All Forum Posts by: Michael J.

 I know propstream will do a webinar for your group.  Not sure if they would do in person or not.

Hi David, I’m based in Greenville and would love to connect and help you explore opportunities in the area. Greenville has a lot to offer, and I’d be happy to provide insights into the local market or answer any questions you might have. Let me know if you’d like to chat further!

Best regards,
Michael Breisch

Orchid, Hi and welcome to BP! Congratulations on your journey into real estate investing (REI) and your upcoming transition to the U.S.—it sounds like you're already taking some great steps to prepare. Let me address your questions and concerns step-by-step:

1. Visa and Financing

You're correct that securing a mortgage might be challenging without legal status or a W2 job. However, here are a few options:

Private Lenders or Hard Money Loans: These don’t require traditional documentation like a W2 and are often used for fix-and-flip projects. The downside is they usually come with higher interest rates and shorter loan terms.

Partnerships or Co-signers: If your husband or a trusted partner has U.S. legal status and credit history, they might be able to co-sign or help with financing.

Cash Purchases: Since you have savings in Canada, you might consider using that for your first property, especially for a smaller rehab project.

Foreign National Loans: Some lenders specialize in providing loans for foreign nationals. It’s worth exploring this route.

2. Mooresville Flip and Capital Gains

If you live in the Mooresville property for less than two years before selling, you likely won’t qualify for the capital gains exemption (which requires living in the home for 2 out of the last 5 years). However:

Capital gains taxes can be minimized through deductions like rehab expenses, holding costs, and agent fees.

Alternatively, if you decide to keep the Mooresville house and rent it out, you could potentially defer capital gains taxes through a 1031 exchange, but this only applies to investment properties (not primary residences). The Greenville home would need to be another investment property—not a personal residence—for a 1031 exchange to work.

3. South Carolina's 6% Non-Occupancy Tax

Yes, the 6% property tax rate for non-owner-occupied properties in SC is real, and it can feel like a tough pill to swallow. However:

Strategic Tax Planning: Work with a CPA who specializes in real estate to maximize deductions like depreciation, interest, and operating costs.

Higher Rents for Premium Properties: Some investors offset the tax by focusing on properties in high-demand areas (downtown Greenville or near universities, for example) where they can charge a premium rent.

Short-Term Rentals (STRs): Consider STRs like Airbnb, where higher nightly rates can make the numbers work better than long-term rentals. Greenville, with its growing popularity, has a strong STR market.

4. Market Analysis: Mooresville NC and Greenville SC

Mooresville NC: Known for its proximity to Charlotte and Lake Norman, Mooresville has solid growth potential, especially for families and professionals. While the 1% rule might be difficult to achieve, appreciation and a livable flip might make sense for your goals.

Greenville SC: This market has seen significant appreciation and demand over the last few years. While cash flow margins are tighter, Greenville is a desirable area with a strong job market and population growth. Look for properties in up-and-coming neighborhoods where rent growth is catching up to home prices.

Feel free to reach out if you have any specific questions or if I can help you navigate the markets in Mooresville or Greenville. I’d love to help you get started on your first deal.

Looking forward to seeing your progress!

Hey Tyler,

This sounds like an interesting opportunity! The short answer is, yes, you can absolutely buy a trailer on private land and rent it out to Section 8 tenants. 

A few things to keep in mind:

• Section 8 requires the property to pass an inspection based on HUD's Housing Quality Standards (basically making sure it's safe and well-maintained).
• The rent you charge has to align with Fair Market Rents (FMRs) in your area, so it’s good to check what similar properties are renting for.
• You’ll still be responsible for maintaining the property, but the upside is that a chunk of the rent is guaranteed by the government, which can provide steady income.

Check with the local housing authority about any specifics for your area—every jurisdiction does things a little differently.

This could be a great niche if you can find a good deal on the land and make sure your expenses (like maintenance, insurance, and occasional vacancies) are covered by the rental income. I’d love to hear what properties you’re considering and how this pans out for you!

Let me know if you have other questions—I’m happy to help brainstorm!

Michael

I'm in Greenville/Spartanburg area.  Happy to connect!

 It may vary by county.  My county its 5%

You will likely need to come up with the 5% deposit required at the time of winning the auction on your own. If you have access to a line of credit on your primary home, that could be a good option. Alternatively, you could take a loan against your 401k for that initial amount.

Once you’ve secured the property and paid the 5%, you can then work with a private money lender (PML) to close on the property once the deed is ready. 

Here are some ideas to make raw land pay for itself:

1. RV or Tiny Home Rentals: Set up RV hookups or tiny homes for short-term rentals. With platforms like Airbnb or Hipcamp, you can attract travelers looking for unique stays. You could even offer glamping (luxury camping) to make it more attractive.
2. Agriculture Leasing: Lease the land to local farmers or ranchers. Even small-scale operations like beekeeping, organic farming, or growing specialty crops (e.g., lavender, hemp, etc.) can generate income.
3. Hunting Leases: If the land has good wildlife, you could lease it to hunters during the appropriate seasons. Hunting leases are a popular way to generate steady income, especially in rural areas.
4. Solar or Wind Leasing: If your land is in an area with good sunlight or wind, companies might be interested in leasing it to install solar panels or wind turbines. You can also look into community solar projects if you're not ready to commit to a full commercial lease.
5. Timber Harvesting: If there are trees on the land, selectively harvesting timber could generate income. Make sure to work with a forestry professional to ensure sustainable harvesting practices.
6. Rent it for Storage or Equipment: With the rise of RVs, boats, and large equipment, you can rent out part of the land as storage space for these vehicles. A low-cost investment in fencing or a gravel driveway could make the land attractive for outdoor storage.
7. Recreational Use: Open the land for recreational activities like ATV riding, horseback riding, or camping. You could charge access fees or offer day passes for off-road adventures.
8. Lease for Cell Towers: If the location is right, telecommunications companies might be interested in leasing a small portion of your land to install a cell tower.
   
9. Event Space: If you can make it picturesque or add basic amenities, the land could be rented out for events such as weddings, retreats, or festivals. Adding amenities like power, water, and a barn or pavilion could increase its value as an event space.
10. Farm-to-Table Experiences: If agriculture is possible, create an on-site farm-to-table business where people can visit, harvest, and eat fresh produce. Combining this with tours or small events can add extra income.
11. Lease Mineral or Water Rights: Depending on the area, leasing mineral or water rights can be a potential income stream if there are valuable natural resources under the land.

Call Stewart Title or Chicago Title and ask them if they work with investors.  Build relationships.

 Whats the purchase price?