First loan

7 Replies

@Mark Shafer you might try an internet search for hard money lenders in your local area. In general hard money lenders don't go off the borrower as much as the property itself, known as asset based lending. This might be a solution to your self employment / bank not wanting to loan problem.

That said hard money loans are short term so if you are wanting to do a rental you will want to explore a good exit strategy such as refinancing with a traditional lender once you have seasoning. Traditional lenders tend to be more open to investment property once it is fixed up and rented.

You can also try a private lender. A private lender is usually an individual, one you might meet at the local investor's group who is seeking a viable investment to put money into.

Good luck in your real estate endeavors!

When they use my average income my d/I is high. They won't use the rental income because I have no experience. Is this something others have dealt with? Is it easier to get financing as an individual or LLC?

@Mark Shafer if you are working with a private or hard money lender they should not be concerned with your DTI ratio. In my opinion conventional lenders have a problem with self employed persons right now. This could change over time I suppose.

It's easier to get financing as an individual unless your LLC has been around for several years and has good tax returns to show for it.