All Forum Posts by: Account Closed

@Frank Chin That would only happen if the bank does the math, and the cost of traveling from the bank to the courthouse exceed the value of the property, then they obviously wouldn't give a hoot about it then. No bank in their right mind would bungle an asset of any worth. Most banks have divisions that specialize in managing foreclosed properties - that is literally all they do. If the sole job of a banks dept. that you work at was to manage its portfolio of foreclosed property, how long would you have a job if what you described occurred frequently?

Whether its forming a nonprofit to provide housing or health related services, there is currently demand for those in most of the top metropolitan areas. 

The IRS typically would grant a tax exempt status to a nonprofit to pursue causes that often would result in lightening the burden on government but not to pursue business exploits - the government needs tax revenue. 

Nonprofits that deviate from what they stated to the IRS as the reason for seeking the tax exempt status, risk loosing the exemption, getting fined and also incurring taxes on unrelated business income.

Public housing for instance is huge, in some cities you have people on wait list for 5 years or more to get into public housing. Its also the same with healthcare; demand is strong. You can form a nonprofit to provide services in any of these areas.

Most recent census figures has Brooklyn at 2.6 million. If its population were to continue to grow at 5% per year, it would get to 4 million in about 9 years.

@Andrew Postell I actually do not see what this has to do with what @NaDean Bowles described as her intentions. This appears to have something to do with the death of a spouse in a community property state. 

The ex can stall things and just try to injure her financially and economically which is what she is trying to avoid. 

If she is capable of executing and performing the terms of the contract individually without any co-signer, and expresses her intent to do so, don't see why anyone should try to force her ex on her. 

I would be shocked if there isn't a lender to bypass it - especially in the private/hard money space.

@Jay Hinrichs Its not just a New York or California issue. Humans generally are quite good at stereotyping. You hear of NYC or SF RE prices and mentally extrapolate that fact to the rest of the state. 

You can buy in Buffalo NY which according to Zillow currently has an average listing price of $75,000. But Buffalo is a city of some 250,000 people, less denser, and some 378 miles away from the population center of NYC. Think 378 miles away from LA. 

The average price in Brooklyn with some 2.62 million people is about $718,000 and Manhattan about $1.3 million but the economic and social characteristics of these areas are very different. 

@Robert Gunther The US has a treaty with China, but that treaty doesn't apply to Hong Kong nor am I seeing any particular treaty between the US and Hong Kong as it relates to this. Not saying it doesn't exist, just not apparent. 

The tax Canada imposes on foreign investor passive income derived in Canada is the exact same tax the US imposes on foreigners for passive income derived in the US. The US version is 30% which is 5% higher than Canada's. As previously mentioned though, there is the foreign tax credit route you could use to avoid double taxation. There are also ways to reduce the 30% tax in the US.

Regarding financing, there are all sorts of ways to get things done; most of which depends exactly the nature of the project(s) or strategy in question. 

If there already is company, you can create a foreign subsidiary of the existing company but post tax, the  consequence of moving the funds from US to Hong Kong can be very different from moving the funds from US to Canada.

You can of course connect to discuss specifics the matter offline.

@Eric Nelson Placing a personal home that you paid off into an LLC means the LLC then legally owns the asset. If the LLC goes out, incurs a liability or a lawsuit, the assets within the LLC is then at risk for the LLCs actions if the LLC had no insurance or insurance is exhausted to address the claim. You typically want to leave personal assets outside of the LLC, to insulate your personal assets from any liability the LLC incurs or use a trust to hold personal assets.

Hold it right there @Larry H. 

Before you start throwing around nonprofit and LLC in the same sentence, and make grand plans about funneling money from nonprofit to LLC, there are a few things you need to be aware of.

When the IRS grants a nonprofit an exempt status.. you can't mingle funds and assets of the nonprofit with a for profit entity. You can of course, if you really trying to do some federal time and get hit with federal fraud charges.

You cannot use the nonprofits funds or assets for anything other than the exempt purpose for which the nonprofit status was granted.

@Robert Gunther When you say you have a company that "has some money", just how much we talking about? Whats your budget? What sort of volume are you planning on per year?

Also, what strategy do you want to pursue? Rehabs for flipping or rentals etc.? Each of these would almost always result in a different tax liability for the foreign entity. 

The 25% foreign tax Canada imposes on passive rental income earned by foreign investors in Canadian RE, is actually 30% in the US for passive income from US RE by foreign investors. Flipping however isn't often subjected to the statutory 30% rate if it is classified as ECI. 

Through the tax treaty though (US/Canada), there often are angles to get foreign tax credit for taxes paid on US income when you try to get the funds back into Canada. 

If the buys are all cash, that makes a difference. If the capital structure involves use of debt, that involves varying levels of complexity whether its a Canadian bank lending for offshore RE acquisition or a US bank, lending to a foreign investor within its borders.

@Wyatt Dixon Do you have any details regarding specifics of the deal(s) and location?