All Forum Posts by: David Rutledge

Hi Everyone,

I am looking to get some more information about different financing options both conventional and non conventional.

I am just starting out in the RE investment world and I am looking only at long term buy and hold rental properties (both multi and SFR) I recently completed the purchase of my first few properties both with conventional financing with a 20% down payment.

Moving forward I am looking to add to my portfolio over the next 6 - 9 months. I am looking for some more information on financing options that may be available to me in order to maximize my saved capital and leverage position.

I am only looking at very modestly priced homes or units (between 100 - 150K) and I have about enough for a down payment for one other property in this range (around 20K) My plan right now is to wait a few months, get some experience under my belt as a landlord after getting my feet wet with these two properties and then pull the trigger on another property with similar characteristics as the ones I have recently purchased.

As I mentioned I have enough for a down payment for one more using the conventional financing method I have used with the first few but one more similar purchase will effectively drain the last of my capital. I am admittedly a complete novice in the investment business and I am on a huge learning curve with all the elements of RE investment that have come up. I am wondering if there may be other options available to me in the way of maximizing my capital to secure financing for more RE purchases.

Ideally I would like to build my portfolio as much as possible but I feel that my current capital can only stretch to one more conventional purchase and I will need to wait to save additional funds for the purchase of my next investments (hopefully coming from a mixture of my regular income and rental income).

I am wondering if any experienced investors on here have any advice for someone like me and can perhaps suggest some "outside of the box" methods of RE financing that I may not be aware of.

If I was to go with another conventional mortgage I would most likely use the same lender. Both my properties will be generating a modest cash flow and I am also wondering how long this cash flow will need to be serviced before the lender will view the properties as income generating assets as apposed to liabilities for the purposes of my debt to income ratio.

Any information on any of this would be greatly appreciated.

Thank you so much for your time.

David 

I just recently finalized the purchase of my first two investment properties. Both these properties are long term buy and holds. I just wanted to get a sense from experienced investors out there on how you guys go about organizing your properties and the bank accounts the rent is paid into and the mortgage is taken out of.

I was thinking of opening separate savings accounts for each property so I can clearly evaluate the financial performance of each property specifically. I have been told that this would also be easier for tax purposes.

As I am sure many of you can appreciate there is so much to learn for a new investor like myself and I find myself having to make new decisions every few days. This is the first time I am doing all of this so I am just interested to see how you experienced investors go about this. Do you recommend having one account for all or is it easier to open a separate account for each?

Thanks so much everyone.

David

Seems like it will be significantly more complex than I anticipated unfortunately.

I am thinking now it may the best option for her and I to partner up and I actually get the loan for the property.

She can throw in half the down payment and reap half the profits. Guess we are going to get a little more creative as it appears getting a loan from overseas is going to be very difficult.

Great tip, I have seen a podcast with Amanda. 

Thank you so much for the advice.

David

Thanks Peter,

Very helpful information. I have heard of the FIRPTA tax. Can she buy the property in her name and then transfer title to a US company before selling or would she need to actually buy the property in her name to begin with to avoid this tax?

If she was to purchase the property in a company would she still be able to use a residential loan to purchase or would it need to be a commercial loan?

Thanks again for your time and advise.

David

Thanks for the response Sam.

She will be getting much smaller mortgages around 100K - 150K do you think any lenders would be open to lending her that kind of amount?

Thanks again for your response.

David

Hi everyone,

I have just stepped into the wonderful world of RE investment over the summer. I have always used HR block for my taxes but now that my return will no doubt be significantly more complex considering I own two rental properties I would like to enlist the services of a Real Estate tax professional.

I live in Orange County, CA but my properties are in NC and IN.

I am wondering if anyone can make a recommendation of any accountants that specialize in real estate investment for the purposes of tax that I can work with for my income tax return for 2016 and beyond.

I live in Irvine so any recommendations in the OC area would be greatly appreciated.

Thanks so much for your time.

David

Hi Everyone,

I am pretty new to the RE investment game. I actually just purchased my first two buy and hold properties over the summer. I live in the US but I am originally from Australia.

My sister works as a nurse in Australia and has saved quite a bit of money (about 120 00) and she would like to invest in the US.

I am wondering if someone on here can provide some insight or guidance for a foreigner trying to purchase  property in the US.

My sister is looking at buy and hold property and will be using financing to purchase some property. Can someone tell me if she should be looking at trying to get financing from lenders in Australia or here in the US? How does this process work for foreigners with no US credit history or income? Would lenders in the US be willing to lend to foreigners living and working overseas and would Australian lenders be willing to lend for the purchase of an overseas property.

Also, does anyone know if my sister will still be able to claim losses from her American investment property against her personal income tax? Obviously there are significant tax breaks if she was to buy in Aus but I am assuming that would not be the case if she invested here?

Any information on this and how to get started in the lending process would be greatly appreciated.

Thank you so much for your time.

David 

Hi Everyone,

I have just recently completed my first step into the RE investment world by buying two properties as long term holds. A SFR in Charlotte and a duplex in Indianapolis. I was a complete novice six months ago and I have used BP as my main guide and resource to learn about the best way to get involved in the business. I have used the guidance and advise from many people on these forums, the podcasts and the articles to help direct me to make smart buys that will hopefully assist to by long term goals of building wealth through real estate.

Using the 1% and 50% rules have really helped me understand what I should be looking for in an investment market and property and I am really happy with the purchases I have made. I am planning to make another purchase in about six months.

I live in the US now but I am originally from Australia. My sister has saved up some money and is interested in also investing in RE but back home in the Australian market.

I have researched a ton of markets and feel that I have a pretty good idea of what is available in my areas of interest in the states but I have no idea at all what the market and conditions are like in Australia.

I am wondering if any members may be familiar with the Australian market and be able to provide me with some guidance.

As I mentioned when I was looking for property here I had strict rules about finding immediate positive cash flow and followed rules of thumb like the 1% and 50% rule.

I am not even sure if that is possible in Australia. I want to help my sister get involved in RE investment but I am not sure if the strategies and skills I have learned that I believe can work for me here in the US will work in Australia. I would love to get some insight from others in the know.

My sister lives in Sydney but is originally from the Wollongong/South Coast area so that would probably be the best place to start for her but if the numbers do not work there then she is open to exploring other markets. She is looking at a buy and hold with positive cash flow and medium-long term appreciation potential 

Any help or guidance would be greatly appreciated.

Thanks so much for your time.

David

Hi Everyone,

I am an out of state investor from CA and I just bought a place in Charlotte, NC.

I am looking for a property management company to connect with in the Charlotte area. Does anyone on here have any recommendations?

Thanks so much.

David