All Forum Posts by: Amelia Cooper

I am running into an issue getting a HELOC on my primary. Although I have $300k+ equity, $2M in business assets, absolutely 0 debt except for my current mortgage, and a credit score so clean you could eat off of it, the lender is only qualifying me for $69K based on my income. This is strictly related to my taxes and what I pay myself as a dividend from my business and does not consider freelance or consulting or rental income from house hacking my extra rooms. Nor does it consider my retirement accounts, liquid accounts, or bank statements. For more context: my 2021 and 2020 tax returns are being used here, and I got divorced last year and my income shot up but my 2022 taxes haven't been filed yet.

Here's the question: I believe I can get hard or private money elsewhere. But, I'm very concerned if I do that, I will not be able to pay off the note with a refi a few months later, because if they look at the same criteria the HELOC lender is looking at, apparently, I could only get $69k.

For those of you who have done this before with less than I, how did you get your property refied to BRRRR after needing to use creative financing on your first deal?

@J Scott: I know it’s not a terrible deal bc I know the comps of the area and what the potential MTR rental rate would be. But, I’m not SO confident that I wouldn’t run an analysis first.

At work, will drop numbers tonight.

Good Morning! 

I am analyzing my first deal and either it's a really terrible deal (it isn't, at least not to the extent the calculator shows where my expenses increase and my equity decreases over time) or I am not using it right. I DID watch the video on it. What other resources are out there to help me understand how this works? 

Also, what is all this "back of the envelope" math I hear about? I've heard our BP experts talk about being able to analyze a deal in 5 minutes, but how can they do that when we are supposed to call around and get information like insurance quotes in our deal analysis? What am I missing?