Funding options for newbie without current income...

[Charles Hinson]

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...

Charles