Financing for Self Employed Investors / Gig Workers

2 Replies

I recently graduated from college and worked part-time W2 jobs throughout the past 3ish years. I recently started doing Instacart full time because the pay is incredible and I can work way more hours every week. I was planning on having my parents co-sign on our first property because they are willing and interested in REI as well. However, they are also self-employed and it seems like those who are self-employed are having a difficult time finding traditional financing.

I'm considering picking up a W2 job that I can work during the evenings and night allowing me to still make $25+/hour during the day with gig jobs. Just curious if any other gig workers or those who are self-employed are in a similar boat. I'm also thinking about reaching out to some lenders to discuss this as well and will report back on their insight! I am really excited to get started with investing this year as this is my alternative to attending law school, but I keep running into roadblocks. Instead of giving up, I remind myself that those who are successful are the ones who find solutions!

In the meantime, here are some YouTube videos I found on this topic... 

@Nolan Yamada I think it really depends on what your/parents income tax returns show. Most lenders will look at your last 2 years tax returns. As an example, my husband is self employed. His 2018 tax return shows a loss for his business, and although he took home a significant amount of money, he still had trouble obtaining financing at a reasonable rate.

Conventional financing for self employed is usually a difficult process. Now during covid it it is even more so, or at least that has been my current experience. Banks have tightened up and will want to see income stability and are looking to see the businesses revenue has not suffered due covid shutdowns and economic issues. I would make those phone calls and see what they say about your specific situation but would expect to have to work through a few road blocks.

Originally posted by @Nolan Yamada :

I recently graduated from college and worked part-time W2 jobs throughout the past 3ish years. I recently started doing Instacart full time because the pay is incredible and I can work way more hours every week. I was planning on having my parents co-sign on our first property because they are willing and interested in REI as well. However, they are also self-employed and it seems like those who are self-employed are having a difficult time finding traditional financing.

I'm considering picking up a W2 job that I can work during the evenings and night allowing me to still make $25+/hour during the day with gig jobs. Just curious if any other gig workers or those who are self-employed are in a similar boat. I'm also thinking about reaching out to some lenders to discuss this as well and will report back on their insight! I am really excited to get started with investing this year as this is my alternative to attending law school, but I keep running into roadblocks. Instead of giving up, I remind myself that those who are successful are the ones who find solutions!

In the meantime, here are some YouTube videos I found on this topic...