What a Doozy! Need some clever help 🙏
Have you ever had that great deal pop up at the worst possible time?! Today this is me and I’m looking for some clever help. Here is my position..
It’s probably my terrible pride but I feel Inclined to preface the scenario with a background as to how I got in the situation. I love investing in so many different areas and have multiple businesses. I work hard in all I do and It helped me become successful. I’m an Ecclesiastes 9:10 kinda guy if that makes sense. Every year my companies have grown and 2019 was a great year for us as well as it was for many other companies. All this to say since I was so busy and I do the book work mostly myself before passing it on to the CPA I have failed to file my 2018 taxes. I feel bad about it and know I will pay penalties but it honestly out-weighs the benefits we have gained from the year. I have made all the steps necessary to never have it happen again. My wonderful CPA has stepped in to get it completed and she could be done with it any day here. Plus I hired a book keeper now in addition to the CPA therefore my hands are mostly free for the future. 2019 taxes will be filed on time or possibly early. To be clear I’m not looking for advice on this particular issue but it is a part of the issue I’m about to tell you about...
So in December I closed on a duplex that gets $2,000.00 a month in rents and I bought it for $200,000.00 cash. Today I’m on my way to see a multi family unit with more than 15 units in it. I have about another $200k in cash but I still come up short. I might be able to use a portion of a line of credit for one of my businesses but I’m still short since the property is up for a little less than $800k. I have good rapport with my bank but I have doubt they will loan the money without those returns filed and paid for. They would loan to me for sure if I had them done. They would even mortgage the property I paid cash for last month along with it. The property has been on the market 3 days but there are a ton of people interested as expected. Even though I’m going to look at it I’m afraid I won’t be able to send any offers except an owner finance offer. It’s upsetting because if I didn’t buy that property last month I would have possibly been able to make a cash offer on this one. I should have tried to fix this tax issue sooner. This might end up being a huge life lesson.
Any clever advice?
I have never tried hard money and they don’t know me so they won’t probably loan money without my returns as well.
Should I just approach the bank anyways?
Should I quit now and not try to finish this race?
Feel free to give you honest opinion.