How Do I Get a Loan When My Income is Low?

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I've been a real estate investor with <$30k properties for a long time... and I'm starting to hate it. I did a devastating flip because... well, I made a lot of mistakes, and I'm in the hole. About 75% of my income is going toward fulfilling obligations, so I can only invest about $400 per month. And even when I could put $2,000 per month into investing, the banks wouldn't lend to me for a proper $100k-type of rental property. It's been frustrating that friends of mine, who have lower net worths and make less (even in earned income) can get six figure loans for their private houses while I haven't been able to do that. I only have $60k in available credit through my credit cards, and my real estate agent won't accept them anyway -- so that's out. And it seems unlikely that a private lender would trust a guy who's screwed up. So, what can I do? I'm working 60+ hour weeks, but my jobs and freelance work only take in so much (usually around $4.5k/mo pre-tax). Any ideas?


@Chris Hodge

Sadly you are in a tough spot.  This is what I posted to someone else' quest for cash/credit:

""Money and Credit is a crutch! You need to read up on "Creative Financing". Join your local REIA club, go to "meetup.com" and look up your area. Creative financing is lease options, seller financing- they're the bank, partnerships, Joint Ventures.

If you can do deals without putting your own credit/money at risk then in harder times you will also be successful.

If you depend on credit/cash then when the hard times come and you don't have either, you're out of options...

Click on the LEARN tab above and check out the "Podcasts", you will most likely learn everything you want to know.

Family and friends can also be a great resource."""

**You are working hard for your investments instead of your investments working hard for you. Have you clicked on the "learn tab" to see where you went wrong and made those corrections? Can you refinance to take money out? Can you re-evaluate each property and learn the ARV, current selling price, then sell with a lease option or seller financing to get yourself back in the "black?"

Lease option: Ask for large enough "non refundable" down payment in your market ie $5000, charge a little more than market rent and a larger final balloon payment at end of say 5 yr. term?  If they miss/late on a monthly payment the loose their down payment and option. Start again with new tenant buyers with honest intentions of selling the home.

Seller financing:  You're the bank, large down payment, higher interest rate than if they could go to the bank...until they can get there own mortgage.

Please read up on "Creative Financing!!"

Born n Raised in the Hoosier state! Good luck!

FYI you sound very down on yourself, don't be...believe in yourself again..you can do this!!