All Forum Posts by: Charlie Martin
Charlie Martin has started 2 posts and replied 5 times.
Post: Creative financing for first time buyer?
- Houston, TX
- Posts 5
- Votes 3
Hi Denis,
This is great advice. I do plan on building up the savings as much as I can before that time comes as I don’t want to be ill prepared for unplanned events as you mentioned. Just curious if anyone else on here had a relatable situation with a lender and what the terms looked like for them. Thanks again!
Post: Creative financing for first time buyer?
- Houston, TX
- Posts 5
- Votes 3
In hopes of not sounding ignorant, are there any low to no money down financing options for a first time investment property buyer? My wife and I both have decent paying jobs, but after paying rent, vehicles, student loans, etc, there's not much left over for saving, let alone 20% down. I'm looking for a structure that would at least allow me to break even, or create capital through something like the BRRRR method to use for future deals. Appreciate any and all insight and TIA.
Post: Purchase under an LLC or not?
- Houston, TX
- Posts 5
- Votes 3
Quote from @Jay Hurst:
Quote from @Charlie Martin:
Hello, I'm hoping to buy my first property next year, and am wondering if I should create an LLC to do so. The reason is I want to separate my personal debt to income ratio from my real estate investing "business" and of course reduce personal risk. Is complete separation even possible? Thanks!
Your business (the LLC) is still owned by you. The income/loss flows to your personal tax return. An LLC has no effect negatively or positively on how a full doc lender will calculate your income. A real estate business is not different then any other self employment income.
Neither for that matter will a DSCR loan when/if you go to get a full primary home loan for example for the same reasons. The income/loss still flows to your personal return. IF you cannot qualify for a full doc loan then a DSCR loan does NOT look at your returns. But, understand DSCR loans are only for investment properties, not for a primary home you might want to buy in the future.
But, nothing of this really should matter. You are planning on buying cash flowing properties correct? If so, the income on your tax returns will be positive so the whole rational of trying to avoid the income is moot.
Quote from @Roland VanLoan:
Congratulations Brandon! I am still looking to buy my first investment property so I don't have enough experience to answer the LLC question. However, I was talking to a DSCR loan officer about a property I was looking at and they told me that they would only lend to an entity like a LLC or corporation; they would not lend to me individually. May I ask where you bought your first property? I am in San Diego and it is too expensive here to get started, so I am looking in the Midwest. But there are so many possible places to look, it gets overwhelming. Thanks.
Post: Purchase under an LLC or not?
- Houston, TX
- Posts 5
- Votes 3
Hello, I'm hoping to buy my first property next year, and am wondering if I should create an LLC to do so. The reason is I want to separate my personal debt to income ratio from my real estate investing "business" and of course reduce personal risk. Is complete separation even possible? Thanks!