Need a fix and flip loan under personal title

6 Replies

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?

Originally posted by @Wayne Brooks :

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  

 

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.

Originally posted by @Wayne Brooks :

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.

Commercial Capital Limited advertises foreign national loans.  Not sure if it will work in your specific situation.