struggling to get a mortgage

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smoothnobody
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Re: struggling to get a mortgage

Post by smoothnobody »

yep. i see no problems here. only obstacles to overcome. the banks don't care how old i am, how much experience i have or don't have, how much money i have, how i got my money, or how long it's been since i depended on somebody else to give me a paycheck. they don't care about my life story. all they want to see is numbers on paper for 2 years. easy game. i have all the other pieces they want. 3% by the end of 2020 ain't likely, but 3% by the end of 2021 looks good. if i have to take 7% for one year and refinance i will. but i'm not just gonna give up because somebody tells me no. i know there is somebody out there that knows how to pull this off without paying 3 times the interest rate.
Golf maniac
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Re: struggling to get a mortgage

Post by Golf maniac »

To answer OP original question, as stated previously, to get a traditional mortgage you will need a co signer, no way around it. If no co signer then will need to go the non traditional mortgage route. Once you rent the original home and start to get some cash flow going for a while, then you can refi and drop the co signer. Make sure you keep good records of income and expenses to prove the cash flow. Good luck on your non traditional journey. Guys like you the bank will never understand because you don’t fit in a nice category set up by FNMA or FHLMC. It is called character lending and banks just don’t do that in the mortgage space anymore.
chipperd
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Re: struggling to get a mortgage

Post by chipperd »

smoothnobody wrote: Sat Jul 25, 2020 4:04 pm yep. i see no problems here. only obstacles to overcome. the banks don't care how old i am, how much experience i have or don't have, how much money i have, how i got my money, or how long it's been since i depended on somebody else to give me a paycheck. they don't care about my life story. all they want to see is numbers on paper for 2 years. easy game. i have all the other pieces they want. 3% by the end of 2020 ain't likely, but 3% by the end of 2021 looks good. if i have to take 7% for one year and refinance i will. but i'm not just gonna give up because somebody tells me no. i know there is somebody out there that knows how to pull this off without paying 3 times the interest rate.
Not sure how you "know somebody out there that knows how to pull this off..." , but I hope you find that person and don't get taken for a ride in the process.
Best of luck to you.
TheDDC
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Re: struggling to get a mortgage

Post by TheDDC »

Golf maniac wrote: Sat Jul 25, 2020 4:24 pm To answer OP original question, as stated previously, to get a traditional mortgage you will need a co signer, no way around it. If no co signer then will need to go the non traditional mortgage route. Once you rent the original home and start to get some cash flow going for a while, then you can refi and drop the co signer. Make sure you keep good records of income and expenses to prove the cash flow. Good luck on your non traditional journey. Guys like you the bank will never understand because you don’t fit in a nice category set up by FNMA or FHLMC. It is called character lending and banks just don’t do that in the mortgage space anymore.
Right. It's called "get a legit source of income". Why is OP skating around this? That's all the bank needs to see. This makes complete sense. If you want their money you need to play by their rules.

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smoothnobody
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Re: struggling to get a mortgage

Post by smoothnobody »

i have a legit source of income. it may not be w2 or 1099, but i will be on paper for 2020. legit income and employment isn't whats hurting me, it's the 2019 tax return.
neverpanic
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Re: struggling to get a mortgage

Post by neverpanic »

smoothnobody wrote: Fri Jul 24, 2020 3:55 pm i want to get in to real estate. i have assets good credit and no debt, but no w2 or 1099. my 2018 tax return was six figures. my 2019 was just 15K from dividends and interest. the banks aren't liking my no employment and inconsistent cash flow. i've looked in to hard money, but the rates from these guys is 7-9% instead of the 2-3% for a traditional mortgage. they also focus on investment properties and right now i'm trying to get primary residence. my current primary residence is paid in full, completely renovated, and ready to start bringing in rental income. but i have to find a new primary residence for myself first. home equity loans looks much easier to get, but the rate is still 6-7% and i can't get enough to pay for the next property. my buddy has a construction company and can put me on payroll, but he can only give me so much work, so my w2 income will look more like a low income part time employee. he can over pay me, but he has to pay workers comp paypall insurance etc so whatever he gives me costs him 30%. another idea thats come up is start my own LLC and pay myself. this sounds interesting, but don't really know much about how this would work. my first thought was thats basically double taxation cause the business has to pay tax on income then i have to pay personal income tax on the money the business gives me. this business would technically have no income at this point, it would just be me putting my personal funds in to the business account so the business can turn around and give it back to me through payroll. another thing that's come up is a margin account through vanguard. i'm already approved for this but again the rates are 7-8% and if a margin call comes through i'm in trouble. i know i have options, but my best path forward is being friends with the banks and getting a traditional mortgage. and if thats going to happen i have to make my 2020 tax return look good. hoping somebody here has been down this road before and can teach a young man a few tricks.
Would you give you a mortgage at 3.5%?
Would you give you a mortgage at all?

