BRRRR - Will I be able to Refinance?

Question

Hi Everyone,

I know I want to deploy the BRRRR strategy, but I think I might get hung up at the Refinance stage based on my current employment/income  situation.

Here's the situation: I left my corporate job in February to pursue a career real estate. Therefore, I no longer have W2 income and I'm now considered self-employed with no income coming in...yet. I know I can find a deal, get short-term financing, rehab the property and rent it BUT if I go to the banks to refinance for long-term conventional financing, will they lend to me based on my current employment situation? I have great credit but no income.

Can anyone provide some insight and/or recommendations of lenders that I can speak with about this?

Thanks for your help!

Katrina Heyne · Answer

@Melvin List - would it be OK for me to DM you for more info? Is that allowed? I'm kind of new to the rules of engagement here...

Melvin List · Answer

@Katrina Heyne i do but I don't want to get flagged for self promotion even though I don't lend in your state.

Katrina Heyne · Answer

@Ben Biggs getting a co-signer is possible so that might be good path to try.

@Melvin List do you have any recommendations on the type of lenders you mentioned?

Thanks to you both!

Melvin List · Answer

@Katrina Heyne convention lending will not be possible but there are lenders out there much cheaper than Hard money that will give you 70% with no docs

Ben Biggs · Answer

Hi @Katrina Heyne this is a tough one. Underwriting standards these days are pretty tough... you will not be able to obtain conventional financing without verifiable income. And if you are a 1099 independent contractor (Agent?) then you have to have 2 years of income on the books before you will be able to obtain financing based off the income from your real estate Job. Can you get a co-signer?

-Ben