All Forum Posts by: James Morris

Hey everyone thanks so much for the responses! I've been away from the computer all day... It is my only taxable income, and I haven't kept any properties for over a year so far. I have so far done it all in my name, but look to create a LLC very shortly here. I am just hoping to get a mortgage before having taxes as an LLC so I am needing to file for 2014, and 2015. So in the case that it was all in my name can I still file it as self employment income on Schedule C? That would be great, and I assume it would probably be easier to qualify for a mortgage if it were "income" instead of a capital gain as it seems like a more steady term to me. I will definitely be finding a Real Estate familiar CPA when I get ready to file, but just wanted an idea of what I was getting into. Thanks again!

I am a small time real estate investor flipping vacant land. This is my full time "job," only income and I am looking to get a mortgage for a house soon, but first I must file two years taxes to qualify. How do you full time investors (without another job) file taxes in which would be acceptable to use as income for a mortgage? Is there a better way to file the profits than just as short term capital gains? Can you somehow claim it as "self employed" instead of just capital gains to make it more official on paper? Are there any computer programs you recommend, or what forms do you use? Thanks in advance and sorry for the questions (I'm new to the tax world.)

I am a small time real estate investor flipping vacant land. This is my full time "job" and I am looking to get a mortgage for a house soon, but first I must file two years taxes to qualify. How do you full time investors (without another job) file taxes in which would be acceptable to use as income for a mortgage? Is there a better way to file the profits than just as short term capital gains? Are there any computer programs you recommend, or what forms do you use? Thanks in advance and sorry for the questions (I'm new to the tax world.)

Thanks Logan, that is great to know! Makes me at least slightly look forward to paying my taxes haha. I know most prefer two years of income, but I am hoping that I can find someone with decent terms that maybe just requires a larger down payment for the higher "risk" in their eyes.

Thanks for the reply Ned! Thats what i'm worried I am going to run into. I would have no problem paying the payment for what I am looking to do, but sadly it seems that a bank would prefer your run of the mill "worker" with a "real job" than an investor out to make it on their own. I just hate to pay cash for the house and not have much money to work with!

Hello, I am a young investor that flips vacant land for a living. I am looking to build a small house for myself next year, and am trying to figure out how to qualify for a mortgage. Up until this point I have NO proof of income such as tax returns etc. All that I have is bank statements to show profits. 

I am trying to decide wether it will help me qualify for a mortgage if I claim profits as capital gains on taxes for 2015; are capital gains considered "verifiable income?" I sell all my properties through my name thus far as opposed to through a llc. I do plan to create a LLC. shortly, but will not file taxes as an LLC before I would like to have the home built. If it helps I made approximately 60k in capital gains last year, have no debt, and a 670ish credit score due to my small amount of credit as I have always worked with cash so far. The home I plan to build should be around 125k, and I expect to put 20-25% down.

Any advice would be appreciated!

Hey Joseph and Joseph... thanks for the responses! The lakes "full" level is only 681' where the FEMA 100 year flood plain for the Lake Travis area is 722'MSL, and the property is at around 705' +/-. the circumstances would be a little different than coast front as it is not mucky soil as suggested. The property is level but fairly rocky soil as Lake Travis is mainly limestone based. Due to the difference in the "full" lake level, and the FEMA flood zone, building this high (or close) above floodplain is typical of lake front homes in the areas of Lago Vista as well as Graveyard Point as lake travis is part of the colorado river and not a constant level lake. Codes are for the living space to be at least 1' above the flood zone (so at oor above 723') which I believe would make flood insurance similar to any of the properties in the area that are out of the flood zone simply because the living space is above flood plain. I am probably best off meeting with a builder that builds flood plain homes in the area, but just wanted to get an idea of what to expect.

The responses are appreciated!-James

I have a property on lake Travis that I would like to build. The main obstacle is that the lot is  nearly 20' below the floodplain and would require some significant stilts. There are many houses built this way in the area, but do any of you here on BP have any experience with homes built on stilts; pros cons cost difference from a normal slab? The size of the home would only be around 1600 sq ft. and I am looking at going with a basic rectangular shape. Any one that has built one in the austin area, or anywhere for that matter? Any help/ advice/ tips would be much appreciated! 

Hey Bryan, I appreciate the reply! After posting I realized I had this posting in the wrong category so reposted in the right one... I will definitely keep your contact and may very well contact you after my properties close next month and I start really looking for a builder. I was kind of expecting the 100-110 range, but wanted to get some opinions from some of you with more experience. I have seen some posts about people building in the austin area for 70 per foot, but don't believe that would be possible unless it was a larger very plain house that was self contracted.

Thanks for the responses guys! I was expecting somewhere in the 100 Per ft range, but have seen some investors on here stating they were building for 70-80 in the Austin area. Im sure at those prices they were contracting themselves, but was curious if it would be able to have a home built with mid quality for 90-100 Per foot inclusive of everything besides the lot.

John, I will definitely keep it in mind and may very well PM you once I am in the process of looking for builders. My last two properties are set to close on the 24th of next month and at that time I will start seriously looking for builders as I would like to break ground by July- September.