Rental Property Investor · Chicago and mainly invests in KS remotely · Member since 2018 · 360 posts · 314 votes
Hi guys,
I'm under contract on a great deal. Purchase price 44K, estimated rehab budget 40-50K, ARV 150-180K. However I've hit a wall on lending because I'm in the US on a work visa so I can't show self-employment income. If I create an LLC and take out a loan and rent it out afterward, the rental income would look like self-employment income and my immigration lawyer advised me against going the LLC route. So I'm looking for lenders that can lend fix and flip loan under personal title. I spoke to Lima One and they will only lend to LLCs. Wondering if you guys can recommend someone else that can do this?
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
7y
Okay, we'll Rental income is not "self employment" whether as an individual or thru an LLC....both are passive. The. LLC is a pass through entity for taxes.....it's like it doesn't exist.
Not likely, but under your personal name it’s going to be taxed as “self employment” income anyway.
I won’t sell it within a year so I won’t have to pay self employment tax I also claim investment not business for rental real estate on my tax return.. so I don think it’s self employment income
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
7y
Okay, we'll Rental income is not "self employment" whether as an individual or thru an LLC....both are passive. The. LLC is a pass through entity for taxes.....it's like it doesn't exist.
Okay, we'll Rental income is not "self employment" whether as an individual or thru an LLC....both are passive. The. LLC is a pass through entity for taxes.....it's like it doesn't exist.
Right, my immigration lawyer advised against it... to your credit I don't think he fully understands the real estate/tax side of the picture. I'd rather err on the side of caution and get a loan using my personal title and avoid complications.