Obtaining Financing through a bank or Lender

[Timothy Jacobson]

Good evening all. We are Connecticut investors  in the business of buying mulit-family residential properties (2-4), rehabbing and renting them or just simply flipping. 

I am curious, from a bank/lenders viewpoint, what looks better to them in terms of obtaining a loan or a line of credit - showing solid profits (or no profits), or a healthy balance sheet? I am investigating if it would be advantageous for us to reduce our tax liability (decrease profits). Obviously, as individuals, we would like this, but I'm not sure if that will make us look weaker as a borrower. Or, if we have a solid balance sheet, would our Profit and Loss Statement even matter as much?

Tim

[Michael Noto]

@Timothy Jacobson First off, I just read your profile and thank you for your service. 

I have personal investing experience with the issues you bring up in your post and have clients here in CT that face these questions all the time when investing. To be honest, it is to much to detail in a post, it would take me forever to write out. 

Feel free to reach out anytime and I can tell you what my and my clients experiences have been related to the tax issues you bring up in your post. 

Where I would start if I were you is connecting with a real estate specific accountant like Ted Lanzaro, who is here on BP, to talk tax strategy.