Where To Buy For Cash Flow in 2024
16:16
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@rafaelcamposdepinho5088
@rafaelcamposdepinho5088 5 күн бұрын
Hi Stephen, great video! I read in the comments that you're using an LLC. How do you deal with FIRPTA?
@StephenDuncombetv
@StephenDuncombetv 5 күн бұрын
There’s several ways. Speak to a good US accountant.
@daveturner343
@daveturner343 13 күн бұрын
What would you be left with after tax if you bought through a limited company vs as a private landlord already on the 40% tax bracket? That could make a decent vidio
@StephenDuncombetv
@StephenDuncombetv 12 күн бұрын
Yes I probably need to do more around the numbers. I try and avoid tax as it can change quickly with new legislation and it’s quite specific to each persons situation.
@andrewboy3159
@andrewboy3159 14 күн бұрын
Love it! Would you do these 10 properties on your name or setup a company?
@OlaMayor
@OlaMayor 21 күн бұрын
How much capital does it require to buy property in the US..
@Moiparici
@Moiparici 24 күн бұрын
Wow, great content!!! I just subscribed to your channel! Just a few questions. - How did you find the broker? - How can any of us, who are not into real estate find a good and reliable one? Thanks for sharing Stephen 🤗🤗🤗
@Loopyloupy
@Loopyloupy 26 күн бұрын
Thanks for the great video. What kind of mortgage do you personally refinance with? Interest only or repayment?
@ell_3150
@ell_3150 27 күн бұрын
loving these videos!
@ElliottWhite-n5k
@ElliottWhite-n5k 27 күн бұрын
Thank you so much for this. As a uk citizen, would it be possible to secure financing through an llc? Do you have a video on this?
@StephenDuncombetv
@StephenDuncombetv 27 күн бұрын
You can if you have 2 years of accounts with the LLC
@ElliottWhite-n5k
@ElliottWhite-n5k 27 күн бұрын
@@StephenDuncombetv and if you don’t have that, seller financing?
@StephenDuncombetv
@StephenDuncombetv 27 күн бұрын
@ElliottWhite-n5k yes or all cash.
@wonke-bo4fx
@wonke-bo4fx 28 күн бұрын
Good video bro❤
@orehman8696
@orehman8696 28 күн бұрын
Why do most property investors not think of retirement? Why not buy buy to lets, get the mortgage paid off buy the rent within 20 to 25 years then live off the rental income or sell the property? Even if you are not making any net profit, isnt it still better to just keep the property rented until the mortgage is paid off?
@custardpie8101
@custardpie8101 Ай бұрын
Do you have a US bank account? If not, do you use something such as WISE to manage movement of money from US to UK or vice versa?
@StephenDuncombetv
@StephenDuncombetv Ай бұрын
Yes I do. And use a transfer service ofx.
@custardpie8101
@custardpie8101 Ай бұрын
@@StephenDuncombetv How easy is it to gain a US bank account if owning US property but living abroad (UK)?
@StephenDuncombetv
@StephenDuncombetv Ай бұрын
@custardpie8101 super easy if you have an LLC and an ITIN.
@ashleyvanderpuye1658
@ashleyvanderpuye1658 Ай бұрын
Brilliant video, really informative 👍
@user-ew5fd2xu5x
@user-ew5fd2xu5x Ай бұрын
Really helpful 👍🏻
@chriswildey8430
@chriswildey8430 Ай бұрын
I know you try to find properties that have long-term tenants in place, but would be interesting if you could do a video about commercial properties becoming vacant. I imagine commercial properties are harder to find new tenants, and would be interesting to understand your insights on the landlord being liable for business rates. Honestly, it is these aspects that worry me about investing in commercial property.
@StephenDuncombetv
@StephenDuncombetv Ай бұрын
Yes they are the risks. I will do a video on those points at some point but I go over the details in my uplevel workshop. Waitlist is in description.
@bartoni79
@bartoni79 Ай бұрын
Do tenants always pay business rates or does the freeholder sometimes pay and incorporate into the rent?
@StephenDuncombetv
@StephenDuncombetv Ай бұрын
Tenants should be the ones that pay the business rates. Otherwise a dodgy landlord could receive the business rates and not pay them.
