Updated about 5 years ago on . Most recent reply
Real estate investing w2
Hello all, I'm a Realtor wanting to get into the investing side of the business, But I'm not sure if it will be easier to maybe get into a tradional job with a W2 for the purpose to qualify for financing etc, I love doing my job, but my main goal is to become an investor, I also now that banks are tougher on the self employed. what are your thoughts on self employment income vs w2 income in order to reach financial freedom from real estate investing?
Most Popular Reply
Once COVID "goes away," hopefully the QM loans will come back that allows gross income to be determined by the deposits in your bank account. That being said, while W2 income is "better," its still okay now to get loans with a 1099 income. It just depends on how your last two years or so of tax returns look like. As a Realtor, I should hope you know that banks aren't originating many loans anymore because of regulation. Talk to a good mortgage lender about your options. Message me for recommendations.
As for getting a W2 job, have you looked at what sort of job can you get for what annual income? My point it, will it be worth it? What about your real estate activities? Will you be able to achieve both and have a work-life balance? What is your investing goal? If its buy and hold / long term rentals, are you thinking of getting a $100k+ salary job for a few years to qualify for financing to buy say several properties? Then, get rid of the job and somehow be able to continue in life? Do you see what I mean?
I hope this helps. Good luck.