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

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• 1:51
  Speaker 2: If you have a swimming pool, I'm not sure if
• 1:53
  Speaker 2: you guys, have you ever heard of think called swimpley?
• 1:57
  Speaker 3: No is that when you rent the pool you can you.
• 1:59
  Speaker 2: Can you can rent out your backyard, right, you can
• 2:03
  Speaker 2: run out your backyard. You can run out your pool,
• 2:05
  Speaker 2: Like I have one of my mentees. Every year she
• 2:08
  Speaker 2: rents out her backyard, her pool here in New York,
• 2:11
  Speaker 2: and it pays her mortgage.
• 2:13
  Speaker 3: For the year.
• 2:15
  Speaker 2: Like it's incredible, right because people treat that like an
• 2:19
  Speaker 2: event space for the day. Right, So you can have
• 2:23
  Speaker 2: somebody's backyard for eight to ten hours and you're paying
• 2:26
  Speaker 2: two three hundred dollars an hour for the full use
• 2:30
  Speaker 2: of their backyard in the swimming pool. So there's so
• 2:33
  Speaker 2: many different ways to house hack and generate money with
• 2:37
  Speaker 2: a single family or a duplex to make it more affordable. Now, also,
• 2:43
  Speaker 2: here's another thing that people don't really realize is that
• 2:48
  Speaker 2: border income, aka if you have a roommate. What people
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  Speaker 2: don't know is Fanny May will allow you to use
• 2:55
  Speaker 2: this border income to help you qualify for a mortgage
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  Speaker 2: under the Fanny Made Home Ready program. Now, the requirement
• 3:03
  Speaker 2: is the borrower must have a history of receiving that
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  Speaker 2: rental income for at least nine of the past twelve months,
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  Speaker 2: and you need documentation such as your lease agreement and
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  Speaker 2: show proof or receipt that your roommate has been paying
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  Speaker 2: you to or since y'all live in an apartment together,
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  Speaker 2: and then you can use that income to help you
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  Speaker 2: qualify for a mortgage. So to break that down just
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  Speaker 2: in quick layman terms, if you are living with someone
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  Speaker 2: right now and you have a lease and they're on
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  Speaker 2: the lease with you, if they're your bona fide roommate,
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  Speaker 2: not just someone who's just in the house and you say, hey,
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  Speaker 2: they live here, No, they have to be on your lease.
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  Speaker 2: If you know you are in position to qualify for
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  Speaker 2: a mortgage faster than they are, what you should do
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  Speaker 2: is collect the money, their portion of the rent money
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  Speaker 2: from them, tell them to zelle it to you, cash
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  Speaker 2: app it, whatever it is, and make sure you put
• 4:00
  Speaker 2: that is on the memo.
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  Speaker 3: January's rant, February's rant.
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  Speaker 2: Manch rent right, so we can document it that they've
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  Speaker 2: been paying you, and then you go ahead and pay
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  Speaker 2: your landlord from your account. If you do that nine
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  Speaker 2: months out of the past twelve, then when you go
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  Speaker 2: qualify for your mortgage, you can use that rental income
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  Speaker 2: to as part of your income to help you qualify
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  Speaker 2: for your mortgage.
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  Speaker 3: Y'all got why I'm going with this?
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  Speaker 1: I see where you're going with this. Documentation is important.
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  Speaker 1: Making sure you're keeping records is important, and that goes
• 4:36
  Speaker 1: if you're buying an individual home, but even more so
• 4:39
  Speaker 1: in this situation when you're trying to have investment property.
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  Speaker 4: So you might you've unlocked something.
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  Speaker 1: Here.
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  Speaker 4: Let's go back a little bit, all right, If you're
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  Speaker 4: in a relationship with somebody, right and We talked about
• 4:52
  Speaker 4: fifty to fifty a lot right on these different shows
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  Speaker 4: and podcasts. But that's a real thing, though, where somebody
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  Speaker 4: lives with somebody and they're contributing. They're contributing to something,
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  Speaker 4: but most of the time they're just giving a person money.
