All Forum Posts by: Tim Schmitz

Good morning Chris, I see you're looking for property here in SC and NC, but would your group consider a property in St. Croix, USVI? My group has a 7-unit apartment building at the beach that we are looking to sell or take on another partner. The REI market in USVI is very unique as property values are being held down by economic pressures providing the opportunity for low buy in.

Here's the link to the listing in case you are interested:  https://listings.coldwellbankervi.com/idx/details/listing/b3...

You might need to be a USVI resident in order to be your own agent.  The laws there can be much different then we are use to in the US, so you should consult a local attorney.

I have a STR property in St. Croix also. It is a 7-unit building in Frederiksted and we put it in a USVI LLC for the corporate protection benefits. The lawyer we used for the closing is also our local agent. You can put a property in a non-USVI LLC, you just need to resister the "out of state" LLC with USVI. Also, with a USVI LLC you can still have a mainland HQ address, you just also have to have a local agent.

I want to replace the primary bank loan with a private loan.  Would that make for a better rate?

We own a 7 unit apartment building at the beach and would like to replace our present bank loan with private funding of some type.  The banks in USVI are VERY risk adverse resulting in major processing costs and restrictions that are costing us money.  The property is presently cash flowing at about 5%, but could do much better with better financing.  Valuation of the property is estimated at $1M and we need about $400k financed.

Presently, one unit is occupied by the on-site manager, two units are leased as long-term, and the other four are STR. We are fully booked for high season (Dec-March) through 2026.

I know this is not the typical investment, so totally appreciate any advice anyone may offer.

I've been using the Taylor Agency for years now.  They've gone up a little, but still very resonable.

www.airbnb.com/p/bananaquit-house

Here's the link to the St. Croix property.

Hey John,  It's been a long while since we talked last.  Hope all is well with you and yours.

I would like to look at this property.  My schedule is flexible this week, so let me know when is good for you.  If you would like to call, I am at 843-200-4213.

Thanks, Tim

I used a HELOC to buy my first rental property, but ran into a major glitch. When I transferred the property into my company, the bank recalled the loan. Every mortgage of any type has a clause that allows the lender to recall the loan if the property is transferred, even if the borrower fully owns the company the property is transferred into. Since companies can't get mortgages, the lender requires the loan be in your name. But, you want the property in your company for liability protection. So, after you get the loan, you transfer the property by quit-claim.

Since then, I have bought many properties with regular mortgages and had no problems switching the property into the company after getting the loan.  I've asked the brokers about this and they all have said, as long as the payments are made, they will not foreclose.  I even make all loan payments in my company name.

That first HELOC was from Wells Fargo. So, not sure if the cause for foreclosure was because it was a HELOC or a Wells Fargo policy.

I have a STR property in St. Croix also. It is a 7-unit building in Frederiksted and we put it in a USVI LLC for the corporate protection benefits. The lawyer we used for the closing is also our local agent. You can put a property in a non-USVI LLC, you just need to resister the "out of state" LLC with USVI. Also, with a USVI LLC you can still have a mainland HQ address, you just also have to have a local agent.