How to get financing for BRRR for 1099 (self-employed)

[Joshua Farren]

Sorry if this question has been asked but I couldn't find a clear answer in what I've read. I have enough to buy and rehab my first house but I am worried about getting the financing when I'm done. I have a lot of write-offs and show little income. Can you offset this in any ways other than claiming more income and waiting the two years? I would be happy to put more in a savings account to cover mortgages for say 6 months or a year, but would that make a difference? Does this issue just depend on the bank? How do other people who are 1099 get around this issue?

[Tom Shallcross]

Hi @Joshua Farren. Typically, my long-term financing is in my LLC's name so it's commercial financing where they care more about the actual deal. I'm the guarantor so they do care that I have reserves and good credit, but they never ask for paystubs/income like a residential loan.

Find a local portfolio lenders or an experienced broker in your area as you rightfully pointed out that your situation would make a typically Freddie/Fannie loan tough.  Also make sure this is all lined-up in advance so you don't put yourself in a tough spot with the clock ticking.