What are my financing options

3 Replies

I need some advice. First, let me say that I toyed with the idea of investing for years but now am giving careful thought. I know that there is plenty of information on the questions that I am asking and I plan to do plenty of reading and studying but unfortunately I am in a pinch for time. Recently, I was working on a pretty profitable business deal and wanted to buy my first home. When the business opportunity came through, my loan officer told me that I should hold off on starting a business until I closed on the property because I would be forced to wait 2 years if I didn't. Being optimistic, I started the purchase using with VA loan with no money down and the purchase price only being $40k less my approval amount so I purchased on the high end. Unfortunately, my business deal fell through. With the loss of the potential income from the business investment, I needed to find another stream of income so returned to my former interest of investing in real estate sooner than I planned. I have not yet closed on my house but now I am having buyer's remorse and thinking about the fact that buying this house on the upper end of my qualification will limit my ability to invest. What are my options? Am I screwed? I have good credit and some money (not a lot) to invest. I am waiting to hear from my attorney on the repercussion of canceling the contract this late in the game as I am scheduled to close in a week or so. Thank you in advance for any guidance you can provide.

Updated about 2 years ago

I'm sorry my question was so long. I just realized that basically my question is what are my options for investing if my home mortgage creates a high debt to income ratio?

You can still do asset-based financing (examples include hard money and private loans) if you can't secure traditional financing. Or, you could use a partner who can secure a traditional loan. You still have options. 

Originally posted by @Allison Stewart :

You can still do asset-based financing (examples include hard money and private loans) if you can't secure traditional financing. Or, you could use a partner who can secure a traditional loan. You still have options. 

 Great ideas. Thank you so much for your input.