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All Forum Posts by: Sam Mason

Sam Mason has started 3 posts and replied 8 times.

Thanks Linda. Are you familiar with all of the various real estate company structures (LLC, land trust, etc) and how to set it all up?

Can anyone recommend Clint Coon and Anderson Advisers?

Thanks Steven, although given my needs and desire to set up an investment business in the US I think the best person will probably be US based (albeit with a knowledge of the US system). Don't you think?

Hi all

I am a dual UK / US citizen currently working in the UK. As such, I have to file both UK and US taxes. I own a home in the US (Atlanta) and want to buy a home in the UK soon. I also have c.$500k to invest in US real estate (mainly rental properties, all over the country) over the next 4-5 years. 

I really need a CPA and a lawyer who are familiar with rental property investment strategies/structures AND UK/US taxes (or are willing to learn) to help me navigate this. I also need advice as to how to set up my investing strategy/structure both now and down the line.

For example, I understand I technically may not be able to put my properties in an LLC at the moment without violating the terms of the mortgage. However, when I have a portfolio of 10-20 properties generating income, can I then deed them into an LLC and the income becomes the income of the LLC which I can use to borrow? This is just one of many many questions/considerations I have.

Any recommendations would be much appreciated!

Thanks

Post: BRRRR Method Questions

Sam MasonPosted
  • Atlanta, GA
  • Posts 8
  • Votes 0

Hi all

I have just learned about the BRRRR method and have some questions.

1. How do you find deals / relevant markets? It seems the recommended rehab is usually pretty minor, so I would've thought these deals will be snatched up quickly. Maybe in 2009-2010 there were lots (and still in some markets?), but how about now? 

2. In terms of financing, if you were to go in all cash at the front end, would this make 'refinancing' sooner easier?

3. When you refinance after securing a tenant, is the value based more on the return from the rental vs. the comps (both your initial purchase and also the surrounding comps)?

4. If anyone is doing this in Atlanta (a market I know), where are the areas that this is possible?

Thanks all

I am certainly not expecting risk free. But the inherent illiquidity and leverage in real estate should afford higher returns than most asset classes.

@larry fried

Sounds interesting. How levered are the underlying properties? Can you depreciate the property and write off interest expense for favourable tax treatment?

Hi all

I am interested in TK as a way to invest in a 'hands-off' manner. I have done lots of research and it still just doesn't quite sit well with me. 

One issue I have: the companies price the properties based on expected rent and therefore your return. They then buy the properties wholesale or super cheap and rehab them. The difference between these two figures is their profit. As property prices have increased and as rates increase, however, they will still need to show investors similar PF returns to make them attractive. How does this occur / who is eating this cost?

- are they taking less of a margin (unlikely)?

- are they just buying in cheaper / worse areas (likely given most investors wouldn't really know the difference)?

- are they spending less on the rehab?

Who suffers when rates rise?