. I would have to find a property that was under $130k.
Sweat Equity: We needed a property with room for improvement—a fixer-upper where I could put in just the right amount of sweat equity and add significant value.
Scope of Work: This ain't HGTV. Ya boi couldn't sign on the dotted line for a total gut job. i was after a deal that required as little renovation as possible.
Live-In Potential: I hadn’t moved out of my parents’ house yet, and my coach insisted I buy something I could live in. He wanted me to feel the responsibility of homeownership firsthand, and he was right. That experience was invaluable.
Rental Income: The property also had to have rental potential, whether that was renting out rooms or a full unit to help cover the mortgage.

And step one? Getting pre-qualified for a mortgage.

The Prequalification Process

Now, I had a little experience here—I was working as a licensed mortgage loan officer at the time. But applying for a mortgage as the borrower? That was an entirely new ballgame.

If you’ve never applied for a mortgage, here’s what you can expect:

Income Docs:
- 2 Years W-2 Forms
- 2-Years of Tax Returns
- 30 days worth of Pay Stubs
- Additional Income Documentation: You may need to provide proof of income from bonuses, commissions, alimony, child support, Social Security benefits, or military rental properties.
Proof of Assets:
- Gift Letters: If using gift funds for the down payment, include a letter stating the money is a gift and not a loan.
- Bank Statements: Statements from checking and savings accounts for the past two months.
- Investment Account Statements: Recent statements from retirement accounts, stocks, bonds, or other investments.
Additionally, you will have to provide:
- Employer Information: Names and addresses of employers for the past two years.
- Self-Employment Documentation: If self-employed, provide business tax returns for the last two years and a year-to-date profit and loss statement.
- Photo ID: A valid driver's license, state ID, or passport.
- Social Security Number: Your Social Security card or Individual Taxpayer Identification Number (ITIN).
- Residential history (often the past 2 years, every address you have Social Security number, recent financial documents (like bank statements and pay stubs), and your credit history.

To put it bluntly, the lender will give you a financial colonoscopy if you are a new borrower.

And still...

Getting the green light from a lender isn't the finish line—it is just the starter pistol.

Once I submitted the mortgage application, it was time to build my team.

I can't wait to tell you more.

Talk soon,

-Jonathan

"If you plan to win, Associates is a great fit for you. Run towards your goals with strong community. See you soon."

⭐️⭐️⭐️⭐️

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