Recently I have been doing too much at the same time, as a result, great pressure built up. As I enter into this new market, I have to build the whole thing from ground up. First of all, I had to figure out all the issues with foreign investment, and set up a corporation and a limited partnership according to the advice of the lawyer and the account. There are such issues as percentage of ownership, withholding of rents, withholding of sales, etc etc. Secondly, as I start the buying process, I had to find a property manager, mortgage broker, lawyer, banker, and at the same time learn the ropes of foreclosures and auction. Thirdly, studing the foreclosure lists, screening them, finding them on maps, and flying there driving around, takes quite some time. Fourthly, on the auction, you never know which property is for sale until the trustee announces it, and you do not know the bidding amount untile it is announced on the spot; and you only have three seconds to make a decision to buy or not. All these pressure builds up in the past month and a half.
I have found a property manager, took over the title of a property, and bod for the second one. I also found a insurance agent for the insurance. I learned how to register deeds in the county court house. The first property is in the process of repair and will be ready for rent this month. These things gradually and steadily fall into place.
The mortgage is totally another thing. Because the touch credit environment, it is going to be difficult to find willing lenders. The original plan is to buy properties through the LP, but mortgage brokers and bankers told me lenders will not lend to LP, so the property has to be in personal name. After a mortgage is gotton, then the property will be transferred to the LP. There is a possibility that lenders will call back the mortgages, but this is the advice I got from the brokers.
I made an application with BofA, but after I came home, the banker who made the application for me does not take my phone call any more, so it is very frustrating. Because the property is in my name, and the LP has more than one partners, the accountant told me I cannot do a simple transfer because it means I transfer part of the ownership to other partners and that will be considered as a gift, hence I will be taxed. This makes things more complex. In the end, I decide to give up transferring the existing two, but find a way to add other partner's name when and where the purchase is made.
If in the end I could not get a mortgage, then I have to do option two: sell. I hoped I could get mortgages before the buying power is used up, so that I have got to keep all properties and yet still can keep the buying process going.
I have to reduce the pressure and make it simple: instead of keeping all, keep some, and sell some. Or even sell all if no mortgage can be gotton. Selling makes it a disadvantage tax wise, but it is the other way to keep it going. And keeping it going is the most important thing.
If by the end of the month, there is no confirmation for mortages, then the next purchase will be for sale; if there is one or two mortgage confirmations, then the next purchase will be for keeping.
If there is no hope for mortgages at all, then all will be for sale, until there is hope for mortgages.
