All Forum Posts by: Lynne Hart

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $104,000
Cash invested: $150,000

Short sale 4 family purchased and now updated in the historic Shaw Neighborhood. Renting at 500/unit originally, now at 800-950.

What made you interested in investing in this type of deal?

It was my first multifamily deal, in a great neighborhood for an even better price. Cut my teeth a little by upgrading everything, however it is a very solid cash flowing building with low maintenence now!

How did you find this deal and how did you negotiate it?

At the time I had a real estate agent friend who helped me - it was before I had my own license.

How did you finance this deal?

Conventional financing on the original purchase, and cash on the updates. Some from savings or other income, and some from income produced from the property.

How did you add value to the deal?

Upgraded practically everything: Roof, HVAC, Windows, Cosmetics, Tuckpointing

Lessons learned? Challenges?

It was a learning experience mostly because it was my first building but its been pretty smooth sailing. I learn by doing, so I have it all down pat now!

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I'd work with ME now as an agent, and I have a great lender who I still work with since this deal, any time I do a conventional loan. I prefer as many conventional loans as possible as there is a better interest rate, and am looking into life insurance based investing....

I can't speak to the 1031 in detail, and if I were in the same situation I'd definitely consult an international tax accountant.  If you end up transferring funds across borders/currencies I can recommend you to a transfer service that can typically save clients 3-10% in the transfer process, sometimes more depending on the currencies involved.  If that is of interest please let me know privately how to contact you and I will make the connection.    I'm an international real estate agent and they've done some great stuff for my clients buying/selling in other currencies.

Hey Joe, I recommend considering St. Louis MO.  There are some local banks that could be able to loan on properties for about 20% down, and you can buy multifamily properties in all sorts of prices.  If you're planning to use a property management company they range around 8-10%, and you could easily by a 4 family unit where each unit rents at $500+- in the $125-$150k range in a stable area.  Spend about $200 and you can rent in the $700-$900 range for 1 bedroom apartments depending on the condition, updates, and neighborhood.  Most buildings also could stand a rent increase.  This is currently my own retirement plan. ;)

As well, shoudl you consider the advise below about vacation homes, you could invest in a vacation home for a decent return - but out of country financing can become a challenge - usually buyers leverage their assets to purchase in cash outside the country.  That said I am aware of a few developments that do or will offer various types of financing.  In particular, St. Martin, Belize, and Puerto Rico.  Specifically in puerto rico, Banks will loan to you on your US Mainland credit with similar terms as here.  A condo with ocean view that rents out at a pretty high occupancy could be managed by a local caretaker and rented via Airbnb or Homeway pretty feasibly.  Would cost you around $200-$300k for a 1 bedroom oceanview in the city, and they'd rent between $125-$250/night.  There are tax incentives for those who live there 6+ months of the year, and in addition, Puerto Rican Residents do not pay Federal Income Tax on income earned in Puerto Rico!

Look me up if you'd like to hear more!

Hi Denise!  Wow that's a great dream!! Typically in Mexico, an American would pay with cash as we do not use the same banking systems (your credit is no good there. :) and US Banks won't generallly loan on foreign properties.  You may be able to find a path with an international bank like HSBC or Barclays, but most of the time buyers will leverage their assets (say a line of credit against property or securities in the US) or pay with cold hard cash. Another option can be seller financing if the seller is willing.  You could ask around for banks in Mexico that might loan to a foreigner, but these if they ever happen usually have a very hefty down payment requirement.  

You would also need a "Notario" basically a lawyer to conduct the transaction for you.  I happen to know one specifically in Cozumel and would be happy to connect you if desired.  He may also know of some other options.  Sometimes real estate developers provide financing, but with a B&B thats probably not the case.

Let me know how I can help.  I'd be happy to chat on the phone.  I am a Certified International Property Specialist so I have various resources around the world who can help with purchasing / selling properties abroad.....

H there, I'm a certified international property specialist and while i don't personally specialize n Costa Rica,  have several colleagues who do.   would love to connect you f you're still n the process!!

Lynne

Richard,  am a Certified International Property Specialist and have connection with agents experienced in the Caribbean, DR in particular.  I will contact you privately to discuss and connect you with someone who can sell them for you.

Lynne

Yes, I began investing about 10 years ago while employed in corporate america.  It gave me the funds to invest, rehab, and educate myself to the point that I eventually (2 years ago) made the jump.  I also got my real estate license and began selling real estate (originally I thought I'd use it just to look at my own investments) but I really loved it and sales came naturally to me.  I've continued to buy and hold multifamilies, and work with lots of investors as clients as well.  This year I'll start some rehabbing.  Dip your toe in with your security blanket of a job.  And do what you can to reduce expenses so that you can invest a maximum.  That's the one thing I wish I had done differently.  I could have probably lived way more modestly and invested more, to be further ahead now.   I'm sure there are various other cases for starting with no security blanket, but this was most comfortable with me.  I'm currently working down any debt I have and beginning to operate in all cash and it feels GREAT!! :)  If I can help in any way feel free to contact me.

Hi Richard, I am a Certified International Property Specialist who works with a network of the same "globally focused real estate agents"  this group would likely have all the resources and information you might need.  Do you already have property and are looking to rent it or just looking to get started?  Please contact me and maybe I can help with connections or possibilities.  I've just finished a tour of St. Lucia, St. Martin, Antigua, Barbados looking at property, most of which are vacation homes that are income producing from 5-10% net annually.  Some with some interesting appreciation rates as well.  Currently I'm in Puerto Rico and int he process today of understanding what opportunities are there, as there are various incentives for US buyers to invest.

You can see my blogpost about the recent tours here:  http://www.stlouisglobalrealestate.com/2017/01/09/...

My contact information is fairly open so feel free to reach out!
Lynne

Hi Yanev, I can advise you about what's on the market in that price range.  I am a real estate agent and work with many investors, a few from Israel too!  If you are currently residing in Israel, I am also a Certified International Property specialist and may be able to provide resources to help with a purchase from outside the US.

I know some folks in Belize that can connect you with all the real estate information you need.  Its incredibly cheaper to build versus buy, if you have the patience to do so..........things take longer there.  Message me if I can connect you!