All Forum Posts by: Jake E.

Hello BP!

I'm curious if anyone has experience in getting a property refinanced as a self-employed individual. I'm currently seeking investment properties (SFH or possibly duplex) with the intension of paying cash (including rehab) as outlined in the BRRRR strategy, then refinancing based on its improved value.

I know income verification is a common question for the self-employed, but what if one already owns the property free and clear? Are lenders just as concerned about one's income, or can the added rental income be enough of a justification on its own? With the various types of loans and lengthy regulations for each, I'm curious what options are available if one couldn't provide 2 years history or proof of steady income.

Obviously, this is all hypothetically speaking as I'm just thinking ahead to possible scenarios and sizing up options before moving forward. With so many loan types available (conventional, commercial, personal, etc.) I wonder if one approach might work better in such a situation.

If anyone wants to share their experiences or offer suggestions, feel free! I'm sure I'm not the only one wanting to know.

Thanks!

Welcome @Brannon Marsh ! I'm in the same boat: tired of the typical 9-5, seeking financial freedom for a more relaxed and enjoyable life (in addition to building long-term wealth).

Your post caught my attention as I've also read RDPD which made me realize anyone can achieve financial independence when done right. A great read.

I'm also a complete newbie to RE investing, and I'm looking to buy my first rental soon (hopefully in the next month or so). BP is a great resource with a welcoming like-minded community. You're definitely on the right path, with your enthusiasm and prior experience being a great plus!

Since you're open to book suggestions, may I suggest: "Buy, Rehab, Rent, Refinance, Repeat" by David Greene. I'm currently reading it myself and it's a unique approach to getting started in the RE world. I didn't understand all the hype around BRRRR at first, but now I do.. So much so, I think it's how I'll approach my first rental property. You can buy the book here on BP as well as through Amazon. Also, David wrote a great intro of the method here on BP if you want to learn more about it first.

Best of luck on your path to financial independence!

Hi @Katherine Blazer , thanks for the response! I'm always open to hearing what options are available. I'm leaning BRRRR as it looks to be the best direction for me. Being self-employed, and with all the recent events, I can't prove a steady income to the lenders I've talked with.

Glad to hear there might be some options still. I'll need to do some research, but I'm hoping I can refinance using the rental income of the property as a more stable "income". Though I'll need to confirm that's possible before buying obviously.

Thanks for sharing and reaching out!

@Alex M. Thanks for reaching out! I'm glad to know I'm in the right place. BP looks to be the perfect community/tool for those interested in RE investing. Glad I found my way here!

I'm also a lifelong resident, though I've been around the county (currently in northern Pinellas). With St. Pete's recent growth, I've heard it's a great area to invest. I've researched some properties (briefly) but still haven't decided on a specific location to start quite yet. I'm leaning towards something around my area or further north even. At least as a starting point.

I'm always looking for local connections and like-minded people. It's great you're experienced with investing firsthand (congrats on that!) and investor-friendly. I know you're in St. Pete, but are you familiar with the markets across other cities in Pinellas as well (or Pasco even)?

Thanks for the welcome and reply!

Hey @Colin Reid , thanks for the welcome!

I've done a range of things professionally, though my current work is in real estate photography, specializing in virtual tour creation and aerial imagery. It's given me a glimpse into the RE world, at least from a marketing standpoint, as well as steering me towards RE investing.

Welcome to Tampa Bay! What brought you to the area? I'm actually northern county (closer to the Pinellas/Pasco line), but St. Pete is a great city with promising growth potential (so I've heard).

I see one of your top subjects is traditional financing, are/were you in that industry? Being self-employed, you can imagine I've hit a few road blocks while searching for a loan/lender.. My current plan is to go the BRRRR route: buy upfront, then refinance after rehab. I still need to do my research on that but it seems like a better route for my situation.

Glad you reached out, it's great finding local members on BP!

Hello BP!

I'm Jake, a newbie in regards to real estate, but ready to pursue my goal of financial independence. Having been self-employed over the past 5 years, I realize it takes dedication and hard work to achieve results in any field. As I approach the young age of 30, I feel real estate could provide an excellent long-term wealth building opportunity.

I've always had an interest in RE, though I never knew the specific reasoning. I enjoyed handyman and DIY projects, mainly because I enjoyed creating, improving, and working towards a goal. It wasn't until I came across BP and the BRRRR method that I realized rental properties interest me far more than I would have imagined. Being self-employed, I knew it would be difficult to obtain a loan/mortgage, so I initially wrote it off as something I would do someday. After a few webinars, books and research, I discovered this is something I can do today!

