All Forum Posts by: Willem Botha

Hi Collette, 

@Rabih El-Khoury is right on the money above. I have started about 2 years ago from South Africa.

My tax person actuly assisted me with the EIN numbers. 

Give me a shout for any specific info you require.

Hi Jeannie

Regarding the recommendations you asked for: I am an foreign investor (South Africa) making use of Midsouth Homebuyers. My personal experience for the past 2 years are non stop excellence, good and professional service. Closed on my second property in October of last year and will buy more as funds permit.  

As a South African and property investor myself I can give you some feedback on your questions above. We don't have LLC's in South Africa, some options a Business Trust, Family Trust or Pty Ltd. I have some properties in a Trust and some in my personal name. We obviously have issues here regarding "land expropriation without compensation" and you need to be aware of the risks (up to now the law has not even change yet - (The Constitution need to be amended) but I do believe it will eventually happen. We are not a litigious society so law suits is not a high risk here. - The court systems are way to slow and backed up, also making it VERY difficult to evict tenants - So screen very carefully.

As usual every bodies risk tolerance and requirements are different but I do think a Trust would probably be a good entity to register the property in. 

I do believe student accommodation have very good returns in South Africa. I currently have 3 units for students in Gauteng, Pretoria and we (myself and a partner) just bough a 6 Bed, 3 Bathroom + Granny Flat for the same purpose. Closing in the next few weeks. (Bought and register in a Trust)

Just for interest sake: This property will be my last one for South Africa, I started with turn key purchases on Memphis and looking forward that is where my returns / investment money will go. Keeping what I have in South Africa (and believe all will work for the best) and double-up with turnkey in the US.

Hope this help in any way.

I am buying turnkey through Midsouth Home Buyers - They offer finance for "anyone" including foreigners at 40% down, 7.5% interest with a 10 year mortgage.

My experience with them can only be described as hassle free, one stop shop with excellent service. 

Closed on my first US property on 15th of December 2017 - PM me and lets get together. 

Hi Phillippa

Welcome to Bigger Pockets. You will find a lot of information and guidance here. However, from what I can see in your post there is not enough information. You can make use of a massive amount of information (maybe starting with the the Podcasts) and use it to the best of your ability in our local market - here in South Africa. 

If you ask the "right" people you will find that there is some hard money lenders in South Africa as well, but you will have to bring something (probably a bit more than experience) to the table. 

I hope you manage to get your project of the ground soon.

Hi Luka,

I can share my journey with you from a South African Citizen perspective. As usual you need to verify and confirm. 

As a South African Citizen an individual is allowed to take out R1,000,000 / calendar year (Discretionary Allowance) - no questions asked by SARS. If you want to take out more than R1m (up to R10m) / year you need a tax clearance certificate from SARS. 

I have signed for my 1st turnkey property in Memphis a week ago. I registered an LLC and bought the house in the LLC's name - Mainly for personal liability protection. - You will need to investigate the best option for your situation.

At the moment I am talking to CPA's to ensure I stay on the right side of the law in the US / IRS. Bottom line - as mentioned above, you need to talk to the right people at the right times e.g. CPA's but there is definitely no "one size fits all" in this process.

For what is is worth - all profit for property investments in the US will be subject to taxes in the US as well as South Africa (According to my research).

Hope this helps, give me a shout if you would like to chat / connect.

Hi Diogo

Not sure if you refer to transfer losses or exchange rate fluctuation. 

Here from South Africa I have no option but to take the knock or the windfall as they happen. Long term plan is to use the US$ and not convert to local currency. Buying dollars remains an up and down effect - depending on multiple conditions out of my (our) control. 

Happy investing.

Hi @Diane G. you must sell those crystal balls that shows equity growth and future value. 

Hi @Elizabeth Wilson

I can do Ouma's rusks. ;-)
Biltong on the other hand seems to be a no-go (need some serious certificates and approvals).  :-(

Sounds good - is this am or pm - We are driving from Tampa to Memphis on Wednesday the 7th - Will love to join (if pm) - if all goes well and we arrive in time.

Thanks