Advice for (fairly) new business owner getting financing/started

3 Replies

Hello everyone!  First thread here on BP!  I'm still wet behind the ears and looking for my first deal.

I started up a window cleaning, pressure washing, and gutter cleaning business August 2016 but that was under my Father-in-law on his books, and I started up officially under my own business license in February 2017.  My income is still low, roughly 27k gross from my business and ~10k from trading options.  So 37k on the year here.  I'm married, but my wife is staying home with our baby.  Since I started in February I don't have any tax returns on the books to take to a lender.  Any advice on getting financing for my first rental or flip property?  I went to one portfolio lender and it was a hard no until at least the 1st return, but probably 2 years worth of returns.

I found a few properties that pencil well and should cash flow a few hundred per month.  How do I get financing approval?  Thanks!

Other info:  

-tied up in a 1 year lease renting a property until August 1st.

-only debt: $100/mo for student loan

-credit score falls within the excellent range

-~28k total to put into a deal, leaving 8k for family emergencies

There are some portfolio lenders that will do a 24 month bank statement for self employed or rental cash flow. The rate will have the risk factored in but as long as the deal works with it.

However I am unfamiliar with lenders in that area of the country.

I have a stated income option.  No returns needed only recent bank statements 

Isn't a 24 month bank statement more or less the same as 2 years of tax returns?  

Tarik, I'll PM you.  Thanks.

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