All Forum Posts by: Bryan T.

Should you always tell agents how much cash you have on hand to buy investment properties? Let's say you have 500k cash on hand, should you tell agents and wholesalers this upfront so they know that you are serious and will send you deals first? I am looking to BRRRR with the help of agents and wholesalers finding me deals.

Also, can you and should you just transfer all of your funds into one bank account to make it easier for the banks to verify your cash? 

So do the banks add up all of your deposits/income and expenses from all of your bank statements? What if you have multiple bank accounts? Do they want to know where all deposits/income and expenses come from and how closely do they analyze them? 

I am just saying that an average young sole proprietor may not be good with accounting and doing their own taxes and if they have they cannot afford to hire a tax professional and have multiple bank accounts they may not add up everything correctly or put things 100% correctly into tax software. I am wondering if banks will care about this and with any cash deposits. 

These are things that I think the IRS would be anal retentive about and want you to categorize if they audited someone. Do banks do the same during the mortgage preapproval and loan process? 

I have never purchased a home before so I am wondering if the conventional mortgage preapproval process is similar to an IRS audit. 

For the preapproval, what if bank statements and tax returns don't match? Do they check for accuracy when you send them your tax returns and bank statements? Will they ask you to classify every deposit and withdrawal found in your bank statements? What if you accidentally under reported any sources of income or accidentally over-calculated any expenses on your tax returns? What if you sometimes deposit money that you get as gifts from family?

I am just wondering if the preapproval process is basically like an IRS audit where they check every tiny detail. If it is I am sure that many people will have tax returns and bank statements that don't match perfectly right? 

Also, let's say you have $1,000,000 in the bank right now (that you saved up over many years) but make $100k a year. Will they want to know exactly where the $1,000,000 came from or what?

Should you know who your tenants will be before you buy an investment? I am trying to buy an investment property to house hack in the Houston area but I'm not sure if I should know what tenant I can attract in different neighborhoods first before deciding what area to purchase in...

 Do you think there are real estate agents who can help me look for places to not only house hack but rent hack?

Does Rent Hacking work better than House Hacking in most markets? I am wondering whether it is better to rent hack than house hack in most markets. 

Rent Hacking - Better than house hacking in Houston area? I will be working near the medical centers. I am wondering if rent hacking a 3 bedroom $900 apartment (in third ward area, east of medical centers) would be doable and safe. Would it be better house hacking instead? I am not sure which option is best to begin. Any advice is appreciated.