Issues with Day Traders qualifying for a Mortgage

[NERVESASTEEL]

Quote from JORGE:

I just purchased a home in Spokane, WA, October of last year. In addition to 20% down, I had to produce two years of tax returns, accountant verified brokerage P/L statments through October of 08, and a letter from my accountant stating I have earned steady income as a daytrader since 2001. It was a pain in the ass process, but I eventually got a decent loan through WFC, after being turned down by USB (they did not approve of my occupation, even though I more than satisfied income and asset requirements.)

See, I can do that and show over 200K annually for the past 2-3 yrs. But it's all capital gains. Also, my balance sheet is great! I can put down 25% on a 1.5M apartment without touching my bank. Maybe if I tell them I'm an 'Investor' that would be enough?

Still like the LLC idea, but I guess that would take 2 - 3 years before it has the appearance of a proper business 'front'.

 

[cstfx]

If you want to go the llc route, look into acquiring an "aged corporation/llc". If done right, with the proper research, the cost would be slightly more than the bs you would have to go thru starting from scratch plus you wouldn't have to wait those 2 yrs.

http://www.google.com/search?q=aged...s=org.mozilla:en-US:official&client=firefox-a

http://www.google.com/search?q=aged...s=org.mozilla:en-US:official&client=firefox-a

 

[NERVESASTEEL]

Quote from MandelbrotSet:

I hear you.

Money talks, especially in the price range that you are looking at.

Try to get creative with your deals. For example:

1. 30% to 40% down payment, and/or
2. Seller takes back paper,and/or
3. Seller lowers their price so that you can easily put up 30% to 40% down payment ... etc., etc.

If you've thought this far out, I am sure you have come up with some fairly creative ideas ... FTR, I think you are early, tool.

Yeah, thanks!

Regarding Item 1, if I have to put more down than 25% on 1.5M, then I'm drawing down on my bank. It's really a psychological issue since I'll be replenishing my savings with those funds. Personally, I need a lot of cash to retain a comfort zone when trading.

Regarding items 1 & 2, as stated earlier, I think Sellers will be highly motivated so I hope both ideas are possible!

 

[JORGE]

Quote from NERVESASTEEL:

Maybe if I tell them I'm an 'Investor' that would be enough?

Stupidest thing ever, but changing my occupation from trader to investor actually helped, even though I have never held anything longer than a week. I also had to write a letter to the lender explaining what I do.