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How to Use Roommate & Rental Income to Qualify for a Mortgage · Earn Your Leisure

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  Speaker 1: If you have a swimming pool. I'm not sure if
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  Speaker 1: you guys, have you ever heard her think called swimpleing.
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  Speaker 2: No, is that when you rent the pool, you can
• 0:08
  Speaker 2: you can.
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  Speaker 1: Rent your you can rent out your backyard, right, you
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  Speaker 1: can run out your backyard, you can run out your pool.
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  Speaker 1: Like I have one of my mentees. Every year she
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  Speaker 1: rents out her backyard her pool here in New York, and.
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  Speaker 3: It pays her mortgage for the year.
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  Speaker 1: Like it's incredible, right because people treat that like an
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  Speaker 1: event space for the day. Right, So you can have
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  Speaker 1: somebody's backyard for eight to ten hours and you're paying
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  Speaker 1: two three hundred dollars an hour.
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  Speaker 3: For the full use of their backyard in the swimming pool.
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  Speaker 1: So there's so many different ways to house hack and
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  Speaker 1: generate money with a single family or a duplex to
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  Speaker 1: make it more affordable. Now, also, here's another thing that
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  Speaker 1: people don't really realize is that border income aka if
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  Speaker 1: you have a roommate. What people don't know is Fannie
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  Speaker 1: May will allow you to use this border income to
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  Speaker 1: help you qualify for a mortgage under the Fannie Main
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  Speaker 1: Home Ready program. Now, the requirement is the borrower must
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  Speaker 1: have a history of receiving that rental income for at
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  Speaker 1: least nine of the past twelve months, and you need
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  Speaker 1: documentation such as your lease agreement and show proof or
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  Speaker 1: receipt that your roommate has been paying you to or
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  Speaker 1: since y'all live in an apartment together, and then you
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  Speaker 1: can use that income to help you qualify for a mortgage.
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  Speaker 1: So to break that down just in quick layman terms,
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  Speaker 1: if you are living with someone right now and you
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  Speaker 1: have a lease and they're on the lease with you,
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  Speaker 1: if they're your bona fide roommate, not just someone who's
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  Speaker 1: just in the house and you say, hey, they live here, no,
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  Speaker 1: they have to be on your lease.
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  Speaker 3: If you know you are.
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  Speaker 1: In position to qualify for a mortgage faster than they are,
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  Speaker 1: what you should do is collect the money portion of
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  Speaker 1: the rent money from them, tell them to zeale it
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  Speaker 1: to you, cash app it, whatever it is, and make
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  Speaker 1: sure you put that is on the memo January's rent,
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  Speaker 1: February's rent, March rent, right, so we can document it
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  Speaker 1: that they've been paying you. And then you go ahead
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  Speaker 1: and pay your landlord from your account. If you do
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  Speaker 1: that nine months out of the past twelve, then when
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  Speaker 1: you go qualify for your mortgage. You can use that
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  Speaker 1: rental income to as part of your income to help
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  Speaker 1: you qualify for your mortgage.
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  Speaker 3: Y'all got why I'm going with this?
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  Speaker 4: I see where you're going with this. Documentation is important.
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  Speaker 4: Making sure you're keeping records is important, and that goes
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  Speaker 4: if you're buying an individual home, but even more so
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  Speaker 4: in this situation when you're trying to have investment property.
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  Speaker 2: So you might you've unlocked something here.
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  Speaker 5: Let's go back a little bit, all right, If you're
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  Speaker 5: in a relationship with somebody, right, and we talk about
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  Speaker 5: fifty to fifty a lot right on these different shows
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  Speaker 5: and podcasts. But that's a real thing though, where somebody
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  Speaker 5: lives with somebody and they're contributing. They're contributing to something,
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  Speaker 5: but most of the time they're just giving a person money.
