All Forum Posts by: Shaun Weekes

Underwriters don't like to see amended 1040's go higher unless you hand a really good reason. Like the CPA made an error on the amended tax form 1040. Also, with COVID-19 19 guidelines we need to show that you're still in "business” They will do this by asking for 3 months of business bank statements.

If your credit and assets are good you will have options.

 Did you amend your taxes to show more income or less?  I'm guessing less because you said you were waiting for a refund.

Are you a Realtor?  Do you file Sch C?  Lastly did you make more this year than last year?

A HML should be your last option. If you're looking to live in one unit then an FHA loan makes the most sense. If you need to fix up the home an FHA 203K loan is also a much better option. The Fees are much lower, and rates are much lower as well.

I hope this helps.

If you build an ADU on a 2-to-4-unit property this will disqualify you from financing with Fannie and Freddie. Fannie and Freddie will only finance ADU's on SFR's. So, if you build and ADU on a 2-to-4-unit property you'll have to use a commercial loan, portfolio loan or a private money loan.

FHA 203K also only builds additional living space attached to the home. Detached building would be swimming pools, BBQ areas and items like that.

Fannie Mae Homestyle will do an ADU that isn't attached to the home.

It's so important to work with Loan Officers and Broker's that have experience working with investment type loans. This will accelerate your buying growth and RE financing knowledge exponentially.

Don't just take my work for it. Here is a link to the guideline in the Fannie Mae sellers guide.

I hope this helps and have a great day.

https://bit.ly/34vr566

This isn't 100% accurate. If you're a truck driver and you become a 1099 employee and file on Sch C you can use one-year Tax returns. Here is what you'll need to do to make this work.

• Your CDL for 2 or more years to prove that you have had a license for at least 2 years
• You're going to want to make sure you don't write off too much of your profit so that you can qualify for a loan

If you can do these 2 things, you're pretty much home free. Freddie will do this for sure and Fannie will as well but not as often as Freddie. Take 1-year tax returns that is.

If using schedule C, you'll want to make sure if you're writing stuff off it's placed on line items that you can add back to your income like line 6, 12, 13, 24b and 44a. Google Schedule C document and you'll see what those line items are. For truck drivers I’ve seen time and time again line 9 being written off but this can’t be added back so you’ll lose that income from a net income standpoint.

If you can truly make 3 to 4 times more as an independent owner, I would start doing that tomorrow!!! You’ll have to wait one year but you’ll be able to buy more homes because you just gave yourself a huge raise.

Last thing is that you really are going to want to use a loan officer or broker that has experience with investment loans and all the current COVID-19 guideline changes to for self-employed borrowers. I would strongly recommend putting all your 1099 income in a business account to show valid deposits as you will need to show this to "prove" you're in business still. Keep track of your gross sales/deposits on a month-to-month basis so that you can create a Profit and Loss statement on the fly as well.

You can do this you just need to educate yourself and have a team around you of experts in the different fields you need like a great investment friendly Realtor, Contractor, Appraiser, Property Manager and of course a Loan Officer.

I hope this helps and take care.

 From a lending standpoint I tell all my clients to wait until their RE income surpasses their W2 income.  At that point you're not missing a beat income wise.  

This will also keep you motivated to fund as many deals as possible to get out of the the 9 to 5.

I hope this helps and have a good one.

@Kirbi Campbell

To help process and fund 500 investment loans for clients through my broker and to add 20 more units to my portfolio.

I have a lot of work too do and I'm excited to get the ball rolling early and often!

@George Otiono

B of A is 100% incorrect. As long as you qualify from a credit, income and asset standpoint you can do a cash out refinance on your home.

@Justin Mizell

I would ask my parents to put me on title and in return I would pay them a lump sum, pay the current mortgage and in 6 months refinance the home into my name.

Or you could refinance in 6 months and pay them back this way if they offer a discount on the sales price.

This doesn't feel right. Make sure you get your own inspector and above all read the entire report from start to finish and highlight everything thats wrong with the unit. Also, make sure you do all of this during the contingency period so you can pull out of the deal with no EMD refund issues.

Good luck and have a good one.