All Forum Posts by: John Haveman

Hi Azeez

Thank you very much for your reply and detailed guidance.

1. The current loan is in the LLC, no Quit Claim Deed

2. No, it's a single-member LLC (am I understanding the question correctly?)

3. Foreign shareholder (me) = 100%. I have had an ITIN for years.

4. Current interest rate = 5.5%

I understand that the cost of a new loan (portfolio or otherwise) will be higher in the current market, but I would like to buy an additional property or two as I think this market will offer great opportunities.

However with a DSCR of 1.25 I am struggling a bit to get the numbers to work. If I assume a loan interest rate of 8%, and if I can get the net yield on the new property (cost $185k) to 7.1% (the yield on the current property is 5%), a DSCR of 1.25 would imply an LTV of just 54%, and I'd have to put in an additional $90k of cash. However, if I simply purchase the new property on a straight 75% LTV mortgage, I'll only need to put down around $60k. Happy to send you my calculations – not sure I'm doing it right?

Much appreciated

John

Hi there!

I'm looking for recommendations for a HELOC lender to an LLC with a foreign shareholder.

Property - Atlanta, GA
Property valuation - $240,000 (Zillow $279,000 unlikely)
Current mortgage loan - $120,000
LTV required - 75%

Purpose - to supplement deposit for new property

Loan serviceability - not a problem (salary income)

Don't want to do a cash out refi, as the rate on the current loan is very low.

Any suggestions welcome!

Thanks

John Haveman

Thanks Mike

Your advice around adding a signatory on the account might be the way to go.

Much appreciated

Hi everyone

I need a reference for a business bank account for my LLC.

As a non-U.S. citizen (South African/Netherlands), I am the sole member of a GA LLC, which owns a property in Atlanta.

I am looking to open a bank account for the LLC (for rentals and expenses), and I was wondering whether anyone could give me a recommendation in this regard? I have already established working relationships with lenders, attorneys and accountants in the U.S.A., all the paperwork is already in place, and I have the capital ready to build a real estate portfolio, so the only remaining hurdle for me is to establish a banking relationship.

Thanks for your help!

Thanks very much Ali

I'll send you an email right away.

John

Originally posted by @Ali Boone:

Actually for where Atlanta is right now, the numbers aren't bad. Atlanta is in a prime right now so I don't expect much on the cash flow front--compared to where they used to be. 

The numbers seem decent, as does the address, but the meat of a turnkey company is going to come in the rehab quality, the property management, etc. None of those can be seen in the numbers.

All my turnkeys are in Atlanta and I work with a lot of turnkey providers in several markets, but haven't heard of these guys. I'll do some digging...

Thanks Ali, much appreciated!

Which turnkey providers do you work with in Atlanta?  Would you be able to recommend the best to me?

Here's an example

3501 Tulip Dr
Decatur, GA 30032

Hi everyone

I've come across 33 Holdings, a relatively new Turnkey provider in Atlanta (www.33holdings.com).  They are part of Kathy Fettke's (@kfettke) Real Wealth Network.

The properties on their website look good (don't they all on paper), but I can't find any references to their business on BP.

I will naturally do a comprehensive DD on any property I buy from them, but I'm just wondering whether anyone (outside of RWN) has dealt with them in the past?

Thanks!

John

Originally posted by @David Faulkner:

There are no good deals on RE in Cape Town?

Hi David

Good question!

There are certainly deals, but the South African political situation is uncertain, access to gearing is limited, and the currency (Rand) is extremely volatile.

John

Originally posted by @Brian Foster:

Houston is a great area to invest. You will see many reasons why on this blog;

http://blog.texasturnkeyproperties.com/

Since you are investing from out of the market, you will need excellent Property Management. Be sure to make researching Property Management part of your due diligence. I see a lot of posts that focus on the deal and finances and returns and very few that even mention having a great property management partner. I deal with several experienced, seasoned investors and I always know when I've got one because they have as many questions about PM as the deal.

Long after the deal is done and that excitement has subsided, you want to have a great PM company on your side.    

Great advice, Brian

I really appreciate the feedback.  Houston is definitely on my list, and I'll be in touch.

John