No w-2 or income...How do I finance a portfolio

4 Replies

I recently sold a restaurant of mine and my wife and I are currently looking for another small biz. I currently have no w-2 or income. I want to start an investment portfolio. I paid cash for first deal a week ago but am finding it difficult to finance future deals. The lack of income is only temporary. We have no debt and substantial savings.

Should I be looking for $ someplace else?

Thank You

@David Nadelstumph  If you have lots of cash in the bank and/or liquid investments (e.g. stocks), then you can get an asset based loan.

Another option would be to get a stated income loan. No W2/Tax return. Just your credit and bank statements. The rates are not as attractive as conventional, but its better than hard money. Any you are only doing this as a stop gap. So you can refi to a conventional loan once you have a steady income again.

Upen Patel, Mortgage Banker

Federal NMLS# 1374243

@David Nadelstumph :

The stated income option is really the best way to go about it. Don't expect any crazy stuff like 100% or buying for less than it's worth to ask for more. It is about 65-75% LTV max and the cashflow should be there. You can show cash in account that would help even if no monthly income docs are needed. Your credit should be 650+ for most lenders.

@David Nadelstumph

Advice given is pretty much straight on...stated income option is pretty much the only way to go on a temporary basis and then once seasoned, you can refinance. Chris and Upen hit the nail on the head. You'll be 75% LTV max usually, cash flow underwritten, and solid FICO scores. Interest rates will likely be in range from 6-9%, depending.