Investor · Los Angeles, CA · Member since 2015 · 86 posts · 21 votes
If so, Where did you incorporate? Where are you banking? Are you getting portfolio loans in CA or in TX?
I'm looking to set up a Corp., hold 5 (TX) properties and then do a portfolio loan on these and keep buying more. If I incorporate in CA, will a California bank do a portfolio loan on Texas properties? If I Inc. In TX, will a Texas bank do loans for a CA resident?
It is my understanding that the bank loans are based on the location of the property, not the location of the corporation. For instance, my credit union in Seattle will not loan on Texas properties. Does that make sense? I also have a hard money lender based out of Colorado that loans on properties in TX but not other states. Hope that helps.
Check with the Texas Secretary of State office regarding registering a foreign business in the state. Once you do that you should be able to get an account at a local bank. Texas does not have an income tax but does have "franchise tax" that affect businesses with certain levels of income.