Deal Structuring: What Am I Doing Wrong?

[Brittany Sanchez]

What Am I Doing Wrong?

I currently have two properties under contract that I got from foreclosure (two four-plexes that I am going to renovate and raise the rents).

I am getting financing for these properties with a construction loan. I have the good credit and the money for the down payment, but I don't have the W-2 for the bank. So I have been asking friends if they would co-sign on this loan (to purely borrow them for their W-2 income credentials) and in return for helping me qualify, I would pay them $1000/month while I own the property. I would handle the renovation, the marketing, the screening, and the property management -they would have to do nothing

The plan is to refinance into a permanent loan after the renovation is completed and when I refinance I am going to put it into an LLC. My co-signer's name would be removed from the loan, but I would still continue paying my silent partner $1000/month. I would only need their name on the loan for 3 months at most.

And no one is biting!!

Is there something wrong with the offer? What is the problem? Please tell me what I need to offer that I am not offering. Everyone that has turned me down told me they are not sure what they want. So I am looking for honest feedback. 

Thanks in advance!!