All Forum Posts by: Alexander Hogarth

I can imagine you could run the risk of piercing the corporate veil... you would have to pay a fair rent into your company bank account and leave it there unless otherwise documented in some kind of operation agreement... and only pay out your salary etc

I would say, usually not. Better to work with a coach - I know a couple great ones. What are your goals?

I´d also be curious how people think the Chicago market compares to tertiary towns in central/southern IL ?

I can imagine the potential appreciation is higher in the right Chicago zip codes, but also more vulnerable to rental drops? The cash flow ROIs seem much better in places like Peoria, Kankakee etc

Curious what type of multi-family you´re trying to purchase? I know on bigger deals brokers often prioritise getting back to people they´ve built a connection with

@Abigail J Steinert I persoanlly use loans for rehab projects because they are asset based - so that means you can take on as many loans as you have deals.

If you exclusively use your own capital, then you are limited to the number of projects you can personally fund.

Exciting!

My experience with financing for anything over 5 units is that most require 25% down-payment. As a non-resident, foreign national I was typically quoted 35% down, but got around this by buying in partnership with local investors.

With the commercial lenders I contacted - most required the value of each unit to be 67k or higher, and the overall purchase price to be 670k or higher (although the later is more flexible).

If you´d like me to connect you, feel free to shoot me a message here. 

@Daniel Farias I was living closer to Glasgow (the fun city) - but Edinburgh is very beautiful, and good for education. Hope it´s an interesting year!

@Daniel Farias I lived in Scotland for five years and have also purchased US rental properties whilst out of the country!

As a US citizen, you won’t have any serious problems. You will pay income tax for the rentals in the US and that’s all.

As a non-resident, non-US citizen it is harder to get started, but still very much possible - I know plenty about this!

In terms of the practicalities of managing rentals remotely, I found it was all about having the right local team in place. And honestly, if you want to really build and scale a rental portfolio, you will have to do this at some point anyhow regardless of where you live - so why not start now? :)

Where in Scotland are you likely to end up ?

Alternatively, if there were no repairs needed - you could simply market the deal to another investor, have them cover the down-payment and you get paid in equity rather than cash.

If you can find sellers that are open to owner financing their home, I know first hand this is an attractive enough offer for many investors to do this.

@Jason Fiori I liked this question, got me thinking.

I would find another golden-deal duplex, then secure 100% funding on a fix n flip loan. No down-payment means you don’t have to strip equity out of your other properties and increase their monthly payments for mortgage/debt service.

Then I would look to see if it’s possible to do short-term rental on one of the units, whilst fixing up the other one. Possibly one of your contractors might like to stay there if you’re not doing everything yourself. You could then use the rental income to cover the monthly payments on the rehab loan, meaning once again your cash flow has not been reduced. Fix the first unit, then when your short term rental is free again, rent out the newly rehabbed unit and go fix up the other one.

When everything is renovated, hopefully the improved home value will cover your LTV requirements on a re-finance (otherwise why bother doing it at all).

I understand that this would take some work, but I think it’s theoretically possible to raise the capital and take on a rehab project without impacting your current cash flow.

Will be fun to hear how you solve the problem in the end!