“But How Much was Net Profit?”

“But How Much was Net Profit?”



Hey Joe, I can’t tell you that I am very happy with what you told me. How does it make any sense that my business brought in $223,000 last year and you can’t qualify me for a $200,000 mortgage?


This problem has been around for a long time when it comes to the self-employed. Sure, I can understand how someone would think bringing over $200,000 in revenues would allow someone to obtain a $200,000 mortgage, unfortunately that is not the case.


This individual showed a net profit of $3300 and in 2015 showed a loss of $1900. I can understand someone wanting to pay the least amount of income taxes, but it makes it almost impossible to get a $200,000 mortgage.


I did have a conference call with him and the accountant and hopefully they will have a better plan going forward. 



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Joe Petrowsky, NMLS #6869

Right Trac Financial Group, Inc. NMLS #2709

110 Main St.

Manchester, Ct. 06042

Office: 860 647-7701 x116

Fax: 860 647-8940

Cell: 860 836-9294

Email: joe@righttracfg.com



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Joe Petrowsky does not guarantee nor is in any way responsible for the accuracy of the information provided herein, and provides said information without warranties of any kind, either expressed or implied.

Equal Housing Statement: We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. We encourage and support an affirmative advertising and marketing program in which there are no barriers to obtaining housing becuase of race, color, religion, sex, handicap, familial status, or national origin.

Comment balloon 5 commentsJoe Petrowsky • August 11 2017 01:25PM


Joe Petrowsky Yes, this is age-old issue with self-employed . Thanks for putting the spotlight here. 

Posted by Mary Yonkers, Erie/PA Real Estate Instructor (Alan Kells School of Real Estate/Howard Hanna Real Estate) almost 3 years ago

These people who do not undestand this are the same ones that had an issue the last time walking away from their homes and paid big bucks sin higher interest rates.

Posted by William Feela, Realtor, Whispering Pines Realty 651-674-5999 No. (WHISPERING PINES REALTY) almost 3 years ago

Good morning Joe. As they say, you can't have it both ways! Enjoy your day!

Posted by Wayne Martin, Real Estate Broker - Retired (Wayne M Martin) almost 3 years ago

There are plenty of REALTORS® who make gross profit but have little to show for it on the bottom line.

Posted by Joe Pryor, REALTOR® - Oklahoma Investment Properties (The Virtual Real Estate Team) almost 3 years ago

I want the name of his accountant - someone who can make $200,000 in income go away! 

Posted by Lise Howe, Assoc. Broker in DC, MD, VA and attorney in DC (Keller Williams Capital Properties) almost 3 years ago