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  Speaker 4: So it's usually either male or female. Somebody has a
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  Speaker 4: lease in their name and they meet somebody and after
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  Speaker 4: a while, and then that person just kind of ends
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  Speaker 4: up living with that person. They may not never be
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  Speaker 4: on the lease, correct, And they're contributing financially on a
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  Speaker 4: certain level, but there's no real documented record of them
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  Speaker 4: contributing financially.
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  Speaker 3: Correct.
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  Speaker 4: You're saying that boyfriend, girlfriend, whatever, you're living with somebody,
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  Speaker 4: that should be something that's documented, because if it is documented,
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  Speaker 4: then what's it called.
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  Speaker 3: 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 a boyfriend's name.
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  Speaker 2: But y'all splitting it fifty fifty as what shall 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 to live in. He should now
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  Speaker 2: put her on the lease of the apartment. And then
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  Speaker 2: now when she's making that contribution, don't make it on
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  Speaker 2: make a cash she should sell him a wire transfer,
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  Speaker 2: a cash app put on the memo it's for her
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  Speaker 2: portion of the rent as long as we have that
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  Speaker 2: document nine out of twelve months. And then now the
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  Speaker 2: boyfriend goes to get pre approved and says that, hey,
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  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 3: Let's just say it's one thousand dollars a month.
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  Speaker 1: I was gonna say, clean number, one thousand dollars a month. Right,
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  Speaker 1: we can on the member, I'm putting five hundred dollars
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  Speaker 1: in toward that at the end of the year. Let's
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  Speaker 1: say it's the twelve months. Now, it's an additional six
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  Speaker 1: thousand dollars that you have an income.
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  Speaker 2: Correct, that's now is going to be used for the
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  Speaker 2: boyfriend doing his prey approval to help them qualify for
• 7:12
  Speaker 2: more of a house. It's a clean way of qualifying
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  Speaker 2: with using this roommate income. Because your roommates. Right at
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  Speaker 2: the end of the day, you're not legally married. You know,
• 7:30
  Speaker 2: you're technically single in the eyes of the law. Boyfriend
• 7:33
  Speaker 2: and girlfriend is not a marital status, right last time
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  Speaker 2: I checked, So you're legally single.
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  Speaker 3: 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
• 7:53
  Speaker 2: she just go on the mortgage with him this Now
• 7:57
  Speaker 2: we talk about divide and conquer. Let's to say, now
• 8:01
  Speaker 2: they move into this house, they get approved, and they
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  Speaker 2: wind up separating. Right now, she doesn't have a mortgage
• 8:09
  Speaker 2: in her name. She can still go out here and
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  Speaker 2: buy a duplex, a single family and house hack her
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  Speaker 2: life away as well. So, just depending on your circumstances
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  Speaker 2: in your situation, if you understand real estate finance and in
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  Speaker 2: these programs that are out there, and if you set
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  Speaker 2: your documentation up the right way, you can really go
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  Speaker 2: out here and scale at a very high level and
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  Speaker 2: reap all the benefits of wealth building with real estate.
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  Speaker 3: If you know exactly what you're doing. That's a very
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  Speaker 3: vital playment.
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  Speaker 1: I never heard that I'm glad you brote that down before.
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  Speaker 4: It doesn't have to be boyfriend girlfriend either, because there's
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  Speaker 4: a lot of scenario who somebody lives with somebody.
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  Speaker 3: It could just be a college roommates, or it could
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  Speaker 3: be could it be parent child, No, it can't be
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  Speaker 3: parent a child. Right, But let's think about college roomate.
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  Speaker 3: Think about what's just happened to manage you.
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  Speaker 2: And we have all these college graduates, right, most of
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  Speaker 2: them have what roommates for the majority. So, first of all,
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  Speaker 2: if you just graduated college, congratulations, right, But did you
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  Speaker 2: know that you can use your college education as your
• 9:17
  Speaker 2: work history. You don't need a two year job history.
