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There is a lot of money to be made in US Property market. However, there is also a major risk. Two Asian clients bought off the internet from the MLS. They selected the properties based on the Google Street View and went to the US after about 6 months to see what they acquired. They were highly disappointed. The cheap prices and properties being bought as “fixer uppers” can become the biggest nightmare for overseas investors. You need someone on the ground to be your eyes and ears and provide full service. A company that manages the properties they sell is highly recommended since they have an interest in the property. If no rent is collected, no money is made on management. Do a search on the company for reviews. It will help you in selecting the right company to deal with. One that has a local Aussie agent is a plus since you can approach them easily if you have a problem. GOOD LUCK WITH YOUR NEXT PURCHASE. MAKE SOME MONEY.
Cheers,
Declan
http://www.ushomes4wealth.com.auTwo Asian Clients went on a trip to the US after purchasing properties on the internet based on what they saw on Google Street View. They were highly disappointed. Make sure you have someone here to be your eyes and ears. Do your research and go with a company that offers management “in house”. We had a list of 50 properties as a bulk package. When our guys went out to cherry pick, the ones you thought were the best turned out to be the worst. Companies that make money off of management after selling their properties are often good because their commissions depend on the rental income. Look for those companies. Also…..pay attention to companies selling US Real Estate and their services offered. You may want a complete package so there is better accountability. Search the internet for reviews about the company. You will be amazed at what you find.
Cheers,
Declan
http://www.ushomes4wealth.com.auAt 5% over 3 years you will pay $1000 interest and all property taxes and management fees will be paid by seller.
Citibank is lending now to acquire US property. Call them to find out their underwriting guidelines. I know it is not based on the property to purchase but they may need some sort of collateral.
My intention on this forum is to inform my fellow citizens and not to tell anyone where to invest. I am using my previous negative experiences to educated people about what to look for. As for myself, I have been investing in Detroit for the past few years. The cashflow I am seeing is amazing and it outweighs any upside potential. Even if there is zero growth I am close to recouping all my capital on some deals……and not only me. My friends, my relatives, my associates. I have to stress on the management aspect. Most people fail because of bad management and there is a lot of dishonesty in the property management field. I found that companies manage properties from computers. Unfortunately that does not work these days. I have been through my learning curve and I am here to share my thoughts and give some advice.
We advertise for renters and have gotton 2 calls this week only from people out of the state of Michigan looking for homes to rent because they just got hired. The fact is that tenants are paying and I have paper trails on my properties. The problem is when a house has a problem and the property management company fails to address it then tenants stop paying. You get a month's security deposit and eviction takes a month. Risk is very low. There are not enough rent ready houses for the demand we are getting from tenant market. Here are some more facts:Consumer Bankruptcies are decreasing in Detroit
Ford to hire many new employees in Detroit and other U.S. cities
Detroit’s Plan to Stimulate the Local Economy and Create more Jobs
Abundance of Section 8 Tenants
Tips when buying US Properties:
Make sure the company owns the property and is not assigning contracts.
Smaller companies I have dealt with offer better prices and services as opposed to the bigger ones
When companies have many listings it is not a good sign. It is impossible to know about all of them. Also they usually assign contracts and sell for huge spread.
Look at ROI. You can buy in areas that have low prices and relatively high Returns. This really makes a difference.
Not all professional management companies do what they are supposed to do.
If a company is not publishing addresses for properties on their website, it is not a good sign.
There is no need to pay membership fees and buying fees to buy US properties.I was on ABC News. You can view the video on utube. Message me for the link.
Cheers,
Declan
http://www.ushomes4wealth.com.auFolks I would only hope that you educate yourself enough about US real estate investing. There is a whole lot you need to know when making your decisions. My us agent on the ground over there is now my partner. She does seminar presentations in New York and was a great mentor for me. There is a MAJOR difference in companies that only wholesale properties. You end up paying thousands more than the property is worth since there are many pockets to pay. Companies are implementing the "assignment of contract" method to sell to Australians. Look for companies that acquire properties themselves, renovate them and manage them internally. That way cost basis is low and there is better accountability. <moderator: delete advertising>.
Declan
Tel # 02 9380 8510Overseas investors are taxes the same way as us investors. You can prepay taxes before the funds leave the US and when you file your year end tax return, you claim your expenses and maybe eligible for a refund from the IRS depending on your tax bracket. The tax bracket is determined by the amount of income produced by the rentals.
pc9geek wrote:I have a couple of questions for you US investors Can you comment on any of the following have you ever had a Chapter 8 tenant? Ever bought at a Sheriff's sale? Ever run the eviction process through to Bailiff removal? Ever had a bought a property with an existing undeclared lien? Thanks in advance SteveThere are companies selling us houses with liens and backtaxes. Make sure you get a warranty deed and title insurance. <moderator: delete advertising> In a sheriff sale you dont always get good prices. Banks bid up the prices at these sales. Section 8 housing has advantages and disadvantages. The main advantage is the guaranteed rent. In some areas section 8 pays rent for years. However, there are inspection requirements to be met and if there is a minor problem with a property they can refuse to release the payment. These tenants tend to be more picky and it can end up being more of a pain to manage these properties, especially with maintenance.
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