Creative Financing with a 1099

[Austin Steed]

Being a Realtor I get 1099. 

That creates some issues when it comes to getting financed. 

All of those other self employed people out there what are some ways that you got around the 2 year minimum for your tax forms? 

Anything creative throw it in here.

Tricks to financing are so valuable just thought it'd be good to share!  

[Cara Lonsdale]

It's not the 1099 that is the issue, as this is just another revenue source on your taxes, and self employment tax and so forth is all figured and deducted through your taxes filed each year.  It is the short time at your employment that is doing you in here.

Once you have 2 tax years filed with your new 1099 job, you should be able to obtain financing from that stand point.  Then it's just about qualifying with the AMOUNT of income.  To figure out what this will be, you need to take your last 2 1099 tax years, add them together (the AGI), and divide by 2 (take an average).  This is what lenders will let you use to figure income for qualifying.

Make sure you create a P&L statement.  The lender will need this (and your taxes also require this to calculate deductions).

In the meantime, if you want to purchase anything, you will need to find a hard money lender that does asset based lending.  They aren't looking at you (except maybe to pull credit), but rather they look at the property to qualify the loan.