Becoming a real estate investor by buying your primary residence

When most of us think imagine a real estate investor a yellow hardhat wearing real estate developer is what usually comes to mind. But, what if I told you that you're considered an investor when you purchase your primary home? Kinda cool, right? I think so too. Well, let me tell you of some of the primary ways that people become investors this way and what you need so that you can become one too.

Funding Sources

The traditional route to real estate ownership is through obtaining a mortgage with a commercial lender. People usually go to their own bank and seek prequalification for a home loan. For those with religious beliefs forbidding use of interest, there are interest free lenders available as well! One interest-free lending leader includes a Shariah compliant company called Guidance Residential. There are also "investors" who use 401k partial cash outs or self-directed IRA funds for the required down payment. Some individuals use funds from other investments such as savings accounts or stocks.

What you need to get started

To obtain funding from the traditional sources mentioned, at the bare minimum, you'll need the following:

-Proof of all verifiable income (W2s, supplemental, paystubs etc)

-Tax documents

-Bank Statements

-Investment account statements

-Statements for all debt

-Identification

-Residential information

-Employment history

Now that you're armed with this information, what are you going to do next? It's 2023. Take the leap!