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  Speaker 5: So it's usually either male or female. Somebody has a
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  Speaker 5: lease in their name and they meet somebody and after
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  Speaker 5: a while and then that person just kind of ends
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  Speaker 5: up living with that person. They may not never be
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  Speaker 5: on the lease, correct, And they're contributing financially on a
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  Speaker 5: certain level, but there's no real documented record of them
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  Speaker 5: contributing financially.
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  Speaker 3: Correct.
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  Speaker 5: You're saying that boyfriend, girlfriend, whatever, you're living with somebody,
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  Speaker 5: that should be something that's documented. Because if it is documented,
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  Speaker 5: then what is it called?
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  Speaker 3: So it's border income. Right.
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  Speaker 1: So if in that same situation you have the girlfriend,
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  Speaker 1: let's just say the boyfriend and the girlfriend moves right.
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  Speaker 1: Let's say that situation the lease is in a boyfriend's name.
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  Speaker 1: But y'all splitting it fifty to fifty. As Rashad said,
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  Speaker 1: the girlfriend is not on the lease. Boyfriend is in
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  Speaker 1: position a year from now he wants to go buy
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  Speaker 1: a house for them to live in.
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  Speaker 3: He should now put her on the lease of the apartment.
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  Speaker 1: And then now when she's making that contribution, don't make
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  Speaker 1: it on make a cash she should sell him a
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  Speaker 1: wire transfer, a cash app put on the memo it's
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  Speaker 1: for her portion of the rent as long as we
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  Speaker 1: have that document nine out of twelve months. And then
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  Speaker 1: now the boyfriend goes to get pre approved and says that, hey,
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  Speaker 1: this is my roommate. She is going to live in
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  Speaker 1: the house with me. Now, from a lending perspective, I
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  Speaker 1: can use the portion of that rental income that she's paying.
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  Speaker 3: Let's just say it's one thousand dollars a month.
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  Speaker 4: I was gonna say clean, clean number one thousand dollars
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  Speaker 4: a month right week on the member, I'm putting five
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  Speaker 4: hundred dollars in toward that. At the end of the year.
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  Speaker 4: Let's say it's the twelve months. Now it's an additional
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  Speaker 4: six thousand dollars that you have an income.
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  Speaker 1: Correct, that's now is going to be used for the
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  Speaker 1: boyfriend doing his prey approval to help them qualify for.
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  Speaker 3: More of a house.
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  Speaker 1: It's a clean way of qualifying with using this roommate
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  Speaker 1: income because your roommates. Right at the end of the day,
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  Speaker 1: you're not legally married. You know, you're technically single in
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  Speaker 1: the eyes of the law. Boyfriend and girlfriend is not
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  Speaker 1: a mattertal status, right status either, last time I checked.
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  Speaker 1: So you're legally single.
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  Speaker 3: This is your roommate.
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  Speaker 1: So if you do it that way, now that rental
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  Speaker 1: income can now be used to help qualify for a mortgage. Now,
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  Speaker 1: I know some people are going to say, why won't
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  Speaker 1: she just go on the.
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  Speaker 3: Mortgage with him this Now we talk about divide and conquer.
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  Speaker 1: Let's just say now they move into this house, they
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  Speaker 1: get approved, and they wind up separating. Right now, she
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  Speaker 1: doesn't have a mortgage in her name. She can still
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  Speaker 1: go out here and buy a duplex, a single family
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  Speaker 1: and house hack her life away as well. So, just
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  Speaker 1: depending on your circumstances in your situation, if you understand
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  Speaker 1: real estate financing and these programs that are out there,
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  Speaker 1: and if you set your documentation up the right way,
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  Speaker 1: you can really go out here and scale at a
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  Speaker 1: very high level and reap all the benefits of wealth
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  Speaker 1: building with real estate.
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  Speaker 3: If you know exactly what you do.
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  Speaker 2: That's a very vital playman. I never heard that. I'm
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  Speaker 2: glad you brote that down before.
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  Speaker 5: It doesn't have to be boyfriend girlfriend either, because there's
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  Speaker 5: a lot of scenarioho somebody lives with somebody.
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  Speaker 3: It could just be.
