Getting around "2 yrs/CPA Letter" 4 mtg? - Posted by Jeff Martin

Posted by Jeff Martin on December 14, 2006 at 15:29:46:

That’s what I would have thought. I can prove we’ve been around for a while…just can’t produce the CPA verification letter everyone I’d talked to has been asking about. Shoot me your contact info, please, and let’s talk…

Getting around “2 yrs/CPA Letter” 4 mtg? - Posted by Jeff Martin

Posted by Jeff Martin on December 13, 2006 at 22:28:37:

Hello-My wife and I are fulltime investors fr past year and a half and parttime for another two years prior. We’ve been stuck using hard money on our rehabs and would like to buy/hold now. Since we have no W2 income, all mtg brokers are asking for a letter from our CPA saying we’ve been selfemployed for two years. We haven’t ever used a CPA for our taxes. My LLC is over four years old, now. Anyone know how to get around this? Help…

Re: Getting around - Posted by Ben Carmona

Posted by Ben Carmona on December 14, 2006 at 10:05:07:


This is simple and your going to be just fine.

You have a couple choices here. You can show the articles of inc. as suggested previously. The other would be to simply take your tax returns to a cpa. The lenders guidelines do not specify that the cpa must have filed your taxes; rather it states that they just need to verify that you have been self employed for a 2 year period.

As Ed suggested, it should be a priority for you to build a relationship with a cpa. Maybe this would be a good opportunity for you to make a connection.

I also highly recommend building a relationship with a mortgage consultant that specializes in investment loans. This was something that could have easily been communicated to you from the previous mortgage reps.

In fact, from past experience…I referred a client to a cpa for just the same thing and as it turned out the cpa was also able to save him thousands of dollars.

Ben Carmona

Re: Getting around “CPA Letter” 4 mtg? - Posted by Ed Garcia

Posted by Ed Garcia on December 14, 2006 at 09:39:50:


I agree with Mcole. Not having all of the details it?s obvious that the lender not only wants to know how long you?ve been in business, but also wants a CPA?s opinion letter on you being legitimate, solvent, and how you?ve been conducting your business. This is something requested more from a bank rather then a Mortgage Company.

Jeff if your intentions are to stay self-employed as a REI, I would suggest for you to find yourself a good CPA, as well as an Attorney. You may not have felt the need thus far, but you will definitely need their services as you continue to grow.

Meanwhile my suggestion is either brake you broker off of the CPA opinion letter, replace the broker, or find a CPA in your area. Tell them you want to establish a business relationship as well as give you the letter you need for your lender. If the CPA is not innovative enough to accommodate you, they would not have been a CPA that you would want to do business with to begin with.

Ed Garcia

Re: Getting around - Posted by mcole

Posted by mcole on December 14, 2006 at 08:13:36:

If you?ve had your LLC for four years, and can verify it, I don?t know what the problem would be.

If you have a business license, articles of incorporation, or anything else to show that you?ve been in business for at least two years, you should be fine.

Re: Getting around “CPA Letter” 4 mtg? - Posted by Jeff Martin

Posted by Jeff Martin on December 14, 2006 at 15:33:23:

Thanks…that’s the realization my wife and I have come to the past few weeks. We are fulltime investors, now, and I can see the need for a CPA to help reduce our tax liability. On a different note, do you have the upcoming schedule for your next lending workshop? Read about it last night and we’re very interested. Thanks…