Real Estate Broker · Atlanta, GA · Member since 2017 · 229 posts · 145 votes
Hi all. I have a friend who is on an unpaid leave of absence from their day job. They want to invest in an apartment building, but don't have an income during their 3 month leave.
Does anyone know what funding sources are available? Which lenders would you recommend and why?
Lender · Fort Worth, TX · Member since 2016 · 8k+ posts · 6k+ votes
7y
@Nicholas LaGatta when investing in multi-family or commercial real estate the lenders aren't so concerned about your income but rather on the income of the property. Residential loans do care about personal income but commercial loans will rely VERY heavily on the property itself. They may require some type of experience and maybe some assets type of thing but your personal income will not be a deciding factor if the property has a history of performing well. There is an entire commercial forum here on Bigger Pockets that might be an even better place to find out more on this subject. Hope this helps!
@Nicholas LaGatta There are ways to get financing without personal income docs. Investment properties are typically lended on based on three factors: property value, borrower's FiCo, and debt service. Usually, if 2 of the 3 are really strong, the third can be overlooked.
If you can come up with the 20% down payment, and prove that the property cash flows, you should be clear to invest! Just make sure to properly calculate all costs and expenses to ensure that the property is in fact profitable.