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

• 0:01
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  Speaker 2: If you have a swimming pool, I'm not sure if
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  Speaker 2: you guys sh have you ever heard her think called swimpley?
• 0:48
  Speaker 3: No, is that when you rent the pool, you.
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  Speaker 2: Can rent your you can rent out your backyard. Yeah yeah,
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  Speaker 2: yeah right, you can run out your backyard. You can
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  Speaker 2: run out your pool, like I have one of my mentees.
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  Speaker 2: Every year she rents her backyard at her pool here
• 1:02
  Speaker 2: in New York, and.
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  Speaker 4: It pays her mortgage for the year.
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  Speaker 2: Like it's incredible, right, because people treat that like an
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  Speaker 2: event space for the day, right, So you can have
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  Speaker 2: somebody's backyard for eight to ten hours and you're paying
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  Speaker 2: two three hundred dollars an hour for the full use
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  Speaker 2: of their backyard in the swimming pool. So there's so
• 1:24
  Speaker 2: many different ways to house hack and generate money with
• 1:29
  Speaker 2: a single family or a duplex to make.
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  Speaker 4: It more affordable.
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  Speaker 2: Now, also, here's another thing that people don't really realize
• 1:38
  Speaker 2: is that border income, aka if you have a roommate.
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  Speaker 2: What people don't know is Fanny May will allow you
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  Speaker 2: to use this border income to help you qualify for
• 1:50
  Speaker 2: a mortgage under the Fannie Main Home Ready program. Now,
• 1:54
  Speaker 2: the requirements is the borrower must have a history of
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  Speaker 2: receiving that rental income for at least nine of the
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  Speaker 2: past twelve months, and you need documentation such as your
• 2:06
  Speaker 2: lease agreement and show proof or receipt that your roommate
• 2:10
  Speaker 2: has been paying you to or since y'all live in
• 2:14
  Speaker 2: an apartment together. And then you can use that income
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  Speaker 2: to help you qualify for a mortgage. So to break
• 2:19
  Speaker 2: that down just in quick layman terms, if you are
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  Speaker 2: living with someone right now and you have a lease
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  Speaker 2: and they're on the lease with you if they're your
• 2:27
  Speaker 2: bona fide roommate, not just someone who's just in the
• 2:29
  Speaker 2: house and you say, hey, they live here, No, they
• 2:32
  Speaker 2: have to be on your lease. If you know you
• 2:35
  Speaker 2: are in position to qualify for a mortgage faster than
• 2:39
  Speaker 2: they are. What you should do is collect the money
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  Speaker 2: their portion of the rent money from them, tell them
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  Speaker 2: to zelle it to you, cash, app it, whatever it is,
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  Speaker 2: and make sure you put that is on the memo
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  Speaker 2: January's rent, February's rent, March rent, right, so we can
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  Speaker 2: document it that they've been paying you, and then you
• 3:00
  Speaker 2: go ahead and pay your landlord from your account. If
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  Speaker 2: you do that nine months out of the past twelve,
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  Speaker 2: then when you go qualify for your mortgage, you can
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  Speaker 2: use that rental income to as part of your income
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  Speaker 2: to help you qualify for your mortgage.
• 3:19
  Speaker 4: Ya got why I'm going with this.
• 3:21
  Speaker 3: I see where you're going with this. Documentation is important.
• 3:23
  Speaker 1: Making sure you're keeping records is important, and that goes
• 3:27
  Speaker 1: with if you're buying an individual home, but even more
• 3:30
  Speaker 1: so in this situation when you're trying to have investment property.
• 3:33
  Speaker 5: So you might you've unlocked something here. Let's go back
• 3:36
  Speaker 5: a little bit, all right, if you're in a relationship
• 3:41
  Speaker 5: with somebody, right, And we talked about fifty to fifty
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  Speaker 5: a lot right on these different shows and podcasts. But
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  Speaker 5: that's a real thing, though, where somebody lives with somebody
• 3:53
  Speaker 5: and they're contributing. They're contributing to something, but most of
• 3:57
  Speaker 5: the time they're just giving a person money. So if
• 3:59
  Speaker 5: you usually either male or female, somebody has a lease
• 4:03
  Speaker 5: in their name and they meet somebody and after a
• 4:06
  Speaker 5: while and then that person just kind of ends up
• 4:09
  Speaker 5: living with that person, they may not never be on
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  Speaker 5: the lease, correct, And they're contributing financially on a certain level,
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  Speaker 5: but there's no real documented record of them contributing financially.
