Posted by James Harris on April 17, 2002 at 10:20:39:
I agree with Brent. Think about it; could you live off of $100-150 a month? On your first deal? It could happen that you MIGHT make $2000-5000 on a deal. Then you may not do a deal for several months.
Buying property without a “Job”??? - Posted by nlatto
Posted by nlatto on April 16, 2002 at 21:38:28:
How does a real estate investor get financing if they do not have a job, other than real estate investing? I can see how an established investor would have a track record and taxes to prove income.
But, I am ready to quit my job, and if I do, how will I qualify for loans in the future? I have really good credit so I am not worried about that. I have not bought my first property yet. But I figure once I do and I make a good profit to get things rolling, I will quit my job.
Just curious if anyone else has had this problem, and what did you do.
Thanks.
But Bronchick said - Posted by Sharonda (NOVA)
Posted by Sharonda (NOVA) on April 17, 2002 at 21:46:21:
But I think Bill Bronchick mentions on his site that if you are married and one person holds down a regular job, the other could work hard at REI so that you have the bills covered while you build your business. It’s the plan I’m pursuing.
Hope this helps,
Sharonda
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.
Re: Buying property without a “Job”??? - Posted by Brent_IL
Posted by Brent_IL on April 17, 2002 at 24:06:31:
Really good credit and no income won’t count for much.
Regardless of what you hear and see on the real estate infomercials, the time to quit your job is when your average monthly income from CRE activities exceeds the money and benefit package you get from your job. Until that time, real estate investing is a part-time job with full-time hours.