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Updated about 7 years ago on . Most recent reply

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13
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Dan Knight
  • Investor
  • Austin, TX
7
Votes |
13
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When does your salary stop becoming the only reason you get loans

Dan Knight
  • Investor
  • Austin, TX
Posted

Hi all,

I am one of those people who is trying to break into real estate investing as a way to leave a day job that I very much dislike.  However, I am finding through my talks with some lenders that, since I am still relatively new out of school and have multiple student loans (although I have great credit), my saving grace in terms of getting a loan to fund my first deal is the salary my day job pays me.

I know that real estate isn't a get rich quick scheme and that I will probably have to stick out my day job for a couple more years, but at what point do you see banks, lenders, etc. start to give you loans to fund deals without a steady stream from a corporate job? 

Thanks,

Dan

Most Popular Reply

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Peter Tverdov
  • Real Estate Broker
  • New Brunswick, NJ
2,156
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1,693
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Peter Tverdov
  • Real Estate Broker
  • New Brunswick, NJ
Replied
Originally posted by @Dan Knight:

Hi all,

I am one of those people who is trying to break into real estate investing as a way to leave a day job that I very much dislike.  However, I am finding through my talks with some lenders that, since I am still relatively new out of school and have multiple student loans (although I have great credit), my saving grace in terms of getting a loan to fund my first deal is the salary my day job pays me.

I know that real estate isn't a get rich quick scheme and that I will probably have to stick out my day job for a couple more years, but at what point do you see banks, lenders, etc. start to give you loans to fund deals without a steady stream from a corporate job? 

Thanks,

Dan

 I am going to assume you are just in your 20s based on your post. Do yourself a favor and stay in that job for a while, it will make it easier for you to qualify for loans. Also, please don't be foolish and think you can buy some rental properties and "retire" at 25 like some clowns I see on here. Your expenses will only grow as you get married, buy a house, have kids, buy a bigger house, etc. 

When you can't get any more conventional loans (10) and you are buying properties that cash flow, then you can go the commercial route or owner financing and at that point, it doesn't matter if you have a W2. Anything else is going to be a lot more challenging (although doable I am sure). 

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