All Forum Posts by: Greg Cook

Yonah Weiss with madison Specs

Did you talk to your tax professional to ensure you can utilize those losses before you pay to generate them?

Congrats, Greg! Sounds like you have great momentum building! 

Fannie Mae prohibits using proposed rental income on a vacation home loan, because the primary intention must be that you are using it as a second home/vacation home.  You are permitted to rent it out when you are not there. Typical guidance is you must occupy the property yourself for a couple weeks of the year. 

There is a conventional loan called an investment home loan. 85% LTV. This loan type allows you to use proposed rental income from the new property to help you qualify! This is because your primary intention is to use it as an investment.

Hope this helps!! Feel free to reach out if there is anything else I can do to help. 

Is there a specific reason you are hesitant to go the DSCR loan route?

@Greg Cook, as a Private Lender (meaning I loan MY OWN CAPITAL) in Tampa, I require a borrower to close in an LLC, and this is due to state laws. Every state will be different so finding out what your state laws are in reference to lending to individuals vs LLCs, based on what the collateral is will be very telling. For instance in FL, if I lend to you in your personal name, even with the proper B2B purpose loan, and Non-Primary Residence disclosures, and you default, if you claim that it WAS your personal residence and you were not clear about the disclosures, the first thing the judge is going to do is look to see if I as a lender met all the stipulations and regulations concerning consumer loans, such as CFPB, Section 32, and RESPA requirements. By ensuring I lend to entities I absolutely enforce and ensure this is a business-to-business transaction for investing purposes. Combine that with my disclosures and there is no way a judge will consider this a consumer loan. It all depends on the state. As a general rule of thumb most Hard Money Lenders/ Private Lenders/ Brokers are all requiring you to borrow in an LLC, but not always. You could always get a loan from a bank and they would allow you to borrow in your personal name

Question, why wouldn't you want to borrow and place title to the asset in an entity you own and control?