Forum Replies Created
- Jayman wrote:I've known people that have flown to the US, opened an account, came back to Australia, and still had problems with the bank, as the bank wanted to have someone on the ground that they knew and represented the customer, so it could still be a problem even after flying over, maybe not in all cases, but certainly the whole banking system seems to be gearing up to try and stop overseas investors. Especially those that still don't have some local 'Good Standing' representation..
Like many others that have been opening accounts for clients, when dealing with any bank, you usually deal with an employee, and it's when that employee leaves, no one else will take over, so that source stops and you have to go the rounds again.
The best and securest way, is to not just work with some employee at a bank, but actually work with the bank itself, so no fear about it closing down, as it has been through a long legal process to make sure it covers everything required for the Patriot Act etc. I am now working with such a bank.
After many months of meetings and negotiations with the VP and the banks legal counsel, the Attorney I'm working with, who is also a partner in one of my Asset Team Supply Companies I'm associated with, has family connections who actually own the bank, and it has been a long legal process to have it all worked out. You will have to sign what's called a ' Special Durable Power Of Attorney' , there is a fee involved, and you will get a strong, legal, and ongoing account.
This is a a unique situation, maybe not for everyone, but having a POA involved is not a major issue, unless you are trying to hide something. Although based in KC, they will open it for interstate buyers as well, forget an employee leaving. the bank is 100% behind this.
I will also have another very secure source very soon, to open an account with that has taken many months to get sorted out.
Cheaper than flying over, no fear of it closing, and having someone of reputable standing representing your interests.
If you just want to have your money sent back to Australia, why not just arrange for your property manager to send it as a lump sum say every three or six months and just pay the one transfer fee?
Hi Jayman,
I have also recently established a relationship with a smaller bank where all decisions are kept in house and they will happily open up accounts for all foreign investors with out them being present within the US.
They don't require notary or JP signatures and no POA is needed.
We have a bank in Atlanta that will do the same.
This has been a big pain for many involved in the business. Not just investors but also lenders that need active accounts to withdraw funds out of.
Thanks
EngeloRumora | Ohio Cashflow
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Thanks for your comments guys.
Keep them coming.
Have a great day.
EngeloRumora | Ohio Cashflow
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I was once told the more s*** you throw on the wall eventually some will stick.
I would low ball on numerous properties on a daily basis and would generally get abused by most agents. Eventually 1 out of 100 would come back and counter with $75,000 on my initial $50,000 offer for a house that had an asking of $100,000.
I pretty much knew that I would have the deal wrapped up at around $65,000 scoring a bargain.
Thanks for reading
EngeloRumora | Ohio Cashflow
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Hey Andy,
Thanks for your detailed post and clarification.
I like your model. Keep up the great work.
If your ever in KC it would be great to catch up.
Have a great day.
EngeloRumora | Ohio Cashflow
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jayhinrichs wrote:Andy,, the Aussie's are much smarter than us… they charge by the week because???? well there are 52 weeks in a year. If you rent by the month you get 12 months of rent or 48 weeks worth… Now that that light bulb went off I bet you will start charging your tenats by the week as well. Hell give them a small discount, your collections go up and your return is another 10% higher…. Brillant those Aussies.We sure are a smart bunch,
Good on ya mate
EngeloRumora | Ohio Cashflow
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Thanks Andy,
I didn't even think about about the property never being vacant as there will always be some tenant occupying the house. This is great stuff.
When you rehab do you cater the rehab for the shared housing strategy? Wouldn't this limit the exit strategy to only be able to sell to an investor only?
Also, I am confident that you are buying in solid B class areas as I know that a similar strategy in a lower class area of Kansas City couldn't work as the tenants would kill each other hahaha
Thanks and have a great day.
EngeloRumora | Ohio Cashflow
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Thanks for your post BoughtWithEquity,
Are the properties rented on a room per room bases?
Can you please send a pro-forma on an average deal done?
I like the model and know of someone doing the same in Toledo OHIO. 4 bedroom houses around the University. Instead of the $650pm in rent he charges $250pm per room to mostly students.
Amazing figures.
Thanks for your time.
EngeloRumora | Ohio Cashflow
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kevsgn wrote:Does united states has any lenders offering loans using fully paid properties?Without going there?
Hi kevsgn,
What do you mean by "fully paid properties"?
Thanks
EngeloRumora | Ohio Cashflow
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Nigel Kibel wrote:I have a partner on the ground in Florida.The lesson is that if you are going to be involved in the market in the United States you must have someone reliable on the ground. The others commenting here are all experienced operators. If you do not have someone that you can trust 100% then stay out of the market. The quality of whatever you do is determined by the quality of people you work with.
Thanks Nigel,
100% agreed.
