All Forum Posts by: Davon Lowery

I guess the preamble to my question is confusing. 

For the sake of clarity, I am not admitting to, recommending or are, in any way shape or form, suborning, and or porporting and or supporting the evasion of tax payment. 

Without any equivocation, I support and pay all required federal and state taxes.

Now,

What I'm talking about is not claiming expenses, not the failure to pay taxes.

Claiming business expenses is a choice not an obligation, the savy investor is knowledgeable of the pivot point of claiming just the right amount of expenses versus income and demonstrating that they have a successful businesses model. 

Consequently, lender are more inclined to lend money to a successful business and not to a losing model.

Thanks for responding @Rob Beland

What I have been hearing from traditional lenders, like WF and BofA, is that my DTI is to great based on my tax returns.

So, lets say my gross income for 2014 is 100k but I have 50k in (ligitimate) business expenses, I claim them thus reducing my AGI to 50k. I apply for a 60k HM loan, a LO will tell me I can't afford it based on my income. 

Great question and great responses, thus far. As previously stated, ask yourself the why and not the how; insomuch as, do you want cashflow  and or appreciation or something else all together. 

Is REI your new business, are you are a rocking chair investor, your needs and or desires will be predicated on your responses and will be drastically different based on the new information.

Moreover, if you want a supplant/supplement and or redirect your retirement strategies then you will have tertiary approach.

Thank you for that lesson. 

As discussed on many previous podcasts, posts most recently in the latest podcast and as general conversation, the discussion of private financing vs traditional financing.

I have spend the better part of this year, thus far, speaking to lenders, daily, on the phone via email, smoke signal; basically, whatever means I could get, in a vigorous attempt to obtain financing.

If it isn't one thing its another with these guys. What I'm going through now, reminds me to a memory of my tax prepare, of about 10 years, said to me, "play the game, leave the rest up to me"; in essence, put your money into the system, pay your da*n taxes and I will get you an amazing return.

This system worked great, until I wanted to start a REI business.

So, have you been swayed one way or the other, claiming a mound of business deductions on your business or personal taxes or just biting the bullet and writing the check?

I know many of you all swear by private $, but someone of us would like to use the traditional means, while we can (small portfolio size).

As discussed on many previous podcasts, posts most recently in the latest podcast and as general conversation, the discussion of private financing vs traditional financing.

I have spend the better part of this year, thus far, speaking to lenders, daily, on the phone via email, smoke signal; basically, whatever means I could get, in a vigorous attempt to obtain financing.

If it isn't one thing its another with these guys. What I'm going through now, reminds me to a memory of my tax prepare, of about 10 years, said to me, "play the game, leave the rest up to me"; in essence, put your money into the system, pay your da*n taxes and I will get you an amazing return.

This system worked great, until I wanted to start a REI business.

So, have you been swayed one way or the other, claiming a mound of business deductions on your business or personal taxes or just biting the bullet and writing the check? 

I know many of you all swear by private $, but someone of us would like to use the traditional means, while we can (small portfolio size).

@Vincent Crane

Thanks for sharing, great info.

Thank you guys, great advise. 

Since I am submitting a lower offer and the seller has a broker working with him, then the broker will be more apt to accepting a low ball offer,  if he doesn't have to split the commission with another agent, just thinking about it logically. 

Moreover, I have brought the deal straight to the seller, we have spoken on several occasions, I'm sure he listed with the broker because he didn't take me seriously. However, now that I will be submitting an offer correctly, we can make a deal.

@Derek Dombeck

Awesome. Thank you for the confirmation. Immediately following my post, I found that form and filled it out, my attorney is looking it over now. 

So, I have been negotiating with a property owner for about 3 weeks now ,and I have finally secured funds to finance my offer. 

I don't have an agent to write the offer, nor do I think I need one, but I am a little apprehensive, in that I may miss some obtuse nuance or be too aggressive in my delivery.

I am using a generic template from google, however, I am tailoring it to be regionally specific.

I have a lawyer but, I want to do as much as I can alone. 

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