Loan for 15% cap 4-unit. No W2 or tax return (student in 16')

3 Replies

How could I get a loan in this situation? I'm a first year commercial real estate agent so I'm 100% commission. I found a perfect first deal for my self that I put under contract. It's a cash-flowing, 15% cap, 4-unit property. Everyone I spoke with said I'll need at least w-2, last year tax return, or pay stubs. Since its my first year and I'm 1099 I don't have any of those. It's a good deal though, are there any lenders that just look at the numbers and my credit/income of THIS year.

Do I have to wait to file my 2017 taxes? Or is there another route I could go? I'm under the impression by February/March I can get a traditional mortgage based off my income from my 2017 return. How can I hold off until then without losing the deal?

Sounds like you may want to go the private money route. Since you're a CRE agent (doing investment sales?) I'm sure you know how to put together an offering memorandum. If I were you I'd put one together and go network at local RE events or with any family friends that have money. Don't shove it down their throat, but after establishing a connection let them know you're looking for private money to finance a deal. As they say, if the deal is good enough, the money will come.

Originally posted by @Gabe Sirkin :

How could I get a loan in this situation? I'm a first year commercial real estate agent so I'm 100% commission. I found a perfect first deal for my self that I put under contract. It's a cash-flowing, 15% cap, 4-unit property. Everyone I spoke with said I'll need at least w-2, last year tax return, or pay stubs. Since its my first year and I'm 1099 I don't have any of those. It's a good deal though, are there any lenders that just look at the numbers and my credit/income of THIS year.

Do I have to wait to file my 2017 taxes? Or is there another route I could go? I'm under the impression by February/March I can get a traditional mortgage based off my income from my 2017 return. How can I hold off until then without losing the deal?

If you had 25% down, good credit, and zero debt (all accounts/revolving/installment/mortgages paid off or to zero) you could potentially qualify for the property as a non owner occupied (aka investment property) and you have low personal housing or rent that you're paying or you live at home with your "parents." 

I've ran this scenario by my head conventional underwriter and Its been verbally approved, but the problem is its hard to find a borrower with a situation that meets it. I've been waiting a couple years to try this scenario. I have a couple people who are in this particular situation so we'll see soon enough if the underwriters can back up their words =).

This refers to fannie/freddie but the situation has to be exactly as mentioned above.

This is not a quick close program like a hard or private money loan so be prepared to have 35-45 days in most cases.

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