Team Team and Team
EngeloRumora | Ohio Cashflow
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jayhinrichs wrote:Anyone can wholesale properties, although being in AU you will find it very difficult to do this as the local US boys will beat you to almost every deal.. What you could do if you have a significant amount of Cash is provide funds for a wholesaler…as an investor. However extreme due diligence must be performed on anyone you would invest with. the US real estate market is rife with charlatons spruiekers, crooks, liars, cheats , thieves, felons and all other manner of bad business people.. There are also great people to do business with however you must find them and you will want to do the following on anyone you would provide capital for.l……. 1). Criminal background check ( there are services in the US that do a nationwide search for 50 bucks).. 2. credit report 3. Banking references with proof of funds IE copy of bank account records. Lawyer and CPA references are no good these are for fee Vendors that will just talk the party line…. When I ran TWH I had all of those avalaible for our client investor upon request. I would think if you had 250 to 500k you could get someone's attention including mine:)Only 250-500k? lollol
Thanks mate
EngeloRumora | Ohio Cashflow
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Nu2oz wrote:Jay,Sorry for the confusion, yes I'm hoping to do some wholesaling (or similar) in Australia (Melbourne preferably) – would love have a go at doing this in the USA, but I'm assuming that it's not possible working from a distance?
Maybe you can advise if you think that would be possible?
Thanks
Hi Nu2oz,
You will find it very hard to conduct any business in the US from overseas. Its hard enough being on the ground lol
I do believe if you have the will anything is possible.
Thanks.
EngeloRumora | Ohio Cashflow
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jayhinrichs wrote:Many of the properties are selling for less than the minimum loan amount that lenders will go.. So no matter what you do you can't get a long term loanHi Jay,
As you know Peak has a great product out there.
Minimum lend is $15,000 lol
Thanks
EngeloRumora | Ohio Cashflow
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Thanks Jay
EngeloRumora | Ohio Cashflow
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Nigel Kibel wrote:I think some of the comments Freckle makes are valid. There is no doubt that hedge funds are buying properties especially at the top end paying in some cases full price i cash.Then look at markets like Texas that are currently booming and this was in a market that did not fall during the GFC so there could be a chance of the property mrket becoming over heated.
However it is also important that we look at the vacancy rates and rental increases over the last few years. Again in cities like Dallas rents have gone up by around 21% in the last 12 months. Property vacancy rates are now under 3% in many cities. This does show strong demand and a lot of people would like to have home ownership again. As finance gets easier I would expect demand to increase.
I agree Nigel with your last sentence. As soon as banks start lending again I believe the owner occupiers will start buying again. Its much cheaper to buy and pay a mortgage than rent. Some of the mortgages are just too good. I am very happy to have my SSN so I can start shopping around for some loans now without being considered and alien haha.
Thanks.
EngeloRumora | Ohio Cashflow
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Hi JT7,
Thanks for your comment.
Unfortunately I am not as tech savvy as Freckle and Zmagen are so I cant really compete with them when it comes to backing up with information and stats.
I have the utmost respect for Freckle and enjoy his post but still stand by what I said a while ago. If everything mentioned in previous posts about the US is really going to happen than this will heavily affect every country world wide and no one will be spared.
After living in the US for the past year everything seems to be normal. People are working, shopping, going to sporting events, buying real estate, buying cars, etc…
I am happy to go about business the same way I have so far and continue buying real estate here.
If I was invested in Australian property with a LTV of 80% or more I would be more worried in that scenario than I currently am here in the US.
The worlds smartest people come from this country. I am sure they will figure something out to get it back on track.
Thanks and have a great day.
EngeloRumora | Ohio Cashflow
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lollol
Your a funny man.
We need to meet in person one day. It would be a pleasure learning from your business experiences.
Thanks and have a great day.
EngeloRumora | Ohio Cashflow
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hahahahahahhaaha
Love it mate
You should come and visit the US.
I would be happy to show you around my country hehe
EngeloRumora | Ohio Cashflow
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Nigel Kibel wrote:Generally the best asset class is either apartments or hotels however they will also look at retail depending on the quality of the Tennant.In terms of occupancy we generally look at properties that are fully let or just under unless it is a renovation opportunity.
Ok cool,
Thanks
EngeloRumora | Ohio Cashflow
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Freckle wrote:engelorumora wrote:Your up early lol
Not if you're in NZ…
What you doing in NZ?
Too many sheep there lollol
EngeloRumora | Ohio Cashflow
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Freckle wrote:engelorumora wrote:WOW,There might be some good buying opportunities again if the bottom falls out from all of these funds.
Thanks.
Not in the US and maybe for a long time. The next GFC event will almost certainly hasten a change in the reserve currency from the US$ to a basket of currencies (incl the US$). That creates a huge problems for the US currency.
The US currency is seen as a commodity to facility global trade. The US can run deficits into the global system to supply the US$'s countries need to trade effectively. If the US$ is not needed then the trillions of US$ in the system become surplus and essentially worthless. You might get 10 cents on the dollar until the system rebalances … I'm not sure how it's going to work out but it certainly won't be good. Anybody holding US$ or assets in US$ will have a bad day.
If the US$comes under threat in this way then interest rates are likely to rise substantially (think mid 80's @ 22%) to mop up excess US$ liquidity.
Currently inflation is being misreported by the US government because if the true rate were published (in excess of 10%) then interest rates would have to rise substantially to contain inflation. There's no way they raise rates without going belly up.
It is very difficult to envisage any way in which a transition from US$ reserve status to a basket of currencies will play out. I can't see any way in which it will be good for investors. The upside is that the US economy would become more competitive by a significant margin. You might even see the US and China sort of change positions. China becomes a consumer and the US a manufacturer. God knows US manufacturing quality is streets ahead of the Chinese.
Interesting times ahead.
Thanks Freckle,
Your up early lol
Have a great day.
EngeloRumora | Ohio Cashflow
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