All Forum Posts by: Chris Popov

Hi, I have set a Florida LLC with a family member (50-50), and we only had money to buy 2 SFH. Even less, we borrowed for one of the house from a local bank in Florida. This is my experience.

I would say, set a LLC, but you need to be more than 1 person or else limited liability could be defeated by a judge in case of litigation. So maybe give minority shares to your family members. Capital can be low - 1000, or 100$. Then your family members can loan the money to the LLC. They will have to pay tax on any profit proportional to their share though.

If you have serious money, maybe you should go for a proper US corp or even offshore structure to own your US LLCs and Corps.

I am no expert, and I am just sharing my experience. In any case, you need a good accountant specialised in RE.

I'd love to but I am not sure how to get finance. I barely managed to get som 5/1 ARM on 60% LTV on a single family.

I registered mine with LegalZoom but you don't get a customized operating agreement.

Are liens not all registered in something like a land registry?

Why foreign LLC? Where do you want the LLC to be domiciliated?

I live un UK and have invested in France, Thailand, Bulgaria, UK. On the lower end, high yielding properties. In Thailand or Bulgaria you can buy One beds flats (condo in US terminology) for less than 35,000$, yielding 6 to 10%. I have experience and access to deals in these markets. I am not a RE professional, but have access to some RE professionals.

Hi Arne,

your experience is very insightful.

- I do not invest as an LLC but will start one soon. I have 3 doors, one SFH, one Duplex, looking for the next MFH.

=> What sort of areas and price ranges for the Duplex and MFH? Is it possible to find financing as alien no resident? I got a 5/1 ARM at 4.75% ate 60% LTV for a SHF, but it was so difficult and costly in fees and paperwork ... I agree biggest challenge is financing, and having a good property manager.

for FX, I have used xe.com, moneycorp (good for large amounts), currencyfair.com and I know about transferwise but it seems it is not as good.

The bank is BBVA Compass in Florida, we were referred by a friend realtor in Jacksonville. When you are referred by a local, it helps. Also BBVA is Spanish, so they are more foreign friendly. I also have an account with HSBC, which is very convenient as I have one in UK. Basically they would open an account for you anywhere in the world if you are already a client. But the don't do small business accounts in US.

The problem with BBVA is that you need to do some procedures face to face, and they don't  have branches where our investments are. We have nothing in Jacksonville. I am shocked that they charge 25$ for wire transfers, and there is a limit of 5000$! we had to wire funds from abroad from different banks to make some big payments.

I was not happy with the accounting firm I used, now I am trying with an individual CPA.

Hi I am a foreign investor

1) Setup an LLC in the US owned by a foreign investors

=> I used LegalZoom, only help could be with Operating Agreement, but a model agreement for property investors could be fine (I used the Legal Zoom one, not great)

2) Get a tax number for the LLC

=> DIY

3) Setup a bank account for the LLC

=> I got a referral from an acquaintance, not east to deal remotely with US banks

4) Transfer the cash from overseas to the LLC bank account

=> easy. use FX brokers

5) Find a property and make an offer from the LLC

=> realtor and visits are required

6) Give POA to an "agent" to close on the property

=> you can close remotely if you buy with cash, if you get a mortgage some banks require notarised signature in US

7) Sign an agreement with a property management company

=> remote again

8) Accounting => you have to use a CPA, at least once, because us tax system is complicated and there tons of rules and forms

I have BBVA Compass in Florida, but they have few branches an mainly in the northern part. Their internet bankings is very bad and you need to go in the branch to do things. They are helpful on email and phone though. I am not happy wire transfers are limited to 5000, and ECH to 1000 per day.

I also have an account with HSBC, which is very helpful if yo have accounts with them in other countries. They are very international and foreign friendly. Internet bankings is ok.