All Cash

7 Replies

Hi, my name is Tommy and I work in an all cash business with little to no credit but, I am looking for the best ways to go about buying and holding small multi-families to start out. Any advice to get started?

Hello Thomas,

Thanks for posting. I am a little confused about your position.  Do you have cash to invest and no credit or no cash and no credit?  

If you have cash and no credit, you are in a better position to begin investing now, however should the latter be the case, you can begin to prepare for investments now also.  Please tell us a bit more about your plan and situation. 

I think @Thomas Shea is saying the business he works in is mostly cash.  Getting paid in cash doesn't change the need for tax returns.  If the income is steady and documented on tax returns, lenders will consider that.  Its always more challenging to get loans when you're self employed, but not impossible.  The lending situation is improving.

But if you're saying you get paid in cash, pay your bills in cash, stuff cash under your mattress and don't pay taxes, you have a different problem.  Nothing prevents you from taking a briefcase full of cash to closing.  But large amounts of cash changing hands will result in suspicious transaction reports being filed by the banks involved.

Yes, @Jon Holdman is correct. I am only 21 years of age so I am still pretty green but I'm learning how to keep receipts and such so I can do my taxes. An add on question: would using somebody else's credit to get a FHA loan be a smart idea?

Originally posted by @Thomas Shea :

would using somebody else's credit to get a FHA loan be a smart idea?

 Only if that somebody else is your spouse.  And even then, maybe it's not a "smart" idea.

Seriously, generally, I would say no.  If you have someone who trusts you completely, whom you trust completely, and the two of you draw up a detailed contract that works out every possible eventuality of this deal/partnership ... ... maybe.   But I still wouldn't want to go that route personally.

Both @Jon Holdman and @Randy E. offered good information.  It sounds like you have a great idea for your investment plans.   Continue to learn and earn while actively taking steps to save money  and build your credit. This process will definitely take you to the goals you want to reach. It is very refreshing to hear from a young adult who is actively involved in their investment future. Thanks for sharing. 

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