Beginner In Need Of Advice
I'm a beginning investor. I have been unable to get financing for investment properties due to my credit score. I was advised by a lender to complete a loan application and check that I'm applying for the loan as an owner occupant, since I do not own a home. I was instructed that I can change this once I filp the property, is this legal?
Also, should I start off investing in my own name or should I work to first incorporate?
If you check that you are an owner occupant and you are not, then you are committing fraud and breaking the law. Not the wisest choice to make when you are starting our. Perhaps you should read up on "subject to" loans. You don't need to credit qualify...
Good luck and happy investing
I am no guru in real esate investing but I can tell you this. If you have no cash or credit. Your best bet is to find partners that are available to share the profit in deals you find and get under contract. Using their cash or credit to acquire the property and do repairs.
I would say its wise to start a LLC as soon as possible if you are going to be a serious investor.
I have one LLC in a record company, but I have not gotten one yet for the real estate. Will start it shortly though.
If you put in some effort in finding the deals the money will come to you in a flash if you put up just a little effort.
Everyone is looking for good deals.
Don't lie. I learned that in Kindergarten and it still holds true. I have thoughtfully considered the ramifications of falsifying a loan application for about thirty seconds and have come up with at least 5 FEDERAL felonies you could be charged with. There are many lenders out there and I wouldn't work very long with one who is falsifying loan docs, changing W-2's, etc. If they would lie to Uncle Sam do you think they would have a problem lying to you?
Regarding forms of business organization, you don't need to incorporate to start off. With corps. there is just too much cost and paperwork to make it worthwhile. The only reason I can see for you to organize into a business entity would be to reduce liability exposure. If you are starting out flipping, what liability do you have from judgments? Probably none. Financial risk should be low if you've done your homework. Do a cost benefit analysis and see a lawyer and your accountant to determine what form works best for you.