I am seriously considering investing in the USA to purchase for the main aim of obtaining high yield of at least 20%+ net. I believe it is obtainable and even better than this. Many such as Steve McNight, Robert Kiyosaki, Dolf De Roos, etc have all obtained this.
The US state I have come to the conclusion would be best to invest mainly due to the good demographics, high yields, excellent job prospects and possible future capital growth would be Florida. Another key issue is that it is easier to obtain finance in Florida compared to many other states.
The reason I choose multiunit complexes is that they obtain higher yields and the banks are are offloading their REO’s of mulitunits at cheaper prices by the unit than single family homes.
The only things holding me back at the moment are;
1. which entity to set up ownership to obtain finance as well as protecting me against being sued.
2. where to obtain finance for such projects,
3. where to find a good refurb and property management company
4. which real estate or REO agent that can obtain these types of deals.If anyone in the forum can give any advice/recommendation I would most appreciate it.
Thanks in advance.
Anthony
AnthonyDR wrote:I am seriously considering investing in the USA to purchase for the main aim of obtaining high yield of at least 20%+ net. I believe it is obtainable and even better than this. Many such as Steve McNight, Robert Kiyosaki, Dolf De Roos, etc have all obtained this.The US state I have come to the conclusion would be best to invest mainly due to the good demographics, high yields, excellent job prospects and possible future capital growth would be Florida. Another key issue is that it is easier to obtain finance in Florida compared to many other states.
The reason I choose multiunit complexes is that they obtain higher yields and the banks are are offloading their REO’s of mulitunits at cheaper prices by the unit than single family homes.
The only things holding me back at the moment are;
1. which entity to set up ownership to obtain finance as well as protecting me against being sued.
2. where to obtain finance for such projects,
3. where to find a good refurb and property management company
4. which real estate or REO agent that can obtain these types of deals.If anyone in the forum can give any advice/recommendation I would most appreciate it.
Thanks in advance.
Anthony
Hi Anthony,
I attended a Dolf De Roos seminar last Sunday in Sydney, it was the first time I have seen Dolf and while I was impressed with his style there was a lot that left me thinking I would be skeptical in using his enterprise to purchase a US property, despite the glowing reports that he said and he is promoting Phoenix Arizona as the place to invest.
You can pay $12000 and spend 5 days running arround Phoenix with an supplied ipad and in a week you will be investing like a pro
I have been investing in residental property for many years and it take s more than 5 days to learn how to invest, I am investing in the USA, but working with people that are giving you ROI up to 25% with tenants in place.
Would iIinvest in Florida, depends on were, more likely i would not because there are so many people promoting Florida as the place to go
It all depends on your goals capital growth V cash flow.
If you are interested I can give you the names of a couple of accountants that have the knowledge re US tax and Aussi tax implications.
I don’t give there name out on this forum for obvious reasons. If you would like to make contact
Jeff
Hi Jeff /Anthony,
I also went to this seminar in Perth, and I have to say I was impressed too.
but does it sound all too good to be true? I have heard property managers are hard to find good ones and deal with, but sounds to me like they manage the properties -so shouldn’t be any problems there. Like Steve mentioned you need someone physically there to ‘collect’ the rents.
my question i was thinking is how much did ‘extreme property wealth’ pay dolf dee roo’s to come over, it looks like dolf is simply the tourist presenter and throwing in a couple of his books/programs ect.has anyone subscribed to extreme property wealth bronze membership? – They send u emails about +ve cashflow properties in Aust and US? anyone actually bought a property using this system?
As I am looking for my 1st deal – the US doesn’t suit my risk level.
But I will definitely be researching as an option maybe syndicate style in the future.m.mcqueen
mcqueen | Melinda McQueen Design Blog
http://www.melindamcqueendesign.com/
Email MeMany cities in the United States have fallen by up to 50% since 2006. The market has fallen and both the rental vacancy rates and unemployment remains high. The exception is Texas where the market has not fallen at all and the economy remains strong. Do not be sucked in by cheap prices. If that is the only reason you want to invest in the US then do not bother.
Nigel Kibel | Property Know How
http://propertyknowhow.com.au
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I'd like to see some of this 20-25% ROI real estate.
CheevesFinancial | Cushman & Wakefield - Commercial Property SW FL
http://www.CommercialRealEstateVoice.com
Email Me | Phone MeHello all!
Thanks for your feedback. Glad to receive comments from others taking the time to read and reply to my post.
After doing some further due diligence my favourite town is Las Vegas. It was one of the hardest hit by the GFC, so the prices are fantastic, the demographics are good there in particular future job prospects and business investment and growth and the population continues at one of the highest levels in the USA. Future capital growth looks promising and most likely will be one of the fastest growing cities once more in the not too distant future.
Now my goal is to obtain contacts and high returns in Las Vegas. If anyone could be of assistance let me know. At this tage I have found good property managers, real estate agents, accountants financier and lawyer. The only contact I need is a good refurb company in Las Vegas. If anyone knows of one I would be greatful. We can possibly swap contacts.
Hi Anthony,
I am new to the thread,I once was interested in the US property market, I think you have to do your due diligence's very carefully.
Things you have to consider- Unemployment is very high in the US comparing to Australia. Rental is very competitive over there, you have to consider tenants moving in and out of the property in short term basis
- CGT and individual tax income.( you have to get a account that specialized in foreign investing)
- Foreign investing also involves in the money currency
- American people are different. Your property manager will properly call an electrician to change a light globe than calling a handy man
The US property burst has happened before,I not to sure if I could recommend books on this forum. but there are books out there how Australians brought US property back than during the earlier burst in think in 1980's.
CheevesFinancial wrote:I'd like to see some of this 20-25% ROI real estate.It comes with its risks .. but thats what a deal looks like on the US market
Its a block of 136 units (think housing commission style but worse) on 6 acres in the middle of forgetmeville. Each unit returns 550 per month and that amounts to $897,600 gross (on a 2.35 million purchase that sounds like 38.19% gross)
risk components? most likely an all-black set of tenants .. allow for increased FIRE insurance (you'd need it) and employ a property manager AT ALL COSTS.
For anyone investing its a hard deal to conquer .. but i find those the most profitable too. Not one designed for the amateur investor, but most of its pitfalls are conquerable with the right training and working up to these sorts of deals.
So thats 38.19% Gross .. which after taxes and expenses should pull you close to your 20-25% ROI margin. Sure its high value and high risk, but you'd be surprised at what low risk areas are now .. risky .. in America.
The point being .. do your homework. Dont go on past performance or reputation. Go on actually robust factors leading to your deal being worthwhile 5 years down the track. America has changed quickly and not all sectors will come back. Which means not all towns will either.
Well I have been inundated with contacts. I am surprised how efficient and professional all the services are in Las Vegas not to mention cheap. Ready to do my due diligence and will visit and start purchasing in the US. This is certainly a trun key no brainer investment.
My recommendation to anyone investing in the USA. Do your own research and the more you dig the more to discover the opportunities that are available. I also advise going there before you purchase. I never purchase sight unseen.
Read this. The time to buy is 2011!!!
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