Rental Property Investor · St. Louis, MO · Member since 2019 · 162 posts · 72 votes
I can foresee a real estate path that allows me to leave my W2 job and the thing that keeps rattling around in my mind is that having a W2 makes getting a conventional loan possible/easier?
For those that leave a traditional W2 job and replace it with a combination of predictable investment income (rental income) and unpredictable real estate income (wholesaling, agent commissions or similar), how do you continue to get the financing you need to refi a BRRRR deal?
@Peter Tverdov , @Matt F. and @Account Closed - Almost all of the lenders I use for my personal portfolio will loan based on the financials of the property and not the borrower. Most of them lend nationally. It took years to find all of these lenders but it was so worth it. Getting to 127 rentals with no W2 income and tax returns that showed losses made finding these types of lenders a necessity. Don't get locked into the mentality that you NEED a W2, or stellar tax returns. It can be done without.
@Matt F.@Robert Kirkley @Account Closed If you don't have W2 income and if you don't have 2 years stabilized or improving income from the same business on your tax returns, conventional financing will be difficult if not impossible. Non conventional "portfolio" is the way to go. 30 year loans. Rates are a little higher. Loan amounts and rates are a function of property cash flow, your credit score, LTV, loan size, cash reserves. Happy to help if you need additional details.
@Mike Burkett Thank you! I am looking around for a portfolio lender now to build a relationship with. Also looking to possibly get experience with a deal where I can put in the work while the other partner would be responsible for the financing.