• 4:21
  Speaker 4: 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 4: So it's border income. Right.
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  Speaker 2: So if in that same situation you have the girlfriend,
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  Speaker 2: let's just say the boyfriend and the girlfriend moves in, right,
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  Speaker 2: Let's say that situation, the least is in the boyfriend's name.
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  Speaker 2: But y'all splitting it fifty to fifty, As Rashad said,
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  Speaker 2: the girlfriend is not on the lease. Boyfriend is in
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  Speaker 2: position a year from now he wants to go buy
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  Speaker 2: a house for them.
• 5:00
  Speaker 4: To live in.
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  Speaker 2: He should now put her on the lease of the apartment.
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  Speaker 2: And then now when she's making that contribution, don't make
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  Speaker 2: it on make a cash she should zeale him a
• 5:13
  Speaker 2: wire transfer, a cash app put on the memo it's
• 5:18
  Speaker 2: for her portion of the rent as long as we
• 5:21
  Speaker 2: have that document nine out of twelve months. And then
• 5:25
  Speaker 2: now the boyfriend goes to get pre approved and says that, hey,
• 5:29
  Speaker 2: this is my roommate. She is going to live in
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  Speaker 2: the house with me. Now, from a lending perspective, I
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  Speaker 2: can use the portion of that rental income that she's paying.
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  Speaker 2: Let's just say it's one thousand dollars a month.
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  Speaker 1: I was going to say clean, clean number, one thousand
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  Speaker 1: dollars a month. Right we on the member, I'm putting
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  Speaker 1: five hundred dollars in toward that. At the end of
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  Speaker 1: the year. Let's say it's the twelve months. Now, it's
• 5:54
  Speaker 1: an additional six thousand dollars that you have an income.
• 5:56
  Speaker 2: Correct, that's now is going to be used for the
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  Speaker 2: boy friend during his pre approval to help them qualify
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  Speaker 2: for more of a house it's a clean way of
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  Speaker 2: qualifying with using this roommate income because your roommates. Right
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  Speaker 2: at the end of the day, you're not legally married.
• 6:20
  Speaker 2: You know, you're technically single in the eyes of of
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  Speaker 2: the law. Boyfriend and girlfriend is not a marital status
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  Speaker 2: right last time I checked, So you're legally single.
• 6:33
  Speaker 4: This is your roommates.
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  Speaker 2: So if you do it that way, now that rental
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  Speaker 2: income can now be used to help qualify for a mortgage. Now,
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  Speaker 2: I know some people are going to say, why won't
• 6:45
  Speaker 2: she just go on the mortgage with him this Now
• 6:48
  Speaker 2: we talk about divide and conquer. Let's just say now
• 6:52
  Speaker 2: they move into this house, they get approved, and they
• 6:56
  Speaker 2: wound up separating. Right now, she doesn't have a mortgage
• 7:01
  Speaker 2: in her name. She can still go out here and
• 7:04
  Speaker 2: buy a duplex, a single family and house hack her
• 7:08
  Speaker 2: life away as well. So, just depending on your circumstances
• 7:13
  Speaker 2: in your situation, if you understand real estate financing and
• 7:17
  Speaker 2: these programs that are out there, and if you set
• 7:19
  Speaker 2: your documentation up the right way, you can really go
• 7:22
  Speaker 2: out here and scale at a very high level and
• 7:26
  Speaker 2: reap all the benefits of wealth building with real estate.
• 7:30
  Speaker 4: If you know exactly what you know.
• 7:32
  Speaker 3: That's a very vital playment. I never heard that. I'm
• 7:35
  Speaker 3: glad you brote that down before.
• 7:37
  Speaker 5: It doesn't have to be boyfriend girlfriend either, because there's
• 7:39
  Speaker 5: a lot of scenario who somebody lives with somebody.
• 7:42
  Speaker 2: It could just be college roommates.
• 7:44
  Speaker 3: Or it could be could it be parent.
• 7:45
  Speaker 4: Child, No, it can't be parent and child.
