All Forum Posts by: Kevin King

Hey @Bruce Woodruff

That makes more sense lol. You would refi to a FHA or Conventional after a year or 2?

Just curious, why wouldn't you get an FHA or conventional loan in the first place?

Sorry for the novice questions! 

Hey @Bruce Woodruff

I don't think I'll be paying off any 500k mortgages in a year or 2 lol.

@Bruce Woodruff

Are you self employed? And don't those loans have higher interest rates? 

Hey @Reid Chauvin

Very insightful, thank you. Can you give me an example of the using extra cash or assets as income? 

Say I had $100,000 extra (on top of what I have set aside for the down payment), I divide that by 36, I get 2,777. What does that mean, That I can claim an extra $2,777 of income for the year? Or monthly. 

And the 75% of projected rental income, is that after all expenses? Net or gross.

And does your company offer the service of going through all of these things?

@Brad Sneckner Hey Brad, 

Thanks for the input, I have an LLLP by the way. I would prefer to pay myself via K-1's if possible, it would make things a bit easier for myself. 

It seems like the original lender I was working with was not the best lender for my situation? 

I am a novice here, so I will ask, are there differences in what different lenders look at for criteria in regards to how much they will loan? As in, one lender wants to see consistent income, whereas another just wants to see how much you earn on an annual basis, whether it be via K-1's or not? 

I see you're in CA as well, so I appreciate your insight. 

Thanks so much.

I think I will save more in taxes in any given year than what a property would earn me (at least in cash flow)

If I buy a Multi family in socal for 500k, I imagine my cash flow would be around $1k / mo, equaling  $12k a year. If I pay myself 100k I think that I will pay more than 12k per year.

But on the other hand, in the long term, the cash flow and appreciation will greatly outweigh that short term loss.

What do you think? and thank you for your response !

Hey guys,

So I own my own business, and last year I purchased my first home and investment property (a duplex). It was a little tricky getting a loan as I own my own business and I pay myself periodically, about $100k/ year total. I think because there wasn't a consistent income, the underwriters didn't loan me much, ended up getting $300k which isn't much for southern california. 

I've done much better this year, earned over $300k this past year, so I setup payroll to pay myself $100k as a consistent salary. Plus I can claim earned income from the business.

The drawback of paying myself a salary is that I can't write that income off and will pay more taxes, but will it be worth it when I get preapproved for a loan? 

I guess my question really is, for a guy in my position, what is the best thing to do to get more loans? Ideally looking to buy deals for around $500 - $600k 

Thanks in advance!