All Forum Posts by: Carl Olsen

@Katila Milligan-Pate We have used a GC called Ed Gil on a couple of rental projects in Denver and found him to be reliable, honest and very good. PM me if you would like his number.

The local zoning for where the house is would have to allow duplexes and I am sure all counties would require permits for such work. Check on your local county web site.

I would go one further and say that everyone in a business needs to sell. We are all salespeople, a business can't just rely on one person to sell. I ran a successful software development company for 27 years and had a incredible staff of very intelligent but social awkward engineers. I spent a lot of time working with them on the idea that sales is the process of solving the customers problems and delivering beyond what the customer expects. It worked very well and my company and my team thrived while many of our competitors faded away.

Does the zoning allow for a duplex?

Travis Sperr when is the meeting?

Damian I would suggest Brandon's book on land lording first. It is a great book and will help you with many of the problems and questions you will have for your immediate rental situation. You can get it in BiggerPockets in printed, digital and audio book. Then read his rental property investing book. Carl

@Jay Stevens

For any Americans reading this please put on your best Aussie accent to read the rest of the post :).

G'Day mate, welcome to bigger pockets from a Aussie living in Denver. 

You will need a US accountant as you will need to file a Non-resident alien tax return for your investments. The accountant needs to understand the tax treaty between Australia and US as this can change the treatment of some of your investment. I have details of the accountant I used when I first started investing in the US and can send those if you need them. Your Australian account will also need to be familiar with foreign income for your Australian tax return. You will need to file for an individual taxpayer identification number (ITIN) as well but this usually happens when you file your first tax return in the US.

Have you looked at getting finance for a purchase here? I very much doubt you will get a US bank to lend you money, I can't even get a credit card because I don't have a SSN yet. From the checking I did in Australia some years ago Australian banks would only lend money with Australian assets as security.

The other questions would be if you buy the properties under an LLC or in your own name. Given the debate that goes into that question for US residents I am not sure how the complications of international borders would affect that.

I think you will be hard pressed to find a property in Denver for 100K but if you do and want a opinion on the area feel free to contact me. My wife was born in Denver and knows the city and the front range well.

I lived in Sydney for 30 years and when looking at real estate in the US it is very exciting to see property that is positively cash flowing, something that is unheard of in most Australian cities. 

Good luck with your investments and if there is anything I can help with feel free to PM me.

@Sunny Basu have you had a look at the numbers using the rental calculator on BiggerPockets. I think filling in the fields on the calculator prompts you to include all the costs and will give you a better idea of what the numbers look like. 

@Shawn York I think if your partner currently pays the tax lien off in time each year then unless she stops doing this buying the tax lien is not going to get you the mobile home. 

I don't know about small claims court in the US but from my experience in Australia you would need a contract between you and the other party that gives you a buy/sell arrangement to get out of this deal. From your description you don't say if the other party pays you rent our owes you any money so not sure what else you would pursue her for.

I would think legal costs if you try outside of small claims would soon consume $3500.

If it was me I would try to negotiate with the other party for her to buy you out and move on. Maybe look at a hiring a mediator if you are not on speaking terms anymore. Even if you only get back part of the money or walk away it is probable a lot less stress and cost than court related action.

If you have to walk away put it down to a learning exercise and good karma in that you have helped someone stay in their home. Ok, maybe that is stretching it to find a positive in walking away.

Dan,

Is the rehab cost being financed by the money you are lending? 

If so, then I would get your own estimates of the rehab cost from a third party and hold that amount in reserve. As they complete the rehab ask for receipts then pay out the money. I have not done any commercial loans in the US but this is common practice in Australia. This does not guarantee no cost overruns but gives you some more control over the process and your money.

I would also look at worst case and see if they fail to complete the rehab will the land value cover your loan amount. One of the hard money lenders I spoke to will only lend if this is the case on commercial deals.