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All Forum Posts by: Aaron T.

Aaron T. has started 43 posts and replied 755 times.

Post: Best Strategy moving money from Puerto Rico To U.S.

Aaron T.
Posted
  • Developer
  • Aguada, PR
  • Posts 904
  • Votes 272
Quote from @Joseph Loprete:
Quote from @Aaron T.:

you looking for a vehicle to reinvest it or just wire from bank to bank?


 Aaron - 

Looking for the best strategy to move the money from PR to U.S. whether that be a trust/RE/ or any other creative way to avoid a huge tax hit.


 We wire money on occasion from the US to PR and vice verse. no tax implications for moving money. or we also use US banks for PR income. It really all transparent to the banks. In PR when I take out large amounts they ask me what its for, I usually tell them to **** off its none of their business. my wife is more diplomatic. she tells them for "just in case for hurricanes". 

Post: Best Strategy moving money from Puerto Rico To U.S.

Aaron T.
Posted
  • Developer
  • Aguada, PR
  • Posts 904
  • Votes 272

you looking for a vehicle to reinvest it or just wire from bank to bank?

Post: I NEED a HELOC!

Aaron T.
Posted
  • Developer
  • Aguada, PR
  • Posts 904
  • Votes 272
Quote from @Javier Emilio Tirado:
Quote from @Aaron T.:

Normally you have to live in the property for the lender to give a HELOC, unless you tell the bank that is your home of record.

HELOCs are not typically for rental units. 


 Thank you. This is basically the answer i was looking for.


 If you are going to tell them its your home of record, make sure it looks like it. i.g. your mail is delivered there, your tax filing with the county is your home of record, or homestead exemption, etc...

Post: How to get a mortgage or home loan for investment property in Puerto Rico from the US

Aaron T.
Posted
  • Developer
  • Aguada, PR
  • Posts 904
  • Votes 272
Quote from @Joseph Chiofalo:

Hi Kathryn, 

Thanks for sharing this info-  I believe we can be a solution for you and your clients.  On investor products we would be maxed at 75% depending on the documentation type / fico score for the borrower. 

We offer a full range of products for conventional, government (FHA) jumbo.

Feel free to call or email me direct w/ any questions. 


 Do you guys REFI on the island? what is the current rates for island loans?

Post: How to get a mortgage or home loan for investment property in Puerto Rico from the US

Aaron T.
Posted
  • Developer
  • Aguada, PR
  • Posts 904
  • Votes 272
Quote from @AJ Wong:
Quote from @Kathryn Morea:

Hi Joseph, thank you for posting your response. I have lived in Puerto Rico since 2020 and I have invested in fix & flips, bed & breakfasts (2), a hotel, a triplex, a villa, a commercial complex and a large land development. And in all of those, there was no bank involved in a single one. There was 1 commercial lender involved in the hotel and I would never ever use them again. Ever. Next level predatory. There was a short time in 2022 that DSCR loans were available to investors in PR. And there are some commercial lenders for larger seasoned projects. But there is virtually nothing for a fix and flip type borrower or a BRRR method borrower.

So if you are ligit a lender for that product, especially for the sub 100K properties, which post private lenders don't even want to bother with - I would love to connect. We have lots of hungry investors wanting to do deals here but capital is an issue. And there are good reasons. Cost of securing the collateral is much more expensive here and foreclosures can be troublesome. There are only 3 major banks on the island. There are logistical reasons whey other lenders aren't here including the recording process, Puerto Rico's bond rating and lack of MLS / Comps. Standard homeowner type mortgages are common. Single person fix and flip investor loans are not so common.

What sort of loan products do you have available in Puerto Rico?  Thanks! 


Thanks Kathryn,

You can probably help us find a good deal!? We'll be visiting later this summer.. JC and I have worked together for years and recently reconnected, he priced some conventional loan scenarios for me (and my dad) today. For conventional loan amounts on primary purchases with 5-10% down and even FHA eligibility, but I'd imagine the properties that qualify are more specific?

For second homes and investment properties he showed jumbo loan amounts up to $1M or by exception. The sweet spot is 25% down but products were showing with 10-20%. 

Cash out refinances are also an option but no DSCR or alt products for PR at the moment.The rates were actually very comparable to mainland.

