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Thread: Depositing funds over $10,000

  1. #21
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    Quote Originally Posted by Warfish View Post
    Is the investment his, to be reapaid or otherwise reimbursed by the business? Then he should be listed as the investor, he can be "silent" if he wishes in terms of management/ownership.

    Is he giving the money to you? Then it's a gift, pay your taxes as appropriate. Desposit the whole thing and don't try to play the system.

    Or.....

    If you're planning on being a business, maybe (just maybe) you should get your financial advice from your duly contracted accountant/financial manager, not the assembled throbbing pulsing brain of JI?

    So true. The Hampur is for emergency medical advice.

  2. #22
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    Just got a reply from my accountants office. Does this make sense?

    -----------------------------------------------------------

    Good morning-
    Bob suggests you document the $25,000 as 2 gifts, one to you and one to your wife. This is done with a letter from your father. Bob will help with the silent partner issue after the investment property is purchased.
    Hope this helps.

  3. #23
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    Quote Originally Posted by gunnails View Post
    Just got a reply from my accountants office. Does this make sense?

    -----------------------------------------------------------
    I assume you are not a minor, I'm no tax attourney, but wouldn't there be tax consequences, like you need to pay taxes on that cash?

  4. #24
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    Quote Originally Posted by gunnails View Post
    ================================================== ==

    Yes the $25K would be to make me appear to be a better credit risk, I have excellent credit but I am cash poor.
    This would be my first investment property and although I have lots of experience flipping house as far as doing the rehab work and where to get the most bang for the buck, I haven't done it for my self, I've done it as a contractor for others.
    The whole how to finance part is new to me.

    So your saying just have him write a letter of intent, and that has as much or more value then just having the cash in a account of mine to a mortgage lender.

    Do you do business in the Portland Area?
    No just 22 years with an active CA DRE Sales License. My favorite activity was in "packaging" loans; that's where the fun is; helping people see the landscape.

    You guys use Lawyers, and not Title Companies? Oregon doesn't want me doing business up there; I cannot take commission on deals in OR.

  5. #25
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    Quote Originally Posted by jetswin View Post
    I assume you are not a minor, I'm no tax attourney, but wouldn't there be tax consequences, like you need to pay taxes on that cash?
    Depends on how the parties involve work this; but yes, a gift is taxable, so Gunnails must iron that out.

  6. #26
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    Quote Originally Posted by gunnails View Post
    Just got a reply from my accountants office. Does this make sense?

    -----------------------------------------------------------
    Clarify if the "silent partner issues" include making that $25K an investment and not a "gift"; as you are going to pay it back and then some.

    This way he may avoid taxes, since he is "investing".

  7. #27
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    Quote Originally Posted by jetswin View Post
    I assume you are not a minor, I'm no tax attourney, but wouldn't there be tax consequences, like you need to pay taxes on that cash?
    ================================================== =

    Yes it does sound like an earned income deal..

    I think I will just go down to my credit union and talk to them and explain that my father would invest some $ and see what they say, maybe I will qualify on my own.

  8. #28
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    Quote Originally Posted by gunnails View Post
    ================================================== =

    Yes it does sound like an earned income deal..

    I think I will just go down to my credit union and talk to them and explain that my father would invest some $ and see what they say, maybe I will qualify on my own.
    He'll have to become an applicant. You do not want this. Just talk to the lawyers helping you; hear them out. Never rely on a Credit Union employee to help (unless you're absolutely stuck); myself and other pros are constantly trained and tested; skin is in the game.

    Any material contribution on any loan requires full or "adequate" disclosure.

  9. #29
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    Quote Originally Posted by WestCoastOffensive View Post
    He'll have to become an applicant. You do not want this. Just talk to the lawyers helping you; hear them out. Never rely on a Credit Union employee to help (unless you're absolutely stuck); myself and other pros are constantly trained and tested; skin is in the game.

    Any material contribution on any loan requires full or "adequate" disclosure.
    ================================================== ===

    Aw jeez, lawyers huh, makes sense, I need to do this right and I don't have the expertise myself, so I guess I call my lawyer and see who he can recommend.

    Thanks to all for your reply's, helps to have you people to kick things around a bit.

  10. #30
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    Quote Originally Posted by gunnails View Post
    ================================================== ===

    Aw jeez, lawyers huh, makes sense, I need to do this right and I don't have the expertise myself, so I guess I call my lawyer and see who he can recommend.

    Thanks to all for your reply's, helps to have you people to kick things around a bit.
    SORRY! The Accountant has it 100% figured out; you shouldn't need a lawyer. I mis-spoke.

    Find out 1) WHERE escrow will be; either at the CU itself, or at ta title company.
    2) If you have control over the choice, ask your accountant if he knows a reputable Title company with good Title/Escrow agents.

    That's pretty much it.

  11. #31
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    Quote Originally Posted by gunnails View Post
    ================================================== ==

    Yes the $25K would be to make me appear to be a better credit risk, I have excellent credit but I am cash poor.
    This would be my first investment property and although I have lots of experience flipping house as far as doing the rehab work and where to get the most bang for the buck, I haven't done it for my self, I've done it as a contractor for others.
    The whole how to finance part is new to me.
    This isn't going to work. It's a common practice that many seeking a loan try.

