Newbie question VERY creative financing

[princecharles]

Hi all,

I work as a freelance web designer. Currently I live kooked up with a bunch of other web designers so cost of living is VERY low. Which is a good thing because I have not seen income in a long time.

However I do have about 20$K stashed away and am very interested in pursuing some investment properties I have my eye on.

Is there ANY way I can get a mortgage or finance the deal without any income, but with a decent down payment? These properties will have positive cash flow it that would cover the mortgage. How important is having income when buying properties for investment? I think it may be worth noting that I don`t have a portfolio of RE properties to back me up..

I really do not understand my options (if any) but I was considering:

Getting someone to cosign the loan?
Hard money?
Partner with someone who can get a decent mortgage?

ANY information, direction, or alternatives would be greatly appreciated.

Many thanks,
Charles

 

[Thomas Beyer]

QUOTE (princecharles @ Sep 28 2008, 09:15 PM) ... Which is a good thing because I have not seen income in a long time.

However I do have about 20$K stashed away and am very interested in pursuing some investment properties I have my eye on. ...
First things first !

Get income .. then worry about a piece of real estate later !

You might find this post on "5 ways to make money" an interesting read : http://myreinspace.com/public_forums/General_Discussion/61-3347-5_ways_to_make_money.html

 

[Nir]

Hi,
Can`t Prince Charles work with a mortgage broker that can use "stated income" to qualify him based on his profession (web designer).
Does this product exist in Canada?
Bye.

 

[Thomas Beyer]

QUOTE (investmart @ Sep 28 2008, 09:50 PM) Hi,
Can`t Prince Charles work with a mortgage broker that can use "stated income" to qualify him based on his profession (web designer).
Does this product exist in Canada?
Bye.
yes he can .. and he may be able to qualify .. but the more important question is: should he ?

 

[Nir]

I think he should then, by all means! why not? it`s like asking to buy or not to buy. and you know what we think

 

[invst4profit]

I very much agree with Thomas. A steady income is a priority prior to investing in rental property. Once established the rental income may replace your regular income but not till then.

 

[PeterKinchMortgageTeam]

QUOTE (investmart @ Sep 28 2008, 08:50 PM) Hi,
Can`t Prince Charles work with a mortgage broker that can use "stated income" to qualify him based on his profession (web designer).
Does this product exist in Canada?
Bye.

Stated income is available for rentals, but very expensive. In most cases, you`ll be required to put down a larger downpayment, pay a higher rate and possibly a fee. If the property still has positive cashflow despite the loan costs, it may be an option. If not, you are impairing your ability to get financing in the future (once you have verifiable income.......)

Discuss your 5 year plan with your broker or banker, but I suspect that getting a cosigner, if its a possiblity, would be a much better option for you.