Re: Buying property without a “Job”??? - Posted by GL(ON)
Posted by GL(ON) on April 17, 2002 at 08:29:41:
I made that mistake years ago and I’m still sorry. At the time I had been investing in RE for about 3 years. My ability to borrow immediately dropped to 0.
First, not having a job destroys your credit rating. Only after you have been in business successfully for 3 years do you have a track record to show. Even then you would be better in the bank’s eyes if you were flipping burgers for minimum wage.
Second,if you have a job, and buy a house, it is a simple routine transaction.
As soon as you call it an invstment it becomes a commercial loan which is way more complicated and way tougher to get.
Especially in a small town. I talked to a lady at a local bank last week about a mortgage on an apartment house. She was new to this branch, but had worked for the bank 31 years. In all that time she had NEVER done a commercial mortgage. She had to phone head office to find out what information she needed to get from me. Then she had to send it all to head office, for their approval. I’m not holding my breath.
This is why apartments so often sell with seller financing and other creative deals.It is also why the gurus emphasise creative financing, in many cases it’s the only chance you have.