All Forum Posts by: Nick K.

It's called a deed of gift. Buy in your name if you cannot finance directly in the name of the LLC. Go through closing. Anytime after closing (days, weeks), have the same title company (if you choose) submit a deed of gift to transfer the property from your name to the LLC. It costs less than $200. Done.

As for protection, my personal preference is to always have a combo policy of property+liability insurance on each property. Then, have each property in its own LLC. Each LLC that owns an individual property has its own liability-only policy of 1M. Then have all LLCs be owned by a parent LLC that can be used for banking purposes and the likes and get that parent LLC its own liablity insurance of 1M or more. You can be the sole owner of the parent LLC and should definitely get your own umbrella policy in your name of 1M or more.

Just my 2 cents...

Bump! No answer to this question yet. Title for properties owned can be transferred to one or multiple LLCs but how can we make a dent in the DTI ratio? Is it by transferring the mortgage too? If so, how would it work? Any creative ways you recommend?

The comment box ruined the table. Here's a screenshot.

Not in my opinion. Because for e.g. a 20K down payment on a 100K rental property could generate an average ROI of 20% while as when you buy it cash you're only looking at 9% ROI.

Rough Numbers

-

@Elliot Larkin Simply put, if you had 100K in cash you could arguably invest in 4 rental properties paying 20% down and financing the rest instead of buying just one with cash. 

Thank you for your answers!!!

A family member is about to sell a paid off property overseas. He knows that I invest in rental properties and he would like me to invest his money for him. The plan will be to allocate his money towards the down payments of multiple rental properties that I would buy and add to my portfolio. He doesn't want to own the properties or borrow any money, he just wants his money invested. I don't know exactly what I might be getting myself into, so here are my questions:

1. Money transfer - What is the best way for him to give me the money in the first place without alarming the lender too much? Do I have to report the money he's giving me on my taxes?

2. ROI - I think it's not legal to guarantee return. Say a property returns $400 to $600 per month, I plan on returning 80% of the NOI to him. Is it legal and how can it be put down in writing? Investment contact?

3. Any gotchas? Taxes? Investing someone else's money? 

Thank you for pointing me in the right direction. I appreciate any advice beyond my listed questions.

Nick

Anthony - Is your question about the overall investment strategy or about the logistics of bringing money earned offshore and using it here to invest in the US? I ask because I am in the same situation and also need guidance on the financial aspect of earning money offshore and re-investing the money in the US e.g. tax, money transfer, etc...