Forum Replies Created
HighIncomeProperty,
go to the IRS website and search form SS4 then also look through the instructions. You will find a telephone number to call. Once you are connected the operator will want you to fax the form while you stay on the line and then will go through the form and if all is in order will issue you with an EIN immediately.Jayhinrichs.
I would highly recommend that you do not purchase property without the benefit of an LLC. Public Liability Insurance costs around $700 pa and covers up to five dwellings but you can still be personally sued. With an LLC it is not so easy to be found or suedForming an LLC is considered necessary for asset protection and is not as quick a process for non residents. The formation can be done in a matter of hours but the confirming letter may take several weeks to be sent. The EIN can be done via fax with a follow up phone call where the IRS Officer will go through the form with you and immediately issue the EIN provided all is in order.
This board has become so clogged with spruikers it is hard for ordinary folk to know where to turn. I have checked a few websites and sales information and found one in particular that was over stretching the truth by a long way. Sound advice offered above to check County websites for sales information BTW. I am seriously thinking of formulating a class on how to buy in the US to offer (cheaply) when I am back home. Each time I have the time to look in here by blood boils at some of the posts. Buying in the US can be easy.
USA, as you have listed that you do not accept e.mails, feel free to e.mail me [email protected] and I will be happy to provide you information.
Jack, I'll be here in Fort Myers until March 24 then back to Oz for three months after which my visa will be approved…hopefully….and then back here for at least two years. I love Florida! You can call me on 239 565 5747
I agree with Jeff that there are many better places to invest that Miami but what BB is inputting into this board is at least his personal opinion and experience rather than all of the spruiker posts seen here these days.
I have friends who have tried Realtors in both Miami and Orlando with less than satisfactory experiences but Florida is a good place to invest. The mindset needed is that you will receive cash flow but will have to wait for appreciation. This appreciation may take five or more years so you need a very long term view.
Sorry I can't help but feel your pain. There are a lot of complex laws over here and your situation is something I have heard of before.
The information supplied in the above link does work with the IRS and I have been using this method recently for my clients with success.
BB, I am very sorry to hear of your experience but am not surprised. It only confirms that it is not at all easy for non US citizens to obtain finance. The process of working towards a crredit rating is the only way that a reasonable loan can be obtained in my opinion. Obtaining a credit rating is also not an easy task but I will achieve mine within a six month period. I am also living here for that period so have the incoming and outgoing expenses to support a rating.
All of the inspections you mentioned are legitimate but the rehab requirement points to the fact that you would need to pay outright for the property and receive your mortgage funds at a time when you had finished works. This is not unheard of and is really a lender advising that we are not prepared to approve your loan at present but can see that we would be happy to do so once you have carried out repairs.
Your comment on rude yanks is nothing like the experience I have with the majority of Americans that I have learnt to know over the 14 years I have been coming to this country. Most are extremely polite and helpful and I think that term might relate to a tone of voice and attitude that is usually characteristic of certain areas of the US. These people do move to other parts of the States and bring their attitude with them. The dialect and attitudal differences in the US are far more noticable than in a country like Australia where we basically all talk the same. Bad experiences tend to make a person notice things that would otherwise not be noticed.
I would be very interested to know if you checked the Appraisers website for a history of the value of the property you purchased.
Property prices in my area of the US are rising slightly due to buyer demand and this is not only in the bottom end of the market. I work very closely with a Realtor who has been, on the whole, a buyers advocate for the past couple of years but is finding that he is now receiving many calls from sellers wanting his services and houses are selling within days. Not so many bargains and time to spread my purchase area a little wider.
32 in Australia and 6 in the US, not only in Florida. I am not saying II’m an expert I said I have been successful. I’ve also had the benefit of knowledge from posters on this forum since January 2003 and try to impart knowledge to others when possible.
Thanks for the offer Jeff but I also have over 30 years experience and have learnt through the school of hard knocks how to protect myself. I have long, medium and short term plans and I am very happy with the investments currently in place. I am watching the market closely and believe a lot of the current renters will be buyers again and that is when I’ll be ready to sell part of my portfolio. Some of my properties are for the long haul. There will always be renters and I believe if you have the right tenant in place at the right price you have a long term investment. Relying on tenants isn’t the only arm to my investment strategy. I have found ways to expand on services and these are providing a nice little bonus. We have been taught for years to not put all our eggs in one basket and I hope the investors here remember that.
Jeff, I disagree with you on investing in Florida. To say Florida has some of the worst vacancy rates does not tie in with what I am finding. If you price your rental according to demand you have no problems securing a tenant. There is a glut of available houses and where are those previous home owners now….renting. Florida has been vey good to me financially.
Karlred, anything you buy through a Realtor must have a clear title and no liens so there is no need to employ a Lawyer to check this out.
There are reputable Realtors and some not so good. If you need one in the Fort Myers area, I can give the details of the Realtor that I use and have no hesitation in recommending.
I think I really need to make the effort for that cup of coffe Cheeves, maybe Monday as I'll be very close for part of the day.
cwagner, good post. I private messaged a response to one of my earlier posts so a bit was missed here. I think you are quite a bit off with your 50% on well and septic and would be interested to hear where you looked. Not sure how long you were here but if you come back let me know. I'll here until the end of March and will be back in early July for an extended time. The costs of connection to services in Lehigh is not what puts me off as you are right in that it will be years before this happens, it's the maintenance of the pump and septic. I know these can go forever with no problems but for vacant landlords it is just something else to go on the list of things that can go wrong with their property that someone else has to attend to on their behalf. Vacant landlords always need to compile a list of maintenance issues, how old is the HWS, airconditioner, white goods and roof. These all need to be assessed while doing due diligence. How far is a property from a fire hydrant? My Insurance Broker tells me that some properties in Lehigh are uninsurable due to being too far from a hydrant. After all due diligence is done it still comes down to gut feeling and there is just something about most parts of Lehigh that I do not like. Others love it
Judith Ottosen
Property Investment Services
FORT MYERSStill in town until the 24th March. Been meaning to catch up but time just gets away. Like I say, many are happy to buy with septic and pump, it's just not for me when there are so many other great buys. My Lehigh house is in the Richmond/Third area but I'm not actively looking to buy more out there. This one was just a great big beautiful lot with a reasonable house rented @ $725, Paid $34.000 spent a bit under $2000 for rehab but only the cooling works on the aircon so will need to pay $2700 before next winter. It is the worst house in the street but the plan is to pull it down in 5 – 8 years, build a nice home and sell.
For me they are but other investors are happy to buy homes with septic systems. Please also make sure you purchase a property that is within a reasonable distance to a fire hydrant or you may find that you cannot get insurance. Don't buy anything that is in a sparsely built area either.
There are parts of Lehigh that are good and some that are not. I only look at properties there with town water and sewer so that I don't have the possibility of having a water bore to service or a septic to pump.
Levitt, Check your private messages for Realtor info.
Speedy Gonzales is spot on. For a Condo, I doubt you would get finance from anyone just now and a foreign person would find it particularly difficult. Most find that they need to raise capital on equity from home to pay cash in the US. With the economy in the state it is, many Condo owners are walking from their mortgages leaving the Home Owners Association (HOA) with reduced fees (similar to our Body Corporate fees) so there is no money for upkeep, gardening, insurance etc. Many others are placing tenants into their Condo's and some of these tenants are really pulling down the status of the place leading to the creation of a nasty piece of real estate. A duplex, quadplex or single family home is a far better option in my opinion. I know someone who has recently bought in Vegas and will ask if he has a Realtor that could help you.
