Full time of Part time?

TJ profile photo

I'm just curious to see if most of you started investing as your part time job. I bought my first two properties with construction loans and paid myself out of the loan. But now my lenders are starting to question my income, debt to income ratio. I just went back into the insurance business just to help with the lending process, but I would much rather be investing full time. Any comments would be greatful. Thanks

Comments(7)

  • wampcat111th January, 2003

    start a remodeling company, and pay the remodeling company with the money from your loans. Then, pay yourself a salary from the remodeling company.

  • JohnLocke12th January, 2003

    TJ,

    Check in with a good mortgage broker, start working with one you are comfortable with.

    Try a 'no doc' loan, which is a stated income loan and is based on your credit score. There are many loan programs out there today to help an investor.

    John $Cash$ Locke

  • 13th January, 2003

    Cash,

    I've heard about this "no doc" loan based on one's credit score. Do you know approximately what the ideal score is for this type of loan?

    Phyllis

  • JohnLocke13th January, 2003

    Phyllis,

    From what I have seen for a favorable rate you would need a FICO of 650 and above.

    I am sure there are lender that will make loans with a lower score but the interest rates will be higher, unless you are a buy and hold person then the rates should not get in your way.

    John $Cash$ Locke

  • TJ23rd January, 2003

    Cash,
    I spoke with someone about a no-doc loan but they all need 10 to 20% down. Plus I still need cash for repairs and the broker I spoke with said no cash for repairs; just purchase money. My FICO score is a 660. Any other advice I'll gladly listen too. Thank you everyone.

  • Clair-MO26th January, 2003

    TJ, I didn't have a job when I began my career in real estate investing also I had bad credit and yet today I have bought over 2,8 million dollars worth of properties with nothing down through lease option or owner financing both of these techniques can be done without using your own credit or money. And without having to go to a lender right away. I did REI part-time until the third year when I went into it full-time.

  • ausinvestor11th June, 2003

    Hi! I live in Tx and am now in the situation you said you started in (before the $2.8 mil). I am familiar with the concepts you mentioned and have just finished my first pre-foreclosure/rehab. what marketing did you begin using? Also, I would like to begin a part-time job in the RE industry while still investing part-time. I was thinking about Appraising. What are your thoughts? TIA!

    Pete
    **Please See My Profile**

    Quote:
    On 2003-01-26 23:12, Clair-MO wrote:
    TJ, I didn't have a job when I began my career in real estate investing also I had bad credit and yet today I have bought over 2,8 million dollars worth of properties with nothing down through lease option or owner financing both of these techniques can be done without using your own credit or money. And without having to go to a lender right away. I did REI part-time until the third year when I went into it full-time.

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