All Forum Posts by: Richard Anderson

This is basically an evolution of what already occurs in banks. In 2018, FinCEN started requiring banks to record the beneficial ownership information for companies. Everyone who owns 25% or more of a business is recorded. The new act will require registration directly through the FinCEN site. 

We used a HELOC on our primary residence to purchase our first STR. For various reasons it took about a year from purchase and rehab to get it up and running. It's been "interesting" watching our rate constantly increase over that year. If I did it again, BUT not at today's rates, I would have probably gone with a cash-out refi instead. Once we were up and running I would have taken any unused funds and paid them back. I also would have probably considered a DSCR loan instead. But I didn't really know anything about those then. It's what we're looking into using for our second STR. Also, as I think someone mentioned, you might have a challenge finding a traditional lender who will do a HELOC on a rental property.

Asking for account numbers wouldn't have anything to do with AML. For AML requirements it's just required that basic (name, DOB, address, Tax ID Number) identity information is provided. 

Thank you Luke!

Hi Everyone, 

We just launched our first STR and have hired a cleaner. They are a sole proprietor and I am wondering what information I need to collect from them in regards to taxes.

Thank you! 

That is the same as the "control prong" in banking beneficial owners. I work in banking AML compliance. 

Here is an article from Wolters Kluwer that covers the entities exempt from reporting. Basically for the majority of folks on BP, if you own a business registered with the Secretary of State, smaller than 20 fulltime employees, you will need to register. 

https://www.wolterskluwer.com/... 

This is already going on in banking. When you open a business account the bank is required to gather Beneficial Owner information. It's the same information. 

Here is the link to the FinCEN Fact Sheet: 

https://www.fincen.gov/benefic... 

@Terrell Garren Thank you for the info! Yeah, I've been with my accountant for a long time, but perhaps it's time to look for someone new. 

@Steve Vaughan What? There are only nine community property states and Illinois is definitely not one of them!