Is a Job Required?

Investment property requires money. That money may come from a job, savings, an inheritance and so on. The job itself is not a requirement, although it can be helpful to have a job, a source of income.

I will add that having money does not mean the person can manage it. Therefore, follow good investment practices and let your money work for you through an investment you understand. This stands in contrast to investing in something you know little or nothing about. Such investments tend toward greater risk in losing the money for many reasons.

If you seek a loan without holding a job, which equates to steady income, the lender will not lend money to you. The ability to verify steady income therefore can help real estate investors, especially if the want to leverage what they have. This is even true for commercial real estate investments which banks analyze in terms of income. 

However, banks are not the only ones with money to loan. Real estate investors therefore can find money through other avenues, such as friends, family members, hard money lenders and others.  

One of the first steps  for investors is to match the right investment property to their expertise, knowledge, budget, risk tolerance and so on. Then building the other resources to invest becomes doable and possible. Resources to acquire include knowledge of the asset class, market savvy. Another important resource is a team of professionals: tax, real estate, and management professionals, attorneys and others.

And, of course, it is essential to learn everything possible about the investment property that the real estate investor is considering to assess risks and rewards. This is both an art and a science. 

In conclusion, a job can be helpful but it is not required. Instead think “access to money.”



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