All Forum Posts by: Riley Kuranishi

Yes, that's generally why they take so long to close. Any form of rehab loan there's more due diligence involved and more processes to go through to make sure that the loan you're getting is sufficient for the type of rehab you're going for. 

In our market, it's harder to find those properties unless you find something off-market or something that's been sitting awhile that they're willing to wait that long. But I also would make sure wherever you invest you find somewhere that has an adequate supply of contractors. You might get a good deal on something, but if you can't find good workers, it won't turn out to be a very good flip unless you yourself have a construction/flipping background.

It sounds like you're looking at more of a rehab loan over something like a conventional or FHA loan. In which case they would likely need more precise numbers to help calculate what those numbers would look like.

In this market rehab loans can sometimes take up to 90 days, which in a competitive market likely won't fly. You'd either be looking at a conventional (low down if you can afford it) or doing hard money and refinancing after the fact. Most times you won't be able to get multiple GCs out there in time and most don't want to waste their time on something that isn't even in your name. If you're already having a hard time finding contractors then I'd suggest looking in an area that has a wider availability of contractors and see if you can learn from the ones you are able to get out there. 

I agree, make sure to open separate accounts and don't comingle those funds with your personal funds. If something goes sour and your personal funds are all comingled it makes it easier for someone to claim damages and potentially go after funds outside of what might have been going into the accounts specifically for your real estate. 

I agree with what Dan mentioned, as long as you have the lease agreements and can show you've been a reliable landlord with rental income to help offset your current mortgage you don't need to necessarily refinance out of your current home. 

I've always been under the impression to put as little down as possible, but with where interest rates are currently at, it might benefit you to put more down than the ways things have been in the past. 

House hacking - especially if you're living in it, works best when renting out per room. You can get exponentially more money per room as opposed to doing per home, per unit, etc. It's slightly more work but I find this way is much more profitable if you have the opportunity to do so. 

Best of luck in your house hacking journey!

I personally wouldn't. It just wastes both your time and the sellers time if you don't have the proper funding set up yet. Even if you think you're qualified, I would still be sure to have your funding lined up. With the way the market is now, if you're not already pre-approved they won't even look at your offer.

Cheers!

Hi @Sei-Jung Park ,

Glad to see you're wanting to make your way in the real estate world. I mainly work with investors looking for buy and hold opportunities as well as flips. 

Currently, I'm helping one of my investors go through her first flip, so she's learning all the tips and secrets to save as much money as possible. 

What sort of property are you looking to invest in and are you looking for short/long term?

Will you be buying with cash or taking out a loan? I was also in home loans/remodel construction work for awhile and might be able to help you on that aspect as well.

If something like that interests you, feel free to reach out. I'm happy to help!

@Bill Exeter

They don't have to do anything, in particular, to get them ready for the purchase though right? If they're just paying cash they can purchase it like anybody else could? 

@Paul Sundin

Thanks guys for the info! Do they have to register to get an ITIN before they buy the property? Or can they do it afterward? They plan to hold it long term as a rental, so they would have some time before it came time to sell. 

Do you know of the current advantages/disadvantages of them buying all cash through themselves as an individual vs. them creating a US LLC?

@Bill Exeter

Thank you, thank you! I believe their exit strategy would ultimately be an appreciation play, where they sell and buy more properties in the future. Due to the new FIRPTA requirements, do you know what this would entail and how they would go about doing this? 

Thanks again everyone!

Hi BP!

I have some foreign investors that are looking to invest in some real estate in Washington, would someone be able to provide me some insight as to how they would accomplish this and the tax implication they might have should they want to purchase more property in the future?

Their first purchase would be cash so would all they need to buy be that they form a US LLC and transfer funds into that LLC?

Any help is appreciated! 

Hi @Helen Shen ,

Welcome to the site! I think you'll find it quite the useful resource. :)

Feel free to reach out if you have any questions or need any advice. I'll be happy to lend a hand if I can.