All Forum Posts by: Reggie Rearden

 Yes. It will be an owner occupied property. I purchased 8 acres a few weeks ago and now trying to get a mortgage to build our house on as a primary residence. 

I'm not grasping the fact that the lender wont let us use the taxable income shown on our returns. We don't take distributions on any of our LLC's. The lender said we need to have at least (2) years of income showing we take distributions. I'm hoping this is not the case for all lenders. How do investors usually pay themselves when assets are in LLC's? We have 8 rental incomes and 3 small businesses.

I have a question regarding mortgages for personal property. I just heard from our lender that we have plenty of income to cover the new mortgage we want BUT they can not make it work on paper. I work a W2 job, own a couple of small businesses, have several properties, and my wife is self employed as a single member LLC. They can only use my W2 income because me and my wife do not takes draws from any of our other incomes, which are all LLC's. This is the first time we've tried to get a mortgage for our personal name since we've owned businesses and real estate. Any suggestions? This is just the 1st lender we've tried. Do all lenders have the same criteria? Our credit scores are 775-810, so that rules out any credit issues. The lender also told me that even though we have strong rental history showing on our income taxes, she can not count "ordinary income" to qualify for a mortgage.

That may be a good next business venture. Go figure the time i get everything ready to take off hard, the US comes to a grinding halt!

Here's my story:

I'm a newer investor in the Aiken , SC area. I started a portfolio loan February 14. The loan consist of a refi with a LOC against my 5 unit commercial building, 1 unit commercial building, and 1 sfh. All units are fully rented. The appraisals went AMAZING! The 5 unit building came back at 3xs more than i purchased it for. The sfh appraised at 2xs the purchase price. The 1 unit came back strong also. I have lot of equity i was getting a LOC on....and then Covid-19 happened. The week we were supposed to close, the bank called and said they were delaying the closing due to the virus and uncertainty. Everything was on hold for us.

Fast forward about 3 months:

About 2 weeks ago, the bank called and said we're supposed to close in the next couple of weeks. I received a call today and they have once again delayed closing due to the current riots and protests! Instead of having access to a substantial LOC, the bank offered me a $50K unsecured LOC for now and said we can probably proceed with the portfolio loan at the end of the 4th qrt.

This is not what i had my heart set on but at least its a start. I've been doing a lot of financial maneuvering with our properties and businesses in order to set us up for the portfolio loan. With this new opportunity, i'll definitely have to rethink my REI strategy. I really had high hopes on putting my REI gear in absolute overdrive this year. This is a little set back, but at least the bank is willing to give me an unsecured LOC.

I don't have a problem with holding out on the 2 commercial buildings. The property I was really set on doing a refi on is the sfh. I set up an LLC with hopes of doing a refi from my name into my LLC. I'll start looking for a new lender tomorrow to do the sfh refi! I wonder if there are other investors running into the same issues. From the couple of lenders i spoke to today, they both stated that loans will or may be put on hold AGAIN because the issues ongoing in the US! Hopefully this mess will end soon.

I have two different questions:

(1) I'm looking for a new POS system for my income tax / bookkeeping business. I know this is a real estate page but hopefully other entrepreneurs can point me in the proper direction. We currently use Square for our POS. We are open year round but majority of income is made seasonally so we want something that makes the most sense for our business. 

(2) My wife is self employed at the salon we own. What options are there for clients to schedule themselves appointments? She usually spends from 8pm until 10pm responding back to all of the texts and calls she misses throughout the day since she is doing manicures and can not answer her phone. She still uses a paperback appointment book but we're wanting to transition everything to where clients can schedule themselves which will free her up about 10 hours a week in the evenings.

Check to see if your employer offers a 401K loan. Pull the money for the down payment and pay yourself back. Mine lets me pay myself back weekly. I don't take any tax hits this way. 

This is how our LLCs are set up:

ABC LLC controls all the other LLCs. (Master)

DEF LLC owns 1 commercial property

GHI LLC owns 1 commercial property

JKL LLC owns 1 residential property. I'm adding another residential property to this LLC and will continue doing so until my attorney says its time to create a new entity. This is dependent on equity owned by the LLC.

All of the profits shoot up the ladder to ABC LLC, in which it turns around and purchases another property. ABC LLC essentially holds all of the profits until I'm ready to buy again. Just for a little more clarification, I have to keep an excellent credit score and limited debt as part of my W2 employment is to why I have several LLCs. I can not have any legal issues and try to stay as FAR away from being associated with my assets as possible.

Each property is in its own LLC. We've been approved for the portfolio loan. The lender said they would combine the 2 currently mortgaged properties into 1 loan. I'd then have access to the remaining LOC. The other property that is owned feee and clear would have its equity wrapped up in the loan as well. I'm just wanting to get advice from others before I sign the dotted line.

I'm in need of some wisdom from experienced investors. I'm trying to find out which route to take between Portfolio loan, refi, or if there are other options. 

Here's my situation: 

Property #1- Single unit commercial building in which I hold a free and clear title. Currently rented out.

Property #2- Five unit commercial building with all (5) units leased. Has a current mortgage and has a great deal of equity due to forced appreciation and a crazy low purchase price. 

Property #3- Single family residential house. Rented- with a lease renewal as of this week. Has a current mortgage and has some equity.

My goal is to purchase at least 2 more REI's this year or a multi family, at the minimum. I'm wanting to access the cash, purchase REI's with cash then Refi on a 15- 20yr term.

Based on the above information, what are the suggestions from the experienced investors? Note, my wife and I have only a few years of investing under our belt but we are prepared to take a big step forward.  Feel free to PM me and I will share the numbers if you need them to give accurate advice. 

Thanks in advance.