@bartoni79
@bartoni79 Ай бұрын
I suppose if paid by the tenant in a long lease it also removes the issue of business rate rises as it doesn’t affect the LL
@drummingspain207
@drummingspain207 Ай бұрын
Although the numbers may appear good as presented, let's face it, they're not realistic. There will always be some refurb costs, especially at this price point. Also, as the properties are flung all over the place, you'd have to allow for a management company, then ongoing repairs, possibly costs to bring them up to a 'C' rating, periods for un-occupation, cleaning / inventory at changeover etc. Not sure if 80% BTL is realistic, but many interest only motgages also carry hefty arrangement fees. Once all this is factored in, some of these deals no longer appear viable. It would be nice to see realistic and accurate budgeting. Otherwise, investors could be managing a large portfolio and not actually generating any income at all. Our money is for investing wisely, not viewing the world with rose-tinted spectacles.
@StephenDuncombetv
@StephenDuncombetv Ай бұрын
I included all the numbers you need. If you’re refurbishing a property you would make sure it’s EPC C as a minimum. I was not advocating interest only mortgages in fact you should use repayment and own property debt free. It’s 75% LTV. Again if you have just refurbished a property it’s likely you will not have many repairs to do for several years. Thanks for taking the time to comment though.
@bartoni79
@bartoni79 Ай бұрын
Is it possible to get a commercial mortgage without owning a BTL first? Say if you put down 30% rather than 25%?
@StephenDuncombetv
@StephenDuncombetv Ай бұрын
The deposit doesn’t matter. If you want to find out contact any commercial broker and ask them. 😀
@nishantth
@nishantth Ай бұрын
Is it not better to do in a ltd company so it saves capital gains ?
@StephenDuncombetv
@StephenDuncombetv Ай бұрын
You can do that and pay company tax on the profit.
@mhermovsisyan515
@mhermovsisyan515 Ай бұрын
What legal structure are you using to invest in the US?
@StephenDuncombetv
@StephenDuncombetv Ай бұрын
LLC
@paularowswell2840
@paularowswell2840 2 ай бұрын
Hi, can you recommend a broker/lender - who do you work with? Many thanks
@IncognitoIRL
@IncognitoIRL 2 ай бұрын
Thank you so much for this video! My partner and I are London based and branching out into the US and are trying to figure things out on our own so this is priceless coming from a Brit. Here we have Zoopla sold prices to know values and sold prices on a road, down to the door number. Can you do a video on how to find this out in America? Stumbling around Zillow trying to find this info atm. Also there are loads of rental videos, do you know much about flipping out there?
@lr2564
@lr2564 2 ай бұрын
I really like your delivery. It's calm and easy to listen to. I hate property people who shout and use stupid phrases like 'wads of cash' etc....instant distrust for me.
@StephenDuncombetv
@StephenDuncombetv 2 ай бұрын
Thanks, I appreciate the feedback.
@tomatobrush3283
@tomatobrush3283 2 ай бұрын
Wow interesting to hear all the detailed costs like that and also that guests expect a 24 hour on call service. I wouldn't do that, just have an email address and that is all. Is that possible do you think?
@StephenDuncombetv
@StephenDuncombetv 2 ай бұрын
Everything’s possible but you’ll get 1 star review if people have an issue and you cannot sort it quickly. 5 stars if you’re on your game.
@SerYoga1
@SerYoga1 2 ай бұрын
Good man, thank you for sharing your knowledge 😊👍 Subscribed, will be waiting for more episodes 😊
@mikeroyce8926
@mikeroyce8926 2 ай бұрын
In which city/town was this property? Or if you don't want to share, would you be happy to share in which county the property was?
@nc3990
@nc3990 2 ай бұрын
Great videos! If I invest in properties in multiple states, will I need an attorney/accountant/realtor for each state etc and will this make the investment less worthwhile?
@StephenDuncombetv
@StephenDuncombetv 2 ай бұрын
No you can have one accountant for all your investments. I used a different attorney but it’s per transaction so it’s no different to using different solicitors here. Realtors help you buy/sell property - again per transaction. I hope that helps
@sukhsran
@sukhsran 2 ай бұрын
Great video..
