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Proof of Earnings?

by Tropic
5 replies
Hello,

When you guys made the switch to full time IM how do you deal with stuff like renting apt / buying houses. I mean you don't get the traditional W2 from your employer? What do I do show some broker my paypal and clickbank accounts and say "hey look, I really have a job and make $"

Is there a more professional way to explain your profession and show consistent earnings?

Thanks
#earnings #proof
  • Profile picture of the author auradev
    Anyone who is self employed will always have a hard time proving income.

    When you go to buy a house, they will require a larger downpayment AND that you have up to 6 months of payments in the bank.

    Renting apartments wont really be hard because they mainly look at your credit score. Again, with them if you have 6 months in the bank, they will be ok with it.

    Basically as a self employed person you need to have about a years worth of normal income in the bank to be able to do anything involving getting a loan. By that I mean around $30K.

    Or 3 years tax returns showing self employment income.

    They are REALLY strict (it sucks, deal with it).
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  • Profile picture of the author auradev
    Also, the only document anyone will count is past years tax returns. Your click bank and paypal is not going to be acceptable as proof to a bank.
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  • Profile picture of the author Silas Hart
    Once you form an LLC or Corporation, things get a little easier. Money talks, pull out $10,000 in front of a landlord or something thats only asking for a $500 deposit and $500 first months rent.

    Collateral is almost more important than credit in my opinion, not that things like credit don't play a role. When I first got started in buying houses, I was self employed and had the collateral of a home that was worth $120k and I was only trying to borrow $40k for another house that I could purchase through the bank. Wasn't an issue at all. Of course, my credit score wasn't that bad before I started buying homes. That loan was paid off by renters and myself, increasing my cash flow, collateral, and my personal/business credit.

    The more self employed you are, the less interest you will have in financing things like cars.
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  • Profile picture of the author Anonymous Affiliate
    For me it was a pain in the butt to convince my landlord to rent me the condo I live in right now. I had to pay 6 months of rent upfront in cold cash to convince him!
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  • Profile picture of the author Latsyrc
    I would think once you register a business it would not be a problem at all. Getting an LLC is an excellent idea. Once you have an "established business" on paper, then I don't see how it is any different than someone owning a small shop somewhere.
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