How much money do i need to buy some rental property?

Investor · Ascutney, VT · Member since 2015 · 291 posts · 20 votes

i have no tax returns because i get paid under the table. is there any way i would be able to purchase a property? how much money do i need to save up?

my credit score is 700

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Nathan GesnerBusiness Member

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Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes

10y

So you enjoy what this country offers but don't feel the need to contribute to it by paying taxes? That's called theft where I come from.

You want some advice? Pay your taxes like everyone else does and stop trying to gain fortune through illegal means.

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Nathan GesnerBusiness Member
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Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
10y
So you enjoy what this country offers but don't feel the need to contribute to it by paying taxes? That's called theft where I come from.
You want some advice? Pay your taxes like everyone else does and stop trying to gain fortune through illegal means.
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Scott Carder
Investor · Owasso, OK · Member since 2013 · 166 posts · 90 votes
10y
At the minimum I would not boast of illegal activity with my real name.
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Devin Mann
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Investor · Ascutney, VT · Member since 2015 · 291 posts · 20 votes
10y
you gonna snitch? im 20 years old and make less then 6k a year. im trying to get some advice so i can plan for my future.
@Nathan Gesner USofA wasn't built on taxing everyone to death . Especially when the tax money goes to a lot of waste like everything the government handles.
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Scott Carder
Investor · Owasso, OK · Member since 2013 · 166 posts · 90 votes
10y
Originally posted by @Devin Mann:

you gonna snitch? im 20 years old and make less then 6k a year. im trying to get some advice so i can plan for my future.
@Nathan Gesner USofA wasn't built on taxing everyone to death . Especially when the tax money goes to a lot of waste like everything the government handles.
Snitch??? Who even talks like that? He is just trying to give you advice that will help you in the long run. I will give you some more advice, do not attempt to buy real estate when you make 6k a year. Good luck.
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Devin Mann
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Investor · Ascutney, VT · Member since 2015 · 291 posts · 20 votes
10y
lol @Scott Carder .. didnt seem like much advice was given. looks to me like hes just mad. so many people in this BP community whine over the smallest things. why comment on a post if you are going to completely avoid the question that was asked?
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Scott Carder
Investor · Owasso, OK · Member since 2013 · 166 posts · 90 votes
10y
Originally posted by @Devin Mann:

lol @Scott Carder .. didnt seem like much advice was given. looks to me like hes just mad. so many people in this BP community whine over the smallest things. why comment on a post if you are going to completely avoid the question that was asked?
Even if you could save money for a down payment, and 6 months reserves, I imagine that 6k a year is too risky for lenders. I'm just guessing though. Maybe you could pick up another job to get your income up. Good luck.
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Devin Mann
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Investor · Ascutney, VT · Member since 2015 · 291 posts · 20 votes
10y
im going to be landing a big job in two months. trying to figure out how much money i need in order to get a loan
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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
10y
@Devin Mann I believe when you make 6k a year your exempt from paying tax's because you don't make enough.. I think that is correct.. I don't even think you need to file a return I could be wrong.
Not saying that folks with no money can become successful in RE they can but it really is dependent on which market your in.
I mean you take much of the rust belt and you can buy a house for 2k or 5k.. and you can turn around and sell it for 3k or 7k.. and off you go..
but if you live in high dollar areas were say the minimum price to play is 100k or 300k .. you need to get a job and make money and get your down and reserve established then go looking
Best bet for those starting out in my mind is to buy a 4 plex live in one rent the other 3 you get FHA loan you get experience to see if you like being a landlord.. ( or like me conversely you hate being a landlord and want nothing to do with rentals) but when you move on your have 4 doors
so how is that for some advice
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Steven Wiltz
Landlord · Port Orchard, WA · Member since 2015 · 80 posts · 39 votes
10y
you sound like one of my tenancy applicants: I'm gonna get a good job/big check/judgment check soon.
Course, MHs make me a lot of money, and they're cheap. Google "Deals in Wheels", spend the $30, & follow it. It'll change your life; it changed mine.
There - I pissed you off, AND I gave you good advice
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JD MartinBusiness Member
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Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 17k+ votes
10y
Getting paid under the table is really a deal for the employer, not you. You make nothing towards SS or disability; you gain nothing towards unemployment; you put yourself at risk of not being able to access workman's compensation. You would owe almost no income tax anyway. As for buying real estate, no one is going to give you a loan without any visible means of support, so you would have to buy something for cash.
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Karen F.
Investor · San Diego, CA · Member since 2015 · 435 posts · 421 votes
10y
There are benefits for you for filing. One is that you would be entitiled to higher benefits should you become disabled. Another is that you may qualify for the earned income credit, which will give you back a lot of what you pay. A third is that the best way to get your first property is to buy a multifamily (if they have them where you live), or a single family home if they don't, with an FHA low downpayment first time buyer loan. You fix it up, and rent out one side of it, or take in roommates, and you essentially live for free, then you buy your next property with an owner-occupied mortgage, and so on, and so on, every couple of years or so. You wind up with a stable of rental properties, all with mortgages at the owner-occupied rate, all legal cause you were occupying them for a year or two.
But you need on the books income to do it, so that you will qualify for a mortgage. So get a real job, and start saving every penny you possibly can.
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Lee Faulcon
Real Estate Agent · Millerville, MD · Member since 2014 · 14 posts · 1 vote
10y
Hi, I have someone who is selling their home and want to sell it directly to me. While I'm looking for financing is there any agreement that I can have them sign saying they will only sell exclusive to me?
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Account Closed
Investor · Los Gatos, CA · Member since 2015 · 32 posts · 5 votes
10y
Yes, a purchase contract written with a longer contingency for financing. Or if you don't want them knowing you have to find financing, a long inspection contingency would work. My partner and I have a house in contract right now with a 3 month inspection contingency.
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Brandon Schlichter
Real Estate Agent · Circleville, OH · Member since 2008 · 633 posts · 488 votes
10y
Tax forms are one of those things where if you want to go the easiest, fastest, best possible route, you're just gonna have to file. You can get REAL creative with your financing, but without proper tax returns, you're simply not going to ever deal with a brick and mortar bank (And thus access the lowest interest rates possible). In the long run, you'd be much better off filing tax returns and just dealing with the implications rather than trying to find ways to sneak around it.
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John Cohen
Rental Property Investor · Mineola, NY · Member since 2014 · 838 posts · 212 votes
10y
@Devin Mann getting a bank loan will be nearly impossible, unless you have a co-signer. You can do deals with no money, read the BiggerPockets book, "investing with low, or no money down".
A couple ways quickly:
1) Seller financing
2) Wholesale
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Account Closed
Professional Auctioneer · Baltimore, MD · Member since 2015 · 1k+ posts · 1k+ votes
10y
DON'T BUY REAL ESTATE!
Control real estate. Controlling real estate without the need to settle is the highest leverage you can get. Selling real estate you do not own is a method I have been using for years.
I call the system CONTROL AND ROLL. Practice controlling real estate with a skinny contract subject to assignment.
So if you control a property (using all the right clauses) for $100,000 and you find an assignee for your offer at $130,000; you make $30,000 without going to settlement, without a loan, without a hard money lender, without settlement cost. It gets no better than this if you do it right!
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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
10y
@Steven Wiltz Steven a little off topic but I just bought a MHP and I am hualing off the junkers and need to replace them. used park model single wides is what I am looking for about half a dozen of those any suggestions here in the northwest .. appreciate it in advance
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Steven Wiltz
Landlord · Port Orchard, WA · Member since 2015 · 80 posts · 39 votes
10y
Jay, I'll email you privately, so as not to hijack the thread
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Steven Wiltz
Landlord · Port Orchard, WA · Member since 2015 · 80 posts · 39 votes
10y
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