All Forum Posts by: Jonty R.

Easiest to talk to that person's local bank who will connect with USA branch lending (for example if you have hsbc premier account, they will arrange a US mortgage). 40% downpayment, and interest rates normally 1% above the current rates for US residents. 

Thanks @Drew Kimminau. Yes i thought about LLC but bank would need higher downpayment than 20%, rates would be 1%+ higher and then repayment period is only max 12 years instead of 30 years, so it did not make the cut for our financial investment cause interest rates > rental yield in that case. will let you know what we end up doing.

Hi. I am planning to buy a condo with my friend and have couple of tax related questions. I am a foreign national living abroad. we are buying a condo for $500,000 with 20% downpayment and a mortgage which will be in my friend's name. Bank wont take me as a co-borrower because of my residency status. I will provide 100% of the downpayment and idea is that my friend will return me 50% of the downpayment in next few years and we will own property 50-50. Now bank wouldn't loan him unless i certify that i am giving a gift to my friend for the entire downpayment (otherwise it will add as debt to him and he wont qualify for the loan). So questions

1) Would he incur any taxes on this $100,000 downpayment "gift"? 

2) my name would be on the deed. For IRS purpose, is this considered as 50%-50% ownership? If not, what could be done to make it 50%-50% ownership for IRS purposes!

3) when we sell would cost base considered as $500k/2 for both of us or any different given that for the purpose of buying 100% downpayment came from my friend (as i "gifted" that money for getting the loan)?

I am checking with a tax consultant but thought will also bounce here as there are lots of experienced folks on this forum.

Many thanks

Jonty

Hi @Jason Botto. Since i am new to the website, is there anyway to write private message ? Wonder if you do MA insurance!

Appreciate your response @Samantha Klein and @Jason Bott

MA seems to have tough laws and hence only a few insurance companies are offering services there. I would reach out to Jason to check if he has a suitable policy.
@Jason Bott

Hi , 

Just finished reading Brandon Turner's book on rental property investing and joined the biggerpockets community.

I am buying a 2-bed condo unit in Medford,MA  02155. Market price for similar properties is ~$500k. Its needs some work, so i can buy below market rate and could spend money upgrading to get closer to market rate. Property is rented out. I am trying to figure out what kind of condo insurance policy should i buy. I am completely newbie in real-estate investing. Master policy is “all-in” and master policy deductible is $10,000.I have received a condo insurance quote as follows:

* Dwelling, $10,000 liability coverage (DO i need to get only $10,000 coverage given the master policy or should i get a higher coverage? how much should be good coverage?)

* Other structures , $0

* Personal Property $2000

* Fair Rental Value , $18,000

* Additional Living Expenses, $0

* Personal Liability $500,000

* Medical Payments $5000

* Annual premium $548

What should i consider in terms of additional new coverage items or increasing the current coverage. I dont mind paying a bit more in insurance to get higher coverage.

I would likely push for a new quote for higher personal liability. 

Its an older unit and i would likely upgrade to new kitchen and get some work done upgrading bathroom , flooring etc to attract better quality tenants and get market rent (currently its at $200-$300/month below market given poor condition). Is there a specific policy cover that i should be pushing for future improvements that i plan to do?

My main concern is whether that dwelling coverage is enough and whether the provided coverage items are good enough when i need them!  

Insurance agent tell me that she is too busy to talk over phone so just email her with questions. I guess it means I should find another insurance agent that value my business more.

I am struggling to read and understand this policy (image attached). fair rental value coverage Fire =40, All Perils=38. and similar line items in improvements columns $10,000 and $50,000 on loss assessment property coverage.

Protection line says local fire alarm or smoke detector, deadbolt , fire extinguisher. Do I need to provide Fire Extinguisher if it's not present in the property!

Apologies that some of this might be too basic for you guys. I hope to learn and catchup soon. Many thanks in advance for your answers.

Many thanks.

Jonty