TCL Investments:
I’m not a qualified tax professional (got that disclaimer out of the way!) but according to the IRS website, you will not need to declare U.S. taxes unless you have had income exceeding a certain threshold, which I believe is around $9.000 – assuming you do not have any other holdings in the country.

Just asking the question out…[Read more]

Just wanted to throw my two cents into this as well – I really need to get out more on Saturdays, don’t I!

My first comment – I would NEVER rely on Zillow, and having invested here in the U.S. professionally (as the head of a real estate firm) I see how it is many times very inaccurate. Basically the algorithm it uses to calculate value is…[Read more]

TH is pretty much right on the money – there’s no real requirement to have an LLC in each state, although by the time it comes down to turning on utilities and dealing with local companies, they’ll all ask you for a Certificate of Good Standing (basically proof that you’re registered in that state) from the local Division of Corporations. Some…[Read more]

Kong,
That’s a valid question, and to an extent, you’re certainly right. A buy-to-let mortgage on a residential property will still always to a large extent be based on your personal credit, but a mortgage for a commercial property is, at least in theory, based more on the strength of the leases and the current tenant.
It is very important to…[Read more]

Kyle,
Depending on where you are purchasing, you can save money on insurance, management etc.
What you’ll find is that most insurance brokers are only licensed to broker policies in one state, so if you own properties across several states I think it might be difficult (we own large quantities, and our discounts generally don’t transfer from one…[Read more]

Hi Treasure Hunter,
No problem – happy to share my experiences any time!
You are right in that it is shocking how some of these people “thank” you, for offering them an opportunity to own a home and giving them a mortgage. The issue is often that once they leave (and take with them whatever appliances they can) you usually have no clue where…[Read more]

To APerry and Treasure Hunter:
Selling using a Seller Mortgage can be a very good way, although in my experience, it doesn’t eliminate as many headaches as you’d like it to. I run a U.S. based real estate firm and we have been doing seller mortgages for a number of clients looking to create a high-yielding portfolio, while at the same time…[Read more]

Alistair,I just wanted to ask (feel like I have to) did she (your buyer) just agree a deal with the seller to assume the mortgage payments, or did she actually sit down with the banks and get them to sign off on it?Reason I am asking is there are thousands of people out there willing to let you assume their mortgages – they might owe 100K on…[Read more]

Alistair,I just wanted to ask (feel like I have to) did she (your buyer) just agree a deal with the seller to assume the mortgage payments, or did she actually sit down with the banks and get them to sign off on it?Reason I am asking is there are thousands of people out there willing to let you assume their mortgages – they might owe 100K on a…[Read more]

I pretty much agree with what Steve is saying above – I am the President of a real estate firm too, so just like James, I have an ongoing interest in this question.
Many foreign investors (and some U.S. based too) really balk at the idea of paying HOA fees, although there are distinct advantages to doing so as well. Most of the times the HOA will…[Read more]

A net return of 15% is pretty good, although you can get higher in some other states – Michigan, Ohio and a few more for sure. Even in Florida, double digit yields are becoming the norm these days. What made you settle for Kansas City over other markets that might offer higher yields, with the same chance of capital values staying or increasing?

Usually what happens in these cases with guaranteed financing is that the seller is able to purchase the property “all in” for 20K locally. He then sells it to an investor (usually foreign) so with the 50% down payment, he recovers his initial outlay (20K) and your monthly payments are his profits. I don’t mean to say that is always how it works,…[Read more]

That is what I thought, we’ve been able to get it done for a few clients using HSBC Premier, but without the customer visiting the U.S, it’s very difficult with all the paperwork.

Judih,
Thanks a lot for that – does this usually enable your foreign investors to open up bank accounts as well (using the LLC) in the United States?

Judith, I just wanted to ask (not sure if you know) how a non-US owner can get the EIN number issued for their LLC? I know they can if either they have a SS number or an ITIN number (which you usually obtain when filing your tax return) but is there a way to do it without either one of them?

Yes I hear you on that, matter of fact, I’ve had many brokers tell me they CAN do it, but in reality it doesn’t happen.
Unless the buyer has got some real assets that they’re willing to use as collateral, or a LARGE downpayment, the US banks just aren’t going to do it. Even for citizens/residents, it is really difficult, unless you fall under one…[Read more]

British: That is a great point – one thing we DO have here in the U.S. is a somewhat transparent system to track sales values. There’s always ways where it doesn’t work, such as using Quit Claims, which can happen when a bulk seller is involved. However, checking previous sales and (to a smaller extent) the taxable values will provide a much…[Read more]

In my opinion, the best cash flow and yields will be found at the lower end of the market – therefore, you need to look at places like detroit, Birmingham (AL), Indianapolis, Kansas City, St Louis etc….
From what I have invested in myself, there is very little difference between a 25K property in Michigan and a 25K property in Illinois, or…[Read more]

Jay,
Agree fully on the water bills in Detroit/Wayne, also, many investors don’t know that they actually become a lien on the property in Michigan, as opposed to other states. In either case, I still think Michigan makes sense for some investors to consider – if your prime objective is cash flow, it is probably the best place in the country. I…[Read more]

I agree with previous posters, financing is VERY difficult for non-residents who are looking for mortgages in the U.S. By far your best bet is trying to obtain financing in Australia, using property over there as collateral.
Florida is a good place to invest, although you need to be very cautious. There are also great cash flow deals, the best…[Read more]