Posted by Ed Garcia on February 05, 2001 at 15:56:41:
Scott,
I disagree with you. I don’t see you as unemployed, but as self-employed. As you yourself have stated, “I want to spend full time in real estate investing. In addition to having 100% equity in the rental I also have some cash”.
Scott, it sounds to me like you know what you’re doing, and what you want to do. There definitely loan programs available for you. You can either do some deals with 10% down + closing cost of your own money, or with a combination of seller carry-back with 5% of your own money in a deal. If you think this might interest you, you can call me at (909) 944-0199 and we can discuss this in detail after I ask you a few questions.
I just beginning in the REI out here in the state of Oregon. I currently own one single family rental with no loans on it. (100% equity). Good cash flow on it. I want to purchase some more properties. I am not employed now and I don’t want to become employed as I want to spend full time in real estate investing. In addition to having 100% equity in the rental I also have some cash. My intention is to purchase additional rental properties and hold on to them.
The question I have is: Is it necessary for me to be employed to qualify for a loan??
For example: I find a single family or two family property selling below FMV and I convince the seller to give me a discount so that I am buying the property with cash say 80% what the property assesses for.
Now I go to a bank or lender and offer to give them a mortgage for 85% of the assessed value of this property. Are there lenders that will do this even though I am not employed? As I say I intend to put tenants in the property and I will put the cash back into my brokerage account to again make money as it is now doing. Mean while the tenants will pay down the mortage. I then can move on to another deal.