So my broker has been working on securing lending for my latest flip purchase now for almost a month. He's been turned down by about 50% of the lenders, and the other 50% have had their commercial lending divisions go out of business.
Here is the problem we keep having now -- (I don't know if this is 100% due to the credit crisis or what)... When he submits my tax returns to these underwriters, they are all not happy with them because I did not file a schedule E the last couple of years to report all of my real estate / rehab costs. Instead I file this costs under my LLC, which everybody tells me is totally appropriate to do... But by doing it this way, the underwriters are saying that they are not willing to credit me back for those costs when doing my income calculations... (I have no idea really what all this means, but I've heard it now from 5 underwriters, so it's becoming a common theme... I think they are thinking that the expenses I report each year aren't Rehab costs, but are annual recurring property maint costs!? Which are obviously negating most of my income...).
Obviously I've never had trouble getting any lending in the past, I have a 770 fico score with zero bad debt (only mortgages), a near 6 figure W-2 verifiable income, plenty of cash in reserves, and the ability to put 20-30% down if needed.
He currently has my stuff submitted to 1 last lender, who apparently isn't even interested in looking at my tax returns (I didn't think anybody did stated loans anymore, WTF!?) -- And he says he thinks this will go through fine, since they aren't even going to look at my stack of stuff.
If this fails, my next stop is to hit the local banks that do portfolio lending, like what JScott is doing for his deals.... I just wanted to see if anybody else is having these problems this month?
Anybody doing any private lending out there that would be interested in financing a deal for me? Drop me a line...
Here are the terms: $115k purchase price, FMV $175k, I'll put down 20% if necessary. Want to close ASAP!
Cheers,
- Hakrjak :fastlane:
:smxG::groove::great:
Here is the problem we keep having now -- (I don't know if this is 100% due to the credit crisis or what)... When he submits my tax returns to these underwriters, they are all not happy with them because I did not file a schedule E the last couple of years to report all of my real estate / rehab costs. Instead I file this costs under my LLC, which everybody tells me is totally appropriate to do... But by doing it this way, the underwriters are saying that they are not willing to credit me back for those costs when doing my income calculations... (I have no idea really what all this means, but I've heard it now from 5 underwriters, so it's becoming a common theme... I think they are thinking that the expenses I report each year aren't Rehab costs, but are annual recurring property maint costs!? Which are obviously negating most of my income...).
Obviously I've never had trouble getting any lending in the past, I have a 770 fico score with zero bad debt (only mortgages), a near 6 figure W-2 verifiable income, plenty of cash in reserves, and the ability to put 20-30% down if needed.
He currently has my stuff submitted to 1 last lender, who apparently isn't even interested in looking at my tax returns (I didn't think anybody did stated loans anymore, WTF!?) -- And he says he thinks this will go through fine, since they aren't even going to look at my stack of stuff.
If this fails, my next stop is to hit the local banks that do portfolio lending, like what JScott is doing for his deals.... I just wanted to see if anybody else is having these problems this month?
Anybody doing any private lending out there that would be interested in financing a deal for me? Drop me a line...
Here are the terms: $115k purchase price, FMV $175k, I'll put down 20% if necessary. Want to close ASAP!
Cheers,
- Hakrjak :fastlane:
:smxG::groove::great:
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