@StephenDuncombetv
@StephenDuncombetv 2 ай бұрын
Thanks I appreciate the kind words.
@Tim-Thompson
@Tim-Thompson 2 ай бұрын
Best commercial property channel by far!!
@StephenDuncombetv
@StephenDuncombetv 2 ай бұрын
Thanks Tim 😀
@sambuka10000
@sambuka10000 2 ай бұрын
Iv just come into roughly 80k my plan was to put that into commercial straight away but now youve said we need to at least have 1 BTL property for experience. thats nipped my plans in the bud😂, what ill have to do now then is break that down into 1-2 BTL re mortgage or sell then go from there i suppose🤔 am i on the right track?
@StephenDuncombetv
@StephenDuncombetv 2 ай бұрын
Yep getting your first investment property is important if you want to use leverage with commercial.
@Noor-kp1yb
@Noor-kp1yb 2 ай бұрын
Stephen do you still run SA now in 2024 ?
@rikardsaje
@rikardsaje 2 ай бұрын
Really good information, what's the capital growth like in commercial property?
@StephenDuncombetv
@StephenDuncombetv 2 ай бұрын
Location it’s important as land values will impact capital growth. The rental income also drives the value and so can be impacted quickly, if for example you get a higher or lower rent.
@manni192
@manni192 2 ай бұрын
I only own commercial property
@bouwah85
@bouwah85 2 ай бұрын
Me too❤
@bartoni79
@bartoni79 Ай бұрын
Did you own a residential BTL first?
@manni192
@manni192 Ай бұрын
@@bartoni79 No
@bartoni79
@bartoni79 Ай бұрын
@@manni192 which mortgage company / broker did you use? (If you don’t mind me asking)
@manni192
@manni192 Ай бұрын
@@bartoni79 didn't, bought it outright
@Barra32
@Barra32 2 ай бұрын
Looking at breaking into the us market from the uk as you have. What advice would have for starting out in the us with no history there?
@StephenDuncombetv
@StephenDuncombetv 2 ай бұрын
Find someone who has done it before and find out how to do it. There’s too much for me to say in a comment.
@davidcalvert-smith4633
@davidcalvert-smith4633 2 ай бұрын
Interesting video - I plan to move into commercial property in the not too distant future. In this market what interest rate are you paying for a A1 tenant? I’m finding the yields are pretty low for properties with really strong covenants. But I really need to get educated in this department
@StephenDuncombetv
@StephenDuncombetv 2 ай бұрын
You'll find that the yield will vary by location, but you can find exceptions. I would be looking to get minimum 8% yield and you can still get great tenants such as the NHS on long leases in the south east at 10% yield but you need to spend more money on the property.
@EC-ge3do
@EC-ge3do 2 ай бұрын
sounds good..what do you think renting your residential property to the council. cheers.
@StephenDuncombetv
@StephenDuncombetv 2 ай бұрын
If the gross rent you make is the net rent you receive and you have no tenant hassles or concerns about legislation changes and there are future opportunities to manufacture growth either from capital appreciation of cash flow then it could be something to consider.
@noble4300
@noble4300 2 ай бұрын
Great video, what’s the website you use to see who’s currently renting it and if it’s FRI?
@StephenDuncombetv
@StephenDuncombetv 2 ай бұрын
My favourite website to find commercial property are Zoopla and LoopNet. RightMove is making a come back though with commercial but the search has limitations.
@FRESHLIVINGSPACE
@FRESHLIVINGSPACE 2 ай бұрын
Good information
@StephenDuncombetv
@StephenDuncombetv 2 ай бұрын
Thanks for watching 😀
@Wonderful_World007
@Wonderful_World007 2 ай бұрын
thanks
@StephenDuncombetv
@StephenDuncombetv 2 ай бұрын
You're welcome!
@luiselvis2059
@luiselvis2059 2 ай бұрын
Ola Stphen, are in interested in commercial properties in portugal? Seaside boomi g city Algarve?? Has a 15 yr lease with it
@StephenDuncombetv
@StephenDuncombetv 2 ай бұрын
Not unless the cap rates are over 20%. I can buy 15 year leases properties in the UK and earn GBP and understand the market dynamics better here. The reward would need to outway the risk.
