Obtaining Financing through a bank or Lender
Good evening all. We are Connecticut investors in the business of buying mulit-family residential properties (2-4), rehabbing and renting them or just simply flipping.
I am curious, from a bank/lenders viewpoint, what looks better to them in terms of obtaining a loan or a line of credit - showing solid profits (or no profits), or a healthy balance sheet? I am investigating if it would be advantageous for us to reduce our tax liability (decrease profits). Obviously, as individuals, we would like this, but I'm not sure if that will make us look weaker as a borrower. Or, if we have a solid balance sheet, would our Profit and Loss Statement even matter as much?
Tim