Mike Andes hits a wall with his bank over a $3.3 million loan for a building. His four S corporations and two new LLCs made the operating business look unprofitable on paper, even though he's reinvesting capital gains and growing. The underwriting delay could tank the whole deal.
$3.3 million
August 5, 2022
Four S corporations
Two LLCs
It is not drama and clickbait that is actually stressful for me right now because we need to move into this building. Yes. The 3.3 million dollar loan. Some people are like, you don't need to have the building. Okay, let me explain what just happened, because the underwriter has now told me why this whole delay has happened. This is the problem right here. You got me, Mike Andes, below me, I got four different S corporations. So you might be asking, well, how do you have an unprofitable franchise? Like, where's the money coming from? I made a lot of money in capital gains because of the stock market. Now I took all of that capital gains and pump it back into the businesses. And so they do not care about me making money and doing this. They care about the fact that this business lost money and is still growing very quickly. And this business all of a sudden grew a bunch because we added two LLCs and dropped in profit margin because of doing that. This is what I'm trying to explain right now. And this is why it actually is a bad situation. So that's what I'm dealing with.
