All Forum Posts by: Mark Weinstein

@Chris Mason Thanks for replying Chris. They would say they need at least 2 years of 1099 income. I’m a relatively newer agent who has only closed a handful of deals but I haven’t encountered this situation yet, especially during Covid.

One more time wouldn’t hurt... rough crowd lol

Does anyone have any advice or suggestions?

Last attempt at bumping this post. Anyone out there with any advice?

I figured I would bump this post since I got no reply. Does anyone out there have any advice on what I should do in this situation?

Hey BP,

I was hoping someone who has good experience as a loan officer can give some advice on my situation.

I'm looking to purchase my first property using Fannie Mae's 97% LTV loan. My concern comes when it comes to verifying income because I don't know if I'll be able to qualify given the current situation.

I’m a realtor but I don’t have 2 years of 1099’s so that income isn’t an option for qualifying but I do have W2’s for the last 2 years for my work as a bartender. 2018 and 2019 W2s are available for income verification but I’ve been furloughed since March due to Covid. Tbh, I plan on staying a realtor FT and not returning to bartend, but I don’t want my W2s to go to waste especially when they can be beneficial in getting traditional financing.

I haven’t been pre-approved so before I begin that process does anyone out there have familiarity with this situation or any advice? IMO I think I should be trying to get pre-approved now while my ‘18 and ‘19 W2s are still in play but at the same time what are they going to say when I can’t show them any paystubs after March of this year? How are traditional lenders dealing with these situations because I’m technically still on the books and employed with the company, we just haven’t returned to sole since March.

Any help/advice is appreciated. Thanks BP!

@Joseph Belgrad

Hey Joe!

Yes for an FHA loan I see your point. I was also referring to Fannie Mae's 97% LTV and Freddie Mac's Homeone loan. Those are geared specifically for first time home buyers so I was thinking HML for 1st property, one of those 2 for the 2nd property (given that I got a HML for the 1st), and an FHA for the 3rd.

Is this reasonable thinking?

Hi BP,

For my first property I'm going to use a HML for the purchase then refinance. I don't want to lose eligibility for the first time home buyers programs and grants they're offering.

Would it be better to purchase my 1st property under my LLC, use the HML to purchase, refinance to pay the loan off. Then when it's time to purchase my 2nd property, I can still use the first-time home buyer benefits.

Thoughts on this? And has anyone here done something like this before? I know these first time home buyer programs or FHA loans don't do business with LLC's so I think a HML through my LLC is the best route given my current situation but would love to hear some feedback.

Thanks guys!

Hey Guys,

I have 2 separate questions I would like to ask regarding financing for a rental property. The first one involves using a HML and the second one is regarding getting a conventional loan with my income/profession.

1) How does a hard-money loan work when financing a rental property? As a flipper these loans are convenient because of the time but when you have a 30-year mortgage I'm wondering how this can even be an option? Even if you plan on refinancing to pay back the HML, the time it takes to build up that equity in the home would make this so expensive that I can't see how it's even an option.

2) The second question involves conventional lending. As a realtor I’m self employed and 2021 (for the year 2020) is going to be the first time I don’t file a W2. I have tax returns from 2018 and 2019 from the W2 job/s I worked. As a realtor, I’ve only closed 4 deals so far this year and I’m sure the banks don’t want to hear “Covid” as the excuse for slumping production. I’m almost certain I won’t get a mortgage based off my inconsistent realtor income this year and it doesn’t help that it’s self employment. Would I be better off purchasing the property before the next tax filing so I can use my W2s from the last 2 years? Or does it pretty much become irrelevant since I don’t work at the job anymore, so if they were to do some kind of verification they will find that out.

I’m planning to buy my first property at the end of this year but the financing seems like it’s going to be very difficult. My credit is solid (650, not great but not terrible) and I have about $20k in the bank that I’m hoping to get up to around $35k when it’s time to purchase. If both of the questions above can be answered and some extra advice tips would be much appreciated.

Thanks in advance BP fam!

@Stone Jin Thank you for that info! Insightful stuff right there.

Which websites do you use to get current unemployment/population growth/job growth numbers?

Hey BP,

This question is for the out of state rental investors. What criteria do you use when choosing your out of state markets? Are there certain numbers you use (in choosing the market, not in choosing the property) in making your decision? How important really are stats like transportation or schools? A lot of people on BP explain their OOS investing success stories then when I do research on their markets their schools are horrible and public transit sucks but yet these guys are finding huge success in finding cash flowing properties. Also, how wide is the range of the market you’re choosing (state, a city, a neighborhood, etc.)?

Just doing basic research on city stats and I’m seeing that when I choose a city, the numbers can vary significantly just from zip code to zip code in that very same city. For example, PTR for the whole city of Toledo is .86% but when you specify the zip code 43605 that changes to 1.44%. Of course, that means other zip codes in Toledo are much lower to bring the average where it is, but I’m interested to know how you guys make decisions on those situations.

Any other criteria, numbers, stats, etc. that you guys use to determine your markets would be great. Thank you!