All Forum Posts by: Scott Bidwell

 The underwriter is required to contact your employer (previous employer now) within 7 days prior to closing and verify that you still work there and that you are going to be employed for the foreseeable future. Too many times a company has had a mass layoff planned that hasn't been announced yet and the lenders get stuck holding the bag and the investors lose their money.

The most important thing to remember is that a lender is expecting to get paid every month on time in full mortgage payment. I'm inclined to think that the underwriter is more inclined to keep their job and not be under federal investigation for motgage fraud, than to satisfy your investment desires and overlook your unemployment. Also, it is probably written into your loan documents that you must inform your lender that you have lost/changed jobs during the process or it can be construed as deception (mortgage fraud) which is actually, a federal offense with jail time. Hey, I didn't make the rules.

Not good news for sure, but let's face reality, you are putting other people's money at risk by being deceptive and there are serious laws regarding that for obvious reasons. There are real investors behind that loan. The bank doesn't just "print" money.  Just as if someone you would lend to didn't disclose something you had a right to know, you'd be upset and maybe sue.

So, don't go there. It's a very dark place to go.

I admire your vision. What you need to do is find an investor who will mentor with you so that you can learn the ropes. Than you need to find a property. Start out small. You will need enough money for a small deposit. Than find an investor, family friend, acquaintance and sell them on the project. Your contribution can be the leg work and the administration. Repeat a few times and you will be in business. All DSCR or Fix and Flip lenders will want someone with 6 months cash reserve before they will lend you money. Your income will not matter.

To build up a war chest you may want to wholesale and use the money you make to fund your deposits.

Initially you will have to flip in order to get your money out to increase your war chest to get going. You need to adjust your vision 10 properties in three years with no money or a job. Not gonna happen. 

@Scott Bidwell I think it most productive for this conversation that we do some role playing here. You play the banker/ lender, and I will be the "investor": 

Hi Mr/Mrs Lender/ Banker, I'd like to get some $ for real estate please. I have $1.5 MILLION dollars (I hold for the applause). Yes, I'd like to buy 10 properties here is immediate future, between 4-5 million in total purchases because I'm gonna be a Landlord, yup. Gonna buy these places, get renters, make a bunch of $, life will be awesome. My income, oh yes please, I would like some income. OH! You mean what IS my income, uhmmm, nothing, but remember I said I have $1.5m right, yeah that should work. Oh, what do i do after I spend all of that, well duh the rental income of course silly-goose. My experience, well nothing but what's that got to do with it. Contingency funds..... Cap-what, whats that? Operational plan..... 

Yeah....... 

Look, kudos on having built that capital, or inherited it, printed it whatever, not the point, point is with no income, no experience, you have no security and don't say the properties secure it because no they don't, banks have no interest in inheriting a real estate problem to solve, they sell money plain n simple. 

Without a doubt I see it that your far better off being a private $ investor into an underfunded investor who does have experience, income etc and can best deploy your capital. Layers of positive reasons why this would be much MUCH better way to go, too many to list, and I can only think of 1 for not doing such and that's inability to correctly identify one, and in that case i say buy up some dividend stock like "O" or something. 

That's my Reality Check, hope it helps. 

I am surprised you are able to close on a personal residence without being employed. I am assuming you have investment income? If not then how are you getting your current mortgage?