Small business owners: the underserved demographic in home buying – Emilio DiSpirito

Small Business Owners: The Deserving yet Underserved Demographic in Home Buying

By Emilio DiSpirito, Rhode Island Realtor and co-owner of Engel & Völkers East Greenwich and Engel & Völkers Barrington East Bay. 

As a Realtor, I’ve had the privilege of working with various clients from diverse backgrounds. Among them, small business owners hold a special place in my heart. These driven entrepreneurs face unique challenges when it comes to purchasing a home, making them one of the most deserving yet underserved demographics in the real estate market. Let’s delve into the reasons why:

1. Financial Complexity:

Small business owners often deal with more complex financial situations compared to regular employees. Their income may vary from month to month, and they might have multiple income streams. As a result, traditional lending institutions may find it challenging to assess their creditworthiness accurately, leading to difficulties in securing a mortgage.

2. Tax Deductions and Income Reporting:

While small business owners enjoy various tax deductions and write-offs, these can inadvertently affect their reported income on tax returns. Although these deductions benefit their businesses, they may negatively impact the income figure considered during the home loan application process. This discrepancy can be a significant obstacle when trying to qualify for a mortgage.

3. Seasonal Business Fluctuations:

For some small business owners, their ventures may be seasonal, resulting in fluctuating income patterns throughout the year. Lenders may struggle to understand this variation, leading to delays or denials in mortgage approvals.

4. Limited Work-Life Balance:

The tireless dedication small business owners invest in their enterprises often leaves little time for managing personal finances and preparing for a home purchase. Realtors can play a crucial role by guiding them through the process and helping to navigate the real estate market.

5. Limited Down Payment Funds:

Many small business owners invest their profits back into their businesses, leaving them with limited liquid assets for a down payment. As a result, they may face challenges meeting the standard down payment requirements, making it essential for them to explore alternative financing options.

6. Undocumented Income:

In some cases, small business owners may not have consistent, formal documentation of their income, especially if they run cash-based businesses. This lack of documentation can complicate the mortgage approval process and limit their access to conventional loans.

7. Lack of Time for Home Search:

Due to their demanding work schedules and responsibilities, small business owners may struggle to dedicate time to home searching and evaluating properties. Realtors can step in as their trusted partners, understanding their unique needs and finding suitable properties that align with their busy lives.

Conclusion:

Small business owners undoubtedly contribute immensely to the economy and communities they serve. As Realtors, it’s crucial to recognize the challenges they face in the home buying process and provide them with the support and expertise needed to overcome these obstacles. By understanding their unique financial situations and accommodating their needs, we can help make homeownership a reality for this deserving yet underserved demographic. Together, let’s celebrate the entrepreneurial spirit and ensure that small business owners find their dream homes, the places where they can thrive both personally and professionally.

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o read more articles in RINewsToday by Emilio, go to: https://rinewstoday.com/emilio-dispirito/

Phone: 401-359-2338 – Email: [email protected]

Instagram: @EVRhodeIsland – Website: EastGreenwich.EVRealEstate.com

Emilio DiSpirito

If you would have asked me what I wanted to be growing up, little Emilio would have told you “an archeologist” or “an architect” despite the fact that at age 8 I had my first lemonade stand, landscaping business and was recording my first “news show” on my boombox!  Well, I never was much good at trigonometry and did could not see myself traveling for months and possibly years at a time, so becoming an architect or archaeologist clearly did not happen!

Fast forward 26 years later and I’m running a team of the finest residential real estate professionals, own a media company and host my very own radio news show about real estate!

For 7 years straight it seemed that I had put in more hours than the day had to give on my real estate business. 7 days a week, 14 to 16 hour days, without a break! Why? My friends and family did not understand the sheer magnitude of moving parts and services we offer to our clients during a transaction! One slip up or one missed call could mean make or break for someone’s dream home or even a lost deposit!

Running a team of like-minded, highly qualified and capable professionals has allowed me to offer a very streamlined, simplified and efficient approach to the sales process for our clients and allowed me to earn personal time again with my family while not missing a beat for my clients!

When I’m not working, I’m with family and friends, riding my mountain bike, eating at local restaurants, enjoying live entertainment, hiking, skiing or reading!