Deal Financing Jeapordy

[Tony Karns]

So BP people here is my situation

I am working on FHA 350K deal in TX. Last week I stumbled on a property in the Jacksonville area with a ton of potential and a great return. So what is the problem.

Last week I was approved to purchase the TX deal. The loan was done in my name and it will be a house hack project.

This week I wanted to buy this flip in Jacksonville, fl using a HML. Total loan 100K, but I am concerned that if I use my credit I would also Jeopardize my chances of getting the deal in TX. My HML lender informed me that since the property would be held in an LLC that it would not report to the credit bureaus UNLESS I defaulted in which case they would all see it. I can't afford to not do the TX deal as it will be a primary residence for a while, but I am struggling at the thought of walking away from the JAX deal the could net me a very decent return. I have tried to have other family members assume the loan, but since I would be funding the down payment and the reserve. I am then stuck on the loan regardless.

Has anyone else ever run into the same situation?

Is it true that the business HML does not report unless I am in default?

Thoughts and Advice.

[Alex Correa]

Tony Karns I am a hard money lender in Florida. All the loans I do don't report to credit. However credit drives the rate and ltv for us. So it doesn't report but we do a credit pull. In your loan application for TX the hard pull will come up and they will have you sign a form with all recent hard pulls stating whether you received loans or not and discrepancies in credit report and ask for explications. At that point you'd be lying on your application because if you say yes now you have to factor payment into your DTI if you qualify no biggie. If not dead deal. Try to see if the HML you are using would be willing to use your credit report and not pull a new one. Also omitting info technically is lying on your loan application.