All Forum Posts by: Matt B.

Guten Tag

If you don't want to sell the corporation then you could create a holding company (about a $500 expense if a lawyer does it for you) and transfer the property into the holding company (assuming you still have a mortgage, you may be charged a 1% transfer fee from the lender. You should check) and just sell the property and holding company

OR you could check if the loan is assumable, this way the aforementioned expenses would be pushed onto the buyer 

A lawyer and a RE Agent can do just about everything for you while you're in Germany. 

Good luck

@Caroline Tiala My prior comment was with commercial investing in mind. After re-reading your post I saw that you are looking to get financing for a house, my bad.

Perhaps it's because of the kind of properties you are looking at that you are having trouble obtaining financing. A SFH is not traditionally thought of as an income producing property, unless it has an operating history as such. Because of this, they'll likely be more concerned about personal income statements for such properties in order to pay off the mortgage. Also, one big downside to SFHs is that the occupancy can go from 100% to 0% with just one tenant, something I'm sure will concern lenders.

One suggestion that may help you with your conundrum would be to find a tenant in advance, and get a signed leasing agreement to show the bank. Show the banks/lenders that your property can produce enough income to pay off the mortgage and more. Then the lenders may look at it through the eyes of an income producing property instead.  

"Does anyone have any ideas or suggestions of loopholes or ways to work around this? Knowledge of banks that are friendly to (foreign) investor in the KC area? "

I've heard of such lenders before, but these lenders oftentimes have a specific focus on lending to specific foreigners from specific countries.

For example: a lending company that is owned by a Chinese native in the US may lend to oversea Chinese investors with no assets, income or collateral in the US, but they can provide income statements, assets and or collateral in China, where the lender is also from. In this way the lender is operating within the 2 countries, China & US.

You may find such lenders who do this kind of lending between the US & Sweden, but you would have to search for them. 

Hope this helps. Best of luck

If your husband has an investment portfolio in the states, your foreign earned income shouldn't pose any issues for you. As long as the portfolio is big enough to be used for collateral and isn't over-leveraged, I'm sure any bank would be happy to work with you. 

Also, Americans should be reporting all foreign earned income to the IRS on an annual basis, so just because it's being earned overseas, doesn't mean it can't be used to help secure your financing. 

Business acquisitions and real estate acquisitions are very similar, one could debate that owning and managing an office property is a business in and of itself. Of course there are different variables you need to consider and conduct due diligence on depending on the type of industry you're looking at. 

Everything is negotiable, you don't have to pay the full purchase price (though they may not accept your offer if you don't) Like real estate, there are many ways you could structure a business acquisition through a mix of equity and debt. For example, one way would be to structure it as a buy-out (offering an initial downpayment and then making regular monthly or annual payments with the revenue the business produces.) 

A lot of people who get into real estate end up expanding into M&A (Mergers & Acquisitions) or vice versa  due to their overall similarity and compatibility 

"Why is it so disproportionately different than the cashflow?"

They should provide you with a very clear & thorough breakdown of their businesses operating expenses, though they may not provide it until you've signed an NDA disclosure and made a formal offer. 

@Mario M. Can you provide more details on what it is exactly you're trying to do so the BP Community can better answer your question

@Jeff Morton

"How would I find investors who might want to purchase off market(and on the market) commercial property leads?"

All real estate investors are either purchasing off-market/private offerings or properties that publicly listed.

That being said, they may not be doing it directly themselves, for example they may hire an agent who has access to some off-market listings as well as doing a general search on the MLS. Maybe they are investing into a fund, and the fund's manager is purchasing a mix of private and public offerings. Or maybe they just pay a monthly subscription fee for a 3rd party service provider who helps them source investment leads that meet their criteria.

"How much should I ask for the leads and how would I calculate how much to ask for a lead?"

This is ultimately up to you and you could structure it several different ways (consultation fees, price per lead, monthly fee, success based fee, equity in the deal, etc) but your price should be enough to do the following: 
1. cover the cost of your labor, time and any expenses incurred
2. create a profit for you and your employees
3. be competitive in the marketplaces with similar service providers

does the agent have any experience working with international clients? if they don't, I doubt they'd add much value.

Certified International Property Specialist (CIPS) is a designation that realtors can obtain. I'd start here, as people with this designation frequently speak more than 1 language and specialize in working with clients from different countries around the world. 

Markets are different all over the world, I'd suggest finding some agents in that country that regularly work with foreign investors and just start talking with them and explain what you're trying to do. You may find out that you can't do a fix & flip without paying a hefty tax. 

I'm sure you and your friend have a great relationship, but a "string of acquaintances" doesn't sound like the most trustworthy source if you're going to be investing large sums of money in all honesty.

there's a lot of homework that needs to be done. In some countries, foreigners can't even own the land, so they may need to partner up with locals. Also as a foreigner investor, it's fairly common to need to pay 50% or more for the downpayment.

Best of luck

Will a recording of the event be available for viewing afterwards? Not sure I will be able to attend the live event.