All Forum Posts by: Bill Hamilton

I'm pretty sure he is indicating that he would have a $500 mortgage payment, after acquiring a new property; not that he currently has a mortgage.

Not a lawyer so take this with a grain of salt. I don't know that you can transfer an LLC as it is formed under the laws of the state where it was incorporated. What I have done before when I moved out of state for a few years, was to register my Colorado corporation in the other state as a foreign corporation and used my sister as my registered agent in Colorado. Also changed the mailing address to the other state. I checked with both states and they were fine with that. Otherwise just form a new one here. It's only $50 and is super simple.

So I actually go a slightly different route nowadays. Keep in mind that some of my background is being a mortgage broker and also an account executive for a wholesale lender; therefore I have lots of experience in RE financing but not from the ownership side. I also have a minor in accounting, experience in governmental accounting, have owned a number of LLC's, been 1099'd etc, etc.

What I have finally settled on is I use TurboTax or something similar to see what I think I my taxes should look like. But ultimately I use a tax attorney to file. The one I use now is an attorney, a CPA and a Certified Financial Planner. They only charge around $300-$500 per return and I get the benefit of true Attorney/Client privilege if I have questions about something. Also, the IRS won't even attempt to talk to me directly if my attorney filed my taxes. That gives me a level of comfort that is well worth the cost for him to file taxes for all my entities and for my personal taxes.

@Chris Mason I am sure you are right about where the fraud generally comes from. I was a wholesale AE for a number of years and it was rarely the borrower that trying to do an end run. Usually it took an LO or broker to know enough to try and accomplish that.

Well @Chris Mason I am actually hoping her question was just based on a lack of knowledge rather than an attempt to get around the rules. On a purchase of a 4 unit, non owner occupied, I doubt you will get above 75-80% financing (at least for a conforming loan/rate) but I think Chris will know the answer to this off the top of his head. I haven't been a lender/broker in many years and these things change over time.  

to each their own.....but this site is dedicated to people who are, or want to be self-employed. Not trying to twist anyone's tail but it almost seems hypocritical to want to make the majority of our money through self employment but then indicate that others who do the same are unworthy as renters or tenants.

If you tell us the ARV of the house, we will have a much better chance of comparing your current financing with what else may be available.

Keep in mind that if your friend or his company owes back taxes and the IRS or state already has a judgment against him, they could have taken those funds from his or his company's bank account without his knowledge or approval. That doesn't mean he shouldn't have revealed the tax issues etc. to you in advance but I have known people who have had major tax issues who were surprised in that fashion when they didn't think it was an issue any longer. Sometimes a tax issue can lay dormant for many years but rear it's ugly head at an inopportune moment. I've no clue if that is the case in this instance but it's something to consider. I saw this type of scenario develop with a friend of mine. Someone I had known for years and who I highly respected and still believe him to be of very high moral character. Fortunately I didn't have any money involved in this scenario but this friend  really thought that because the IRS hadn't taken any action against him in many years that the issue had gone away. Combine that with the fact that he found the whole thing to be highly embarrassing, he did not discuss the potential problem with people, even when they were solicited to invest in his deals. Point being, his motives were not bad and he was acting in good faith from what he thought was true. 

Other than a standard credit check or D&B credit, I doubt you would get much more from the Hard Money forum but who knows. I have done hard money as a borrower, a mortgage broker and as the Account Executive for a lender doing hard money deals and I have never had my background run nor run a background check on any deal. Given that these should primarily be asset based deals that kind of makes sense to me but others may well do it differently. I would guess you would come up with a great deal more responses for actual sources to run background checks if you posted in the landlord type forums. Background checks when you are renting to someone are usually the norm so I would guess those people could send you in the right direction.

Maybe I am off base here but if I were to do a JV with you would you be okay with giving me all those details about your life? I understand wanting to know about someone you are going to partner with but the level of details you are talking about is pretty intrusive. But I am quite curious to hear others feedback.