All Forum Posts by: Jerraill Murphy

@Christoph Heim

That’s a 2.0% - 2.5% depreciation rate based off of the initial value of the home? Right?

And just so you’re aware please know that I’m highly appreciative of you taking the time out to answer my question. I know that time is of the essence and I don’t intend to waste your time with my barrage of questions. I’m just gathering this info in oder for my wife and I to have a precise plan of action once we return to good ole Deutschland.

@Christoph Heim

Understood. I would love to be able to refi at a faster rate but no matter the rate I plan to buy and hold my properties for life.

Does the German tax system have anything related to the RE Depreciation tax benefit like the one that exists in the US?

Fair enough. The difficulty doesn't deter me from investing. If I have to use cash to purchase my assets than so be it. I'd just prefer to leverage the assets via debt. 

Christoph,

How do you go about acquiring financing for the deals you conduct in Germany? Do you use traditional financing or do you prefer to use private money?  Does Germany have financing establishments that are equivalent to Credit Unions in the US?

Hello Kai,

Thanks for your reply. 

That's an extremely strong increase in home values in Germany and it's part of the reason I'm so excited to learn as much as I can and begin to invest in the market. Where do you pull your data pertaining to the Germany market? Are you also investing money of your own there and if so in which areas/cities? 

@Christoph Heim

Hello Christoph,

Thanks for your reply! I appreciate the insight. I hope that all is going well with your current investments.

The specific market I’ve focused in on is the Trier, Wittlich, & Kaiserslautern area of state of Rhineland-Palatinate. It’s an area that my wife and I very familiar with being that I was stationed their for years and that’s the area my wife calls home.

So in order to apply a “hypothek” to your personal home you have to wait a year? After the value increases? Or after you have a new appraisal of your home? & does this policy apply with every lender in Germany?

I also had a questions about hard money lending in Germany? Does it even exist and if so what are some of the specifics that may differ from hard money lending in the US?

Hello.

My name is Jerraill and I'm a transitioning service member who has served in the USAF for 9 years. I'll separate from the Air Force next summer and my wife Sarah & I are returning to southwest Germany ( where she is from ) to start our real estate investing journey. 

Our initial plan of action is to refinance the home we currently own in Germany that is valued for roughly $275k ( in which we have about $200k of equity ) and use that cash to begin our first BRRRR project of a multifamily unit. From that point on we'd like to repeat the process at least twice a year for the next 15 years in order to build up the passive income that allows us to escape the Rat Race. Sarah ( my wife ) is also working to gain her German Realtor License in order to learn more about the German real estate system and use those skills/info to benefit our business.

I've come to forums today to just gain some insight from others who are actively investing in German and gain some advice/information on things that I've probably overlooked in my current plan. 

Thank you all for the quick response and detailed explanations. This helps out so much. I love the BP community! 

So Im a new landlord and I’m generating a brand new lease agreement but have no idea what “Hold Over Amount” means in the contract? Could someone please explain.

Thanks!