Can't qualify for a loan but have the money

[Brian Wilson]

I am a 19 year old who lives in Columbus, Ohio. I have my own landscaping company and have accumulated some money that I want to invest somewhere and make it grow. I would like to buy a multi-family property with an FHA loan and rent out the other side and live for free. I have not yet made my business an LLC so for the last 5 years everything I have been paid was "under the table." With that being said, I have no work history technically. Therefore, I cannot qualify for a loan. No one will co-sign with me since it will be my first investment property and I'm still learning. I've watched hundreds of YouTube's and podcasts and just read "Rich Dad Poor Dad" and "Rental Property Investing." I continue to do more research every day. I feel I have a good understanding of the rental property game and the money to get into it but no way to get a loan. Any suggestions?

[Catherine Coy]

How much money, exactly, do you have?  In some cases, a person with assets but no job can still get a loan using the trust-assets-as-income loan structure.  You've heard of a "trust fund baby?"  With enough money, you can turn yourself into a trust fund baby.  This loan structure may not fit you now, but keep it in mind.  It works like this:

Create a simple Revocable Living Trust (RLT).  (I always do this for my borrower; no need for an attorney.)  Prepare a Trustee Letter that assigns the asset account to the RLT.  The RLT now owns the asset account.  Divide the amount of money in the RLT by 36 months and voila!--there's your qualifying monthly income.   Works with conforming and jumbo loans, too.

Catherine Coy

Loan Originator

Shore Capital Corporation