When you get audited, your non-revenue-generating business is likely going to create significant problems for you. You can certainly pay yourself from a capital account you funded, but the business needs to have a function.
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AerialWombat
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Re: struggling to get a mortgage

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neverpanic wrote: Sun Jul 26, 2020 1:12 am
smoothnobody wrote: Fri Jul 24, 2020 3:55 pm i want to get in to real estate. i have assets good credit and no debt, but no w2 or 1099. my 2018 tax return was six figures. my 2019 was just 15K from dividends and interest. the banks aren't liking my no employment and inconsistent cash flow. i've looked in to hard money, but the rates from these guys is 7-9% instead of the 2-3% for a traditional mortgage. they also focus on investment properties and right now i'm trying to get primary residence. my current primary residence is paid in full, completely renovated, and ready to start bringing in rental income. but i have to find a new primary residence for myself first. home equity loans looks much easier to get, but the rate is still 6-7% and i can't get enough to pay for the next property. my buddy has a construction company and can put me on payroll, but he can only give me so much work, so my w2 income will look more like a low income part time employee. he can over pay me, but he has to pay workers comp paypall insurance etc so whatever he gives me costs him 30%. another idea thats come up is start my own LLC and pay myself. this sounds interesting, but don't really know much about how this would work. my first thought was thats basically double taxation cause the business has to pay tax on income then i have to pay personal income tax on the money the business gives me. this business would technically have no income at this point, it would just be me putting my personal funds in to the business account so the business can turn around and give it back to me through payroll. another thing that's come up is a margin account through vanguard. i'm already approved for this but again the rates are 7-8% and if a margin call comes through i'm in trouble. i know i have options, but my best path forward is being friends with the banks and getting a traditional mortgage. and if thats going to happen i have to make my 2020 tax return look good. hoping somebody here has been down this road before and can teach a young man a few tricks.
Would you give you a mortgage at 3.5%?
Would you give you a mortgage at all?

When you get audited, your non-revenue-generating business is likely going to create significant problems for you. You can certainly pay yourself from a capital account you funded, but the business needs to have a function.
This plan won’t work at all.

Either the loan processor or underwriter will notice the fact that the business has zero revenue. It doesn’t matter if the OP is providing capital to the business and drawing a W-2 wage, the business still needs to be self-sustaining for at least two years. The lender will scrutinize the business tax returns for any business that the OP is 25% or greater owner of.

Sure, there are some sketchy ways to make all that look legit. But OP still has to have two years of employment history at the same “employer” for many lenders and the best terms that he/she is trying to get.

There is no simple shortcut here. I reiterate my suggestion to start a legit company and do something real and productive with it.
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smoothnobody
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Re: struggling to get a mortgage

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AerialWombat wrote: Sun Jul 26, 2020 1:41 am Either the loan processor or underwriter will notice the fact that the business has zero revenue.
you guys are taking little bits of information and random thoughts that pop in my head and out my mouth and taking it to places i have no intention of going. the business will have revenue. it may not be a whole lot, but it will be a legitimate business with legit income. am i willing to pad the numbers a bit and provide the illusion of looking better than i really am? i am open minded to the idea. but it's not exactly any kind of plan i have. i'm just throwing stuff at the wall to see what sticks.
AerialWombat wrote: Sun Jul 26, 2020 1:41 am The lender will scrutinize the business tax returns for any business that the OP is 25% or greater owner of.
this is probably the most interesting thing i have heard from you guys yet.
AerialWombat wrote: Sun Jul 26, 2020 1:41 am But OP still has to have two years of employment history at the same “employer” for many lenders and the best terms that he/she is trying to get.
i don't believe this is true. maybe half truth. yes, 2 years is the standard. but 1 year is possible. it is an exception, not the standard. but it is possible. my income does not need to be from an employer. income from self employment and investments is acceptable.
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Re: struggling to get a mortgage

