Hello All,
I’ve been out of work for over a year. However, I consider myself to be a full-time RE investor. I must say that all my expenses are not totally covered by my properties. At the moment, I’m trying to sell my smaller properties to concentrate on buildings that have 12 units or more with a minimum of 25% equity.
I have the 30% downpayment and the excellent credit score, but my unemployment status is a concern. Has anyone been accepted for a multi-family loan, even though you’re unemployed and your personal finances are not being covered by existing investments? After all, commercial properties are supposed to be based on the income of the property alone. But is that true in this economic climate?
How do I get around my unemployment to get a loan acceptance?
Your not going to find anything using conventional banks. You may find something if you start thinking outside the box…
Any other suggestions and experiences?
Deal,
Mark nailed it on the head. Your only options are owner financing and private money. Conventional lending is not an option with no job. For example I am working with a gentleman right now that has 6M in the bank verified. He is retired and living off of his retirement and investment income. He wants to refinance his primary residence to get the tax break and he is having a tough time getting approved because he has no regular income. If you are a full time investor you will need to start showing some income on your tax returns on your schedule C, but until that time you are extremely high risk to a lender.