Once again, I sense you are looking for a definitive answer. And it is....(wait for it)...it depends.When it makes sense to use Capital Gains as recurring cashflow:The borrower is receiving payments on an installment sale.
As a lender, you have three questions to answer before you can say 'Yes' to their loan request: Would the borrower pay the loan if they possibly could? Does it look like they can pay
If you are pulling historical cash flow from a 1040 (what really happened in the checkbook), you need to include IRA distributions if they actually received the money.If you are pulling recurring cash flow from
We just went to print on our new manuals updated for 2009 tax forms. Perfect timing since they are due this month (unless your borrower extended to October).Purchase the manuals if you don't have them
What works on auditors may work on lenders A 2009 study performed by researchers at the University of Massachusetts at Amhurst demonstrated that auditors are less likely to find manipulated earnings when management directs their
The 'Ask Linda' section of my website is a great way for you to get answers to your questions. And it is a wonderful way for me to find out what you need to know.
This would be a bad time to miss an add to taxable income. Your borrower's need all the help they can get to qualify for your loan.Some in this list are personal and some are
Limited Liability Companies...the darling of small business. Along with S Corporations, probably one of the most used entity-types.What is in a name?Be cautious...a Limited Liability Company (LLC) is not the same as a Limited Partnership.
SHORT ANSWER in case you cannot read the entire post: Meet with you small business borrowers for a new needs assessment Visit at least 3.3 times each year Understand their business Demonstrate that you understand
Great question, since Schedule B is a mixed bag. As always, check your own guidelines. Here is my short list: Add Interest from banks, credit unions and S&LsWhen interest rates come back out of the
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