How To Get Loans and Invest As A Business Owner with Nina Barroso | #CashFlow EP05

– Are you a small business owner looking to purchase a home? Or buy an investment property? That, and more today on Cash Flow. (upbeat music) Hi I’m Jason Waters, CEO
OF JW Financial Group, and welcome to Cash Flow. Where we talk about the number one goal of you business which
is to create cash flow. With us today is Nina Barroso
with ClearEdge Lending, thank you for being here today. – Nice to be here, thank you. – So tell us a little
bit about what you do. – I am an Account Executive, I have been in the mortgage
business for 30 years. I assist brokers, in
helping their borrowers to get loans to buy homes. I have several different ways of assisting brokers in doing that, most of ’em in non conventional type ways. – So we’re gonna get into that here in a little bit, but do wanna talk a little bit to audience out there about why I work with Nina, why I brought Nina on here, and what does this have
to do with Cash Flow. So, I run JW Financial Group, where we help lots of businesses
in their financial world. We also run a mortgage team. And so, on the mortgage
side of the business one of the biggest challenges is getting debt, or getting
loans for business owners. And so Nina is someone I
work with when we do that. So, I wanna bring Nina on so we can really dive into what the special circumstances around getting loans for business owners, how we can overcome that where other people might not be able to. So, we’re so glad you’re here. – Yeah, glad to be here. So, often times business owners take advantage of the tax laws which allow them to write off all sorts of expenses. Unfortunately when it comes
time to getting a mortgage, they don’t always show enough income to qualify on the conventional
side of the business. And that’s where we come into play. So we have all sorts of different ways to help self-employed borrowers get loans. Many times we use bank statements. So the bank statement loan is a great way to help that borrower that couldn’t qualify otherwise to purchase a home. Quite simple, just to
get the bank statements and average the deposits
and that’s basically what we look at for income. – So, and this my show, called Cash Flow. You’re actually lookin’ at cash flow. – Correct. – It’s not a fictitious calculation. It it what cash is comin’ into the bank. – Correct. – And usin’ the calculation based on that, and get the income based
on that calculation. – That’s correct, that’s correct. We’ll often times have the borrower give us an idea of what
their expenses are. And that’s basically something provided by the borrower
and signed by the borrower. And that’s how we figure out
what their expenses may be. Which is gonna be much different than possibly what the
tax returns reflect. – And I saw that year after year, I used to be a commercial banker before I was a mortgage banker. And, where people wrote off everything and then I said “Look, I’m
glad you saved on taxes “that’s great for you, great for your CPA. “However, I can’t show
enough cash flow there “to loan you any money, so I’m sorry.” But we do have solutions for that. – Correct, and that’s why we’re here. We feel there’s a real
need for people out there. More and more people are opening up their own small businesses and becoming self-employed which is great. So we’re here to help them be
able to purchase the homes. – And small businesses drive our economy, small businesses are where our growth in our economy is and people
are doin’ it everyday. – Absolutely. – So, It’s great. – Yeah it is great. – [Man] If I’m looking to finance a home, why should I use a
broker instead of a bank? (upbeat music) – That’s a great question,
it’s one I get all the time. I’m obviously very biased, so I’m gonna pivot to Nina and let
her answer this question. I may chime in afterwards. – Super. Yeah I work with brokers and the benefit to working with a broker obviously is the fact that you’re able to shop many different outlets for them and get them the best product, whether it be a conventional product or a non conventional type product. And often times, you can get
them the best rate as well. I would say that’s one of the best reasons to use a broker, versus the bank. – Yeah, and in my experience, it is almost always the
best rate and lower fees. Certainly better service. You’re not working with
someone on a 800 number, you’re working with someone on my team that sits in this office. So it’s not a long distance
relationship if you will. And for example, when we talked about different products or different lenders we can go to, Nina’s company is one. So if you got to a bank and it doesn’t fit their box, you’re done. You’re out of business,
you’re not buyin’ the home. With us, there might
be other opportunities. So I’ll call Nina and say,
“Hey I got this business owner, “here’s the scenario, I got
his tax returns and he shows “a loss but this is how
much money that came in.” And she can run a calculation and a lot of times that can work. So, brokers every day. – [Woman] How do I get a loan if I have a lot of assets but not a lot of income? (upbeat music) – I work with a lot of business owners, they’ve sold their
business and they no longer have the income they used to have. But they are wealthy individuals, so they should be able to qualify for a mortgage but
sometimes it doesn’t work. So that’s where we go to
asset depletion loans. Nina can you talk a little bit about what asset depletion loan is? – Sure, basically, simply we just take the assets and depending on where the assets are placed
we can take a percentage of the assets and use that as income. Typically, we’ll take the percentage, add it up and we just divide it over 120 months and we’ll
give you that for income. And then that way you can still qualify. – I think that’s one
of the most frustrating things that I see happen,
to a business owner that is very successful and at one time they could qualify for
anythin’ they wanted to and then all of a sudden they go to a bank and they say “I can’t.” Well, another reason not to go to a bank. But, yeah there are answers for that. But that is a great question. – [Man] I’m looking to
buy an investment home for rental, is this possible
with a conventional mortgage? – Yes, it’s absolutely possible. In fact I do a lot of investment
home loans, conventionally. And usually it works best when someone has a lot of income and they can support not only their home but
the perspective home that they’re buying. There are also some programs where you can count the potential income, of the investment
property their purchasing. I think Nina has some even more products that we can use, that you
can put in LLC and we can’t. – Yeah, absolutely. – So tell us what you can do. – Yeah, so we do, we have
a couple of different programs actually that we can do. We can close in an LLC which is something that unconventionally you can’t do. A lot of investors prefer to close in the name of an LLC. So we can do that. The other thing we can do as well is instead of looking at
the actual your income, we look at the income of the property. So we will look at the appraisal. The appraiser will go
out, do their appraisal, and they’ll give us a
fair market rent amount. And that’s what we’re looking at. And we’re looking for that to cover 1.1 percent of the mortgage. We also have another program, No Ratio, where we don’t even look at that. So we’re not looking at your income, and we’re not looking at the job. We’re just typically looking
at assets at that point. So those are two great products
that we can do for people. And you can have multiple
investment properties and we can still help you. – Yeah, that’s great. How much do you have to put down on somethin’ like that? – 20 percent. Same as conventional. – So pretty standard, yeah. – Yeah, yeah, just 20 percent. – Okay, well as you can see
Nina has a lot of programs. The way to work with
Nina is to work with us. – Absolutely. – You know we work together
to get things done, and to get you into an investment home, or to get you into a
home that you might not otherwise qualify for because
of your tax situation. But between the two of us, we’re pretty sure we can most things done. Well that’s all we have for today. Nina, thank you for coming on. – Thank you for having me. – You have any questions,
you can find us online at Jason Waters hashtag CashFlow. Until next time. (upbeat music)

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