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  Speaker 2: You can use your college history as work history. Did
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  Speaker 2: you guys know that?
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  Speaker 4: To 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.
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  Speaker 3: 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
• 9:38
  Speaker 2: Leisure Entertainment, and you're going to start and you're going
• 9:40
  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 awful
• 9:45
  Speaker 2: letter from Earn your Leisure Entertainment to start August. First,
• 9:50
  Speaker 2: you don't need to work at Earn your Leisure Entertainment
• 9:52
  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 them orfer
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  Speaker 2: letter and your first pay stop and you can buy
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  Speaker 2: a house immediately.
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  Speaker 1: So you can use college as work experience.
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  Speaker 2: 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.
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  Speaker 3: But during college you have a.
• 10:28
  Speaker 2: Single family home that you was renting out, and now
• 10:32
  Speaker 2: your roommate is on the lease. If you do what
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  Speaker 2: we just said with the boyfriend and girlfriend scenario, now
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  Speaker 2: your roommate starts paying you, and you know you have
• 10:40
  Speaker 2: a better chance of getting the house faster than them have.
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  Speaker 3: Them pay you.
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  Speaker 2: Now, first of all, everybody got to be on the
• 10:47
  Speaker 2: same page with this, right. Everybody got to be a
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  Speaker 2: team effort here. So now they pay you instead of
• 10:54
  Speaker 2: paying their portion of the rent, you pay the landlord.
• 10:57
  Speaker 2: And now you can use that border. Now only can
• 11:00
  Speaker 2: use the offer letter from Earn your Leisure Entertainment. You
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  Speaker 2: can also use that roommate income to help you qualify,
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  Speaker 2: because now that roommate is going to move into your
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  Speaker 2: 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
• 11:15
  Speaker 1: things that you kind of need to have in order
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  Speaker 1: to this work.
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  Speaker 2: You can't just go we need to we need to
• 11:20
  Speaker 2: show that you got a job, right, right, We need
• 11:23
  Speaker 2: to show that you have a job and it's a
• 11:25
  Speaker 2: start date and you can go ahead and.
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  Speaker 3: Get pre approved.
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  Speaker 2: But one of the pre approval conditions is going to be, hey,
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  Speaker 2: when you get into contract, we need to know that
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  Speaker 2: you're working. Now, we need to see pay stubs from
• 11:40
  Speaker 2: EARN your leisure entertainment as we're using that example to
• 11:44
  Speaker 2: show those pay stubs. So that way now and it
• 11:47
  Speaker 2: matches up with the income from the offer letter, then boom,
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  Speaker 2: you use that and long as your credits go your
• 11:54
  Speaker 2: DTI works.
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  Speaker 3: You don't have to wait two years to qualify.
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  Speaker 1: Yeah, that's a good hand because there's plenty of college
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  Speaker 1: students who there's three roommates, but there's the one person
• 12:05
  Speaker 1: who gets the lease. Right If that person now looks
• 12:07
  Speaker 1: at those two and that you've just seen it for
• 12:09
  Speaker 1: one roommate, yeah, eventually that could be two or three
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  Speaker 1: roommates that are paying them. To that documentation point, it
• 12:14
  Speaker 1: becomes even more important exactly.
• 12:16
  Speaker 2: But the key is everybody has to be on the lease, right,
• 12:20
  Speaker 2: everyone has to pay you, and then everyone has to
• 12:24
  Speaker 2: be moving into your house because now it's border income
• 12:28
  Speaker 2: roommate income, and we're using that to help qualify, So
• 12:31
  Speaker 2: it needs to sustain to the new house, right.
• 12:35
  Speaker 3: The key.
