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!!

[Caleb Heimsoth]

Brittany Sanchez how many people have you asked? Of those people how many are real estate investors themselves? If the answer to the first question is less than 15 and the answer to the second question is very few you would need to ask more investors

If you don’t have a W2 Income do you have 1099 or self employed income? You may have a hard time refinancing if you don’t have the income to support the refinance loan, if that’s the case that could be another reason people aren’t biting