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  Speaker 2: Roommates, or it could be could it be parent child.
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  Speaker 3: No, it can't be parent a child. Right, But let's
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  Speaker 3: think about college roommates. Think about what's just happened to
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  Speaker 3: manage you?
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  Speaker 1: And we have all these college graduates, right, most of
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  Speaker 1: them have what roommates for the majority. So, first of all,
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  Speaker 1: if you just graduated college, congratulations, right, But did you
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  Speaker 1: know that you can use your your college education as
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  Speaker 1: your work history. You don't need a two year job history.
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  Speaker 1: You can use your college history as work history. Did
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  Speaker 1: you guys know that?
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  Speaker 2: So see that again.
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  Speaker 1: So you just graduated from college. You did your undergrad
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  Speaker 1: right four years. You're twenty two years old. You're graduating.
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  Speaker 1: You just got a job offer from you know, Earn
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  Speaker 1: your Leisure Entertainment, and you're going to start and you're
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  Speaker 1: going to be the marketing manager. You're making a base
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  Speaker 1: salary at one hundred thousand dollars, and you have an
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  Speaker 1: awful letter from Earn your Leisure Entertainment to start August.
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  Speaker 3: First.
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  Speaker 1: You don't need to work at Earn your Entertainment for
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  Speaker 1: two years. You have your college history for four years.
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  Speaker 1: That's your work history. You can now present that offer
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  Speaker 1: letter in your first past up and you can buy
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  Speaker 1: a house immediately, so.
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  Speaker 2: You can use college as work experience.
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  Speaker 3: Absolutely has that always been the case? Absolutely? Absolutely right?
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  Speaker 1: And now if you freak it, you got that college
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  Speaker 1: history four years, you got your degree.
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  Speaker 3: But during college you have.
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  Speaker 1: A single family home that you was renting out and
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  Speaker 1: now your roommate is on the lease. If you do
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  Speaker 1: what we just said with the boyfriend and girlfriend scenario,
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  Speaker 1: now your roommate starts paying you, and you know you
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  Speaker 1: have a better chance of getting the house faster than
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  Speaker 1: them have them pay you. Now, first of all, everybody
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  Speaker 1: got to be on the same page with this, right,
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  Speaker 1: everybody got to be a team effort here. So now
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  Speaker 1: they pay you instead of paying their portion of the rank,
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  Speaker 1: you pay the landlord. And now you can use that border.
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  Speaker 1: Not only can use the offer letter from earn your
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  Speaker 1: Leisure Entertainment, you can also use that roommate income to
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  Speaker 1: help you qualify because now that roommate is going to
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  Speaker 1: move into your house with you as well continue to
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  Speaker 1: be a roommate.
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  Speaker 4: And that offer letter is kind of one of those
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  Speaker 4: things that you kind of need to have in order
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  Speaker 4: this work.
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  Speaker 1: You can't just go we needed to We need to
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  Speaker 1: show that you got a job, right, right, We need
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  Speaker 1: to show that you have a job. And it's a
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  Speaker 1: start date and you can go ahead and get pre approved,
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  Speaker 1: but one of the pre approval conditions is going to be, hey,
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  Speaker 1: when you get into contract, we need to know that
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  Speaker 1: you're working. Now, we need to see pay stubs from
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  Speaker 1: earn your Leisure Entertainment. As we're using that example to
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  Speaker 1: show those pay stubs, so that way now and it
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  Speaker 1: matches up with the income from the offer letter, then boom,
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  Speaker 1: you use that as long as your credits go your
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  Speaker 1: DTI works.
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  Speaker 3: You don't have to wait two years to qualify.
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  Speaker 4: Yeah, that's a good hack because there's plenty of college
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  Speaker 4: students who there's three roommates, but this is the one
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  Speaker 4: person who gets the lease.
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  Speaker 2: Right.
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  Speaker 4: If that person now looks at those two and that
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  Speaker 4: you've just seen it for one roommate, yeah, potentially that
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  Speaker 4: could be two or three roommates that are paying them
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  Speaker 4: to that documentation port, it becomes even more important exactly.