• 12:35
  Speaker 2: So if everybody's on the same page, this could be
• 12:39
  Speaker 2: a home run. But here's how we even go a
• 12:41
  Speaker 2: little bit deeper with this pause. If you buy a
• 12:44
  Speaker 2: home that has an a DU an accessory dwelling unit
• 12:50
  Speaker 2: on it, right, everybody type ADU on chat. If you
• 12:53
  Speaker 2: have an ADU, you can use rental income from an
• 12:58
  Speaker 2: ADU and it.
• 13:00
  Speaker 3: Can help you qualify.
• 13:01
  Speaker 2: So let's just say, for example, you don't have the roommates,
• 13:05
  Speaker 2: you live by yourself, but you just graduated college and
• 13:08
  Speaker 2: you want to use that college degree hack, right, but
• 13:13
  Speaker 2: you might be short rent with income to qualify.
• 13:18
  Speaker 3: You find a house that has.
• 13:19
  Speaker 2: An ADU and we can use that rental income from
• 13:22
  Speaker 2: the ADU to help you qualify as well. And when
• 13:29
  Speaker 2: you get into the ADU, now we're going to use
• 13:32
  Speaker 2: long term rental income to help you qualify, but that
• 13:36
  Speaker 2: does not mean you have to have a long term tenant.
• 13:39
  Speaker 2: You can now turn that ADU into an Airbnb play vrbo,
• 13:44
  Speaker 2: you can make it a content studio. There's so many
• 13:47
  Speaker 2: different things you can target mid term renters, like traveling nurses,
• 13:53
  Speaker 2: like flight attendants, like depending on where city you live,
• 13:57
  Speaker 2: So if you live close to airports, you live close
• 13:59
  Speaker 2: to hospitals, right, you should be targeting homes that are
• 14:03
  Speaker 2: close to in proximity to these areas. Because the mid
• 14:07
  Speaker 2: term rental and come from corporations. Right, you have people
• 14:11
  Speaker 2: who travel for corporations. They may need someone to stay
• 14:13
  Speaker 2: for six weeks because they're doing a corporate project in
• 14:16
  Speaker 2: a certain city. Think about what's happening. And guys, I'm
• 14:19
  Speaker 2: gonna tell you another hacking. I've talked about this on
• 14:21
  Speaker 2: my program and I know you guys talked about Look
• 14:23
  Speaker 2: at all the AI data centers that's being invested in
• 14:26
  Speaker 2: built all around the country. Right, you got Texas. I
• 14:30
  Speaker 2: think there was two or three half a billion dollar
• 14:33
  Speaker 2: projects that was launched this year. Think about it. These
• 14:37
  Speaker 2: people are not the people who are constructing this. They're
• 14:41
  Speaker 2: not going to be long term residents of Texas, right,
• 14:45
  Speaker 2: They're probably coming in from all different parts of walker life.
• 14:48
  Speaker 3: So what do they need rentals.
• 14:50
  Speaker 2: They might only be out there to do a job
• 14:53
  Speaker 2: that's going to take six months, so what do they
• 14:55
  Speaker 2: need a mid term rental? They don't want to sign
• 14:57
  Speaker 2: a year lease or two year least. They may need
• 14:59
  Speaker 2: only a six monthly eight monthlies and it's going to
• 15:02
  Speaker 2: be cheaper than the corporations putting them into a hotel
• 15:06
  Speaker 2: because that daily ran at a hotel.
• 15:08
  Speaker 3: That shait going to add up, you know what I'm saying.
• 15:10
  Speaker 2: So you got to really take the current events and
• 15:13
  Speaker 2: everything that's happening. I know you guys talk about at
• 15:17
  Speaker 2: scale on market Mondays. That's why you need to tap
• 15:20
  Speaker 2: in every Monday eight pm Eastern Standard time to see
• 15:23
  Speaker 2: what is moving and shaken because all of these moves
• 15:26
  Speaker 2: that's happening in AI, those are also real estate plays too,
• 15:30
  Speaker 2: if you're paying attention.
• 15:31
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  Speaker 3: Sponsored by the United States Department of Homeland Security,