Need To cash out refi ASAP but can’t prove income

[Zachary Bellin]

Hey Bigger Pockets,

I’ve been flipping for about 2 years and have been doing some retail real estate sales as an an agent part time to pay the bills. February last year I bought my first home as a flip and have since finished the rehab. I’m 20 so this years taxes will be the first I show any real income. I’ve talked to 5 different banks and 3 different mortgage brokers and none of them can help me (even after my brother who makes 80k agreed to co-sign). I’ve got 2 other projects going and I desperately need to cash out on my principal to finish them up. I owe about 200k In Hard money on the principal and it’s worth about 350k. My credit is 700+ if that helps.

Thanks!

[Chris Mason]

Originally posted by @Zachary Bellin:

Hey Bigger Pockets,

I’ve been flipping for about 2 years and have been doing some retail real estate sales as an an agent part time to pay the bills. February last year I bought my first home as a flip and have since finished the rehab. I’m 20 so this years taxes will be the first I show any real income. I’ve talked to 5 different banks and 3 different mortgage brokers and none of them can help me (even after my brother who makes 80k agreed to co-sign). I’ve got 2 other projects going and I desperately need to cash out on my principal to finish them up. I owe about 200k In Hard money on the principal and it’s worth about 350k. My credit is 700+ if that helps.

Thanks!

 Not disagreeing with anyone else here, but I have a BIG picture solution that you may want to consider, if you're determined not to have a W2 day job yourself (hey, power to you for that btw).

Anything the mortgage industry is going to consider a "liability," such as an in-process flip with a HML going out but no rental income coming in, or a car loan, or anything like that, shove it into Spouse A's name.

Anything the mortgage industry is going to consider "income" or an "asset," like a stabilized rental with a normal FNMA loan or a W2 day job, shove it into Spouse B's name (usually that W2 day-job kind of gives you a big "hint hint" about who to use as Spouse B).

And, yes, a spouse can buy a property from a spouse when something starts as one thing, and becomes the other. :)

Instead of joint A+B mortgage applications being "meh" or "close but your DTI is just a little too high...", you end up with Spouse A being dead on arrival, and Spouse B looking like a shining golden ticket that anyone would lend a million dollars to.

Prior to feminism women had a really hard time getting mortgages alone, they would always require either the husband or dad to cosign. You go back far enough, women didn't even have solo credit scores, only joint. So Sally+Husband might have one credit score, and Sally+Dad might have another, but Sally alone basically didn't have, and couldn't get, any credit, of any form, at all. The above paragraphs are an unintended side consequence of moving away from that.

Note also I used "Spouses" b/c that is the convention. It could also be "Significant Other" A and B, or "Fiance" A and B, or "Brosefs" A and B, or whatever.