Post by galawdawg »

smoothnobody wrote: Sun Jul 26, 2020 11:02 am
AerialWombat wrote: Sun Jul 26, 2020 1:41 am Either the loan processor or underwriter will notice the fact that the business has zero revenue.
you guys are taking little bits of information and random thoughts that pop in my head and out my mouth and taking it to places i have no intention of going. the business will have revenue. it may not be a whole lot, but it will be a legitimate business with legit income. am i willing to pad the numbers a bit and provide the illusion of looking better than i really am? i am open minded to the idea. but it's not exactly any kind of plan i have. i'm just throwing stuff at the wall to see what sticks.
AerialWombat wrote: Sun Jul 26, 2020 1:41 am The lender will scrutinize the business tax returns for any business that the OP is 25% or greater owner of.
this is probably the most interesting thing i have heard from you guys yet.
AerialWombat wrote: Sun Jul 26, 2020 1:41 am But OP still has to have two years of employment history at the same “employer” for many lenders and the best terms that he/she is trying to get.
i don't believe this is true. maybe half truth. yes, 2 years is the standard. but 1 year is possible. it is an exception, not the standard. but it is possible. my income does not need to be from an employer. income from self employment and investments is acceptable.
So you are "open minded to the idea" of committing mortgage fraud, a federal felony, to get the loan terms you want? Wow.
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Re: struggling to get a mortgage

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Re: struggling to get a mortgage

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galawdawg wrote: Sun Jul 26, 2020 11:15 am So you are "open minded to the idea" of committing mortgage fraud, a federal felony, to get the loan terms you want? Wow.
i've already told you guys i am willing to walk the line but i will not cross it or do ANYTHING illegal. i'm sure there are ways that would be illegal, i'm not interested in that. what i am interested in is that gray area that most would find uncomfortable but in the end is perfectly legal. you guys accuse me of not listening but i don't think you guys listen and are too eager to project your interpretations on me. i say something randomly as an off the cuff idea with no intent just pure curiosity of exploring all options and you guys run with it and make up these grand stories like i'm some evil doer trying to run off with the banks money.
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Re: struggling to get a mortgage

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smoothnobody wrote: Sun Jul 26, 2020 11:50 am
galawdawg wrote: Sun Jul 26, 2020 11:15 am So you are "open minded to the idea" of committing mortgage fraud, a federal felony, to get the loan terms you want? Wow.
i've already told you guys i am willing to walk the line but i will not cross it or do ANYTHING illegal. i'm sure there are ways that would be illegal, i'm not interested in that. what i am interested in is that gray area that most would find uncomfortable but in the end is perfectly legal. you guys accuse me of not listening but i don't think you guys listen and are too eager to project your interpretations on me. i say something randomly as an off the cuff idea with no intent just pure curiosity of exploring all options and you guys run with it and make up these grand stories like i'm some evil doer trying to run off with the banks money.
I respectfully disagree.

Attempt to justify it if you must, but the highlighted portion of your earlier post about "padding the numbers" that I quoted above is not in a "gray area" and "perfectly legal."

It is fraud and it is a federal criminal offense if you do it to obtain a mortgage or other loan from a financial institution. IANYL.
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Re: struggling to get a mortgage

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There are many lenders who will underwrite based on less than 2 yr income. Some may require you to show cash in the bank equal to, say, 1-2 years of payments plus taxes and insurance. Rate may not be conforming but won’t be “hard money” either.
Reach out to a mortgage broker.
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smoothnobody
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Re: struggling to get a mortgage

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i will admit, i do not know what is or is not legal. and i would be sure to find out before i do anything. I HAVE NO INTEREST IN DOING ANYTHING ILLEGAL. maybe padding the numbers is the wrong way to say what i'm thinking. i would not lie or make up the numbers. but i am allowed to put my own money in and invest in to the business. if the business gives that money back to me over time as compensation for all my hard work, i'm not making up the numbers, i'm just shuffling money around.
Last edited by smoothnobody on Sun Jul 26, 2020 12:37 pm, edited 4 times in total.
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Re: struggling to get a mortgage