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  Speaker 2: Right, but let's think about college roommates.
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  Speaker 4: Think about what's just happened to manage you?
• 7:53
  Speaker 2: And we have all these college graduates, right, most of
• 7:56
  Speaker 2: them have what roommates for the majority, And so, first
• 8:00
  Speaker 2: of all, if you just graduated college, congratulations, right, But
• 8:04
  Speaker 2: did you know that you can use your college education
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  Speaker 2: as your work history. You don't need a two year
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  Speaker 2: job history. You can use your college history as work history.
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  Speaker 2: Did you guys know that?
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  Speaker 5: So see that again.
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  Speaker 2: So you just graduated from college, you did your undergrad
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  Speaker 2: right four years. You're twenty two years old. You're graduating.
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  Speaker 2: You just got a job offer from you earn your
• 8:29
  Speaker 2: leisure entertainment and you're going to start and you're going
• 8:32
  Speaker 2: to be the marketing manager. You're making a base salary
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  Speaker 2: at one hundred thousand dollars and you have an offer
• 8:36
  Speaker 2: letter from Earn Your Leisure Entertainment to start August. First,
• 8:41
  Speaker 2: you don't need to work at Earn your Leisure Entertainment
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  Speaker 2: for two years. You have your college history for four years.
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  Speaker 2: That's your work history. You can now present that offer
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  Speaker 2: letter and your first past up and you can buy
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  Speaker 2: a house immediately.
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  Speaker 3: So you can use college as work experience.
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  Speaker 4: Absolutely has that always been the case, absolutely, absolutely right?
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  Speaker 2: And now if you freak it, you got that college
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  Speaker 2: history four years, you got your degree. But during college
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  Speaker 2: you have a single family home that you was renting out,
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  Speaker 2: and now your roommate is on the lease.
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  Speaker 4: If you do what we just.
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  Speaker 2: Said with the boyfriend and girlfriend scenario, now your roommate
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  Speaker 2: starts paying you, and you know you have a better
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  Speaker 2: chance of getting the house faster than them have them
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  Speaker 2: pay you. Now, first of all, everybody got to be
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  Speaker 2: on the same page with this, right, Everybody got to
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  Speaker 2: be a team effort here. So now they pay you
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  Speaker 2: instead of paying their portion of the rent, you pay
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  Speaker 2: the landlord. And now you can use that border. Now
• 9:51
  Speaker 2: only can you use the author letter from Ernur Leisure Entertainment.
• 9:53
  Speaker 2: You can also use that roommate income to help you
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  Speaker 2: qualify because now that roommate is going to move into
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  Speaker 2: your house with you as well continue to be a roommate.
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  Speaker 1: And that offer letter is kind of one of those
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  Speaker 1: things that you kind of need to have in order
• 10:08
  Speaker 1: this work.
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  Speaker 3: You can't just go we.
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  Speaker 2: Need to We need to show that you got a job, right, right,
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  Speaker 2: We need to show that you have a job. And
• 10:16
  Speaker 2: it's a start date and you can go ahead and
• 10:19
  Speaker 2: get pre approved. But one of the pre approval conditions
• 10:23
  Speaker 2: is going to be Hey, when you get into contract,
• 10:26
  Speaker 2: we need to know that you you're working. Now, we
• 10:29
  Speaker 2: need to see pay stubs from EARN your leisure entertainment
• 10:34
  Speaker 2: as we use an example to show those pay stubs.
• 10:37
  Speaker 2: So that way now and it matches up with the
• 10:40
  Speaker 2: income from the offer letter, then boom, you use that
• 10:44
  Speaker 2: as long as your credits go your DTI works.
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  Speaker 4: You don't have to wait two years to qualify.
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  Speaker 1: Yeah, that's a good hack because there's there's plenty of
• 10:53
  Speaker 1: college students who there's three roommates, but this is the
• 10:56
  Speaker 1: one person who gets the lease. Right If that person
• 10:58
  Speaker 1: now looks at those two and that you just seen
• 11:00
  Speaker 1: it for one roommate, yeah, eventually that could be two
• 11:02
  Speaker 1: or three roommates that are paying them to that documentation port,
• 11:05
  Speaker 1: it becomes even more important exactly.
