Video Transcript:
Your K-1 shows a big profit, but lenders often reject it. This is because they don’t see guaranteed money, they only see a business’s leftover cash. My name is David Ghazaryan, and I don't just look at one page. I must analyze the entire business operation to find its real, consistent cash flow. We focus on a key detail: “paper costs” like machine wear. While this reduces your taxes, the money never actually leaves the business, so we add it back. Your K-1 might show a twenty thousand dollar loss, which looks very bad. But after adding back your share of paper costs, you actually have positive income. This is exactly why I need the business's full tax return documents. The K-1 is only a small piece; it doesn't show if the company is healthy. This type of structural analysis is fundamental to my work every single day. For more insights like this, follow me and see the links in the description.
Read Blog Here: https://www.iqratemortgages.com/blog/how-lenders-use-k-1-income-for-a-los-angeles-mortgage