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galawdawg wrote: Sun Jul 26, 2020 12:23 pm
smoothnobody wrote: Sun Jul 26, 2020 11:50 am
galawdawg wrote: Sun Jul 26, 2020 11:15 am So you are "open minded to the idea" of committing mortgage fraud, a federal felony, to get the loan terms you want? Wow.
i've already told you guys i am willing to walk the line but i will not cross it or do ANYTHING illegal. i'm sure there are ways that would be illegal, i'm not interested in that. what i am interested in is that gray area that most would find uncomfortable but in the end is perfectly legal. you guys accuse me of not listening but i don't think you guys listen and are too eager to project your interpretations on me. i say something randomly as an off the cuff idea with no intent just pure curiosity of exploring all options and you guys run with it and make up these grand stories like i'm some evil doer trying to run off with the banks money.
I respectfully disagree.

Attempt to justify it if you must, but the highlighted portion of your earlier post about "padding the numbers" that I quoted above is not in a "gray area" and "perfectly legal."

It is fraud and it is a federal criminal offense if you do it to obtain a mortgage or other loan from a financial institution. IANYL.
I concur with galawdawg, further discussions on illegal activities will get this thread locked as illegal activities are against board rules.

Also due to 911 and 2008 Great Recession, banks have to follow the Financial Securities Act, money laundering and fraud is illegal.

smoothnobody, you are young flash in the pan upstart, that is what you come across, figure out what your long term plans will be, and banks will provide loans with legitimate income.
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smoothnobody
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Re: struggling to get a mortgage

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smoothnobody wrote: Sun Jul 26, 2020 12:32 pm I HAVE NO INTEREST IN DOING ANYTHING ILLEGAL.
smoothnobody wrote: Sun Jul 26, 2020 11:50 am i've already told you guys i am willing to walk the line but i will not cross it or do ANYTHING illegal.
smoothnobody wrote: Fri Jul 24, 2020 9:42 pm if i can get where i want to be faster without doing anything illegal i am happy to push the limits.
you guys are either not reading what i am saying or not understanding what i'm trying to say or just want to take shots at me cause i don't fit in the box you have made for yourself.
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galawdawg
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Re: struggling to get a mortgage

Post by galawdawg »

smoothnobody wrote: Sun Jul 26, 2020 12:32 pm i will admit, i do not know what is or is not legal. and i would be sure to find out before i do anything. I HAVE NO INTEREST IN DOING ANYTHING ILLEGAL. maybe padding the numbers is the wrong way to say what i'm thinking. i would not lie or make up the numbers. but i am allowed to put my own money in and invest in to the business. if the business gives that money back to me over time as compensation for all my hard work, i'm not making up the numbers, i'm just shuffling money around.
So here's what I don't get. You are spinning round and round tossing out one bad idea after another in an effort to get a sub-3% mortgage so you can invest in rental property. But you are proposing that you would use your substantial capital to start a business to "manufacture" income through return of your original capital to get approved for that loan.

Why not just put that capital into the purchase of rental property (maybe a fixer upper if you are handy) and start renting it out. Now you are in the rental real estate business. Then rinse and repeat, either investing your own money in additional rental property or once you have established a legitimate and honest track record (supported by bank statements, tax returns, profit/loss statements and such), you can obtain financing for future rental property purchases at an investor rate more favorable than you are being quoted now (although not as low as a primary residence first mortgage).

Wouldn't that accomplish what you are seeking without questionable or illegal tactics or some of these bizarre "schemes" that you seem to be contemplating?
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Re: struggling to get a mortgage

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galawdawg wrote: Sun Jul 26, 2020 12:49 pm
smoothnobody wrote: Sun Jul 26, 2020 12:32 pm i will admit, i do not know what is or is not legal. and i would be sure to find out before i do anything. I HAVE NO INTEREST IN DOING ANYTHING ILLEGAL. maybe padding the numbers is the wrong way to say what i'm thinking. i would not lie or make up the numbers. but i am allowed to put my own money in and invest in to the business. if the business gives that money back to me over time as compensation for all my hard work, i'm not making up the numbers, i'm just shuffling money around.
So here's what I don't get. You are spinning round and round tossing out one bad idea after another in an effort to get a sub-3% mortgage so you can invest in rental property. But you are proposing that you would use your substantial capital to start a business to "manufacture" income through return of your original capital to get approved for that loan.

