Funding options for newbie without current income...

7 Replies

Hi all,

I'm a new REI just getting started in the Albuquerque, NM market. I'm not currently working and using this "down time" to get my REI business going. I'm trying to arrange financing at the moment. I have enough cash to cover up to 30% down payment + rehab costs on two concurrent properties in my price-range. I need financing to cover the balance and am finding that conventional & portfolio loans are pretty much closed to me due to having no current verifiable income. I've found a couple of these options that could work without verified income but the terms reflect the additional risk the lender assumes they're taking in this scenario.

I'm likely too inexperienced to attract Private Money at this point and am currently renting so a HELOC is out. Perhaps a LOC or a Partnership? I'm not ready to convert my IRA to a SDIRA yet but realize that's another possible financing source. I'm looking at distressed properties so Owner Financing likely isn't an option.

Having said all that, I'm wondering if any of you have suggestions?

Thanks for any ideas...


You need to find a great deal first.  Hopefully then you'll be able to attract someone who is willing to parter with you on the deal.  Hard money and commercial lenders will care more about the deal than your income.  But the more you can put down the more attractive it will be for them.

Look for someone who wants to partner with you without doing any of the work, basically just a cash investor.

Flipping houses is cool, someone will want to jump on board if the deal is good enough.,\

Stick with it.


Thanks for your response.  I feel like the financing/deal question is like the chicken/egg question sometimes - which came first?!?  :-)

I hear what you say about $ coming if the deal is good enough - guess I'm just looking to be prepared to move f-a-s-t when I do find that great deal and not lose it while I'm looking for a way(s) to finance it.



@Charles Hinson  you're right about the chicken/egg and you can at least start networking with hard/private money lenders as well as other investors.  I'm interested in what's happening in the ABQ market so feel free to run deals by me. If you find something good I may be able to help.

It's ok to lose a good deal.  Good deals will come and go and if you get too focused on finding money then you may never actually get a deal.  If you get it under contract and can't find the money then cancel the contract and try it again. 

@Charles Hinson  

you are saying they are distressed therefore owner financing is off the table, i'd be interesting in understanding what you mean.

if the properties are not bank owned, then subject to strategies are the no to low money option. that is a flavor of owner financing.  

that strategy is available if the seller is motivated as in desperate.  but this is new mexico, so its a possibility.  as we say here... recovery.  what recovery?


@Katharine Chartrand I should've been clearer. What I meant was that with REO's (which I'm mainly looking at) obviously owner financing isn't an option. And, based on my experience/comfort level, subject-to options feel a little too much for me to navigate at the moment. I'm looking for something a little more straight-forward (to me at least) until I'm more comfortable with "creative financing" options.


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