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  Speaker 1: But the key is everybody has to be on the lease, right,
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  Speaker 1: Everyone has to pay you, and then everyone has to
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  Speaker 1: be moving into your house because now it's border income
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  Speaker 1: roommate income, and we're using that to help qualify. So
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  Speaker 1: it needs to sustain to the new house, right. The key,
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  Speaker 1: So if everybody's on the same page, this could be
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  Speaker 1: a home run. But here's how we even go a
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  Speaker 1: little bit deeper with this pause. If you buy a
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  Speaker 1: home that has an a DU an accessory dwelling unit
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  Speaker 1: on it, right, everybody type eight chat.
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  Speaker 3: If you have an.
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  Speaker 1: ADU, you can use rental income from an ADU and it.
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  Speaker 3: Can help you qualify.
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  Speaker 1: So let's just say, for example, you don't have the roommates,
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  Speaker 1: you live by yourself, but you just graduated college and
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  Speaker 1: you want to use that college degree hack, right, but
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  Speaker 1: you might be short with rent with income to qualify,
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  Speaker 1: you find a house that has an ADU, and we
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  Speaker 1: can use that rental income from the ADU to help
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  Speaker 1: you qualify as well. And when you get into the ADU,
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  Speaker 1: now we're going to use long term rental income to
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  Speaker 1: help you qualify. But that does not mean you have
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  Speaker 1: to have a long term tenant. You can now turn
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  Speaker 1: that ADU into an Airbnb, play vrbo, you can make
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  Speaker 1: it a content studio. There's so many different things you
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  Speaker 1: can You can target mid term renters like traveling nurses,
• 12:02
  Speaker 1: like flight attendants, like depending on where city you live,
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  Speaker 1: So if you live close to airports, you live close
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  Speaker 1: to hospitals, right, you should be targeting homes that are
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  Speaker 1: close to in proximity to these areas. Because the midterm
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  Speaker 1: rental and come from corporations. Right, You have people who
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  Speaker 1: travel for corporations. They may need someone to stay for
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  Speaker 1: six weeks because they're doing a corporate project in a
• 12:24
  Speaker 1: certain city. Think about what's happening and guys, I'm gonna
• 12:28
  Speaker 1: tell you another hack. And I've talked about this on
• 12:30
  Speaker 1: my program, and I know you guys talked about Look
• 12:32
  Speaker 1: at all the AI data centers that's being invested and
• 12:35
  Speaker 1: built all around the country, right, you got Texas. I
• 12:38
  Speaker 1: think there was two or three half a billion dollar
• 12:41
  Speaker 1: projects that was launched this year. Think about it. These
• 12:46
  Speaker 1: people are not the people who are constructing this. They're
• 12:49
  Speaker 1: not going to be long term residents of Texas, right.
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  Speaker 1: They're probably coming in from all different parts of walker life.
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  Speaker 3: So what do they need rentals?
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  Speaker 1: They might only be out there to do a job
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  Speaker 1: that's gonna take six months, So what do they need
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  Speaker 1: a mid term into. They don't want to sign a
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  Speaker 1: year least or a two year least. They may need
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  Speaker 1: only a six monthly eight month least, and it's gonna
• 13:10
  Speaker 1: be cheaper than the corporation is putting them into a hotel.
• 13:14
  Speaker 1: Because that daily rated a hotel. That shit gonna add up,
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  Speaker 1: you know what I'm saying. So you got to really
• 13:20
  Speaker 1: take the current events and everything that's happening. I know
• 13:23
  Speaker 1: you guys talk about it at scale on Market Mondays.
• 13:27
  Speaker 1: That's why you need to tap in every Monday eight
• 13:29
  Speaker 1: pm Eastern Standard time to see what is moving and
• 13:32
  Speaker 1: shaken because all of these moves that's happening in AI,
• 13:36
  Speaker 1: those are also real estate plays too, if you're paying attention,