Why not just put that capital into the purchase of rental property (maybe a fixer upper if you are handy) and start renting it out. Now you are in the rental real estate business. Then rinse and repeat, either investing your own money in additional rental property or once you have established a legitimate and honest track record (supported by bank statements, tax returns, profit/loss statements and such), you can obtain financing for future rental property purchases at an investor rate more favorable than you are being quoted now (although not as low as a primary residence first mortgage).

Wouldn't that accomplish what you are seeking without questionable or illegal tactics or some of these bizarre "schemes" that you seem to be contemplating?
+1 smoothnobody

Do your research this is legitimate law once you have rental real estate, the chicken before the egg?

https://www.investopedia.com/financial- ... anges.aspx

In real estate, a 1031 exchange is a swap of one investment property for another that allows capital gains taxes to be deferred. The term, which gets its name from IRS code Section 1031, is bandied about by realtors, title companies, investors, and soccer moms. Some people even insist on making it into a verb, as in: "Let's 1031 that building for another."

IRS Section 1031 has many moving parts that real estate investors must understand before attempting its use. An exchange can only be made with like-kind properties and IRS rules limit use with vacation properties. There are also tax implications and time frames that may be problematic. Still, if you're considering a 1031—or are just curious—here is what you should know about the rules.
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Re: struggling to get a mortgage

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galawdawg wrote: Sun Jul 26, 2020 12:49 pm Why not just put that capital into the purchase of rental property (maybe a fixer upper if you are handy) and start renting it out.
starting up a LLC won't cost me 200K. i don't want to cannibalize my ETF's to start a new stream of income. i want to hold me existing income stream and use the banks money to kickstart the next stream.

i also don't want to purchase a rental property. rental properties are much harder to get loans on at higher rates. i want my next purchase to be a primary residence. i've been in this place for 2 years. i'm eligible for tax free gains when i sell it. i want to capture those tax free gains on the next property too.

i know about 1031. maybe not all the parts to it, but i know a little something about it. i have to sink my gains in to the next property within a limited amount of time otherwise that deferred tax becomes realized. i only want to act quick now cause i have 5 months left in this year to get my 2020 tax return looking good. i don't want to move fast jumping from one property to another. i do plan to take my time with what i buy. 1031 is something that will help me when i switch gears from rentals to flips. i don't see how it helps me now.
Last edited by smoothnobody on Sun Jul 26, 2020 4:26 pm, edited 2 times in total.
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cchrissyy
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Re: struggling to get a mortgage

Post by cchrissyy »

your LLC idea won't work. even if you did show W2 income and didn't mind the extra bite from paying payroll taxes and social security on it, your end result would be negative because the business operating at a loss goes on your tax return and loan application too.

i think your best legitimate path to the goal of renting out your current house and buying another one to live in is move out and rent it out, right now. the bank needs to see that signed lease and some monthly checks to prove rental income. in the meantime, find yourself a temporary cheap housing situation.
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Re: struggling to get a mortgage

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while i am curious, i also am not convinced about starting a company. but i don't know enough about operating a business so can't dismiss the idea yet. on one hand, payroll and social security blows. but even if i'm not a business i get hit with a self employment tax. so this is kind like a wash, neither a pro or a con for the business. one upside for sure is tax deductions. another one is protecting myself. a business can act like a shield between me and the world. many people have told me when you have money people will come after you. having property and tenants and doing all these things in my name vs a company sounds way more risky. i would rather have people coming after the company than me. can always shut it down and start over. can't do that operating as myself. this looks like the biggest benefit to starting a business.

i hear different things from different people. i've called several banks credit unions private equity and mortgage brokers. banks tell me they want to see 1 year of rental income on the tax return for them to consider it. my buddy who is involved in new construction put me in touch with a mortgage broker they use and he told me he can make that rental income count with just a lease first months rent and security deposit. the idea of moving in to an apartment has also come up. not a fan of the idea. feels like i'm moving backwards and throwing away $800 a month in rent. hard money seems like the lesser of two evils.
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Re: struggling to get a mortgage

Post by chipperd »

This is going nowhere. The first time I've ever wanted a thread locked.
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Re: struggling to get a mortgage

Post by AerialWombat »

chipperd wrote: Sun Jul 26, 2020 5:41 pm This is going nowhere. The first time I've ever wanted a thread locked.
Ditto.

