bethel, CT · Member since 2015 · 335 posts · 57 votes
Hey BP, everyday I'm at work I think about not being here and what it would be like to work for myself and even the ultimate goal of financial freedom. I've been thinking about quitting my job and buying a buisness possibly a route of some kind or something else.
My question is by doing this will this put my in a worse position in getting loans to invest? I really love realestate and dont want to take a step back by doing this.
Will I need 2 years of working in my buisness to get bank loans? Anyone done this?
Thanks!
Ryan
@Michael Noto is spot on with his response. I'm a commercial loan officer at a local bank in Eastern CT and most of my borrowers are multi-family investors. Having a W-2 is crucial to getting commercial loans at the start of your investing journey. Bank's look at a global approach to underwriting your deal including the cash-flow from the property, your personal debt to income ratio, your personal credit score, your personal assets and your property management experience. Notice my consistent use of the word personal! Best of luck.
@Ryan Keenan If you are looking to accumulate rentals and do so by acquiring bank financing on either the purchase end or refinance end then my experience has been the route is tougher without a solid w-2 and/or a two-year track record from a business like the one you outlined.
Have you considered trying to start a part time business related to real estate that you can grow into a full time thing? This way you gain more experience real estate wise (which banks like) and you are getting a head start on that 2-year track record (which banks also like) all while still maintaining your W-2 job and being bankable in the interim.
Sure, this route is a lot of work and sometimes requires long hours, but it is a path to go about things where you can accomplish all of your goals while still being able to get loans on properties.
Many successful investors that I know who had different careers kept working in their field until they produced enough passive income to officially quit their jobs.
@Michael Noto is spot on with his response. I'm a commercial loan officer at a local bank in Eastern CT and most of my borrowers are multi-family investors. Having a W-2 is crucial to getting commercial loans at the start of your investing journey. Bank's look at a global approach to underwriting your deal including the cash-flow from the property, your personal debt to income ratio, your personal credit score, your personal assets and your property management experience. Notice my consistent use of the word personal! Best of luck.