@tomatobrush3283
@tomatobrush3283 2 ай бұрын
I am looking to buy first commercial and I could get a decent cashflow with my 150k but then Ill be left trying to save up again but then I could do another live in flip with 50k + loans and then have 80k left of investing in commercial but that doesn't go far. Should I go all in for cashflow and then save up again or should I do another live in flip?
@StephenDuncombetv
@StephenDuncombetv 2 ай бұрын
You can still manufacture growth with commercial simply by putting a tenant in a vacant property. You buy it for £150k get a tenant that pays £25k+ in rent, the new value can then easily be worth £300k, you refinance at 75% LTV and go again.
@wonke-bo4fx
@wonke-bo4fx 2 ай бұрын
Sounds good bro 🎉
@ChrisModen
@ChrisModen 2 ай бұрын
Another excellent video Stephen 👌🏻
@thomasbarnes4558
@thomasbarnes4558 2 ай бұрын
amazing video thanks
@Barra32
@Barra32 2 ай бұрын
Hiya, whats the best way to purchase property in the US as a non-US citizen? As an individual or under a company name like here in the UK? And where would you start with in terms of lenders and securing financing?
@StephenDuncombetv
@StephenDuncombetv 2 ай бұрын
I bought in a company name as it’s more litigious in the US. You cannot get finance until you’ve got at least 2 years tax returns.
@Barra32
@Barra32 2 ай бұрын
@@StephenDuncombetv thanks, so whats the best way to generate tax returns if you’re not living in the US
@mpdesousa
@mpdesousa 3 ай бұрын
Great video! What software are you using for the HMO map?
@StephenDuncombetv
@StephenDuncombetv 2 ай бұрын
I use Property Data - Split £150 credit 👉 propertydata.co.uk/r/wV31ZGK3
@nadiad6816
@nadiad6816 3 ай бұрын
What about tax? Have you calculated that? You would have to pay tax now on the full amount of rent regardless mortgage payments, wouldn't you? Wouldn't you get into negative return? Thanks
@Stabila64
@Stabila64 3 ай бұрын
.....btw, I'm talking generally and realise a more detailing number game will be needed. My question was for quick assessment purposes. Thanks again.
@Stabila64
@Stabila64 3 ай бұрын
Stephen! thanks again for your continued teaching - you're very watchable. I just want to ask a question about qualifying a commercial to residential purchase...Is there a rule of thumb, or sum I can use for a quick assessment of something being a good deal....Say, is there a ratio I can use to show ideal difference between purchase price/per/sq/ft to end value price/per/sq/ft?...I'm asking because knowing the difference would tell me if it would cover rebuild costs and a profit...Many thanks!
@StephenDuncombetv
@StephenDuncombetv 3 ай бұрын
Thanks for the kind words. There’s no ratio that would make sense across the country. Unfortunately at a high level, you need to analyse each deal on the local market price per sq ft/m for residential take of your conversion build cost per sq ft and then make sure you buy commercial below that per sqft and adding your profit margin.
@Stabila64
@Stabila64 3 ай бұрын
@@StephenDuncombetv Thanks Stephen!.....sorry, could you just explain the second part of your answer again? '...for residential take of your conversion build cost per sq ft and then make sure you buy commercial below that per sqft and adding your profit margin.' ( My plan is to do a commercial to residential conv.).
@Noor-kp1yb
@Noor-kp1yb 3 ай бұрын
Is this still true in 2024
@StephenDuncombetv
@StephenDuncombetv 2 ай бұрын
Do you think the expenses go down over time or up? Likewise the rent will go up over time. But essentially this is my experience, everyone sees things differently and what seems less attractive to some, is fine for others. Try it and see for yourself unless you feel there is a better way to make more money in a quicker time with less risk and less aggravation.
@cleopatra108
@cleopatra108 3 ай бұрын
Please lower the volume of the music I can barely hear 😢
@StephenDuncombetv
@StephenDuncombetv 2 ай бұрын
Sorry about that, I am unable to edit the video once it's posted. You can turn on the subtitles and mute the volume if you prefer 😀