Getting the right loan

13 Replies

Hi Everyone,

I am a newbie looking to buy my first buy and hold property. I'm in New Haven CT and am looking for a multi-family property. I have excellent credit (849) but am a full time mom so I don't have a JOB. My husband works but doesn't want to have anything to do with it so I can't put him on the loan. Will a bank or private lender lend to someone with great credit and no job if the property's numbers are good and it cash flows? If not, any ideas out there of how I can get my first property financed?

@Kim Handelman Your going to have to sell you husband on the idea.  If you can't convince him to control property and finance debt then you could be in for a roller coaster ride not including him.


Good question, I am interested to see what answers come. A few things that will play a role is what type of down payment do you have and what are your current assets? I think you may have to jump through many extra hopes to get a loan if it is even possible. For now I would reach out to a lender directly and explain your situation. Also from now till the day you stop investing I would try to get your husband involved. Not having his support will make things much tougher (not impossible).

Why is he not willing to be involved? Idk if he is involved with stocks at all but if he is maybe compare ROI's. For me I think your goal should be to get his support and work together. For me and my wife by our selves we cannot afford our neighbors shed, together we are extremely happy with our lending power. Two make a big difference on paper, but it is entirely situationally based.

@Kim Handelman

 I would suggest you find a good portfolio lender who will evaluate the deal based upon the deal and not your income (of which you have none).  As long as you have the ability to put the money down you should be able to find someone who'll finance your loan.  The amount needed to put down may vary but still it's possible.

Hello Kim and welcome to Bigger Pockets.

My advice is that you cheat on your husband.

OF COURSE I mean this only in regards to your real estate business.

FIRST, please understand that the following is not legal advice.

You could partner with someone who is NOT your husband (hence my cheating comment). 

This new partner could be either gender but I hope you would partner with someone who has money and experience (or at least one of those two).  Your great credit helps a lot but lenders like to see some skin in the game (either your own or a partner's skin).  Lenders also like experience.

You and your new partner will need to meet with an attorney and draw up a partnership agreement and corporate documents (you probably wanted these documents even if you partnered with your husband.  Be sure to discuss exit strategies, buy/sell agreements and all of the "what if" contingencies like "What if a tenant sues the company as landlords?"  "What if a contractor gets hurt while working on our property?" etc etc.  Keep reading the threads on Bigger pockets and you will read lots of these stories.

I also encourage you to read Eric Drenkhahn's blog (also found on Bigger Pockets).

Is your husband going to have any involvement or responsibility in your real estate business?

What are your goals?

My Husband is a wildly talented photographer with a successful photography business but he really doesn't seem to get this real estate stuff and hasn't quite embraced the idea of passive income. I think he thinks it's all smoke and mirrors : ) It all actually scares him so he's begrudgingly watching me do it so the short answer is no he will not be involved. 

I am currently looking for a partner. I do have some money stored away but not enough to buy a building with cash. Possibly enough for a down payment on a 3 family here in CT. I have years of experience in marketing, advertising and sales but I'm not so good with numbers. Hopefully I will find a numbers person that doesn't get the marketing side of things. 

My plan is to build up my buy and hold business until I have about $3,000 a month in cash flow (my cut) to take some pressure off my husband and his demanding shooting schedule. Then eventually pay off the buildings and retire with the bigger cash flow.

Thanks for the link to the I'll check it out now. I'm also interviewing attorneys so I have someone to turn to when my Perfect Partner" shows up. 

Thanks for your help, -kim-

Just made an appointment with a local lender at our town bank to sit down and discuss my options in the banking world. I'll report back. May have to pull some of Brandon's NO MONEY DOWN tricks : ). Again, thanks to all for your input. Moving forward one action at a time!

... and my apologies ... It's Eric Drenckhahn.

@Kim Handelman

Welcome Aboard! You're in the right place at the right time!

Wish you the Best Success :-)

Hi Kim,

I can tell you that if the numbers work then a private lender would definitely be interested in getting involved. As long as their money is secured by a piece of real estate they would be OK owning for the right price if the deal went south then it would be possible. Private lenders don't have all of those restrictions that banks do.

That all said, you need to find the "right" deal in New Haven for the private lender to want to get involved. As you know New haven has some really nice areas, and not so nice which also affect the type of rental collection approach you will need to employ, and the amount of effort you will need to put in for collections.


Good Morning Kim,

                                It is always great to see a fellow nutmeger join the game of real estate investing. I know what it is like to get a spouse on board. It took me almost 8 years for my wife to finally come around and I know your husband will also once he see your success. You are definitely starting on the right foot by building your team first before jumping right in. Enjoy the ride!


Hi @Kim Handelman

With no income you may have better luck looking at something with more than 4 units, so it would fall into the commercial loan category as opposed to conforming residential loans. I think (and would be interested in others thoughts on this) local banks tend to look at the properties and income/expense history for these small commercial deals more so than your income when it comes to qualifying.

The other good option which may be a little harder would be to find a deal where you could negotiate owner financing. If you are able to make a good down payment this may be a good approach.

Good luck!!

@Kim Handelman without a job..... Conventional financing will not be possible unless you have a partner with a job. 

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