As a self-employed individual, you might think it will be tough to buy an investment home. However, the process is similar to those with full-time jobs. Check out our latest blog to learn more!
Getting A Loan
Get Your Paperwork In Order
Getting ready for a loan when you’re self-employed demands careful thought and strategy. Some opt for a W-2 wage over an owner’s draw to showcase a steady income, aiming for growth over time. Keep in mind that lenders might view self-employment as risky, possibly leading to higher interest rates. Hence, it’s vital to maintain a good credit standing. Tackle any fixable credit issues promptly and communicate with creditors and credit bureaus to resolve disputes if needed. Furthermore, it’s wise to maintain distinct separation between business and personal transactions to streamline tax processes and avoid confusion.
Reduce Your Deductions
While many business owners use all the deductions they are entitled to, this will end up decreasing your income. The lenders will want to see a high income in order to show you will be able to pay back the loan. When filing your taxes this year, consider taking a pass on some deductions you had to write off. This will help the lender see that you actually do have the income required to pay back the loan.
Save Up For That Downpayment
It is safe to assume you will need to put down at least 20% when you buy an investment home. Depending on the property, this could be a fairly large chunk of change. It is smart to begin saving right away and consider setting aside a set amount each month. Treat your saving account as simply another bill you need to pay. Some other great ideas would be to skip your yearly vacation and make sure any unexpected cash you receive goes straight to the savings account. If needed, consider tapping into your retirement account or your 401k, just make sure the penalties aren’t too steep.
Buying Directly
Work With A Pro
By teaming up with a reputable entity like Core Real Estate Solutions, you gain access to exceptional investment properties offered at highly competitive prices. Our specialization lies in securing off-market deals, thereby saving valuable time and resources for all involved parties. While cash transactions are favored by many of our clients, they are not always obligatory. We facilitate transactions with private buyers, sellers, and fellow investors, ensuring access to some of the most lucrative deals in the Fort Myers area. Collaborating with us ensures your acquisition of high-value properties at discounted rates. We exclusively handle the finest homes in the Fort Myers locale, guaranteeing top-notch quality for our esteemed clients.
How To Save
To accumulate savings for purchasing an investment home in cash, it’s prudent to start early. Similar to saving for a down payment, this process requires dedication and effort. Consider liquidating other assets and minimizing unnecessary expenses to boost your savings. Implementing effective savings strategies can accelerate your progress, allowing you to accumulate cash more rapidly.