Forum Replies Created
- BuyLandOnLine wrote:The point I would take is to understand that as stated above – real estate investment is a risk. It is about numbers first and there is a touch of luck. In the long run luck evens out. An investor needs to have adequate resources to absorb the inevitable "hit". Hope for the best but plan for the worst. Adequate volume and diversity of investment provide a safety net. Sometimes a deal seems like a "slam-dunk" (remember CIA Director George Tenet of George the Lesser's administration) other times the ground is deemed unfit for development (please refer to Disney World).
As with most things – if you work hard and have a talent you are likely to succeed. Golf is a game of luck the more you practice the luckier you get.LUCK?! I don't believe in Luck. The way I define LUCK is when PREPARATION meets OPPORTUNITY .
Is there any business that doesn't involved risk? But, risk can be greatly mitigated through strong support team (e.g., good lawyers, tax accountant, buyer's agent, property managers etc) by pulling their knowledge of expertise to help you make inform business decision. Real Estate investment is a team sport! NO MAN IN AN ISLAND
But, without the strong support of your team, your success in real estate investment in particular is very slim, hence you becoming risky, hence your risk QUANTIFY.
Your success defend upon your level of self education in real estate investment, level experienced, and strong support team etc.
Adequate volume and diversity of investment provide a safety net……..tell this Warren Buffet.
BUFFET is by far the GREATEST Investor every live, and guess what? He NEVER EVER diversify. He simply focus only on stock investment, and because he is HIGHLY specilised, he became so DAMN good, he easily OUTPERFORMED even those billion dollar fund manager firms.
Rosa Tong wrote:if it's all expenses paid why do you have to pay 10 k….hehehe that's hilarious………….
Risk??? What risk?! Ask Steve McNight, he bought 100s of properties from 10K to 20K in the US Last seminar I"ve attend with him, he showed the property he bought in Florida for 15K and hundreds similar properties like that he purchased some above 20K, others under 30K…so he went for quantity primarily which gives him HIGH yield. I have absolutely no problem emulating his approach.
Again, every investors are different….different strategic and different goals to achieve. No strategic fit all. I rather put it this way, the investor is the risk, not the investment. Why? If you blend in with the local, knows the market well studied well, attend seminars, have good contacts on the ground etc., your chances of succeeding in real estate investment is HIGH.
On the other hand, if you are investor from remote location, have no contacts on the ground, done no market research about the target area, have not read any books about real estate investment, attended no seminars, have no contacts in the ground, the chances of succeeding in real estate investment is very LOW…hence you are the risk, NOT the investment. BTW, don't quote me on that, I heard that from Robert Kiyosaki, who's worth only billions of dollars.
The problem people these days, they don't know what they want (i.e., they can dishearthen by spruikers who prey on uneducated investors etc). And if you are on the minority, learned from those you've successfully done it (e.g. attend Steve's property update etc) and ask for their experienced, used their channel of communications (e.g., their agent who helped achieved want they want)…this avoids you from reinventing the wheel, hence make huge mistake then branded investing in the US is silly.
This forum is like double egde sword, one side is the NEGATIVE minded people, and the other is the POSITIVE minded people. It is like inside your mind, a constant battle raging between, the negative thoughts and positive thoughts. It will be up to you which side you pick, but for those who purchased IP in the US, and doing well, we all know which side they picked.
Whatever you decided, I hope the best for you.
We bought 2 properties in the vacinity of Atlanta, Georgia. For me, the most important relationship that you need to built is with your property manager. I have access to my property portforlio through my property management portal. There I can see my statements, rent payment, expense etc. I get informed once the rental income has been deposited into my account. So constantly communication with your property manager is vital. So far the experienced has been great.
I've just signed up for the 3rd property and looking to buy near Atlanta, Georgia, again.
So if you registered your own LLC, who will sign up for your legal docs when you buy property in the US remotely on your behalf? Who can you nominate or use as an attorney if you registered your own LLC compared with when you use an attorney to register an LLC and open the bank account in the US?
thanks for the post… this site http://www.sos.mo.gov/ you mentioned, was that the right link or the site is temp unavailable?
Jason700 wrote:Between the US and Aus there is a double tax system. Therefore you get taxed two times.US and Australia have agreement with respect to taxation. If you submitted your US tax return in the States, when you file for return here in Australia, simply include your US tax returned, the ATO will take that into consideration when your tax receivable or tax payable.
Hey George,
The name of account should be your LLC company name. Also, the bank should be providing you your PIN code to access your account online as organised by your agent.
Have the account name change to your LLC, and when you received your PIN code, contact the bank and advise them that you would like to change your PIN code or access code to avoid breach of security concerning your account.
Hope this helps.
