I've been doing online business (internet marketing) and have thought about getting into real estate investing, foreclosures and what-not but how can I know how much the bank will let me borrow for my first purchase?

What do they require in terms of documentation? Payslips? Bank account statement?

Anything would help, especially from people that are running their own business.

Thanks! Please don't ignore me.

Your business is legal or illegal?

If legal, you should have an accountant.

Ask your accountant for good advice.

If your business is illegal. Then you just buy with cash and wait for Income Tax come to find you and question you where you get the money from.

do you pay income tax? if you do, you can support your loan application with the forms submitted to lhdn, which shows you are earning money and paying your dues

ur business dont have money banked to bank each month/frequently ?

just show them your bank statement if you got.

I have like 90% of my funds in my Paypal (5 figures USD) account and I get monthly Western Union payment from Google Adsense.

Thanks for the advise so I guess here's what I do:

Talk to an accountant.
Print monthly bank account statement.
Print Paypal statement.
Pay tax for this year.

That's all right?

talk to a banker or loan officer, they will help you sort out

I'm a fulltime webmaster and I've managed to secure a home loan for RM590K. And this is my first property.

What the bank need from you is basically the same with other individual. You need to convince the bank that you have sustaining income to service the loan.

Here's what they need:
1) Income supporting documents. Print your paypal and bank statement. Depending on the bank, you may need to print 3, 6 or 12 months of both statements.

2) Income tax. Pay your taxes. If you've been doing it for years, you should be safe. If not, start doing so. Submit your tax form attached with a copy of payment receipt together with your loan application.

I've got my loan from PBB. I had a bank account and hire purchase with them and I use their western union service. So I assume they had all my transactions details and credibility which could help with obtaining the loan.

If you did your transactions under one bank, try obtaining a loan from them.

And last, as per leongal advise, talk to bankers. They can provide much accurate information.

most impt thing.. got income tax / bank (or whatever account) transaction on steady income ... then the loan should be easier

i'm a banker, i think for Documentations:

1) If your business is registered, provide business registration forms,
If business not registered, eg. freelance, "family business", online business etc, show any other evidence/ documents to show your business is genuine

2) Acceptable income documents:
-Latest BE Form with tax payment receipt / E-filling with ackowledgement
-Latest 6 months business account statement (if any)
-Latest 6 months personal account statements
Other supporting documents
-any savings eg savings acct/Fixed deposit certs/ASM/etc (if any)
-other investment like unit trusts/shares etc (if any)

3) If you have good credit record- eg hire purchase and/or credit cards would be a merit point, that is most important criteria coz it show ur "willingness to pay"

4) second important is your "capacity" or "ability to pay", means your income, you have to show your income is consistent/stable, also if you have sufficient money in bank as "back-up" would be another advantage.

5) online business is a high-risk business to the banks, banks want to make sure it's not Illegal or related to money laundering activity

6) if a genuine first time home buyer for owner occupation would be an merit point too.

just my opinions

Show to the bank that your income is sustainable.

HI Alwiser,

I can help you even if you dont have any documents at all.

However you at least need to have good credit history.

Any you will not get 90% margin of finance.

Regards,