Job Change - Will it Affect My Chances of Getting a Loan/Lender?

[Melanie Heiges]

Hello all! My husband and I are still in the “education” phase of our real estate journey, but we plan to buy our first propert no later than 2020 - quicker if we can save up capital faster than projected. His job environment is not healthy, so he has been trying to find another job within the same field, just at a different establishment. Will that impact our ability to get conventional loans and/or work with hard money lenders at all? I also am studying an accountant program, and I also want to change jobs into that field as it will double my personal income, and thus increase our capital and reserves, and also benefit our real estate journey through the knowledge I will gain. Now that may still be 3-5 years away, but will that make loans harder? Thanks for reading and I hope to learn a lot from you all!

[Christopher Phillips]

@Melanie Heiges

Okay. that makes sense.

You have a few choices for flips:

your own cash, or cash pooled with other investors.

hard money or similar private lenders.

You don't typically get a traditional bank loan for flips due to the condition.

So, you would either get hard money loans that will lend for distressed properties or use you own cash.

Hard money lenders base their lending on the project, not on your personal finances. They will require some of your money for the purchase depending on the project to make sure you are putting some skin in the game. Most of it depends on the size of the project and the risk involved, which would on a project by project basis.