1st Post - Need help with unique situation

Mikes · Joined: 14 Dec 2006 Posts: 1

Hello. I'm new here, but I can see already that you guys really know what you're doing. Perhaps someone will be able to advise me.

I am a professional poker player, and I am currently living in Delaware county, New York, in 1 unit of a 2-unit house. The other unit is currently vacant. I am paying $450/mo rent to one of my friends, who owns the house. My monthly income is about $2800. My friend is moving to Nevada and selling the house. He would like to sell the house to me for approximately $90,000 and I would like to purchase it, therefore I need a mortgage. If my friend sells the house to another party, my rent will likely increase; it is better that I buy it and obtain additional income by renting out the other half of the house. The final sale price of the house is contingent upon an inspection by an appraisor. Also, my friend would be amenable to my owing him up to $10,000 if I can't get a mortgage for the full value of the house.

The problem is that I have no credit, and no verifiable income. I don't even have tax returns to document my income, as I have been playing poker professionally for only 10 months. What I do have is a moderate amount of cash available to me. I have $7,300 in my savings account, and another $4,700 in stocks which can be quickly sold. I also have about $30,000 in various online poker and casino sites, which can be transferred to my bank account within a couple of weeks. However, I am loathe to use more than about half that amount ($15,000) for the purposes of buying the house, as that $30,000 is my working capital.

Does anybody know of any lenders who would consider making a loan to someone in my situation? Are there any financial instruments besides mortgages which can be used by someone without verifiable income or credit, but who has a moderate amount of liquid assets?

chow · Posted: Fri Dec 15, 2006 1:44 am Post subject:

Hard money. We call it hard money because the rates and fee's, and loan to value ratio's can be hard to swallow. There are some national firms that do that kind of lending, and then there are people that do that locally. You might try calling around to some of the brokers in your area and asking if any of them work with a hard money/equity lender. Just be honest about what you need, and see what they have available.

all kidding aside, those lenders are also called "Equity Lenders." They usually like to have less than 70% loan to value exposure. (Which in your case is $63,000) Local people may go a little higher. Once you've established some credit, and some time documenting that you can earn a living, then you could qualify for a less painful lender.

Your first problem is no credit, second is this new "job" with no verification and no track record of income that comes from taxes and or bank statements. My father in law made good money for years as a semi professional poker player, but he always kept a day job just for the very reason of-paying those taxes!

ken(TX) · Joined: 23 Sep 2005 Posts: 184 Location: Dallas, TX

Mikes,

I have a different take on your situation then Chow. First of all, you do have credit. It's in what we call "non-traditional" credit which in English means it isn't on a credit report. But that's ok!

You have been paying rent so you do have a rental history. You pay poker so that means you must have electricity to play by so you have a payment history to the electricity company. Every poker player must have a cell phone so you have a credit history there as well. So you see where I'm going with this....

The next issue is regarding your income. Your source of income is "non-standard" and then you haven't been receiving that source for very long. There are a couple of ways to proceed.

1) if you run your cash through a bank account, 6 months bank statements to show what you deposit could be used to justify your income.

2) if you can add a co-borrower it's possible to qualify you with their income to assist. In fact, since you are buying a duplex, do you know someone who would be interested in joining you in purchasing the property only for them to "own" the other side?

I think you do have choices. It's important you check with several lenders.

Ken
http://blog.homeloandfw.com

chow · Posted: Tue Dec 19, 2006 2:19 pm Post subject:

I was the Queen of Stated and Non Traditional income loans.

The Market is shrinking for these folks. If they can get a loan for what suits the wants and needs-okay.

Please explain all of the gritty details?

I got 4 loans in the last year just because the Prepayment Penelty was too stiff. Then add on the fact that the borrower needed some funds to grow a busniness-and had some bumps to overcome.

If the poster is a dang good poker player- I may invite him to the next "Tea Party."

I've never met a poker player, or a professional gambler I didn't like.

(BTW, I'm in the Mortgage Business) :wink:

ken(TX) · Joined: 23 Sep 2005 Posts: 184 Location: Dallas, TX

Kathy,

The wholesale market is shrinking for stated income and alternative income documentation because a greater percentage of mortgage fraud for income documentation comes through a lender's wholesale channel than through retail or correspondent. The same thing happened with investment property refinancing. Brokers all over Dallas were claiming it was harder to get deals done and yet lenders and correspondents were still doing them.

The more unique the loan scenario the more necessary it is for the customer to shop around. When I say shop around I don't mean get your credit pulled a dozen times but to interview a dozen lenders.

Ken

DallasLoanGuy · Joined: 26 Sep 2006 Posts: 169 Location: Dallas, TX

i did a no doc loan recently for a prof gambler. had he been doing it for 2yrs, we could have gone full doc or stated.

the key to 'no doc' is trade lines on a credit report.

otherwise, with 20% down, you 'might' be able to do something thru World Savings.

MONEYFORYOU · Joined: 28 Nov 2006 Posts: 5

Below is all of my contact information. While our company is a Residential Mortgage Broker, we also have an extensive list of Hard Money Lenders and access to several Hedge Funds that most brokers don't have. We have the ability within our group, to provide our clients, affiliates and referring entities with almost every aspect of the financial lending/mortgage industry by way of A,B,C & D paper loans, private/hard money loans (both 1 year short term and 5 year hybrid bridge loans) as well as the ability to facilitate equity partnerships for large scale investment and commercial projects.

If you have any questions or scenarios that you would like to discuss or submit, please feel free to contact me. I look forward to doing business with you.

Sincerely,

Manolo Borja, Senior Account Executive
Aapex Mortgage Corp.
203 Sunrise Hwy
Rockville Ctr, NY 11570
(516) 208-7257 x111Phone
(516) 536-2350 Fax

ken(TX) · Joined: 23 Sep 2005 Posts: 184 Location: Dallas, TX

DallasLoanGuy wrote: i did a no doc loan recently for a prof gambler. had he been doing it for 2yrs, we could have gone full doc or stated.

the key to 'no doc' is trade lines on a credit report.

otherwise, with 20% down, you 'might' be able to do something thru World Savings.

Hey Burris....stop following me around the internet. I swear you are freakin stalking me, man...

Ken Stampe ~ activerain.com

chow · Posted: Thu Dec 21, 2006 10:09 am Post subject:

ken(TX) wrote: DallasLoanGuy wrote: i did a no doc loan recently for a prof gambler. had he been doing it for 2yrs, we could have gone full doc or stated.

the key to 'no doc' is trade lines on a credit report.

otherwise, with 20% down, you 'might' be able to do something thru World Savings.

Hey Burris....stop following me around the internet. I swear you are freakin stalking me, man...

Ken Stampe ~ activerain.com

But he's so cute and furry! Who can resist those eyes? :lol: