All Forum Posts by: Gilles D.

Hey everyone!

Wanted to see what my best options are in this situation:

I want to borrow 200-250K as a NRA(non resident alien) with no credit history, to invest in a syndication deal.

I have a rental property that's owned free and clear worth around 750-800K so in case of a cash out refi my LTV would remain low.

It would be a short term loan: 2.5 to 3 years at most before I pay it back.  If possible I would want the amortization over 25-30 years.

I know cash out refi is quite expensive with the origination fee and everything, early pay off could cost too or drive the rate up. And the rates I usually get quoted are already quite high.

Would a heloc be a good idea here or also very high rates ?

Any alternate options I have here?

Thanks in advance !

Same here. That and maybe this one unit around upper middle class… a nice townhouse in a great area for 4500. The other rentals I have are SFH all around 2500 ish in rent

 Thanks Theresa!

 Makes sense. Thank you Josh! Have a great 2024! 

Hello everyone,

So I recently acquired 2 new rentals, central Florida area.

One around 3rd week of November, the other early December.

Both are in great areas, priced at market rents.

I'm working with a friend of mine who does PM and is a realtor as well.

I was wondering, what is realistic in terms of vacancy? People say 5-10% usually...

What makes it so that one PM company could rent your property out so much faster than another?

My understanding is you want to put it on as many platforms as possible and you just have to wait? So I've been told.

How does one PM company have the advantage over the other? By doing more marketing? Having a more extensive data base?

I figure that the bigger they are (not necessarily better), that they also have more people looking to rent through them.

Both units are still vacant, and I understand that it's December/January and not ideal to get tenants in(long term lease).

Anxious to get them rented out.. Wanting some perspective to make a decision here soon.

I understand that mixing business and personal relationships probably gets avoided for exactly this reason...

Nonetheless, I wanted to see with you guys what your experience is and what is reasonable to expect. Even in this period of the year.

Thanks all and have a great NYE!

Hi everyone!

I am close to listing one of my properties that thankfully has appreciated a bunch over the past couple of years.

A couple of things I was wondering about in regards to the sale of this property, I plan on a full 1031 exchange:

1) Since I am a foreign investor, does FIRPTA still come into play with a full 1031? Or are you exempt as long as it's a full 1031?

I've received conflicting information therefore I want to make sure.

2) Is filing an 8288-B form a guarantee? (if the mentioned above does not count)

I know you can deposit the 15% with the settlement agent but it's close to 200K, which I do not have laying around I'm afraid.

3) There was a legal issue in regards to this property, with an outstanding balance of 100K to be paid, can this be paid off through the sale, and still count as a full 1031? Or would that mean I get taxed on a boot of 100K, which in return would get cancelled out because I had a 100K expense?

Thanks in advance!

Hi everyone,

I currently own a home outright that almost doubled in value over the past 5 years. 

It shot up from 750K to about 1.4M based on current comps.

Now, I am considering seller financing on this home as I'm close to retirement.

Currently I am making about 3K net cash flow on this property after all expenses paid, but obviously a ton of equity is unused at this moment. I am waiting on something to clear up before I can sell. This will be in August.

I was wondering about seller financing and offering a better rate to the buyer to make it more appealing.

Now, I can't really wrap my head around as to why this would be advantageous to the buyer.

For me, with a 5 year balloon I'd make about 300K extra off the property. Assuming a 300K downpayment.

If the seller agrees - yes he gets a 1% better rate than the banks would give him, and he doesn't have to qualify...

But when he refinances when the balloon is due, he will end up paying more interest if he refi's to a 30 year conventional.

So even if I offer him interest only for 5 years, he still ends up paying a lot more. His biggest advantage is in lower monthly payment... Right? But this is more of a family home than an investment property.

For me it would be "easy" money, obviously I need to factor in the opportunity cost of not putting the 1.1M to work for 5 years.

is there anything else I'm missing? Or is a deal like this really a win-win?

Who comes out ahead the most?

Hope that is kind of clear and any input/advice is very much welcomed! 

Thank you!

 Thank you Bjorn! That is helpful. I have worked with a great property manager for the last 2 years now and haven't had any big issues *knock on wood. 

Hello everyone,

I am an overseas investor and own 3 SFH in America.

Currently, they are owned in my personal name.

I know putting the properties in an LLC, even if it's solely used as a pass through entity, provides me with extra protection.

However it does come with extra expenses as I have to file a corporate tax return for each of the LLC's, even though it's just a passthrough entity.

Is it hard to do the corporate tax return yourself? Since the LLC itself does not have income as a passthrough entity?

Putting each of the properties in an LLC seems like the best option liability wise...

But, if I were to not put the properties in an LLC, I am aware this opens up more risk.

Could this be balanced out by taking out an Umbrella insurance for example? To be more protected, or is this just stupid?

Each of the properties are owned outright without a mortgage and worth about 300K each. 

What is the actual chance that even if something happens with a tenant that the claim exceeds such a large amount? 

Or what the regular (AND umbrella insurance) wouldn't cover?

Follow up: 

I plan to buy 2 more properties quite soon.

Net cash flow will be around 80K after all expenses and taxes paid.

At which point does it make sense to move into a different legal structure, ie. a C-corp?

Would having the properties in a C-corp limit me to whenever I can take out money for non-business/private/personal expenses? Since all the income flows through the business then?

I plan to reinvest at least 50% of my net cash flow but I don't want to have the cash "stuck" in the business.

I hope that made sense, any input is greatly appreciated!

Thank you BP community!

Hello BP Fam!

I currently have 3 rental properties, all SFH. In total I'm looking at about 2M USD in equity.

The properties do not have a mortgage on them. 

I am an international investor therefore I do not qualify for the standard mortgage like a US investor would.

Currently I would qualify for a cash out refi at 65% LTV and the rates are in the high 9s….

I am close to hitting my monthly cash flow goals but I want to keep expanding my portfolio of course.

Since the cash flow goals are almost hit, I do not mind acquiring some debt to continue to grow.

However, at such rates it does not seem very favorable. I wouldn’t mind if it’s a break even operation just to acquire another property but even that seems quite hard to find with these rates. I understand that it still means I would have an extra property, more tax benefits, another unit that appreciates in value. So even if I had to add a couple of hundred dollars a month on top of the rent to cover the mortgage, it would still be a win of course… But preferably at least break even. I thought about slowly transitioning into MFH but I might wait until my net cashflow has exceeded 10K/month and if I can at least come out once/twice a year to the US to follow up. 

I bring up the MFH because maybe at first with a 12 unit I’d have to add money to cover the mortgage, but after forcing appreciation and raising rents it could actually make sense. But the high 9s really don’t seem very appealing right now.

Aside from a cash out refi, are there other ways that I can leverage all of this equity to acquire more properties?

I appreciate any input from you all ! 

Thanks guys,

Gilles