All Forum Posts by: Laura Williams

Hi Ken!!

I have bought/rented out and sold a place in Buenos Aires and also currently own some property in Cape Town, South Africa. I don't know anything about the Romanian market or Eastern Europe. From my experience investing oversees can be done if you have great team in place. The guy I worked with in Buenos Aires was awesome but it would have been a nightmare without him filing my taxes for me, keeping up with all the Argentine real estate laws, fixing things that broke down, etc. But that being said there's alot of things about investing oversees that can be a pain or certain quirks in the laws that you need to be sure to know. For example in South Africa the law requires that when you sell a property the money has to first be deposited in a South African bank. I can't have the buyer wire the money directly to me in the states. But the South African bank will not accept the money unless you show proof of where you first wired money into the country to buy the place. This law was not in place when I first bought there ......it changed... some kind of anit-money laundering law they enacted. Luckily I keep everything so wasn't a problem but if I had thrown away those receipts I would have been in trouble. Also when I get income from my rentals deposited to my South African bank account I have to send the bank the receipts to show where the money is coming from otherwise they reject the money. 

Another issue that can work for you or against you is the currency exchange so that needs to be factored in. Plus investing oversees I have not found good lending situations like what we have here in the states. In South Africa as a foreigner you can get up to a 50% loan and the interest rates are high....around 10%plus and the rates fluctuate. The interest rates in general are higher there cause you can still put money in a savings account and earn 5% unlike here. 

Also if you're married or in a partnership etc. the laws could be different over there in regards to that, that you may want to look into. When I signed the paperwork in South Africa the bank I was getting a mortgage with made me sign a piece of paper stating that I would let them know if I ever got married. I asked them why it mattered if I was married or not since I'm buying the property as a single person. They told me because the laws are that once I'm married the other person is entitled to what I have and that if my spouse for example had a gambling problem I'm responsible for that debt too unless I had in place in South Africa what is equal to a prenup over there. 

So my point is just learn everything you can about the laws as there can be quirks that you might not know about. But that being said some of these oversees markets are growing quickly and could have good appreciation. I've had friends that made alot of money investing oversees but just be careful. 

I have heard most investors factor in 10% for vacancy and maintenance on a newer or recently rehabbed property and 15% for an older property for SFH.

I think the most important thing with rentals is to make them look really clean. I'd probably go with a white paint for the bathrooms especially if the bathroom is dated and a tan color. 

You could reglaze the tub and tiles. I had it professionally done once to a bathtub and it has held up pretty well over the years. They sell do it yourself kits at Home Depot but I heard the professional glazes last much longer. You could replace the toilets pretty cheap if you know someone who can change it out for you for not too much money.  Sometimes just a fresh coat of paint and a new vanity will do wonders for a bathroom too. 

My friend had a rental where the tenant had cats and the whole place smelled like cat pee when they left.  She said she tried everything to get rid of the smell and the only thing that worked was an ozone machine. Hope this helps :) 

thanks @James Wise   I'll look them up :)

Hi! Can anyone recommend a good property insurance agent that sells insurance for co-ops (for owner, rentals, liability and auto) in New York City? I'm looking for an agent that is very smart & knowledge about insurance and customer friendly. I currently have policies with Travlers who I'd like to keep but open to exploring other insurance companies. 

thanks will be there with friend sage Salzer 

the worst renter expereince I had was renting to a friend that was a girl which I will never do again. Knock on wood I haven't had any problems with any other renters (woman or men) ......although I'm sure that will change as I get more places. One of my current male tenants sends me a big beautiful bouquet of flowers every year for Christmas. It's actually pretty smart of him as it makes me feel bad increasing his rent and I usually don't increase it as much as I should. 

You should ask the bank if you can hold in an LLC as some may let you. Wells Fargo told me I could change the title to an LLC after I bought and I talked to a small local bank that does investor loans that told me they prefer that investors keep the property in the LLC name. From everything I have heard and read the LLC is the best entity to hold real estate .......hands down. If it's possible you should hold all your real estate in an LLC for asset protection. You can't go back and put it in an LLC if you get sued.

And as far as people caring if a person or LLC entity buys their place I have not found it mattered at all. People or banks are just happy to sell.