Any advice for a newbie with high debt-to-income ratio?

Starting Out
9yFollow

Any advice for a newbie with high debt-to-income ratio?

Robert Lum
Professional · Brooklyn, NY · Member since 2016 · 20 posts · 19 votes

Hello everyone,

I have just begun to learn a lot of real estate investing. I have been acquiring as much knowledge as possible about the brrr method and interested in pursuing that. But considering that I am in one of the most expensive markets on the planet - NYC, it is possible but extremely difficult. Hence, I plan to seek opportunities in neighboring States or nearby cities/towns.

My prior concern, as with a lot of people, is my high debt-to-income ratio. My student loans from undergrad and law school amount to somewhere in the $130k range. Thus, I figured it would be nearly impossible for me to obtain any sort of loan (unless I am mistaken?). My current employment salary as an attorney is $65,000.00 without 401k; however, I do get a decent bonus for bringing in clients (a percentage of whatever the firm ultimately bills the  client).

So here is my question to you folks who are/were similarly situated like me - what are some of the best options for me to get into real estate investing in light of my current financial situation?

I appreciate any advice you may have. 

0Reply
17 views

2 Replies

Jump to latestLatest
  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    9y
    Robert Lum My suggestion is to start building a Foundation for your real estate business. What I mean by this is to start networking with individuals in the area you want to invest. Start talking to people and see if you have any skills which could add value to others. Having connections is 99% of this business. Start saving and making connections and that will be the foundation for setting up yourself to be very successful in years to come. This is not a business or industry where you become an instant millionaire in a year. It takes effort and time.
    7e investments53 Reviews
    WebsiteView Page
    1Reply
  • Chris MasonPro Member
    Moderator
    Lender · CA · Member since 2015 · 9k+ posts · 10k+ votes
    9y
    Originally posted by @Robert Lum:

    My prior concern, as with a lot of people, is my high debt-to-income ratio. My student loans from undergrad and law school amount to somewhere in the $130k range. Thus, I figured it would be nearly impossible for me to obtain any sort of loan (unless I am mistaken?). My current employment salary as an attorney is $65,000.00 without 401k; however, I do get a decent bonus for bringing in clients (a percentage of whatever the firm ultimately bills the  client).

     That bonus/commission income is mortgage qualifying income. When you walk into a lender's office, bring with you your final late December paystubs from 2015/2016 showing end-of-year pay that includes that commission/bonus income, in addition to your most recent two paystubs. A lot of self employed / commission people are told "no" simply because they didn't give the lender the information necessary to say "yes" (or they provide stated income but refuse to document/backup their statements).

    1Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free