Mortgages and Porn

[MRock]

After 3 years of an emotional rollercoaster trying to sell my property, I think we finally have a sale!

I am putting together my paperwork for a mortgage approval to buy a new house. I was asked to explain what my biz does. I have typed out a nice letter explaining my CD and DVD music site, dropped in some affiliate marketing and a dab of traffic brokering. I've left out that 90% of the income is in porn. Wise move or am i being paranoid?

[EmporerEJ]

Originally Posted by MRock

After 3 years of an emotional rollercoaster trying to sell my property, I think we finally have a sale!

I am putting together my paperwork for a mortgage approval to buy a new house. I was asked to explain what my biz does. I have typed out a nice letter explaining my CD and DVD music site, dropped in some affiliate marketing and a dab of traffic brokering. I've left out that 90% of the income is in porn. Wise move or am i being paranoid?

OH no...that was a wise move.
We had a similar situation 2.5 years ago buying the new factory.
fortunately, we can easily confuse the average banker guy by saying
"We manufacture a Virtual Reality Interface with a haptic interface for medical use."
This usually generates a "wow, that's great," (Like they know what it is and don't need to ask.)

Then they look at the numbers, which is all they care about anyhow, and bingo.
But now, money is a bit tighter. We would have never been approved in today's financial climate. So I want to sincerely wish you luck.

[MRock]

Thanks for the reply EJ ... my music site has definately helped explain things for family and such. I think I will continue this way with the banks too

[Hell Puppy]

Originally Posted by MRock

After 3 years of an emotional rollercoaster trying to sell my property, I think we finally have a sale!

I am putting together my paperwork for a mortgage approval to buy a new house. I was asked to explain what my biz does. I have typed out a nice letter explaining my CD and DVD music site, dropped in some affiliate marketing and a dab of traffic brokering. I've left out that 90% of the income is in porn. Wise move or am i being paranoid?

Speaking for both corporate credit as well as credit for the principles of the company and employees seeking credit, we've never had trouble getting approved for anything.

First thing is do be sure to have SOME mainstream activity even if it is not profitable. If you bill your company as internet marketing, web development or whatever, someone is always going to ask to see some sites that you dont necessarily want to know you're a porn lord.

For the banks, employees never have a problem, paystubs and W2's are all the bank cares about they dont care what the company does. For corporate credit or credit for the principles, they usually dig into your financials a bit more. But i've always found they're more interested in proving that you are solvent, have cash flow and a good credit rating than actually digging into HOW you make the money. They're just assessing risk.

If you're big enough it's also a good idea to put yourself on payroll and draw a paycheck and W2 just like everyone else instead of relying solely on pass thru. That also helps protect your liability and ensures you're not piercing the corporate veil by mixing personal expenses with corporate.

I suspect if your credit isn't solid though things are ALOT more complicated.