Mike, Richmond Virginia, trying to break into the market!

[Mike Rice]

Hey, my name is Mike. I've been learning about RE investing for years, stuck in analysis paralysis. Just started to actually do things and am hitting roadblocks. But it's okay, we just need to find another road, or get around the block somehow. Keep solving the problems as they come until we make it! Right?!

I'm at the point I finally called a RE agent, and had a lender run my credit. Everything was going well until they asked about my employment history. I make the same $$/year as I've always made, but I only work half the hours now which makes me "part time". I only have a 6 month history of working part time, so we can't use that income as "income" according to my lender. Live and learn! Ha ha!

Now, I'm thinking about arbitrage or Turo in the meantime. I'm not actually sure, but that's another post. I'm just glad to finally be reaching out, posting to the forums and getting things done!

[Peter Siler]

@Mike Rice if you are planning to purchase a "fixer upper" and are going to be forcing appreciation on the property via renovation. Hard Money Loans (HML) are a good option. They typically do not look at your income statements in order to lend on a property. Once you have renovated the property you can either sell it or refinance into a 30 year fixed in order to pay back the HML. If you go refinance route it sounds like you will need a unconventional/non-conforming loan, that does not conform to Fannie Mae/ Freddie Mac requirements. This will be at a slightly higher interest rate, but still doable. (I use these types of loans since I invest under my LLC)

A note is that you may have to own the property for 6 months prior to refinancing into a 30 year fixed. (This was the case this fall) If any lenders allow refinancing prior to a 6 month "seasoning period" I would love for them to comment on this thread / reach out to me directly. 

Happy to connect and discuss further. I am local to the NOVA area.