To improve my DTI, can I put my debt under someone else's name?

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To improve my DTI, can I put my debt under someone else's name?

Joshua Hollandsworth
Cleveland, OH · Member since 2017 · 161 posts · 38 votes
I am in the market for a duplex. I own 3 units. I don't believe my lender will count 75% of my rental income because I have been a landlord for such a short period of time. My DTI is slightly over the limit (48%) Can I put my car loan under someone else's name to qualify for another investment property?
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Sean Mentzinger
Rental Property Investor · St Petersburg FL · Member since 2012 · 22 posts · 18 votes
8y
🤔 sell your car.
5Reply
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  • Caleb Heimsoth
    Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes
    8y
    What you’re asking sounds a lot like fraud
    2Reply
  • Sean Mentzinger
    Rental Property Investor · St Petersburg FL · Member since 2012 · 22 posts · 18 votes
    8y
    🤔 sell your car.
    5Reply
  • Joshua D.
    Investor · Columbus, MT · Member since 2013 · 1k+ posts · 1k+ votes
    8y

    @Joshua Hollandsworth

    You can transfer the debt to someone else by selling the car... get a 3k commuter, and 10 years from now when your rolling in greasy piles of cashflow you can buy whatever car you want.

    Compounding interest is a butiful thing and it works in realestate as well. 

    5Reply
  • Matt K.
    Walnut Creek, CA · Member since 2015 · 3k+ posts · 2k+ votes
    8y

    Why don't you try a new lender first....

    1Reply
  • JD MartinBusiness Member
    Moderator
    Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
    8y

    You would be committing fraud, unless that person was agreeing to assume the car loan. Otherwise, what you are attempting to do is hide liabilities. On a mortgage application, you must declare all obligations that belong to you legally, or otherwise (if you believe it to be your liability). 

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    0Reply
  • Joshua Hollandsworth
    OP
    Cleveland, OH · Member since 2017 · 161 posts · 38 votes
    8y
    Ok thanks
    0Reply
  • Christopher Makestas
    Fort Lauderdale, FL · Member since 2016 · 30 posts · 18 votes
    8y

    Renting out my Lexus was one of the best things I ever did. It got rid of my car payment and I cashflow a little bit on it using Turo. Selling your car would have the same effect. Get rid of the car payment, high insurance, and most likely synthetic oil changes and expensive repairs/maintenance.

    2Reply
  • Amy Beth
    Rental Property Investor · Edison, NJ · Member since 2016 · 753 posts · 565 votes
    8y
    Sell the car and buy a cheap car which will just get you from point A to point B without all of the bells and whistles of a new car. Then once you can afford it you can always upgrade your car later.
    1Reply
  • Joshua Hollandsworth
    OP
    Cleveland, OH · Member since 2017 · 161 posts · 38 votes
    8y
    @Christopher Makestas @Amy Beth thanks for the replies. I thought about Turo. I heard very bad things about their insurance policies. Thanks for the insight!
    0Reply
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