OP, it’s really simple: Know income, know mortgage. No income, no mortgage.

Do what you will, and good luck.
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Re: struggling to get a mortgage

Post by LadyGeek »

This thread has run its course and is locked (topic exhausted). See: Locked Topics
Moderators or site admins may lock a topic (set it so no more replies may be added) when a violation of posting policy has occurred. Occasionally, even if there are no overt violations of posting policy, a topic (or thread) will reach a point where the information content of the discussion has been essentially exhausted and further replies are much more likely to cause distress to the community than add anything of value.
smoothnobody - If you want the thread opened, please PM me.
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Re: struggling to get a mortgage

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The OP has requested that the thread be reopened.

This thread is unlocked to continue the discussion.
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Re: struggling to get a mortgage

Post by onourway »

There is an incredibly simple solution here.

Take the loan at the higher interest rate and simply refinance in a year or two after you have qualifying income.

You are looking to play a lot of games to save a nominal amount of money in the long run. Step back and look at the big picture.
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Re: struggling to get a mortgage

Post by smoothnobody »

thank you lady. appreciate you and the guy who sent me a kind PM for your encouragement. appreciate those trying to help too. to those haters, if you are not going to be nice, keep it to yourself or lady will send you a PM and remind you of the forum etiquette. seriously though, if you want me to go away, just stop engaging me. if you talk to me, i will respond. if nobody has anything helpful to add, my focus will go elsewhere and this thread will fade away. i'm not sure how to get this thread back on track or if anything will constructive will come from it, but i'm willing to give it another go. you never know, maybe somebody will say something in a way that clicks for me.

recap.....

i wont do anything illegal.
i'm not trying to rush out and get multiple mortgages.
just trying to get a primary residence and rent out my existing property.
if things don't blow up, long term goal, get to 10K a month in rentals then switch focus to flips.
i know i need legit income.
reminder, i have legit income.
something i'm not sure about is if i should stay self employed on my tax returns, or start funneling my income through a legitimate business.
new information, i have a guy for renovations. he is the guy who pulled me out of the fire with my current reno.
he was a contractor for the military. he is capable and does it all. except mud work. no mud skills at all.
we are good friends. we have been through alot with my property. i trust him. i have capital. he is skilled with his hands.
his family is involved in new construction. i am surrounded by lots of experience and contacts.
looking for hot mess single family homes around 150-200k. gonna do a full gut job.
it's not going to be easy. but we can do this.
i realize i don't have all the answers. only bits and pieces. that's why i'm searching the net and talking to as many people as i can.
hoping to find those missing pieces of information.
even if it seems like i'm not listening, i am.
not trying to battle on the internet. this is just my way of trying to come up with a solid plan.
Last edited by smoothnobody on Sun Jul 26, 2020 8:59 pm, edited 2 times in total.
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smoothnobody
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Re: struggling to get a mortgage

Post by smoothnobody »

onourway wrote: Sun Jul 26, 2020 7:52 pm There is an incredibly simple solution here.

Take the loan at the higher interest rate and simply refinance in a year or two after you have qualifying income.
i realize this is the easiest way forward. it just hurts my soul to accept 3 times the standard mortgage rate. i will if i have no other options, but i'm not convinced i can't do better. sure, as of right now, i have no hope cause my 2019 blows. but i have a chance with a good 2020 tax return cause the most recent tax return carries more weight and my credit and debt to income is good. that's why i'm stressing, i want to be prepared and put my best foot forward for my next return.
TheDDC
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Re: struggling to get a mortgage

Post by TheDDC »

smoothnobody wrote: Sun Jul 26, 2020 8:39 pm i know i need legit income.
reminder, i have legit income.
something i'm not sure about is if i should stay self employed on my tax returns, or start funneling my income through a legitimate business.
"legit income"... What is legit income here? What is your line of business you are getting income from? I don't think any of us have a clue what you are doing and what "legit income" you are showing to a bank. This could explain why you are getting the responses you are.

