Investing while paying child support

11 Replies

HI...hopefully someone can help answer this questions. I would like to get into real estate, either flipping or rentals but I have a major concern, I owe child support which I pay regularly every month religiously. I am concerned that the Enforcement agency will place a lien on anything I buy with my name and social security number. I have great credit rating of 777, and I am a retired veteran. my questions are the following:

Can I buy investments homes under my name and social security?
If not can I create a LLC and buy under the company name and EIN#?

If none of these options are viable is there another legal way of doing so?

Thank 

Alex

As long as you are paying your child support on time, there is no issue.  Nobody is going to place a lien on anything UNLESS OR UNTIL, you fall behind.

So yes, with a credit score of 777 and steady income, you'll qualify for anything the numbers will support according to the limits of your DTI and down payment.

Yes, you might be able to buy through an LLC, but most lenders will require you to personally guarantee the loan of a brand new LLC.

Medium cluebussol logo3inLinda Weygant CPA, Clue Business Services, Inc. | [email protected] | Podcast Guest on Show #244

Ok would it matter how many properties I purchase? Or am I limited to any specific amount or quantity?

Originally posted by @Alex Carbonell :

Ok would it matter how many properties I purchase? Or am I limited to any specific amount or quantity?

 That's a question best answered by your mortgage broker.  Your income and cash on hand will be your most limiting factors with traditional or portfolio loans.  Hard Money Lenders have only the property valuation and cost to rehab as their limiting factors

Medium cluebussol logo3inLinda Weygant CPA, Clue Business Services, Inc. | [email protected] | Podcast Guest on Show #244

Child support is just another debt, like a student loan. No big deal.

If you are using traditional financing (Freddie or Fannie lending) you can have up to 4 or 10 mortgages. Make sure you check first if they will count tenant rent as income because some require you to have been a landlord or owner for 2 years.

Medium logoBryan O., Note Capital | http://www.notecapital.us

Originally posted by @Bryan O. :

Child support is just another debt, like a student loan. No big deal.

If you are using traditional financing (Freddie or Fannie lending) you can have up to 4 or 10 mortgages. Make sure you check first if they will count tenant rent as income because some require you to have been a landlord or owner for 2 years.

 It seems I will have to start educating myself so I can buy my first home then a rental...I always used the child support as an excuse no to pursue real estate. Thank you all for the answers...

Alex

NO EXCUSE FOR YOU! I pay child support myself. Wouldn't it be great to let your property pay that for you?  ;)

Best of luck.

Medium logoBryan O., Note Capital | http://www.notecapital.us

Oh, and to touch on what @Linda Weygant said about the LLC, I'm finding that it's much easier to get traditional mortgage loans to yourself the person than it is to get them to an entity. So there's not excuses about not knowing how to set up an LLC either ;)

Medium logoBryan O., Note Capital | http://www.notecapital.us

Ok so other than getting easier financing using myself would there be other advantages to creating an LLC, for example tax breaks?

Nope.  LLCs don't get to deduct anything that an individual person can't.  Except maybe, you know, business organization fees, additional legal fees, additional CPA fees - which the individual won't incur.

Medium cluebussol logo3inLinda Weygant CPA, Clue Business Services, Inc. | [email protected] | Podcast Guest on Show #244

I know this thread is a couple of months old but I wanted to add some information to it. I hope this link works. 

https://www.google.com/url?sa=t&source=web&rct=j&url=http://www.quojure.com/samples/archives/realestateincome.pdf&ved=0ahUKEwj0r5XPnL_MAhVMFR4KHSUHD-4QFgheMA0&usg=AFQjCNFtE-HDs9pS0LSlgnGMnLEEvnXOKg&sig2=QXnm1-AkZU1lgoM2d-AUjw

Anastasia Jordan, Jordan Landholdings | [email protected] | 2057476248

Originally posted by @Anastasia Jordan:

I know this thread is a couple of months old but I wanted to add some information to it. As long as you are not in arrears you are safe. And do not tell your ex that you are getting any extra income. The courts can adjust the amount you pay if she finds out you are earning extra money and she files for a modification. Tell no one who knows her or your kids.

Anastasia Jordan, Jordan Landholdings | [email protected] | 2057476248

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