Investing in Real Estate

I own land that I plan to build on some day. I am presently interested
in purchasing real estate as an investment, and hope to make it my
primary income in the future. Is it true that it may be difficult to
obtain a mortgage for my primary residence if real estate is my only
form of income?

I was told it is much more difficult to obtain a mortgage when self
employed as opposed to being employed by a company. I wonder how
accurate this is. Seems to me that many people are making careers as
real estate investors. Any advice or information from those already in
the field would be appreciated.

Thanks.

Re: Investing in Real Estate

In article <>,
"Christa" <> wrote:

> I was told it is much more difficult to obtain a mortgage when self
> employed as opposed to being employed by a company. I wonder how
> accurate this is. Seems to me that many people are making careers as
> real estate investors. Any advice or information from those already in
> the field would be appreciated.

Yes, that is true. It is especially true if you have a short
history as a self-employed person, or if your accounting is lax.
You have to be able to show a track record, and you have to be
able to show formal business statements.

Many self-employed people end up going with no-doc or low-doc
loans. That cuts through the paperwork and qualification issues,
but it often requires 40% down. The last thing a real estate
investor often has is actual cash.

-john-

--
============================================================ ==========
John A. Weeks III 952-432-2708
Newave Communications
============================================================ ==========

Re: Investing in Real Estate

"Christa" <> wrote in message
news:
>I own land that I plan to build on some day. I am presently interested
> in purchasing real estate as an investment, and hope to make it my
> primary income in the future. Is it true that it may be difficult to
> obtain a mortgage for my primary residence if real estate is my only
> form of income?
>
> I was told it is much more difficult to obtain a mortgage when self
> employed as opposed to being employed by a company. I wonder how

You can get a loan if you are self employed easily. The only thing is that
your interest might be slightly higher depending on the length of self
employment and the net profit you show on your business financials. Many
self emlpoyed people borrow all the time and buy homes. Real estate agents
are prime examples.



> accurate this is. Seems to me that many people are making careers as
> real estate investors. Any advice or information from those already in
> the field would be appreciated.
>
> Thanks.
>

Re: Investing in Real Estate

On Sat, 07 Jan 2006 08:48:43 -0600, "John A. Weeks III"
<> wrote:

>In article <>,
> "Christa" <> wrote:
>
>> I was told it is much more difficult to obtain a mortgage when self
>> employed as opposed to being employed by a company. I wonder how
>> accurate this is. Seems to me that many people are making careers as
>> real estate investors. Any advice or information from those already in
>> the field would be appreciated.
>
>Yes, that is true. It is especially true if you have a short
>history as a self-employed person, or if your accounting is lax.
>You have to be able to show a track record, and you have to be
>able to show formal business statements.
>
>Many self-employed people end up going with no-doc or low-doc
>loans. That cuts through the paperwork and qualification issues,
>but it often requires 40% down. The last thing a real estate
>investor often has is actual cash.
>
>-john-

I often laugh at the way lenders treat 'self-employed' as far as loans
go. If you're an employee of a 'self-employed' person why are they
able to get a loan? I mean, if the business ever has financial trouble
who do you think gets let go first, the employee or the employer?
Seems that the employee is a lot less secure than their
'self-employed' boss!

Re: Investing in Real Estate

On Sat, 07 Jan 2006 19:21:20 GMT, "CalNeva" <>
wrote:

>
>"Christa" <> wrote in message
>news:
>>I own land that I plan to build on some day. I am presently interested
>> in purchasing real estate as an investment, and hope to make it my
>> primary income in the future. Is it true that it may be difficult to
>> obtain a mortgage for my primary residence if real estate is my only
>> form of income?
>>
>> I was told it is much more difficult to obtain a mortgage when self
>> employed as opposed to being employed by a company. I wonder how
>
>You can get a loan if you are self employed easily. The only thing is that
>your interest might be slightly higher depending on the length of self
>employment and the net profit you show on your business financials. Many
>self emlpoyed people borrow all the time and buy homes. Real estate agents
>are prime examples.

and the lender raising the interest rate makes the self-employed
person more secure??? hahahahaha

>
>
>
>> accurate this is. Seems to me that many people are making careers as
>> real estate investors. Any advice or information from those already in
>> the field would be appreciated.
>>
>> Thanks.
>>
>

Re: Investing in Real Estate

<
> On Sat, 07 Jan 2006 19:21:20 GMT, "CalNeva" <>
> wrote:
>
>>
>>"Christa" <> wrote in message
>>news:
>>>I own land that I plan to build on some day. I am presently interested
>>> in purchasing real estate as an investment, and hope to make it my
>>> primary income in the future. Is it true that it may be difficult to
>>> obtain a mortgage for my primary residence if real estate is my only
>>> form of income?
>>>
>>> I was told it is much more difficult to obtain a mortgage when self
>>> employed as opposed to being employed by a company. I wonder how
>>
>>You can get a loan if you are self employed easily. The only thing is
>>that
>>your interest might be slightly higher depending on the length of self
>>employment and the net profit you show on your business financials. Many
>>self emlpoyed people borrow all the time and buy homes. Real estate
>>agents
>>are prime examples.
>
> and the lender raising the interest rate makes the self-employed
> person more secure??? hahahahaha

What is the alternative? Not buy a home? Besides the money market is so
competitive to where they can not raise the rate too much. As you know the
rate is a function of the credit score, stable employment, debts and assets.
The market is efficient.



>
>>
>>
>>
>>> accurate this is. Seems to me that many people are making careers as
>>> real estate investors. Any advice or information from those already in
>>> the field would be appreciated.
>>>
>>> Thanks.
>>>
>>
>