• 11:07
  Speaker 2: But the key is everybody has to be on the lease, right,
• 11:11
  Speaker 2: everyone has to pay you, and then everyone has to
• 11:15
  Speaker 2: be moving into your house because now it's border income
• 11:19
  Speaker 2: roommate income, and we're using that to help qualify. So
• 11:22
  Speaker 2: it needs to sustain to the new house, right.
• 11:26
  Speaker 4: The key.
• 11:27
  Speaker 2: So if everybody's on the same page, this could be
• 11:30
  Speaker 2: a home run. But here's how we even go a
• 11:32
  Speaker 2: little bit deeper with this pause. If you buy a
• 11:35
  Speaker 2: home that has an ADU, an accessory dwelling unit on it, right,
• 11:42
  Speaker 2: everybody type ADU on chat. If you have an ADU,
• 11:46
  Speaker 2: you can use rental income from an ADU and it
• 11:51
  Speaker 2: can help you qualify. So let's just say, for example,
• 11:55
  Speaker 2: you don't have the roommates, you live by yourself, but
• 11:58
  Speaker 2: you just graduated college. You want to use that college
• 12:01
  Speaker 2: degree hack, right, but you might be short with rent
• 12:07
  Speaker 2: with income to qualify. You find a house that has
• 12:10
  Speaker 2: an ADU and we can use that rental income from
• 12:14
  Speaker 2: the ADU to help you qualify as well. And when
• 12:20
  Speaker 2: you get into the ADU, now we're going to use
• 12:24
  Speaker 2: long term rental income to help you qualify, but that
• 12:27
  Speaker 2: does not mean you have to have a long term tenant.
• 12:30
  Speaker 2: You can now turn that ADU into an Airbnb, play vrbo,
• 12:36
  Speaker 2: you can make it a content studio. There's so many
• 12:39
  Speaker 2: different things you can target midterm renters, like traveling nurses,
• 12:45
  Speaker 2: like flight attendants, like depending on where city you live.
• 12:48
  Speaker 4: So if you live close to airports, you live close.
• 12:50
  Speaker 2: To hospitals, right, you should be targeting homes that are
• 12:54
  Speaker 2: close to in proximity to these areas because the mid
• 12:58
  Speaker 2: term rental income from corporations, right, and you have people
• 13:02
  Speaker 2: who travel for corporations. They may need someone to stay
• 13:05
  Speaker 2: for six weeks because they're doing a corporate project in
• 13:07
  Speaker 2: a certain city. Think about what's happening. And guys, I'm
• 13:10
  Speaker 2: gonna tell you another hacking. I've talked about this on
• 13:13
  Speaker 2: my program and I know you guys talked about Look
• 13:15
  Speaker 2: at all the AI data centers that's being invested in
• 13:18
  Speaker 2: built all around the country. Right, you got Texas. I
• 13:21
  Speaker 2: think there was two or three half a billion dollar
• 13:24
  Speaker 2: projects that was launched this year. Think about it. These
• 13:29
  Speaker 2: people are not the people who are constructing this. They're
• 13:32
  Speaker 2: not going to be long term residents of Texas. Right,
• 13:37
  Speaker 2: They're probably coming in from all different parts of walker life,
• 13:40
  Speaker 2: So what do they need rentals? They might only be
• 13:43
  Speaker 2: out there to do a job that's going to take
• 13:45
  Speaker 2: six months, So what do they need a mid term rental?
• 13:48
  Speaker 2: They don't want to sign a year least or a
• 13:49
  Speaker 2: two year least. They may need only a six monthly
• 13:52
  Speaker 2: eight month least, and it's going to be cheaper than
• 13:54
  Speaker 2: the corporations putting them into a hotel because that daily
• 13:58
  Speaker 2: rate of a hotel going to add up, you know
• 14:00
  Speaker 2: what I'm saying. So you got to really take the
• 14:03
  Speaker 2: current events and everything that's happening. I know you guys
• 14:07
  Speaker 2: talk about it at scale on market Mondays. Since why
• 14:10
  Speaker 2: you need to tap in every Monday eight pm Eastern
• 14:12
  Speaker 2: Standard time to see what is moving and shaken because
• 14:16
  Speaker 2: all of these moves that's happening in AI, those are
• 14:19
  Speaker 2: also real estate plays too. If you're paying attention, erners.
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