All Forum Posts by: Wei Hong

Hi Sam Daniels

I did some research as to which state to incorporate the LLC and I read that the advantage of say Wyoming is generally that there is greater asset protection; taxes-wise, they seem to be similar. Thus considering that my assets are pretty low, I feel there wasn't a strong need to setup the LLC elsewhere.

I guess DIY is not really an option for me, thus I am looking around and trying to short list possible service providers for each of the tasks. Thanks for the numbers for the accountant, helps me budget for my costs

Hong Wei

Thanks Marco Santarelli and Karen Margrave for the referrals!
Reading and learning about these stuff has got me more enthused about real estate

Hi,

Is there anyone who has experience in setting up a LLC in San Antonio Texas, especially for foreigners?

I have some more questions which require some help to supplement my research. I did some reading up on registering LLCs in Texas and came up with the following, but am not sure if its complete. Any additional info would be much appreciated

1) Registering of LLC and Federal Tax ID
Can be done with Legalzoom, however a Registered Agent and Place of business is required. Is there a recommended Registered Agent service which is reliable? Especially for when I am situated in Singapore

2) Book keeping and filing for tax for LLC and individual members (since LLC is a pass through structure)
Is there any recommendation on accountants who will entertain foreigners?
How much should I budget for this yearly?

3) My understanding of the taxes that the LLC and members will be liable for are
Federal income tax
Texas franchise tax (of which the LLC will be exempted due to the revenue being below the threshold)
There are no state income taxes nor Federal LLC income taxes
Are there other taxes that I have missed?

Thanks in advance!

Thanks Brandon Turner. I am digging around to see if any lender offers such packages. Starting this thread paid immediate dividends as googling cash out refinance threw out much better results than googling home loans

Hi Marco Santarelli

Hope I did the right thing to indicate a member? The @thingy

I think a lot of Singapore people are looking overseas because of the crazy market over here. Suburban apartments (1000sf) here are well over a million bucks and gross rental yields are probably a maximum of 4%.

Part of the reason why I started off with San Antonio was because the friend introducing me to USA properties had a local agent there. It seemed the easiest way to get started. The other reason was that San Antonio economy seemed ok and housing there wasn't affected too badly.

The properties are definitely not in the better parts of SA, but they seem to be quite easy to rent out. Based on the pictures of the properties, the condition seemed to be acceptable, but of course, I had to depend on the local agent to help inspect them properly at purchase

You mentioned that you had helped foreign investors invest in Atalanta. How do you usually structure your deals?

Regarding the cash out refinance, I think you meant a lower LTV? Ie More investor equity than debt? I don't mind taking on a lower loan rate of 50% as it is better than not unlocking any cash. I think anything lower does not make sense for the lender as the loan quantum will be too small, I stand to be corrected.

With regards to your advice, I have been trying around in Singapore, but to no avail. The advice is usually to try something locally where the property is situated, which got me poking around USA....

Thanks for sharing!

Hi

My name is Hong Wei from Singapore and I managed to stumble upon this forum while surfing around. I have started to invest in USA properties and I wish I had found this site earlier. Its a great site with lots of helpful posters and there is a ton of information on this site where I have barely scratched the surface.

A little introduction on my real estate investment journey. I have just started out around a year ago and so far, have purchased 3 properties in San Antonio for the purpose of earning rental income. This was done through the help of a local property agent who manages the entire process, including property management. The properties are held by an LLC and assigned to me. My goal in commencing this journey is to achieve 8k per month in passive rental income within 10 years

Not sure if its proper protocol for newbies to fire questions immediately, but I figured I should do this here so that there is some context for the questions. Let me know if I should move them out

I would like to request the comment of experienced RE members on the 3 properties so that I know what to look out for in subsequent opportunities. Would you have proceeded with the purchases given the details below?
1) J Street (single family)
• Purchase price (inclusive of fees etc): 33k
• Monthly Rental: 695
• Yearly Insurance: 600
• Property Tax (Estimated): 1200
• Income Tax (Estimated): 15% of net rental
• Monthly Property management fee (10% of gross rental): 69.5
• Net income (Not counting repairs of which there hasn’t been any): 4300

2) Morningview Street 1 (duplex)
• Purchase price (inclusive of fees etc): 56k
• Monthly Rental: 1000
• Yearly Insurance: 600
• Property Tax (Estimated): 604
• Income Tax (Estimated): 15% of net rental
• Monthly Property management fee (10% of gross rental): 100
• Net income (Not counting repairs of which there hasn’t been any): 6900
3) Morningview Street 2 (duplex)
• Purchase price (inclusive of fees etc): 56k
• Monthly Rental: 950
• Yearly Insurance: 600
• Property Tax (Estimated): 587
• Income Tax (Estimated): 15% of net rental
• Monthly Property management fee (10% of gross rental): 95
• Net income (Not counting repairs of which there hasn’t been any): 6550

Additionally, as the properties above were purchased in cash, I am exploring if there are options to extract cash from them so that I can re-invest the cash while at the same time taking loans for the additional investment.

These are the loan terms that I am looking at. Is it doable considering I do not reside in USA and do not have a credit score
a) Loan amount of around 200k securitized by the 3 existing properties plus additional ones purchased
b) The current properties were purchased for 100+k, not sure of the actual value now.
c) 50% LTV ratio, I have cash on hand for topups to meet the LTV
d) Loan tenor of ~10 years
e) Properties purchased will probably be around the 30-50k range

The way I envision how this will work is that I am able to get a committed line that I can draw upon based on the 3 properties, so that I can proceed with the other purchases as though they were cash purchases (together with additional invested cash). Following which the first purchase will be collateral for the next purchase (together with any remaining money from commited line secured on the 3 properties) and so on

Thanks in advance for any comments or advice