All Forum Posts by: Shaun Weekes

Hello Paul,

It's going to be really hard to get a HELOC without 2 years of tax returns however if you can find a loan officer who has a lot of experience that will benefit you. For example Freddie Mac often only requires one year tax returns for self-employed borrowers. You will however have to prove that you've been in business for at least 2 years. If you can do this with a CPA letter or Articles of incorporation that will suffice.

Now this would be a cash out refinance and not a HELOC so coupled with the comments on commercial, local banks, HML's and looking for a good Loan Officer you should be able to get that cash out and use it to grow your business.

So if you have tax returns how did you have you CPA structure them? Do you have an LLC set up or anything like that? If you show a bank 1040's coupled with k1's and 1120's they will take you seriously. Set yourself up for success and you'll be fine. Since you're doing all the work yourself that tells me that you and your bro are focused and dedicated to what you do. Get a CPA to set you up if you haven't already and you'll be good to go.

Good luck and keep us posted on your progress. You're going to be just fine Paul.

Hello Steve,

If you're looking for a 1 unit investment home you can put down as little as 15% The 5% percent only applies to owner occupied 1 unit homes.  You can also do a 2 unit down to 15% owner occupied.  From 3 - 4 units you're looking at 20 - 25% down and anything over 4 units will be considered commercial so you'll need commercial financing.

I hop this helps. 

Hello Caleb,

Fannie will take rental income from day one and 6 months of seasoning is good enough for cash out on new appraised value. Another factor is home many mortgages that you currently have. If you have more than four and you want cash out the guidelines change. You'll need a 720 fico, you will need to do the cash out refi in less than 6 months from purchase price and you can use new appraised value or the purchase price. Whichever one is less. Other factors like reserves depend on what DU/LP say but typically 6 months of reserves is the minimum for Delayed Financing.

I hope that this helps you. 

https://www.fanniemae.com/content/guide/selling/b3/3.1/08.html

This is a good start in regards to the rules and regs on this. 

Brian,

It's really important that you get with a Loan Officer that knows how to structure your future purchase. He/She should also be able to walk you through the process so that you understand what everything means in regards to your DTI, 75% of lease agreements, the difference between freddie and fannie rules etc.

Oh and to answer your question you can use rents right away towards your income for purchase or refinance Sir.

Thomas,

You can get up to 10 properties financed and fannie mae will use your rental income now.  You don't have to wait 2 years or any other period of time so no portfolio lenders are needed until you get over the 10 mortgaged amount. 

I would hold off on getting more homes though for now so that you don't over extend yourself.  Feel out your assets and then expand after you have a more than a year under your belt. 

Also remember that after one year you won't be able to use 75% of the lease agreements.  you'll have to go off your schedule E.  So even though it's nice to write off a lot just also remember that the potential negative income could hurt you depending on how much you make per year.  You're going to need to work with a Loan Officer who understands your income from A to Z. 

I wish you the best of luck and have a great night Sir. 

Andrew hit the nail right on the head.

Another way you can get this done is to pay cash for the home and fix it up.  Then get a c/o refinance with through hard money.  After six month you can do a rate and term refi on new appraised value. 

Now since this is 6 - 10 you have to have a 720 fico score and at least 6 months of reservers for all properties. 

I hope this helps.

Hello Everyone,

I wanted to add that you really need a loan officer that you can trust and that is always going to be there for you. 

The realtors that use my services have me cross qualify all of the buyers to make sure that their listing is protected.  Once I'm done I just let the listing agent know that this customer is good to go so go ahead and get the contract fully executed. 

Since most of you are new you'll probably represent the buyers more often.  In this case get in touch with an L.O. that can help with advertising and putting applications at your open houses.  You shouldn't have to worry if your buyer can qualify.  That's the L.O's job and in turn this will give you more time to focus on finding the right home for your clients.  

I personally help my realtors with advertising ( co branding flyers etc ) and I provide a small easy to fill out 3 page application so that they can give these to potential buyers at open houses.   First page is a needs list, second page is questions about their job etc and 3rd page is a do's and don'ts list.

Example:

Don't pull your credit during the process or co sign for your cousins new car.  These are things that can hurt your scores and derail your deal.

In conclusion it's so important to have a really good L.O. who has your back and can close purchases in 21 days or less.  It will make you look like a Star and listing agents will love you and your buyers.

Good Evening Investors,

I'm licensed in every state except Kansas and NH.  If you're looking to purchase, refinance or are just looking for some information please email or call me anytime. 

I'm here to help and would love to earn your business.

Hello Dustin,

Do you have the property address and how long have the tennants been renting from you?