Is it possible to get a loan if you're retired?

Question

I recently took an early retirement package and I might go back to a W-2 job, but I'd really like to start flipping and buying rental property as my long term "retirement" strategy. I'm just worried I won't be able to get a loan to buy my first flip without a job, even though I do have other investments and a small pension. I'm assuming that once I've shown a track record of successful flips it will be easier as I'll be able to show that as my income, but it's getting started that worries me.

Any suggestions?

Robert Bowles · Answer

If you are retired the lender will look at the income from your pension as well as investments to qualify you for a loan the same as if you were at a w-2 job.  There really is no difference to a lender.  That is for a conventional loan.

Hard money lenders will have their own qualifications.

You might also go to smaller local banks and credit unions to start the hunt for a business line of credit.  The will want to see the track record, but it never hurts to start early.

Andrew Syrios · Answer

If you're flipping, you may not need to worry too much about bank loans. Do know any private individuals you could pay 8-10% interest and 0-1 points to finance a short term deal you're going to flip.

As far as getting loans when you're retired, it's possible, it's by no means impossible, but it's definitely harder. You would probably need some pretty good assets already.

Doryne Thomas · Answer

Thanks for all the input everyone! I'll provide an update once I make my first deal.

Bill Gulley · Answer

Oh, those key word alerts, they really work! LOL

They say imitation is the best form of flattery. Seeing others suggesting wholetailing, JVing with an owner, buying legal title to a property that has an option on it subject-to or an existing installment contract is rather flattering. I've mentioned other strategies years ago as well, just haven't seen them all get "names" yet. LOL

Doryne, private lending isn't something to DIY after watching videos on the internet. I'm sure the last thing you'd want to do is get your "private lender" in hot water or a financial bind.

Wealthy folks have advisers, you need to motivate a potential lender to want to loan you money. Then, you get that person to go to their advisers with you and they have to tell their advisers they want to loan you money. Often, your lender may need to insist, some stock broker or Trustee doesn't generally want the client pulling money out, but you need to learn to deal with those advisers. Visit with their attorney first, once the attorney is on board the others often follow suit. It's your personal relationship with your private lender that has them direct their advisers to make things happen, not your pitch to the advisers.

Your thing with a private lender is to make them more money, that's all! Attempting to advise them in legal and financial matters is dangerous, surround yourself with experts, don't try to be one.

Grasshopper.......I mean Brian, you really need a compliance guy. LOL :)

Brian Gibbons · Answer

Hi Hugh,

You are either trained or untrained in private lending.  Start learning with this:

trustetc: Private Banker Concept

See Private Lending

Steve Vaughan · Answer

Never too late and there are always options.  If you are buying significantly below market value, there are even more options from crowdfunding, private or hard money lenders.  Especially for flips.

There are also more creative ways like lease options, JVs with the seller or seller-financing.  Those cater a little better to good properties with sudden sellers (lease options) tired landlord seller-carries for buy and holds. Flips can cater well to a JV with a seller.  @Brian Gibbons is the master at those. Good luck to you @Doryne Thomas!

Hugh Ayles · Answer

I met a private lender at my local REIA.

I have a bunch of construction experience and my wife is a Realtor.

That being said, I have seen people with no experience get private lending.

There is a guy in Austin who spoke at a meeting.  he is about 30, just started flipping a year ago, and has $1 mil in private loans.  I do not know how he pulled that off, but he did.

Is it possible to get a loan if you're retired?

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