All Forum Posts by: Franco Montano

@Kevin Guyden The amount of protection you need really comes down to the size of your portfolio.  Insurance is a great first line of defense as many have mentioned.

In terms of transferring property to an LLC you can look into using a land trust. Done correctly you can transfer title to a land trust then beneficial interest to an LLC without violating the due on sale clause. There's a lot of information available online on this but it may be best to consult an attorney that is familiar in this process to assist you because every state can have different rules.

Regards, 

@JasonY. You should find a lender that would be willing to do what is called deferred financing. You can look up information on that in BP. If you are buying the property all cash or using your HELOC in your case, you can refi the property without having to wait for the 6 months seasoning. I haven't done this yet myself but there's many people on the site that have that you may want to ask advice from. You really want to get out of the short term money into long term cheaper money as soon as you can.

on a side note I agree with what everyone is saying about the cost of your HELOC, it's way too high. You'll get a better deal at another bank or just go hard money.

@Desiree Markle I'm exactly in the same situation thinking if I should pursue some deals with hard money while I sit on my cash waiting for better opportunities just in case the market turns. 

I would love to hear what other investors think but I'm thinking about pursuing high cash flow areas like Tampa, Memphis, Cleveland, etc. and using hard money to BRRR. I've never invested out of state yet so I'm pursuing this for the first time. I'm in the CA market which is great for flips but not so much for rentals. I'm not going to get aggressive on deal flow (I'm a bit conservative of an investor) I'll use my cash as a safety net just in case and if I'm able to get a deal fully refinanced to complete BRRR the cash flow should be more than enough to weather a drop in rental rates if that were to happen. I would also have a cash buffer to weather the storm and pick up deals if the lending market were to freeze.

@Jonny Nila I've had several investments in the Philippines that have done very well and all made money but the business is very different than here in the US and I would describe it as a high risk high reward environment. The market is quite fragmented and highly illiquid due to several factors but therein lies the opportunity. Purchases are usually done in all cash transactions. Mortgages by banks require 50% down payments usually or if you buy them from developers you could get better deals. There is no escrow but done through lawyers. There is no such thing as title insurance and real estate agents there don't have licenses. I bought bank REO condos there before and I got them for dirt cheap and flipped them for almost triple the value in a few years. This was many years ago and the market is much different now so REO deals are pretty much gone.

I think there's a lot of opportunity in the low to mid income housing rentals if you buy right in the right areas or if you're looking for an appreciation play you have to buy quality. I would equate investing there to buying in Detroit. You can get really high returns if you do it in the right places with each street and building being different. You make a mistake you can take a large loss. 

The currency is volatile but has stayed within a certain range and currently at a price that favors foreign investors but is still a risk. There are ways to hedge it but you have to be a big investor.  

I recommend you have a team there that's really experienced that you can trust that knows what they're doing. If you are still serious in investing there let me know and I'll help you the best way I can.