Trying to get some more clarity on the appraisal, title, insurance and closing requirements. Any good title/insurance company suggestions? 


If you need a realtor. Talk to Damarys at Tropical Coast Reality. She will be able to assist in the Rincon area.  

Post: How to get a mortgage or home loan for investment property in Puerto Rico from the US

Aaron T.
Posted
  • Developer
  • Aguada, PR
  • Posts 904
  • Votes 272
Quote from @AJ Wong:

I've been a mortgage broker twice as long as I've been a surfer but I think the professional experience might truly be about to pay off! lol 

I'm originally from South Florida and buying an investment property near surf in Puerto Rico has been on my radar for a while, my father and I visited in 2018 and at the time were browsing multi family properties. The problem was that mortgage financing wasn't readily available and so the upfront capital investment was just too intensive. 

By happenstance the lender I work for treats the territory like a mainland loan (think Hawaii) and almost all conventional programs are available and even priced accordingly. The main hiccup and hinderance for obtaining a mortgage for an investment property in PR is that all files are manually underwritten and the title process can be slightly more intensive. 

Now that we've finally finished our casita in North Baja Mexico we're considering expanding our portfolio somewhere warmer in the coming months or years.. 

We would utilize our investment property in Puerto Rico as a second home or STR. We couldn't quite move there full time in the near term, but a realistic gameplay would be at least 6 months per year within the next decade to take advantage of the tax incentives. Our wishlist includes a view or access to the ocean for surfing and at least a nearby marina or launch for a boat, although our initial target area is in Rincon.

There are definitely some challenges and concerns, like the infrastructure, but I have another friend that relocated there full time post the most recent hurricane and has been rebuilding a lot of the power grid. Being in Mexico the past several years has prepared us for almost any adventure. 

Unlike Mexico, where foreign loans and conventional mortgages are non-existent, the mortgage rates and programs for buying a home in Puerto Rico from the US are not only available but actually attractive. If it was a primary residence, there are conventional low LTV's, and as a popular second home destination,10-15% down payments for a SFR is common for well qualified buyers. Investment properties typically require at least 15-25% down but at standard rates.

My fiancé is an interior designer and her friend from Las Vegas just bought an STR they hired her to furnish this summer. It's more of a luxury property but supposedly they can perform really well as full time rentals. We'll let you know how our search goes! Any HOT BNB areas we should check out?

Would you invest in a second home or STR in Puerto Rico if you could get a US based mortgage or home loan?

DM me for any insights or details, yo hablo español. 


 Unfortunately STRs do not qualify for tax incentives. you will pay 33% income tax on earned income. Additionally, there is other rules like residency rules that may exclude you from participating in ACT 60. 

Rincon is a beautiful place, but oversaturated with STRs and properties are going at a premium. 

To answer your last question "Would you invest in a second home or STR in Puerto Rico if you could get a US based mortgage or home loan?"

I am glad I Invested when I did, but we are not planning on investing any more into PR. We will stay a couple more years and cash out any investment income and move the capital somewhere else. 

Post: I NEED a HELOC!

Aaron T.
Posted
  • Developer
  • Aguada, PR
  • Posts 904
  • Votes 272

Normally you have to live in the property for the lender to give a HELOC, unless you tell the bank that is your home of record.

HELOCs are not typically for rental units. 

Post: Who are you banking with?

Aaron T.
Posted
  • Developer
  • Aguada, PR
  • Posts 904
  • Votes 272
Quote from @Steve Vaughan:

Most of ours are with community banks and CUs.  I also like NFCU and Chase takes good care of Vets.  That's my 1 national bank. 


 We did like NFCU, but they ended their bank transfer service, so it makes it more difficult to pay out our owners. I will have to look into chase.

Post: Who are you banking with?

Aaron T.
Posted
  • Developer
  • Aguada, PR
  • Posts 904
  • Votes 272

With more and more banks limiting on how much money you can send or move, who are you banking with that you like.

Wells Fargo and NFCU are off my list. 

Post: Colorado bill to quadruple STR taxes fails in committee

Aaron T.
Posted
  • Developer
  • Aguada, PR
  • Posts 904
  • Votes 272

We have been looking at our exit strategies if this were to go through. We dont want to stay where our capital is not welcome.