How To Borrow $462,000 On A Property With Only $2,992 Of Income

My client wanted to purchase more real estate to add to her portfolio. She had a 9-unit multi-family property that was free-and-clear that she purchased from the bank a few years back. She wanted to use this property as collateral on the new loan and to get as much cash-out as she could.

She went to many banks, but all banks determine cash-flow based on tax returns. Her corporate tax returns were showing less than $3,000 in taxable income therefore, she would not qualify under their standards for a new real estate loan to build up her portfolio. Also, they would underwrite all her properties to make sure all her holdings cash-flow in order to approve her for a loan on this property. They consider this “global cash-flow”.

We worked with a lender who does not look at tax returns or the global cash-flow of the client in their underwriting process. We were able to prove that the building cash-flows using P&L statements and her business bank statements. Unlike a bank, as long as the property cash-flows they do not even look at her other holdings.

We were able to get her $462K to use to for new purchases so she can create a little real estate empire for herself. She manages these properties and has enough income coming in where she can be a full-time parent instead of working at a job 40 hours per week. She is doing well and excited for the future!