All Forum Posts by: Jean G.

@Wesley Barnett

If you want to find a bank to refi at current market value sooner than in 12 months, you need to call every bank in town and ask them for the seasoning time after which they can use an appraisal instead of your acquisition cost. Then call every bank in the county, then every bank in the state (you can find the names on regulator websites, to make sure that you don't miss one). If you speak to every single bank you are bound to find one that will do it in 6 months, 3 months or even within weeks. You just need to keep asking until you have spoken to every possible bank.

Jean

Hi Brigham,

nice meeting you! I own one property in Hatch and would be interested in additional properties from 1 to 50 units in Washington, Iron, Garfield and Kane counties if you find anything interesting. I'm not opposed to rural areas like Panguitch and Kanab either, however everything I've look at in Southern Utah in last year seemed very expensive compared to other areas (Vegas and Northern AZ) and rents are rather depressed.

Jean

Hi Rochelle,

I look forward to meeting you at @Phillip Dwyer's next meetup in Henderson.

Jean

Hi @Bill Gulley,

thanks for you input! If I make the lender a member in the LLC, but he is not in fact actively participating in the management of the property (maybe because he is far away, or because he has no experience with real estate), and I not then creating a security once again?

Jean

As for the nice fixed 30y loans that Bryan mentions, you can still get them in your name, close in your name, move the property into a land trust (or generic grantor trust in states like Nevada), and then assign the beneficial interest of the property to the LLC.

Having the property sit in the trust as far as the recorder is concerned ensures that the bank won't exercise the due on sale clause.

Jean

Hi Lalaine,

what was the issue operating it as a vacation rental? Is there a problem with the HOA?

I heard from several different sources that vacation rentals in LV are doing very well (as long as you don't have HOA issues), and since the house is already furnished, why not continue with this?

Jean

@Ess Dee

Conventional lenders will always ask you if you're a citizen, and when you're not, the next question is about your immigration status. I know because I'm not a US citizen and get asked every time. They'll not issue you a conventional loan on a Visa Waiver program. I think that's part of the Fannie/Freddie guidelines.

So you definitely need to find non-conventional programs. I would try speaking to B2R Finance which told me once that they could lend to non residents. And as another poster mentioned, you could also ask your home bank in UK if they would finance a US property. You may have a currency risk though. A friend of mine purchased a property overseas with his home bank in France, although they required colateral in France.

Jean

@Michael Wentzel

Just curious, in which market are you finding these $50k properties that rent for $800?

To answer your question: I personally use a Nevada Series LLC but you are correct that they are less proven. The advantage though is that I can spin up a new Serie in minutes by signing a new operating agreement (we don't require Secretary of State registration for each Serie in NV) and my costs are greatly reduced versus having regular LLCs for each property.

Jean

Thanks Bryan for your contribution. In fact besides the in-state/out-of-state distinction that you mention, there is also another distinction for foreign lenders/investors (which some of the people I'm talking to are) in which case some of the SEC oversight doesn't apply at all because they are non residents. I will be investigating this further with a SEC attorney and report back a definitive answer if I get one.

Jean

Thanks Brian. That definition of a security is very clear the way you write it. I will seek legal advice and see what they think about it. I like to post things here first because I always learn something new, so I can interact better with the attorney and ask the risk questions.

Jean