Posted by JohnBoy on December 06, 1998 at 20:58:17:
You apply for no-income stated or no-doc loans through a non-conforming lender. If your not going to keep properties for rentals and plan on just flipping them for cash profits as your only source of income, you will need to show money going into your bank account to show some kind of income to qualify for a loan if you ever needed one.
If you can show 6 months of bank statements showing enough funds deposited each month on average to cover your debt ratios, you can also get an easy doc loan.
Another way to help boost your bank statement up showing more cash going in each month is to withdraw money you deposit on one day and redeposit it again the following day.
Lets say you have $400 each week to deposit into your checking account. After one deposit of $400 each week for 4 weeks your bank statement would show you deposited $1600 that month into your account. Before you use that $400 to pay any bills or whatever, take out $350 the following day and redeposit it the next day. Do that once a week over the 4 week period and your bank statement would show another $1400 being deposited that month even though your using the same money that was in your account. Now your statement would show you deposited $3000 that month. If you need more income, repeat the process 2 - 3 times each week. Your bank statements would show you have a good cash flow coming in each month and that would qualify you income wise for getting a loan.
You would have to do this on a regular basis to maintain an average amount going into your account each month. It can be a little work to keep doing this every week, but it will work if you need to show more income. The bank only cares about the amount going in each month. They don’t question what your taking the money out for or doing with it. Nice! Huh?