Financing without a 9 to 5 Job

9 Replies

Are there any ways to secure financing on investment properties without a typical 9 to 5 job?

I see people with hardly any income, securing 3 properties in a span of months and was wondering how they are doing it.

Down payments are no problem for me, but qualifying for mortgages is an issue.

I understand people may use VTB's etc... but are there other ways of creative financing in the ontario market?

A Joint Venture with a Partner that has a large T4 income makes it possible yet then it is shared and not all your own. I have done this and it does make the mortgage attainment easy as they rely on the JV partner.

@AJ Dhillon I’m not as familiar with Canada but in the states I can get financing with local banks either through their commercial division or a portfolio loan that they don’t plan to sell off even without a w-2 job. I’m an active investor and real estate agent so that experience helps but I’ve seen them finance people that were not as well. I recommend starting with local or regional banks/lenders and your local real estate investment groups.

I’m curious on this as well. I’m a self employed contractor and I just purchased my first rental, but had to get hard money through a D lender. My interest rate is crazy, and my down payment had to be over 30%. No banks or A lenders would even look at me as I have not been in business for three years.

@Ben Redden did you look for partnerships for a JV? I am the other side of the coin and could manage to qualify but need to bring 20% cash to the table and have entertained a hard money lender on a 1 year term before refinancing and paying out the lender.

@Ben Redden Hey Ben, if you have cash but not credit, I would say to do a few deals with a partner. You will get to know the industry, face new challenges where you'll learn and your money will go a longer way. The fees you are paying in interest right now are wasted v. Splitting a deal with someone with whom you can learn. Should be noted that your credit grows as you successfully manage deals.