Flipper/Rehabber · Pensacola, FL · Member since 2016 · 46 posts · 5 votes
I'm just about to close on a duplex . The rental portion of the duplex will cover my mortgage and upkeep.
My goal is to eventually shift my focus to my small business. I currently work two week shifts in the oil industry, and during my time off I have been building a home improvement business. I forsee my home business replacing my current job in the next year.
When I leave my current company I want to move my capital from mutual funds to investment properties. I will have about 20,000$ on hand after taxes and fees. I found a few properties for under 100K that can cash flow 1000$ every month.
Do you think I would be able to get financed for an investment property without having 2 years of tax returns from my business?
Hard money lenders, build relationships, talk to everyone and let them know you have deals and need financing. It can be done but it will take some creative financing.
Hard money lending or private money is definitely one way to go as they won't require as much information as banking institutions.
However, if you want to get traditional funding from a bank, I would recommend that you set up separate LLC's or Companies to hold each property you invest in that are different from your home improvement business. This way, the Bank's borrower will be the LLC holding the property and since it's a new entity, they won't require two years of tax returns but rather will analyze the credit facility from the cash flow of the property so be prepared to provide a rent roll and a breakdown of expenses. Also, if you have to personally guarantee the credit, you will need to provide your personal tax returns and financial statements.