How many of you have bought homes with IM cash?

MikeHustle

MikeHustle

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I'm saving up for a home, and I'm wondering if ANY banks would give me a loan? One of my first goals when starting IM was to buy a home with cash, but I've since changed my mind. I want to stay liquid and have a ton of cash on reserve.

I'm cash rich and credit poor. I'm taking the next 3 months to pay off my student loan, and then I'm going to try to get a crib.

Share your experience with buying a home as a self-employed person. The classic caveat of not depending on a forum for financial advice is already understood, just opening up a dialogue.
 
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Apply for a no income verification mortgage. Because of the meltdown these are far harder to get, require a substantial down payment and you will pay a much higher interest rate. Talk to a broker and look into properties with a rental income to defray the risk for the bank. I've seen closings with money coming from a paper bag so these do get done.
 
Funny enough this is my next goal - was lucky enough to pay off mortgage a few years ago with some clever script I wrote - spent the last few years traverling - now on travel diet to save for a flat for my daughter.

Cant make money fast enough so if anyone wants to let me in on a JV - im all ears
 
Ask a friend who has a business to employ you on paper for a couple months and you will pay the taxes and costs. Get the mortgage loan & drop the job.
 
navimeister said:
Ask a friend who has a business to employ you on paper for a couple months and you will pay the taxes and costs. Get the mortgage loan & drop the job.
Click to expand...

I think this is the best answer for your problems ;)
 
Save up your cash for a decent deposit and build yourself a good credit rating.
Register your business as a company. Pay yourself a wage as director
Keep all your accounts in order and it's no problem getting a mortgage at all.
The only time I've seen people run into trouble is when they think they are
Charlie smartass big potatoes and think they can buck the system or haven't
made themselves a decent risk appraisal.
 
simple= Collect $ to buy/build house without the need of credit!
Im doing it right now...
 
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I bought a house in 2006. Paid about 30% down and showed my income tax return from the past year to prove income. Interest rate was 6.75% which was about normal then. I bet it would be a bit harder these days though.
 
I could buy house in my country, I am saving for already 5 years from online business. BUt I am not sure where I will live, And here in THailand, foreigners canot buy a house, bad situation
maybe in bali, but those places are very expensive
 
The problem is is it really worth buying a house right now? In 1972 my Grandfather bought a 3 bed, 2 bath, full basement house for $32,000. He sold it 30 years later for $320,000. That generation had it good cause that will never happen again. Now a days houses are expenses, not an investment. Shit got so out of hand you would be lucky if you broke even after thirty years.
 
It is an investment somehow, imagine something happens that does prevent you from earning money, like an accident, or as an IM you can't get as much money as you thought, you will still have money saved in your house or won't have to pay rent on an appartment
(and an other thing, is it better to spend 500$/month on an appartment you will never own or on a house until you paid off your loan and own that house?)
 
viroid said:
The problem is is it really worth buying a house right now? In 1972 my Grandfather bought a 3 bed, 2 bath, full basement house for $32,000. He sold it 30 years later for $320,000. That generation had it good cause that will never happen again. Now a days houses are expenses, not an investment. Shit got so out of hand you would be lucky if you broke even after thirty years.
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How do you know what prices will be like in 30 years?

If inflation kicks in, prices can go up quickly. And with homes as low as they are now, they will most likely only go up.

Once things recover, they will recover quickly because everyone will want to buy before prices get too high again. People are still fishing for the lowest price, and new foreclosures are still flooding the market, so there are still a few years to get a house for a good deal before prices rise.
 
efwebs said:
How do you know what prices will be like in 30 years?

If inflation kicks in, prices can go up quickly. And with homes as low as they are now, they will most likely only go up.

Once things recover, they will recover quickly because everyone will want to buy before prices get too high again. People are still fishing for the lowest price, and new foreclosures are still flooding the market, so there are still a few years to get a house for a good deal before prices rise.
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You should understand that shit can't grow forever. Here due the cheap interest % and some govt help on rent and such ( which really goes directly to renter / seller in increased prices) the prices are ridicilous. Though myself im not sure yet how id like to live. Now im in row house or w/e its called and the fucking neighbour complains about everything. I think its not much better with those houses near each other. Since for summer id like have pool on backyard , booze and some other good stuff and listen to music. other than that im good with place to sleep and have computer in :D
 
It's not a matter of prices growing....it's a matter of inflation and the value of the dollar changing.

Companies can't grow forever - I will agree with that - but the value of your house will change over time forever. Maybe not at 10% per year, but at least at the rate of inflation.
 
efwebs said:
How do you know what prices will be like in 30 years?

If inflation kicks in, prices can go up quickly. And with homes as low as they are now, they will most likely only go up.

Once things recover, they will recover quickly because everyone will want to buy before prices get too high again. People are still fishing for the lowest price, and new foreclosures are still flooding the market, so there are still a few years to get a house for a good deal before prices rise.
Click to expand...

You are right.

All the "rich" people have been buying homes, remodeling them, and sitting on them or renting them out until prices go back up.
 
your best bet is to incorporate and put yourself on the payroll. otherwise its very difficult to get approved for a mortgage with self employment unless you have a significant down payment.
 
It depends where you are from, but usually an income statement or a P&L of your company making the money would do the trick for applying for a mortgage.

I certainly do hope you make your internet money with a company as being personal liable to any verdicts in court could mean bad credit rating for the next many years (also depending on which country you are located in)
 
Chronos said:
You are right.

All the "rich" people have been buying homes, remodeling them, and sitting on them or renting them out until prices go back up.
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GL to those people that are sitting on property hoping another housing bubble will come by. The toxic and predatory loaning that was a major reason for house prices rocketing upwards days are long over and new regulation and laws are in play to prevent that shit from happening again. Houses will increase in value again once the market stabalizes, but only at or maybe a hair above the rate of inflation. In other words, buy property if you absolutely have to, not because you're making an "investment".
 
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