All Forum Posts by: Juan Pardo

This seems a sensible move by Facebook and very likely more companies will do the same. The main reason I can think of that may justify physically going to an office is privacy (for instance a business meeting where confidential information is shared). However, I guess a leading technology company should be able to maintain secure long distance communications, conference calls etc

It could change the current landscape of real estate prices, and also alter the prices for office space. It could help burst bubble prices at some local markets and push prices in other areas that are nice to live but where salaries and work opportunities are not so good.

I hope working remotely becomes a global trend. It could open up interesting opportunities from a tax perspective.

Hi Erwin, I am currently based in Barcelona, although I have lived in several places around Spain.

Juan

Hi Taylor, 

Yes, it would be great if you could introduce me to Billy Keels. I am going to have a look at your website. Looks good!

Best,

Juan

Hola Dani, qué tal estás?

I thought about not being able to finance (or refinance and take cash out) through an US bank right after I sent my initial post haha.. It is the same in Europe. If I went to another eurozone country I wouldnt be able to easily obtain financing to purchase real estate, so I have to buy with cash. This is a problem for Spanish people who go to work abroad (i.e. Switzerland) and want to purchase a home back in Spain, but cant get financing either from Switzerland or Spain. 

Eurozone banks dont want to have to appraise or do any kind of due diligence work in foreign countries. That's the most clear sign of the absence of bank integration in the eurozone. Actually, it is very strange that a Swiss bank cannot do this, because they have teams that can speak pretty much any language, to cater to clients all over the world.

I dont have a very specific idea about a location to invest yet. I wouldnt be able to invest in the most expensive areas, though. California seems to be experiencing a real estate bubble, specially SF and LA. A long long time ago I was offered the possibility to teach Spanish in SF but turned it down. At that time I might have been able to live there on that salary. Today it would be just impossible.

I feel attracted to areas that are different from Spain, that maybe have more green or a colder weather, so have to rule out Arizona (although prices seem ok), California (expensive!) etc I was wondering who buys today in California, taking in account that some US real estate websites provide price history and it is apparent that prices just rocketed (the SF bubble extended to Oakland!).

I like Chicago, the area around Washington, and (in my mind) states that I have not deeply researched and never set a foot on like Maine or North Carolina (Wilmington looks nice, on paper, I have to research). For instance, I had a look at this property in Chicago:

https://www.zillow.com/homedetails/1872-S-Millard-Ave-Chicago-IL-60623/2087786512_zpid/?

That property probably needs a costly renovation, and I would have to research its location, neighbourhood etc more, but seems to look good. It would be just impossible to buy something like that for just 99k in Spain.

What about you? In which part of Spain do you want to buy? Maybe I can help you..

Saludos,

Juan

If that's generally a good area, maybe it is the best time to buy, since you could negotiate and get a better price due to the riots.

Hello all, how are you?

This is my first post at BiggerPockets. I have been browsing the forum for a few days, after reading a book on BRRRR. For me the concept of positive cash-flowing real estate (after servicing debt and any other costs) was a bit alien, as it is hard to apply in my country. I am from Spain and here it is not easy at all to find a property that meets the criteria to cash-flow positively after paying debt.

Basically properties are so overpriced in Spain that in order to obtain a positive yield using debt (leverage) one has to buy the property at:

1 - A court auction (this is painfully slow - and I mean years waiting - and on top of that the property has to be paid in full cash - no financing available by banks).

2 - Marginal neighbourhoods and run down areas where most people dont want to live.

3 - Luxury properties that only can cash flow when the real estate market is booming, and sometimes for a limited period of the year like summer season, or main holidays. This can be rented by weeks or through Airbnb, although the criteria to be able to rent through Airbnb are getting tougher, and now there is no tourism at all due to COVID-19. 

The banks in Spain are so ridiculous that their prices for REO properties are usually higher than buying a property from any real estate agent. The market for distressed properties is from very limited to non-existent for individual investors. The market for distressed properties is dominated by a bunch of US real estate funds like Lone Star, BlackRock etc and they get their properties from banks in packs of like 5.000 million euros worth of mixed real estate. The possibility of buying mortgage notes is also very limited for individuals, although one could give a mortgage at a high rate as a private lender.

So I thought, why not investing abroad in a market that is more investor-friendly? Let's check the US! I was having a look at Zillow.com and realtor.com and homepath.com, and it looks pretty good. I mean, where in Spain would you find a property on sale for 150k (plus rehab) in a neighbourhood where properties sell for an average of 400k? This product does not exist in my country.

I was wondering if there are investors from outside the US in the forum, and how they arrange their long-distance investments in the US. It would be great to get some guidance on this, and learn from the experience of others. I guess a foreign buyer is taxed partly in the US (property tax, and taxes related to the property) but it is NOT taxed in the US for capital gains, but in his or her country of tax residency. Is this correct?

I am also wondering if it is more tax efficient to invest in the US as a foreign individual or through an LLC incorporated in the US.. looking first at tax is probably the starting point.

Forgot to say, at this moment I dont need financing to invest.. it should be easier with cash I guess..

Well, looking forward to your replies!

Juan