Some financing advice

7 Replies

I was wondering if the BP community can help me understand or advice me to how I would be able to refinance a house if I have no job? It's hypothetical. I'm employed now for 8yrs and I just started my paint business. If left my job could I refi using my paint business as my place of employment.

If not, I would like to here how those without a "regular" job refi for cash out for the next deal.

Thanks in advance for all responses and advice 

@Bryan Patterson There are options that are purely asset based. It is really gonna matter how much equity you have what the purpose of the refinance is. 

The biggest problem you're gonna run into is that you have an owner occupied primary residence. That makes you subject to Dodd Frank laws and now TRID, which slows things down and limits you. 

Basically ... the federal government has overstepped their bounds and put way too many restrictions on home lending. So it gets tougher and tougher when it comes to your primary residence.

Any chance you can hold off leaving your W2 job until after the refi?  With self-employment income, the lenders will want to see 2-3 years of stable income.  It will be much easier for you to keep your W2 if possible for now.

Thanks Steve for you advice and insight. Gives me something to consider.

Darlena, I was just seeking advice for a thought I had. I had spoke to someone earlier who shared some insight with me and wanted to see if the BP community had creative ways around the issue. Eventually when I get into my first house I wanted to eventually leave my job and make real estate investing my full time job. It's seems financing without a regular job is a tough one.

Find an Owner finance multi-family that will pay for itself and provide income and equity build up. That's how I got started. Use your car for collateral to obtain down payment to the seller or if you have credit cards with cash advance feature, call the credit card company and ask for a credit limit increase with the increase for advance cash. Get more cards if you need to create the funds for a down payment. Or use your current job as collateral for an unsecured loan to create enough money for the down payment. Or get a money partner from friends or relatives to help out. Or create a joint venture partnership with other investors to get started with a fix and flip house. Don't let money stop your dream. 

If the paint business you own starts making a monthly income of 40% or more of the loans mortgage and your liabilities/expenses are low enough, wouldn't the bank not have a problem giving the money to invest into real estate for strictly business and not personal purposes, if your numbers make sense? You tell your lender/business account holder you want to expand to bigger and better fish like REI. They see the potential profits or monthly cash flow potential from your analytical report, see that you've done your homework and might be ready for the big leagues, even if its not that expensive of a property, they know its the knowledge and education is what you need to make it profits, not really the capital or job right? They're the ones loan you that, and you own a "job" thats making a steady income... you just want to go to your lender prepared, and confident that your report is as close to correct as possible and you took every detail into consideration. Please correct me because if i'm way off, I am still new and on my way to financial freedom through financial education. Learning more and more everyday, mostly from everyone here on BP