"funneling through a legitimate business" = sounds shady. Banks don't gamble on shady business. Again, what are your sources of income and what amount?

-TheDDC
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Normchad
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Re: struggling to get a mortgage

Post by Normchad »

From prior posts, it sounds like the OP hit it big on bitcoin. Less than 18 months ago, was asking for advice on getting into stocks.

Now looking to get into real estate. People who lend money want to be sure they are going to get it back. They will demand a risk premium for the loan. That is why speculative ventures like this command a higher interest rate.

I recommend you be very careful, and don't end up blowing the money you already have from bitcoin.Don't mistake luck with skill. Lots of people have "hit it rich" once, then blew it all and never recovered.

In the spirit of being helpful, I'd recommend you go to work for somebody who is doing this successfully now. Spend 1-2 years learning the ropes and confirming that this is what you want to pursue. Then go off and do it on your own.
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smoothnobody
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Re: struggling to get a mortgage

Post by smoothnobody »

most of it is dividends interest and long term capital gains. i do other things like ebay sales building computers flipping motorcycles. i do all kinds of things but have no focus. this side stuff plus my investment income is enough, especially if i make an effort, but not sure where i should be putting my focus. i believe i said this before but i will say it again, the income is not the problem. i can show income. my hang up is how do i show income in a way that appeals to the banks. mister hustle man who does it all and can show numbers without employment or operating as a business is questionable.
EnjoyIt
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Re: struggling to get a mortgage

Post by EnjoyIt »

I see a few options for you to get started today

1) get a 7% loan, start renting out your current home and refinance once you show income from your rental.

2) rent some cheap studio and rent out your current home which will show the banks income.

3) take out a HELOC on your current home to fund the new rental

4) pay cash for your new home and then take out a line of credit

All options will cost you money, choose the one that is most favorable to you.
A time to EVALUATE your jitters: | https://www.bogleheads.org/forum/viewtopic.php?f=10&t=79939&start=400#p5275418
onourway
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Re: struggling to get a mortgage

Post by onourway »

smoothnobody wrote: Sun Jul 26, 2020 8:52 pm
onourway wrote: Sun Jul 26, 2020 7:52 pm There is an incredibly simple solution here.

Take the loan at the higher interest rate and simply refinance in a year or two after you have qualifying income.
i realize this is the easiest way forward. it just hurts my soul to accept 3 times the standard mortgage rate. i will if i have no other options, but i'm not convinced i can't do better. sure, as of right now, i have no hope cause my 2019 blows. but i have a chance with a good 2020 tax return cause the most recent tax return carries more weight and my credit and debt to income is good. that's why i'm stressing, i want to be prepared and put my best foot forward for my next return.
So you’re going to spend a year or two manufacturing some income instead? In the meantime losing out on real rental income you could be producing, and pushing back the start of your real estate venture by a couple of years?

Again, you’re missing the big picture here.
toocold
Posts: 157
Joined: Sun Jul 23, 2017 9:17 am

Re: struggling to get a mortgage

Post by toocold »

I think you're in the wrong forum. You should try biggerpockets.

It seems like from your summary, you want to try flipping. If that is the case, connect with a bunch of wholesalers or try to generate and close leads yourself, find a hard money lender for the time you try to flip the house, and sell it at an appropriate ARV.

In the meantime, try reaching out to some mortgage brokers who may be connected to non-traditional lenders and see what can qualify, including underwriting the asset. Some backers may want to structure the deal in such a way that they split the profit, so you don't need a traditional mortgage.

Good luck. I think it can be done but the wrong forum to ask.
investingdad
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Re: struggling to get a mortgage

Post by investingdad »

smoothnobody wrote: Sun Jul 26, 2020 9:15 pm i do all kinds of things but have no focus.
Maybe you hit on the deeper problem?

You're bored and have no focus and by your own admission haven't worked since you were 19?

I'm thinking this venture may not scratch that itch.
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Re: struggling to get a mortgage

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