Buying with no money and no job

Buying & Selling Real Estate
7yFollow

Buying with no money and no job

Ben Jespersen
Member since 2019 · 3 posts · 1 vote

This is my first post, so please forgive any mistakes or blunders I make during it.

I just quit my retail job yesterday and am starting work as an independent contractor for a flooring company. I also just found a townhouse that my wife and I want to buy, live in it for a year, update it, and sell it for a good profit. The property has a lot of upside, we can build a third bedroom in the basement, update the kitchen and bathrooms, and the market keeps going up with a lot of people migrating into the area. 

My question is, how can I buy the property with no money down and no job? I've spoken with a lender and asked about hard money lending, but I don't have a big enough chunk of money to put down. I wouldn't qualify for FHA or conventional because I just quit my job. And I don't have a 1-2 year job history as an independent contractor to prove how much I'll be making.

What would you guys do in this situation? 

0Reply
35 views

Most Popular Reply

Theo Hicks
Rental Property Investor · Tampa, FL · Member since 2015 · 1k+ posts · 969 votes
7y

You're only options are to (1) get seller financing, (2) find a hard money lender or private lender to front 100% of the costs and (3) find someone else who meets the lending requirements to sign on the loan

1Reply
See this reply in the discussion

8 Replies

Jump to latestLatest
  • Brian Van Pelt
    Specialist · Owings Mills, MD · Member since 2017 · 485 posts · 415 votes
    7y

    . Go back to your retail job and beg to be rehired.
    . Never quit a job until I had a new job to replace it.
    . Ask the flooring company to put you on the payroll.
    .Ask for advice from competent people before making a life decision like quitting a W2 job for a IC position.
    or 
    Ask a friend of family member to purchase the house and you rent it from them for PITI plus 15% then after 1-2 years buy it from them. (Im good faith make improvements during the 1 to 2 years.)

    1Reply
  • Elena Livins
    Member since 2019 · 23 posts · 20 votes
    7y

    @Ben Jespersen not much you can do - no accredited and legal bank or lender would loan you money because how are you going to pay it back??? 

    Does your wife have a job?

    0Reply
  • Ben Jespersen
    OP
    Member since 2019 · 3 posts · 1 vote
    7y

    @Brian Van Pelt I didn't quit until I had the new job already. It has much more opportunity for me to make better money than the retail job could ever give me. I would say I am a very competent person and I talked with a lot of people before making the decision. 

    @Elena Livins I kind of figured that, I was wondering if anyone had experience with private lending that might help... My wife does work as well, but she is also an independent contractor. 

    We do make very good money and save what we can, we just aren't to that point yet. We aren't going to buy the house, I just wanted to see what people would do in the situation.

    0Reply
  • Peter TverdovBusiness Member
    Developer · New Brunswick, NJ · Member since 2015 · 1k+ posts · 2k+ votes
    7y

    Can't make it up on this site sometimes...

    [email protected]732-289-3823
    0Reply
  • Brian Van Pelt
    Specialist · Owings Mills, MD · Member since 2017 · 485 posts · 415 votes
    7y

    @Ben Jespersen No offense intended, ....... but you asked "What would you guys do in this situation?"
    Independent Contracting is not a job, It's a Business, you are literally going into business for yourself.
    A job pays you a salary or a wage, You sign a W2 not a 1099 Form.  So yes you quit your job to open a business with 1 employee. And now you have 1 client the Flooring Company that pays you a commission based on how much 'stuff' you sell. That's why a lender needs 1 to 2 years of history as an independent contractor. 

    I have been Self Employed in the same manner most of my life and would not change it for the world. It's an honorable and I daresay Noble Calling reserved only for the truly ambitious and dedicated people. I think at some point you get a watch or a button, I'm not sure which.

    @Peter Tverdov

    I know, I'm a bit unfiltered, It comes from raising too many kids, One day I'll write a book, It won't sell, but it'll give me something to level the kitchen table with.


    1Reply
  • Jerry Padilla
    Lender · Rochester, NY · Member since 2014 · 3k+ posts · 1k+ votes
    7y

    @Ben Jespersenhow long has your wife been an independent contractor, at least 2 years? 

    0Reply
  • Theo Hicks
    Rental Property Investor · Tampa, FL · Member since 2015 · 1k+ posts · 969 votes
    7y

    You're only options are to (1) get seller financing, (2) find a hard money lender or private lender to front 100% of the costs and (3) find someone else who meets the lending requirements to sign on the loan

    1Reply
  • Rick Pozos
    Wholesaler, Rehabber and Landlord · San Antonio, TX · Member since 2014 · 2k+ posts · 2k+ votes
    7y

    OR Wholesale the property and make a few thousand $$.

    OR Do the deal as a flip. Bring in someone that you know and trust from one of the local REIAs that you belong to and have them be the money partner. You found the deal, you are going to manage the construction and the sale of the house and they are going to bring in the 10% or 20% that the hard money lender needs to feel safe. You split the profit 50/50.

    Find a friend who has some money in an IRA or a 401k from a past employer and let them know if they rollover some of the money to a self directed 401k or self directed IRA that you can use that money to do a flip and you are more than willing to pay them 10%(annual) return on their money.

    I, in fact, do all three of those above.

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