    Since the mortgage meltdown, loan processors are trained to look through this ploy. They will see the money there and demand to know where it came from.

  12. #32
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    Quote Originally Posted by THE_SOOTHSAYER View Post
    This isn't going to work. It's a common practice that many seeking a loan try.

    Since the mortgage meltdown, loan processors are trained to look through this ploy. They will see the money there and demand to know where it came from.
    Exactly.

    What the OP is describing is basically mortgage fraud. Technically you are trying to deceive your lender into thinking you are a stronger borrower.

    Lenders require that bank accounts are "seasoned". Meaning the money would have had to been there for months. And they will want to see the bank account that the DP check came out of. My guess is they will want to see 6 months.

    And since this is a "investment property" that changes the guidelines of the loan that the underwriter will have to follow. And do not lie to your lender. You have to tell them it is an investment property. This effects the amount of DP required and interest rate.

    There is a such thing as a "gift" for a Down Payment. However, I do not know if that applies to investment properties.

    My advice would be to find yourself a reputable mortgage broker (if mortgage brokers even exist anymore) or investment consultant.
    Last edited by DDNYjets; 07-10-2012 at 04:11 PM.

  13. #33
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    Quote Originally Posted by THE_SOOTHSAYER View Post
    This isn't going to work. It's a common practice that many seeking a loan try.

    Since the mortgage meltdown, loan processors are trained to look through this ploy. They will see the money there and demand to know where it came from.
    This is true my wife is a banker. Also thought 5k was triggering the Feds, isn't that how Spitzer got snagged whoring around?
    Last edited by Apache 51; 07-10-2012 at 04:38 PM.

  14. #34
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    Quote Originally Posted by AlwaysGreenAlwaysWhite View Post
    You never want to get flagged because then the eyes are upon you
    such a free country, innit?

  15. #35
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    Quote Originally Posted by DDNYjets View Post
    Exactly.

    What the OP is describing is basically mortgage fraud. Technically you are trying to deceive your lender into thinking you are a stronger borrower.

    Lenders require that bank accounts are "seasoned". Meaning the money would have had to been there for months. And they will want to see the bank account that the DP check came out of. My guess is they will want to see 6 months.

    And since this is a "investment property" that changes the guidelines of the loan that the underwriter will have to follow. And do not lie to your lender. You have to tell them it is an investment property. This effects the amount of DP required and interest rate.

    There is a such thing as a "gift" for a Down Payment. However, I do not know if that applies to investment properties.

    My advice would be to find yourself a reputable mortgage broker (if mortgage brokers even exist anymore) or investment consultant.

    ==========================================
    Thank you for your input.
    Tis not my intention to deceive or commit fraud, did not mean to imply that.

    I thought having the $25K in the bank would make me a stronger borrower, regardless of how I acquired it.

    Maybe none of this will work out, but if it does I can assure you it will be done legally, I'm not looking to play anyone, just I am not sure how this will or should work out. But I'll get it figured out.

  16. #36
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    Quote Originally Posted by gunnails View Post
    ==============================================

    The thing is that it would not be a gift, more of a generous interest free loan, I fully expect to pay him back in full plus some.
    i believe the gifted amount is 13K

  17. #37
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    Quote Originally Posted by gunnails View Post
    ==========================================
    Thank you for your input.
    Tis not my intention to deceive or commit fraud, did not mean to imply that.

    I thought having the $25K in the bank would make me a stronger borrower, regardless of how I acquired it.

    Maybe none of this will work out, but if it does I can assure you it will be done legally, I'm not looking to play anyone, just I am not sure how this will or should work out. But I'll get it figured out.

    I know it is not your intention. Which is why I suggest you get yourself a good broker or lawyer or whatever to sort things out for you. Do your homework.

  18. #38
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    Quote Originally Posted by John_0515 View Post
    There should be an accountant on here somewhere that can explain better, but I think you'll be fine.
    Southpark is the only one I know of here.

  19. #39
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    Quote Originally Posted by DDNYjets View Post
    Exactly.

    What the OP is describing is basically mortgage fraud. Technically you are trying to deceive your lender into thinking you are a stronger borrower.

    Lenders require that bank accounts are "seasoned". Meaning the money would have had to been there for months. And they will want to see the bank account that the DP check came out of. My guess is they will want to see 6 months.

    And since this is a "investment property" that changes the guidelines of the loan that the underwriter will have to follow. And do not lie to your lender. You have to tell them it is an investment property. This effects the amount of DP required and interest rate.

    There is a such thing as a "gift" for a Down Payment. However, I do not know if that applies to investment properties.

    My advice would be to find yourself a reputable mortgage broker (if reputable mortgage brokers even exist anymore) or investment consultant.
    Fixed.

  20. #40
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    My wife said the Feds get notified at 5k, and even if you put smaller than 5k in over time a bank will look at it, she looks at 1k drops and asks for sources etc. she said that this does not mean your loan will be denied, but some banks look that low, her bank is very conservative.

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