Hello Investinusgroup,
Very interesting. Thanks for sharing this info. A friend of a friend of mine, who used to drive truck in Kuwait during the gulf war, made sizeable earning then. He paid off his 500K mortgage here in 18months, then invested the lot in real estate 5 years ago in the US. Now he owns 15 properties in the US. Although he is a trucky in the US, he still go back here, renew his visa then return to US to exhaust his visa before time to renew. I guess he would be in E2 visa as well. Although is he travels around the US as trucky and investors, for number of years now still unable to get permanent residency.
sapphire101 wrote:I came across this site : http://loansusa.com.au but don't know the interest rates. Also a Memphis operation offers private lending finance at 9.9% which is a stop gap measure for 18 mths while you build a credit rating through the property ownership and the use of a credit card ( issued with your bank account). The idea being to get the property revalued, refinanced and withdraw your initial investment to repeat the buying process.There is another business offering 70% finance at 5% over 15 years. They operate out of Arizona. When I get the details I will post them.
Hi Ian,
Is this means, you can apply for finance after 18 months? I like to hear more from another business offering……please keep us posted…I'll be quite interested to find out more about this. Financing is the very issue at the moment in US to built sizeable portfolio.
SteveDouglas wrote:Hi Leo,
Don't forget though, that leverage can work both ways. As Warren Buffet says, "You can't go broke if you don't owe anyone money"
Hello Steve,
How you going mate? Agree !!! That is why not all properties make good investment. There are so much variables to consider and it is balancing act .
What I've seen is this, the IP will take care of itself property provided you bought the right property in the right area, in the right location and in the right street.
I like to approach property investing as "business" and just like in business, there is risk.
Have a good one.
Steve McNight strategy is buy on the bottom of the cycle and sell on the peak of the cycle! A strategy that made him the BEST selling multi millionair property investors and i'm sure it would work for someone else too. Also, don't over stretch yourself financial because when Murphy's law will visit you, you are more than ready and can ride out the storm.
If you have some buffer as for emergency fund, it could have avoided you selling your IP and You could have capitalise on the increased of your equity to buy more IP.
Hey RickH, pls read your email. Cheers
Thanks ActToday. I recently read an article (but cannot remember which one since I read tons of them) whereby a lot of Australian investors regularly visit the US and wish if they are permanent resident, could leverage on their properties that they bought outright, then built even massive portpolio and retire comfortably. After all, replacing your income with passive income is all most investors desire.
Hey Adam,
If you been working full time for a while, but poor in cash, have difficulty in getting finance, have you thought about using your "super" to buy property overseas, hence you don't even have to use your own fund or equity from your house?
Those multi millionaires who wrote books, conducting seminars etc., would not have made it without LEVERAGE…it is not possible to grow multi million dollar portfolio without financing. Again, it is case by case and different for individual. But, I plan to use someone else money to grow my portfolio.
Hello Rosa,
Cash flow for Gold has a good team though their fee is slightly higher, about $6.3K. Steve from Cash flow Gold is quite helpful and very unfront about fees.
Tony from My USA Property has tons of experienced in real estate investment and has good contacts in the US. His fixed fee is $4.9K and areas that he mainly recommends are tourist areas. Finance is available for 7%, with 50% LVR, principal and interest payment for 7 years.
This is not in your list but hey, what the heck…….House Buyers USA, has been in the US market for 8 years long before the GFC and got good track record as being buyer's agent. RichH has been instrumental of suggesting to try them out which I did…just signed up with them and hopefully, in few weeks, I get my property settle…will keep you posted.
I see leverage a very important part if you want to maximise your investment which help you to build your portfolio. I don't mind borrowing with 8-9 percent, with 50% LVR, with principal and interest payable in 7 years. Taking loan with 9 percent, with principal and interest payment, with 7 years term….much like financing car in Sydney but the main difference is the former is incoming producing asset whereas the latter is depreciating asset (car). It is no brainer which one to go for!
With leverage, it still gives me some money left over, then using some saving from my monthly salary, I can quickly save up and borrow again and purchase another IP. For me, leveraging, plus savings helps me plan to purchase again.
Each investor has his or her own strategy, my strategy will be different from you due to our circumstances are different. What's yours?
I spoke to my finance broker about getting personal loan; His advised was STAY OUT of it because of the interest charge is very high… is not worth even thinking about.
Hope this helps.
Thanks Leo
Quite interesting, thanks guys.
Further to my comments above, if Banks are not leasing these foreclosures back to the market, wouldn't this create short supply of rental properties? Because, those people who lost their home, end up renting back in the market, therefore woundn't this create huge demand for rental properties from huge renters populationwhich driving the rent to go up. …………therefore very excellent return on your investment? Am I right on saying that?
