How to Offset Investment Property Depreciation and Get the Next Loan

Today, I'm here to tell you a story about Dan the serial investor. Hi, this is Benson Pang, broker owner of NestMade mortgage. Let me first touch on bank overlays. So if you guys don't know what bank overlays is, basically the banks can actually have their own guidelines on top of the industry guidelines. Industry meaning Fannie Mae, Freddie Mac, their conventional loan guidelines.

Dan came to us. He's again, he's a serial investor. He has a day job, but he invested in a lot of real estate transactions, real estate deals. And in real estate deals, how they give out their income kind of like 1099 is K-1 forms. So he received a bunch of K-1 forms. And again, in real estate, depreciation is something that people always look for. It's a Phantom income. It's a negative income that is negatively offsetting your income.

So for Dan, he has a lot of negative income that's counting against him and the bank wants to count it against him on his loan application. Now as a mortgage broker, my team and I, we love swimming and guidelines, industry guidelines. So we're always looking into the Fannie Mae guidelines.

We have happy hour over it. We chit chat over it. We always talk about the guidelines, so we know it in and out. When we get that call from them, we're like immediately, we already know that if you have a day job and you also have negative income, we can actually drop that and only use his employment income to qualify him.

So Dan is super excited. He's able to get his loan from us, and we were able to drop the overlay for him. If you think that this story resonated with you, anybody, loved one, coworkers, any other real estate investors that have the same problem, please have them give us a call, give us a ring. I would love to walk them through how to do it. Get this deal done for them. Thank you so much.