Very unique situation. I’ve been trying to work with a lender that deals with special cases (referred by real estate friend) and im getting nervous that i wont be able to refi out of my hard money loan.
Bought a house that was a two for one deal one house down the studs which I’m planning on doing a addition on, and the other house my wife and I moved into￼ an adu is pretty good size￼ (1100 sq ft ish)
Bought the property for 409K
(Hard money 3700$ mo)
Updating the Adu right now￼ as we live in it
(New breaker panel, meter box, future car charger, tile kitchen, refinish flooring, add bath downstairs, update basement as master suite)
Self-employed, I have an S Corp. for my construction company￼, ￼due to me doing a revocation of election through paris weiss associates (law firm), I don’t pay federal income taxes due to my nonresident citizen status (take home 130-150k yearly past 3 ish years).
Been listening to bigger pockets and it seams as if i need to nullify my revocation of election to get funding ( more easily).
In short, I’m not sure if you have a CPA or lender that deals with weird situations.
§ 15.1-2 Revocation of election to deduct
You have been in the mining business since 1966? Lots of questions to your question.
You now will go back and file all and pay income taxes to be verified ? You have a construction company operating in the United States doing business, collecting receipts, have a license ?
@Andrew Parvi the income to me is not the issue. It's the issue that you are occupying a home with a hard money loan. Does your HML know that you are doing this? They could get into big trouble if any regulatory body were to find this out. Normally HML does not lend on primary homes because their fees are too high (primary homes have rules to them that investment properties don't). And normally, your income would not be of consequence if you were to rent the property out. If you were to rent the property out, a commercial lender could easily refinance that loan....as long as you did not occupy the property. You occupying the property is the biggest issue here.