All Forum Posts by: Daniel Suarez

Hi All, 

I have some family members who are not residents, American citizens nor leave in the US and are interested in partnering to buy a multi-family with me. Does anyone have any experience with this? A couple of follow-up questions. 

• I know we can form an LLC if they get a TIN, any ideas on how foreign persons can get a TIN?

• Would there be any problems creating an LLC this way?

• Are tax implications any different than for American citizens?

Thanks so much in advance. 

@Erik W. Exactly my thoughts. I would rather put the money in the stock market or stick to SFH.

@Juan Carlos Gastelum Exactly what I'm talking about! monthly casfhlow of $1256 for a 1m investment sounds ridiculous. 

Thanks so much Arn, that is really good to know. I haven't heard of agency loans before, something to look at. I'll definitely do some research on loan guarantors as well. 

Thanks so much Brian! I haven't paid attention to IRR before. I was only looking at cash on cash and cap rate numbers. I'll definitely pay more attention to it.

Interesting, so a lot of people are buying 5% cap rates with the hope that it might be a 4% cap rate in the future?

I only have one multi family currently in C area Oklahoma that cap rates about 11%. I thought most commercial loans were similar (mine was 25 down for 25 years at 5.5%) I guess the better the area the better the interest rate you get, also maybe less vacancy?

Would you mind sharing numbers of a recent deal you made and how that's doing so far? 

Thanks so much!

I'm looking at a bunch of multi-families in different cities, and a lot of them are 4 or 5% cap rate in B areas that sell really fast. 

My point is, I understand that you get lower cap rate areas at A or B areas, but with such low cap rates you're certainly having a negative cashflow at 5% rate with 25% down at 25 years. 

Would love to hear from people who bought similar cap rate properties, what your strategy was to buy such low cap rate properties and how it worked out. 

Pretty cool! do you have any income estimates?  Also, how much are planning to pay for property management. 

@Janelle Dekdebrun, piggy backing on this, I bought a Ryan home and leases it back to them. Pretty good experience.

Took a couple of months to receive the first rent, but it was always on time. The good thing is the appreciation. I’m on my second year. The lease with RH is over and I’m renting to private lender for a little less than what Ryan homes paid. Overall cashflow a are ok, but you get a better appreciation once all of the other homes are sold.

@Devon Rogers, crazy I’m at exactly the same situation that you are but of course much less money.

In Baltimore county, tenant owes me now $12k hasn’t paid, responded or anything. I tried filing for failure to pay with no luck and hired a lawyer to help me with breach of lease. I have court for March 19th, I’m pretty sure she won’t show up also. How long did it take between getting the court date and getting the sherif in for you?

I’m not sure why people are suggesting selling, wouldn’t the best solution be fixing it up and renting it again? So far the best experience in the county with all of my other rentals is section 8, very rarely good luck with regular tenants in the court.

But yeah, I don’t think we’ll see a dime of the money owes since the tenant is not willing to work on either of our cases

Hi Nicole,
I’m interested to know what your thoughts process for buying was, are you located in Baltimore? Why did you choose that area? Do a trullia search for the property to check schools, desirability and crime rate. 

also, do an inventory (see how old they are) of hvac, water heater, roof. I’m wondering what repairs did you have to do.