How exactly does one get a loan for Investment Property when Self Employed?
So, to give a little back story, my wife and I are moving to Las Vegas from California and I've decided to expand my real estate investment from rehabbing properties to rental units. Over the last 10 years, I've done 6 rehabs and managed to stash away about $500k in seed money for my investment company.
So far I've formed a LLC here in Nevada and purchased my first two properties for $130k total (paid cash). I've completed fixing up the first and have it rented for $750/month and will have the second done this month and should also rent for $750/month. I'm looking to purchase my 3rd property soon, so I figured I'd visit my bank (Bank of America) and see about financing so I could leverage the capital I have and make it go further. I was basically laughed at. They won't provide a loan to any business that doesn't have 250k+ in revenue and at least a two year history. They won't give me a personal loan because I'm self employed regardless of credit score or assets. Ok, guess I need to change banks. I reached out to the SBA, as the SBA504 loan would work perfectly, but they don't provide this type of loan for real estate investment. I spoke to the guy at the SBA and basically he said he would talk to some local banks in the area to see if anyone was interested but they just don't deal with real estate investment anymore.
Now, I know the Las Vegas Real Estate market was crushed and still has only recovered by about half. I get that, but what to do? I can continue to purchase a few additional properties and a personal residence, but by the end of the year I assume my investment seed money will be exhausted. Does anyone have any suggestions on how to keep this train rolling? Ideally, I'd like to purchase a condo for $65000 - $70000 a month, fix it up, then rent it out, and then repeat. For me, I think this is the best way to build my portfolio.
-Christopher