All Forum Posts by: Richard C.

@Chris Mason The cosigner gets no part of ownership correct? Will the mortgage loan be on BOTH the primary and cosigners report? When blended, if they take income together do they also take credit score together as well? I wouldn't mind having a cosigner, but I would like to be the sole owner on everything, and just the cosigner there to get me over the hump to qualify for the mortgage and nothing else. 

Congrats on having a vision and being so ambitious at such a young age! I do have one question however, as the above post mentioned. Wouldn't keeping a job with some steady income during the whole real estate investing process help you get financing for your investment properties? Just a food for thought as one of my obstacles for obtaining financing might depend on showing income (w2) from a job. In the end, like you said, if you find a great deal I assume financing will come somewhere and there's always creative ways. Good luck on your journey!

I came across a thought about co signing, anyone know if you're lacking the insufficient income that a consigner's income can help?

@Chris Mason 

Very informative stuff. It can get discouraging when everything seems achievable (gaining knowledge, excellent credit score, savings) up until a certain criteria of a mortgage pre-approval (the income shown)  may be in the way of a first rental property. Looks like an uphill battle, but anything is possible. Appreciate the insight, Chris. 

@Andrew Fredrickson  Thank you. I guess it's all about asking around a few banks and see what they can do too. 

@Chris Mason

@Chris Mason Interesting I never thought of that, so say there's no prior rental income if you're a first time investor, but you find your very first rental investment deal. They can lend you a mortgage loan based on how much that property can produce in terms of rental income? Instead of basing it on my personal income for the loan? If so, that's definitely key! Also thank you for taking your time to give insight on my question. 

And if anyone knows any creative financing for this particular type of situation to get their first investment property that'll be helpful too! 

Hello Everyone!

I was wondering if anyone knows if its possible to get a mortgage loan like an FHA and getting preapproved for it with low income lets say 15k-25k a year or even less as an example, but having an excellent credit score, no debt, and a huge savings already (for the down payment). What I mean by no debt is, school loans all paid off, car loan paid off, and only thing are credit cards which all have close to 0 balance or under 10% total utilization rate on my report. The income is the only criteria thats lacking. How do lenders decide or operate in those circumstances where all other areas of your profile is good besides the income? What can you do to get around that? What if you're bringing in say about 2k a month income from a job and majority of that pay can go towards your mortgage payments because you are living at home rent free and you don't have much monthly living expenses on anything else. Given the information above, would a lender provide a mortgage loan to someone like this? Is there any way in the pre-approval process to plead your case in a written statement on why or how you would be able to pay for the mortgage? Can a mortgage underwriter override the numbers and approve you based on ability to pay it back without strictly looking at the income numbers? Any feedback would be much appreciated!

Jihane Chaieb You can always bookmark/add to the reading list depending on your web browser, that's what I do. Hope this helps!

Hi BP members,

Can anyone please clarify the difference between cash flow and NOI? At first, I thought they both are the same thing until I started researching up on other stuff like the term Cap Rate, which confused me even more because I believe the calculations I read up on said the Cap Rate's NOI wouldn't include the mortgage expense in the equation and the cash flow/cash on cash return does include the mortgage as an expense. Yet, they both need the NOI (but its not consistent in using the mortgage as an expense?).

Bottom line, does NOI (net operating income) use the monthly or annual rental income? ...MINUS.......... the monthly or annual expenses? And are mortgages counted as expenses?

I've noticed different answers, some say income minus expenses and expenses only being: taxes, utilities, insurance, property mgnt fees, etc. Then I see some answers saying expenses are all of that above what I just listed AND mortgages included. Also are mortgages just the principal and interest? Or is it Principal, interest, taxes, insurances, all packed into what is called "Mortgages"?

Thank you for any feedback/explanation and sorry if this sounds confusing. Any help would be much appreciated!

@Matt Stacy 

Thank you for responding, very helpful information!