My initial goal is to gain as much knowledge on investment topics as possible, which is why I'm here. I believe one should never stop learning! My end goal is to build a portfolio of long-term rentals to supply enough monthly income to live a more relaxed and financially independent lifestyle. Frankly, I would much rather spend my time researching, improving, and adding properties to my portfolio versus the typical 9 to 5 spent at my computer. I want my money to work for me not the other way around! If possible, the dream would be to make this a full-time endeavor. I don't have any complaints with my current career path, but I feel more of a "spark" or "drive" towards RE investing. I know it isn't easy and will take time, but I'm willing to work for it. I have this feeling it will be worthwhile in the long-term

Being a newbie, I'm happily open to any suggestions or recommendations you may have! Plus, if anyone happens to be in or around the Tampa Bay Florida area I would be glad to connect here. They say part of your success depends on who you know and associate yourself with! Feel free to connect and message me anytime!

I'm glad to have found such a community and look forward to becoming a part of it!

Best of luck to everyone on their goals!

Thanks for all of your answers and input! I appreciate the guidance and help.

I have since begun taking an online course towards getting my license. Bottom line, I feel it will help in the long term and might lead to a potential career or side income too. I also watched Brandon's 90Day Webinar the other day which only confirmed this is the direction I'm looking to move towards! As I said, RE has always interested me especially the investment/income aspect of it.

You're insight helped me feel more confident in moving forward. Basically, I didn't want any surprises.. It'd be such a disappointment to complete the course/pass the exam and then find out I'd need to spend $$$ to reach the next step. I'm all for a few grand a year, especially when I could make that back with a single sale. It's a worthy investment in my opinion.

Something else I've been wondering too - How does one get a lead? I'm assuming through marketing, lead generating sites, and maybe some luck? Or do some brokers provide leads to their agents as well?

(Sorry for the delay.. I just happened to see my email about receiving a reply to then log in and see all your helpful responses. Thanks! I'll address each below)

@Share Ross thanks for sharing! Oddly, Exp is on my radar. Their lower monthly fees and being an online company caught my attention. But I agree, everyone is different, so it's worth researching the available options.

@Edgar Rodriguez great to see those comparisons! It goes to show how each broker can vary. It's definitely worth searching around to find the best fit then. I've done some research into KW and have them as a contender along with a few others, so thanks for that insight.

@Colin G Murphy I agree, it's definitely an investment. Ultimately, I would like to sell/buy for others, but having access to the MLS for earlier research possibilities seem like the best perk when getting into RE investing.

@Wes Eaves The main drive is for investment, but selling for others would be a great way to build up additional cash to put towards investing. I did consider skipping the license (since it's not needed for one's own property) but as a newbie to the RE world, it seems like a good starting point. Plus, MLS access seems like a large advantage. Thanks for the tip on checking how sales are entered/logged.. I never knew about that. I'll definitely keep that in mind!

@Charlie Cameron I agree, the course prices I've seen online are very surprising! I ended up picking a mid/higher tier course for the added benefits and included post-license course. In the end, $50-400 for a course isn't bad at all considering it can lead you on a new career path. I've paid far more for college courses that (sadly) didn't offer as much... Thanks, glad to hear it's worth the time and investment!

Thanks again everyone!

Hello!

I've been interested in real estate for some time, specifically for investing and potential new career (full or part time). I've read other posts here discussing the pros/cons to having your own license as an investor and can see the benefits in becoming licensed. My concern is in regards to recurring fees (mostly the ones you must pay to remain active - ie not personal marketing/advertising or other optional fees/services). I've researched a few brokers in my area and have seen broker fees ranging from $80 to $400+ a month. Not a big deal when closing sales, but as a new agent I realize it may take some time for that to happen.

Before moving forward in taking the course, I wanted to see if I could get as much information about what to expect as far as expenses and fees. I'm in Florida (Tampa), and realize it varies by location and whichever brokerage you're with, but if I could get a rough idea it will help prevent any future surprises. I just want to prevent from getting in over my head... I'd hate to go through the time taking the course and exam to only discover the monthly costs are more than I initially expected or that there is a service fee I didn't take into account. I've contacted a few broker groups, but naturally they don't want to disclose specific fees until I've passed the exam.

If anyone wouldn't mind sharing some rough numbers, I would greatly appreciate it! I'm also open to any of your own thoughts or suggestions as well. Real estate interests me enough to go for the license (I've been thinking about it for years), but again I'd like to know all that I can beforehand.

I appreciate the help!