All Forum Posts by: Sharon Rolel

Reporting from Israel :)

Chris,

It is a 5 bedroom apt.

I considered many states and cities, as an out of of state (and country) investor I judge properties case by case. I have other properties, including shares in 400 unit complexes, and I am generally aware of the calculations to establish a property's cash flow potential, including 2% 50%. That's what I normally use.

This is a property that I was offered by a friend like I said, and he told me (I trust him and he is a partner in a very big RE brokerage) that 80% of the rent is what I can expect to pocket from the rent.

Thanks

I assume every case is different, section 8 is not a tag... I will make sure to get the management reports about the expenses for the property in previous years. I will judge the expenses according to that. Anything else you see that may need further inspection?

Uwe,

I appreciate the reply.

The number I provided after expenses, which amount to around 20-25% of the rent. I was assured that in NYC renters are more responsible for maintenance, and that the house is quite new so it won't need that much maintenance.

Other properties I own I do use 50%.

As a Canadian who doesn't frequent the states that much I would love to invest in the best properties I can find but often I am at the mercy of the management company I find, and this one is managed by one I have experience with, so that is also a consideration.

Hello everyone,

Would appreciate if anyone could analyze this.

I'm from Canada, and looking at this 2 family in Bushwick:

2000 SF lot
3180 SF built

Currently rented long term to section 8's, at 2,500$ for the larger apt, and 1,440$ for the smaller one. There is a basement that is maybe convertible to a third apt.

Taxes 170$
Hydro 30$
Mgmt 394$
Insurance 125$

No rehabbing needed, and assuming that I won't need to put anything into maintenance, as I was assured this is generally the case in NYC. (surely not losing 50% of gross rent like in other areas)

This boils down to:

3,046$ pre-tax monthly
36,552$ annually

the house is for sale at 372,000 including ALL expenses, including legal, title, first year insurance, broker fees, and forming an LLC.

So the cap rate is 9.82. I will try to finance this but getting a mortgage as a Canadian won't be easy. I can put up to 100% down, however, so I'll work something out.

The property is located in almost the southernmost point of Bushwick, though near the subways and bus stops. (5 mins walk)

This was offered to me by a friend who I trust. An experienced RE broker and former agent.

Comps are 450,000$, 505,300$, 550,000$ suggested by him and verified by me.

Thanks!

Thanks for the reply, indeed that would be the best option and I would check into it, but navigating through the US banking system without a SSN isn't simple.

Hello,

Can anyone tell me anything about acquiring such a loan? I have a net worth of around 1.5m USD and have 6 (SFH) properties directly under my (LLC that is solely under my) name, and a few others that I have shares in, of a bigger scale, though still private. I am from Israel originally and also a Canadian PR. I have 2 mortgages in Canada for my investment properties there, and am working on getting into as much reasonable debt (under 6 or so %) as I can. My credit scores in Israel and Canada are perfect.

I am interested in two things - home equity loans for those 6 SFH (they aren't worth much at all and were worth even less when I bought them, I hope) which are cash flowing steadily and nicely for the past 2 years, and mortgages for new properties I plan to buy. I can put up to 100% down, but obviously would like as much leverage as possible.

I have an ITIN which I used to open a bank account with Wachovia, who have been bought by WF, though my account has not been transferred yet. I have no credit cards on the account and no credit score what so ever. My cashflow stands at I would say 3000$ per month from my assets everywhere, since a lot of my worth is invested in development.

The amount I would like to invest is around 100k$ (of my money).

I have contacted several firms that claim to be able to find finance for me, at 70% LTV, but would like to hear some unbiased opinions and knowledge first.

As an overseas investor I don't have any particular state in mind, and would pick my market after I know where I can get financed.

Thanks!

Well, I chose Indianapolis out of a very small range of options, mainly because I get 1-1.2% (depending on the amount of money invested) each month without any hassle for the next 10 years (presumably - I am not gullible and will check the deal thoroughly), after taxes and maintenance, no matter what happens in it or whether it is rented or not. Also, I think it would be best to have some sort of "contact" here in Israel.

My other option is to go there (a state of my choosing) and do everything myself, which will be very hard as I haven't been to the states for many years (and when I was I was 8 years old), plus I'm very young and inexperienced, which could also be a downside regarding people trying to take advantage of me, with me rendered defenseless by inexperience.

Yes, I've seen the blog, but didn't really know what to make of it...

Hello :)

I have a total of 200,000$ to invest in real estate, and I'm looking for income at the moment. I live in Israel and there are a few agencies here that I can use to get the best deals (presumably).

One such agency deals with real estate in Indianapolis. These are the example contracts they sent me:

http://www.mediafire.com/?sharekey=d2d0143b447140a07432d3c9683f450ae04e75f6e8ebb871

12.2% a year sounds very nice to me, especially since home prices are surely nearing the bottom.

What do you think?

I'd be happy to provide any other information necessary.

Thanks!