Forum Replies Created
Thanks Catalyst
< wait until the hype dies down before looking there again >
What’s driving the hype?
Visit http://www.northwestregisteredagent.com
I have used them to register an LLC in the state of Texas. They register in most US states and are easy to deal with (knowledgable on each state)… They also have an easy online portal where all your docs get uploaded to for access anywhere, anytime.APerry wrote:Hi JD,
The info you have given isn't nearly enough to make even a guess at whether the property you are talking about is a good investment. Some considerations that would come into any decision would include:
1. Is the current lease above or below market
2. How long is it for
3. Who are the tennants and are they good quality
4. What is the security on the lease
5. What clauses are their in the lease regarding escalations
6. How old is the building
7. What expenses does the land lord have to cover
8. What is the condition of the buildingThere are plenty more.
Regards
AlistairAlistair,
Without having carried out any proper due dilligence as this was an example only, I can tell you:
1. The lease is at market
2. 2 year term with 2 year options
3. Publicly listed natural resources company with strong financials
4. Unsure
5. Rent reviews annually
6. Less than 5 years old
7. Outgoings/GST payable by lessee
8. Excellent condition and well maintained with good tenantsWhen carrying out due dilligence on a commercial property is it typical to obtain the lease terms, etc when dealing with the agent (i.e upon expression of interest)?
Having cash to invest in the US property market puts you in an excellent position right now. Financing for US citizens is tough right now so imagine trying to obtain finance as a foreigner (no matter how good of a financial position you are in).
Commonly, an Australian citizen who has a private company or discretionary trust in Australia would incorporate a limited liability company (LLC) in any given state within the US. The members are the owners of the company. The management of the company is carried out by its members, unless the articles of organization provide for management by managers. Governance is set forth by the articles of organization or an operating agreement which in this case would detail the relationship with the Australian entity.
Your US based LLC would then have it's own bank account and file it's own tax return etc. You could transfer your funds from your Australian entity's bank account to the LLC bank account using a service such as http://www.ozforex.com/ for the purposes of investing.
I am sure there is many other structures individuals and entities are using to invest in the US market and some work better than others depending on each person's cicumstances. It's best to seek the intial advice of a CPA who has knowlege in both US & Australian tax affairs. I suggest seeing somebody in Australia and I can guarantee that just by speaking with 3 you will be able to identify if they are confident or not in what they are saying. It is a relatively 'complex' area.
Remember, if you're netting $5 – 6k per annum on a rental in the US and you're paying a 5k accounting bill (even though it's a deductible expense) you have to ask yourself the question. So be sure that you do as much investigation yourself and be confident in the services of any persons or companies you engage. Some people charge in excess of $700 to incorporate an LLC yet the first thing I learnt when I went to the US was that I could do it myself for $100 by completing a 2 page form. It took less than 30 minutes and I had it registered within 48 hours. This is just one example!
So what areas are you looking to invest in?
Best of luck!
DetroitDan9 wrote:Speaking from my experience, Detroit is the wild card, IF you trust and know who you are working with. Unfortunately there are a lot of people out there who are taking advantage of investors and selling them worthless Detroit homes. In my experience, having a few rentals in the area, Detroit is a one of a kind market. For a few reasons: +Low entry cost (20-30k all in rent ready properties) +Great tenant market +Great cash flow On my rentals, on average I will become whole in 3.5 years. That is really tough to beat! I know not everyone has had a positive experience in Detroit, but I have, and I am happy to help anyone who wants to learn more. Take care, DanHi Dan,
I'm interested to have a chat with you about Detroit.
You can email me [email protected]
Regards,
Hi BB,
I spent some time today looking through the Case Shiller stats as well as a <moderator: delete language> of Google News articles. It really is looking to be like the expected "double dip"… I'm curious to know were you expecting it this early in the year?
Prices are likely to continue to fall… how far into the year to you predict falls? And when do you think you will see yourself return to buy?
Cheers,
Thanks for the response Speedy Gonzales. I have sent you a PM and look forward to hearing back from you.
I suggest to others to take a look at the http://www.texaplex.com/ video as it gives a good insight in to the region.
Cheers
Hi Guys,
Has anybody had a look in to McKinney, Texas? In July 2010, McKinney was ranked 5th place in CNN's Money Magazine's list of best places to live in the United States. http://money.cnn.com/magazines/moneymag/bplive/2010/snapshots/PL4845744.html
Prices on Trulia for 4br + Single Family Home range from $90k – $250k for a very reasonable property in a good location with steady employment opportunity's and infrastructure. http://www.trulia.com/TX/McKinney/
I am looking at longer term investment.
Any thoughts or info on this area or Texas itself would be great.
Cheers,
Investin
RickH wrote:contact Tony at [email protected]
He will organise a free disussion with you outlining things before you make any
commitments.
Let him know Rick gave you his emailHi RickH,
I have been following your posts along with others on PI forums. I too am based in Geelong however work away in North West WA… I have been following the U.S property market and doing some research for the past 7 months now. I was in the U.S in March as part of this.
One of my main challenges recently has been getting clear advice / direction on finance. Furthermore, understanding and structuring investments from a tax perspective… I noticed you have engaged McHenry Partners who I know are a trusted firm in Geelong region… I have referred to their website and see they are promoting their capability statement for U.S/Australian tax accounting.
Just wanted to contact you for a general chat, see how it's all going and your thoughts on MyUSAProperty.com.au and McHenry Partners.
Feel free to contact me at [email protected]
Regards,
Hi Steve,
I have been keeping tabs on your posts for the past couple of weeks and am intrigued by your comments on obtaining finance in the U.S as a foreigner. I have made contact with countless people here in Australia and the U.S but can't seem to get any firm answers or direction. I had a response from the International Banking Centre division of HSBC Bank USA, N.A this morning outlining:
'Please be advised, however, that HSBC USA is not currently offering
financing to foreign nationals for the purchase of investment property;
we are only offering financing on mortgages for a primary or secondary
(vacation) residence. We apologize for any inconvenience this may
cause.'I have also been advised by BOA that they will not offer any of their loan products to non-citizens.
I am unsure if I am speaking to the wrong people. I have a few mortagage broker leads which I am following up however it is taking some time. I would appreciate any light you may be able to shed on this subject?
Kind regards,
JD (Investin)
Melbourne, Australia
