Denver Area financing for someone with no w-2 income?

5 Replies

I have a deal in which I have have enough cash for the 20% downpayment as well rehab costs. 

However, I need to get financing for the remaining 80% but don't have w-2 income and won't be able to get a conventional mortgage.

Does anyone have small banks/credit unions in the Denver area they've used for getting loans with solid business plans/investment strategies? I'm happy to meet with them and show my numbers. Perhaps a private investor?

Do you have other income? Schedule C, Partnership or Business income? 

The type of income is not nearly as important as just showing income on your taxes. 

Is your plan to flip or hold?

I have other income albeit low at the moment (~$2,000/mo). 

My plan is to flip to a long-term rental. I will refinance after the property is stable and pull my money back out. The "BRRRR strategy" if you will.

Does your company have a service for something like this? Thanks.

Won't you want to refinance out your rehab costs, OR are you ok with tying them up long term? You could try a local bank like 1stBank or someone else. You'll just have to run your numbers and see if you qualify for one of their portfolio products. Maybe Merchants?

 If you can't pull it off, then is it worth flipping?

@Gavin Estenssoro not to be the bearer of bad news but you won't be successful on the refi out without a w2 or some form of income unless it's strictly a commercial deal and SFR don't typically fall into that space. Really a hard money lender is the only one that will lend to your situation that I know of. I'm having a terrible time doing the refi out now on a deal I did.

@Gavin Estenssoro  my bank did a portfolio loan for a customer that didn't have W-2 recently. Unfortunately @Bill S. is right. We were able to do the loan because the borrow put 50% down and they were buying a multi unit where the rents more than covered the payments. At 20% down and it being a SFH I think you'll be hard pressed to find a conventional lender.