All Forum Posts by: Marcel Theisen

Hi Raimonds, 

Not to sound dumb, but why not ask the bank.  No point to sitting around wondering if they will give you a loan.  I live/work overseas so getting a loan is much tougher, banks ask a lot more questions and dig deeper but the way to get a loan is keep asking.  I would call a few banks, tell them your scenario and see what they say. If they say no, go in person to some smaller banks and/or credit unions and talk face-face. It will help if you have a property picked out that you think is a good deal. Use the Rental Property Calculator and print it out to show them the potential cash flow and prove that you have done your due diligence and are serious about investing. The fact that you have are running a successful business should work in your favor.  Good luck. 

Hi Tiffany, I don't think there is really a right or wrong answer. It comes up a lot on the forums and I've seen valid explanations for each side. I think the best option is to read up on both pros and cons and speak to a lawyer for advice but ultimately it will be a decision based on your personal scenario and comfort level. I decided not to put my property into an LLC because issues with lender and potential for Due on Sale clause. Instead, I put it in my name and got 3M umbrella policy. I'm sure lots of others on BP with more experience can weigh in but thought I would share my thoughts and here are a few articles that might help:

5 Reasons I Do NOT Invest in Real Estate Using An LLC

Yes, You Absolutely SHOULD Use an LLC to Invest in Real Estate: A Counterargument

Good point about the prepaid cards. I only have 4 units so really didn't have much leverage but with a larger property you should be able to negotiate getting newer, modern machines that can take cards. 

*Counter*-make sure that the machines have a counter (that cannot be manipulated) so you know exactly how many loads have been done to compare to revenue. Older machines might not have these so important to confirm this before signing contract.

I also found the Larry Loftis book on Duplexes, Triplexes and Quads to be a valuable read. I used a lot of the knowledge from that book (and reading BP) to do my first 4-Plex deal last year.  Another one I like is Multi-Family Millions by David Lindahl, it is focused more on larger multi-family properties but still a lot of useful info that relates also to 2-4 unit properties, especially the section on re-positioning properties was interesting to me. Best wishes for your investing future-

I only have a 4-Plex but even so found that dealing directly with laundry was a hassle and the maintenance on the machines (tenants tend to overload them) was costing too much so after the first year I outsourced it to a 3rd party. They put in the machines and do all service calls for 50% of revenue.  

Before signing contract make sure you negotiate. Many companies want a long lease (they wanted 7 yr lease). I negotiated down to 2 yrs and got them to buy and haul away the my broken washer /dryer. Also careful with auto-renew clause that some sneak into contract. Best to get two bids and counter offer on  terms and revenue split percentage to get best deal. 

I agree on finding the location where your numbers work.  Not everyone is open to investing out of state but I think it's more doable than people think.  I live in Spain but bought property in Colorado without even visiting the property. The key is having some good RE contacts in the local market and a reliable property manager. If you can locate those key people in another market it should open up your possibilities. 

Have you talked to HSBS?  While recently researching a loan for buying US property, I saw they had some options for foreign nationals investing in the US.  I don't know if they will consider your foreign owned property as leverage but I remember the documentation stating something about using your 'international credit history' based on your global finances. Sorry, I don't have specifics since I didn't end up going thru them (I'm a US citizen so got a conventional loan)...good luck.

Hi Joshua, 

I just started looking into using my IRA to fund my next deal. I was recently at an investment club meeting and met a rep from this company.  I don't know if I will end up working with them, but they do have quite a bit of info and FAQs on their site which might be a useful place to start. 

I struggle with this also, I've tried to journal but have failed many times.  One method that multiple people have recommended to me is doing 'Morning Pages', it's a method developed by Julia Cameron in her book, 'The Artist Way', it has a 'new age' feel so some people might be turned off but I have talked to people (artists and not artists, business people, etc) that rave about it. Check out this article for a brief overview. I'm also a fan of James Altucher and his method of writing down 10 ideas a day.  I've been doing this recently,  I am trying to stick with it... but it's tougher than it sounds!

Hi Gon, 

I contacted the companies you mention above but they didn't offer me very good rates/terms. While searching I found these others. I am just starting the process of getting the loan so cannot really give feedback but here are the links in case you want to talk to them: 

LimaOne

Caliber