All Forum Posts by: Jesse Gutierrez

Absolutely!!

@Krista Kennedy

You can utilize the VA loan for a primary property purchase but the owner has to occupy the residence for 1 year. After that period is up, they can move out and use the property as a rental.

Generally, people refinance to a conventional loan in order to get their VA credit back for purchase of their next primary home...rinse and repeat.

@Derek Dombeck

Thanks, Derek. Are your recommendations solely for the lenders security?

Also, anything considered for tax filing or should a single member LLC be pretty straight forward? TIA

Situation:

I purchased my first home last year with the BRRRR strategy in mind utilizing a VA loan. Purchased for $75k and sought out a $30k personal loan from a family member for the rehab portion. I set up an LLC for wiring purposes from his LLC and on the advice of his CPA. I put the money to work over the last 6 months and the house appraised for double the purchase price during my cash out refinance (set to close next week).

I’m going to pull the equity out and use it toward my next purchase which I’m hunting for now.

Question(s):

I have an opportunity to utilize more private money from him after a recent conversation. Are there any red flags that come up with him wiring money from his LLC to mine (sole proprietorship for strictly REI) for me to draw on and use as I need/want?

Are there any tax concerns to worry about?

Recommendations moving forward if this relationship continues? (He’s not very experienced/involved in real estate)