All Forum Posts by: James Boreno

Hello,

Currently in a 1031 Exchange and have a few questions.

We sold this property last week and we are currently in a 1031-exchange. We are trying to figure out how we can hold title to the new property. Our 1031 exchange agent mentioned to us that it needs to mirror the relinquished property, In this case having the mortgage note under my fathers name, and holding title under the LLC, and also how it was reported on taxes.

The problem is that it's very hard to get a loan for my father on a new property with vesting being under the LLC at closing. It's possible but not with our portfolio lenders and we like their rates...

1) In 2019, we filed the property taxes under the LLC returns. - but in 2020 we filed the property taxes under our personal returns. Our 1031-agent mentioned that if there is a 2-year history of the property being reported under our personal returns, we can potentially vest under our personal names for the new property we purchase - Is this true?

2) For the new property we purchase - Would it be possible to vest under our personal names, then on the same day record the new property back into the LLC to satisfy 1031 requirements?

Thank you!

 I was operating my business before the S-Corp 

Hi Lenders - I need your help, I think I screwed up!

I'm preparing to purchase investment properties after 2-years of self employed tax returns and I created an S-Corporation this year. I believe I made a huge mistake as I made the S-Corp to be effective on 11/10/2021... And I believe now my tax returns for 2021 will have that date.

Will this hurt my chances of qualifying for a conventional loan?  I need another year of tax returns (2022) before I have those full 2-years for self employed borrowers... Now I'm not sure if I will need 2023 tax returns as-well because of the "short tax year" for 2021.

(I know about the 1-year self employed borrowers option, but I haven't been self employed for 5+ years)

Hello I have a couple questions regarding a flex loan modification offered by a couple of my lenders on different investment properties.

I'm currently in forbearance for a couple investment properties with different lenders, they've all given me an option of a flex loan modification, but I have a couple questions if I decide to go this route.

1- will it have a negative effect on my credit?

2- will it cause hurdles in borrowing future loans? (I want to get a loan on a property in May)

3- will it cause hurdles in future refinancing other property loans?

4- will it negatively effect getting non conventional loans? (I will most likely get a bank statement loan for the property in May)

Hello I have a couple questions regarding a flex loan modification offered by a couple of my lenders on different investment properties. 

I'm currently in forbearance for a couple investment properties with different lenders, they've all given me an option of a flex loan modification, but I have a couple questions if I decide to go this route.

1- will it have a negative effect on my credit?
2- will it cause hurdles in borrowing future loans? (I want to get a loan on a property in May)
3- will it cause hurdles in future refinancing other property loans?
4- will it negatively effect getting non conventional loans? (I will most likely get a bank statement loan for the property in May)

@Dave Foster Got it, thanks!

@Dave Foster

Got it. Yeah the property I will purchase will definitely be above 200K as I will use the 90kish from the 1031 plus cash as a form of a down payment.

Yes but I need my son to specifically be a co-borrower because my DTI is too high, if I add my son as co-borrower it will lower my DTI ratio and I can qualify for the conventional route, and I know that a co-borrower has to be on the title, but basically as long as the 1031 replacement property value is above 200k we can be 50% owners each and he can be a co-borrower on the loan correct? He would just be viewed as a tenant in common?

Edit: Also do you mean the property purchase price has to be over 200k or my down payment has to be over 200k?

Got it. Yeah the property I will purchase will definitely be above 200K as I will use the 90kish from the 1031 plus cash as a form of a down payment.

Yes but I need my son to specifically be a co-borrower because my DTI is too high, if I add my son as co-borrower it will lower my DTI ratio and I can qualify for the conventional route, and I know that a co-borrower has to be on the title, but basically as long as the 1031 replacement property value is above 200k we can be 50% owners each and he can be a co-borrower on the loan correct? He would just be viewed as a tenant in common?

Edit: Also do you mean the property purchase price has to be over 200k or my down payment has to be over 200k?

Hello, I own a plot of land that's valued at around $95K - I want to sell this plot of land and use the 1031 proceeds as a down payment towards another investment property. The problem is I wouldn't qualify for a conventional loan, would I be able to add my son as a co-borrower? I don't know if I could because I know that on 1031 exchanges, if I sell my plot of land, I have to buy another property and the title has to be under the same name. I might be mistaken but please let me know if this is possible. The plot of land is currently under my personal name and my goal is to 1031 exchange into a multi-family, but I would need to add my son as a co-borrower.