Secondary Source of Repayment - Always Required?

[Josh Stack]

Hi Everyone,

I am a new investor trying to acquire financing for my first deals which I have in pocket and ready to go.  I have been all over the map looking for financing.  My corporate job is ending soon and I don't intend to get another - I plan to go self employed but have no history of self employment income to show.

I've talked to Lima One but for one reason or another my deals don't meet their criteria.  I've been working with local banks and credit unions trying to secure portfolio financing (loans not sold on to Fannie/Freddie) but I keep getting told that not only do the deals need to conform to their underwriting standards (which seem really conservative to me!) but also I need to be able to to show other income which can serve as a secondary source of repayment.

Is this normal and standard in asset based lending like this? That not only would they look at a cash flow generating asset to underwrite the loan but also they would be looking for additional sources of repayment should the cash flow generating asset go under water?

Do you know any ways around this or have any tips to mitigate this requirement of lenders?  Perhaps I'm just not talking to the right type of lender?