Partnering to get a mortgage

[Ruan Joubert]

Looking to buy my first STR, I have private money to fund the down payment. But my w2 doesn't qualify me for a mortgage on this property.

Different options are available - such as partnrship with private lender where he signs for mortgage and I do the rehab and rental management.

Or creating a llc with ownership slipped between me and private lender 49/51 split so his income will be taken in account when applying for the mortgage but then I'll be a commercial loan.

Any advice on the above mentioned and or other suggestions that might be a better solution.

Thanks 

[Riaz Gillani]

Private Lenders, either HML or DSCR, aren't interested in income / employment. Liquidity - yes. Asset - yes. Credit - yes. But no pay stubs or tax returns or DTI consideration ...

With that being said, it sounds like you're looking to BRRRR and you're at the beginning Buy / Renovate stage - so a Hard Money Loan (HML) sounds most fitting.

There's plenty out there - but, I'd suggest leaning on anyone you know in the space and ask who they use. Then vet them. 

Without experience, you can expect at least a 20% DP (80% LTV). 65-70% LTARV. After getting a few under your belt, you'll be surprised how quickly you'll become familiarized with the process and how many more options in terms of financing come available.

Good luck on your path to financial freedom!