Hi FREEDOMN, that was an older post, as for quite a while now, I have helped to get bank accounts opened with not to much fuss.

It used to be that some of the majors Banks used to be good for that, such as Wells Fargo / Wachovia, But Wells Fargo brought them out and then started closing accounts down, It has been a few years since then.

Now it’s very different, and it seems that many can find banks that will open an account for overseas buyers, I have successfully been doing that for a while, together with a total structure set up. No rogues or thieves involved.

But again, there are many over in the US that can and will do all that, however, as previously mentioned, there are many sharks who will promise the earth and have a very professional look and feel, and you can get into some serious problems by getting involved with them.

So again, it always comes down to knowing the team, and having had a number of successful transactions through them.

There are many horror stories of buyers going over there to set things up, thinking they have met very good people to help them, then returned back home overseas, only to find they have got in with some real shysters, and brought real duds.

So you can as Nigel says, go through someone over here that has everything set up and works on a very personal level with buyers, or, do your research thoroughly before going over, and that’s a whole new ballgame to talk about with many questions and answers.

It Takes time to develop a top team on the ground over there, as trust and reliability are hard to come by when dealing from over here. And also not trying to take the shirt of your back.

Having said that though, there are some really excellent people that will really go our of their way to help and do the right thing.

Being a lawyer in the US doesn’t mean they are still going to be better than anyone else, and again, it takes time to get to know those that are dependable and will do right by you, especially if you a Foreign national.

I’m sure Nigel has all that in place, and I’ve been helping buyers with all services in the US, but still had many issues at the start.

Many companies and individuals come over as very slick and very professional, and can easily fool you, you can do all the research you like, even in some instances by going over to meet them. And then still finding that they are rogues.

There is no easy way to define this, but after so many times using their services, you get to know the good from the bad.

And then you can start to develop your team.

Referrals are also a great way, but working with different people can also be a very personal thing, and I’ve also seen when personalities and expectations have caused problems.

Again, it takes time to develop and surround yourself with top people, getting to know how they operate, and that you all feel comfortable working in sync with one another. Won’t happen in five minutes.

I was actually selling in Cleveland and other areas going back about 3 0r 4 years ago, so had some knowledge of the areas.

I also know others that are actually from Cleveland, and get to know the different areas, and have just had a client visit to inspect some of the properties, meet the team and get to know their back-end setup, I have been in contact with the owners of the company for almost a year as they are arguably one of the better more established companies and have an excellent set up, as they also manage all their properties in-house, they will not buy, rehab and sell anything that is in a warzone or high crime area, as they have to be able to collect the rents and manage them.

But certainly, you are looking at the cheaper to mid range pricepoints, in good solid working class areas, and I’m in constant contact with the head of property management, and some of the other team over there. I also know of others (Americans) that also own investment property in Ohio, namely Cleveland again, and do very well, and are actually buying more, and again, i get to know about the better areas straight from the horses mouth. I have great eyes and ears on the ground.

And i know the point your making…..and i also know of many that sell properties and constantly travel over there, and i also hear of many that do go over a lot that still cause many problems and sell crap to buyers, it all depends on who you are working with on the ground over there, and also, being honest and upfront yourself. Some of the worst horror stories I hear are from those that have purchased from a company that even have offices over there and employ local staff, and i have clients that brought through them and then through me and are very happy with the results I’ve provided.

Bottom Line, buyers have to realize that most companies, whether the large seminar marketing companies, the large sales companies, or the small buyers agent, do not actually own the properties they sell, and that after purchase, the buyer will be then dealing mostly with their US sources, and that’s where it usually falls apart. especially if the local company doesn’t want to know after a purchase is made, or a buyer is dealing with a commissioned salesperson initially, who really doesn’t care less as long as they make a sale and make good commissions, and then the people on the ground over there provide a terrible service and don’t respond in any way.

Nigel, you know who i deal with re the US Tax etc, and i only deal with the very best professionals everywhere, and provide a very personal and ongoing service to buyers, I have

I’m sure you do the same, as does Engelo, and i know some others over here that I think also do the right thing by their clients, and have great relationships with their Asset Teams or service providers in the US.

Jeff

To add my two cents worth to buying those cheaper places.

Everything mentioned above is correct…It's knowing that the people on the ground are honest, professional, and not out to sell a dud property to make a quick dollar from unwary overseas investors, and believe me, there are plenty of them that would do that, and then just try and get something fixed up or any issues resolved.

So very important, who you are dealing with on the ground, they will make or break you very quickly.

The areas are very important, you won't get a Roles Royce area, but you should still be able to get an okay area, certainly not a bad crime zone, and mostly in Cities it would be near the inner city areas, which can be good in some ways as they are usually near amenities and transport, but can attract the lower class tenants.

The next important thing is having the right Property Manager, who will work in those areas, who will vet the tenants thoroughly, and will be on top of things at all times.

As for the rents, yes, you can be lucky in some instances and get a higher rent, but mostly it would be in the vicinity of around $500 to around $750 for properties under or around $30,000, $600 would be quite possible.

And you can get some good rehabbed houses, but again, they are not that easy to find.

Having said all that, although i would normally never sell those cheaper end properties, I've sold a number of them to clients who requested buying those cheaper ones, and so far, they have all been very good, no complaints, and happy tenants and owners, in fact, one owner has a tenant wanting to now buy the place, a 4 x 2 fully rehabbed with new concrete parking area, that was brought for $27,000.

But there is a lot of really bad rubbish to sift through. I just happen to work with really good people on the ground, who did everything for the buyers.

So just to finish…be very cautious, check all bases, know who your working with or buying from. If buying direct yourself, do a lot of research on the people your buying from, and get to know the areas down to the street or even what part of the street if it's a very long one, and get to know the property manager….ASK A LOT OF QUESTIONS, If you don't get the right answers, WALK AWAY.

Hope that helped a bit.

Wells Fargo at one stage was the pin up boy as far banks go for opening accounts for non present overseas buyers, and like I'm sure many others, I had some very good contacts at that bank who were opening accounts for clients without any hassles.  However, the problem always seems to be that you deal with an employee at a bank, the employee sooner or later leaves, no one can or is willing to take it on, and then the bank closes the account anyway.

With many clients having had their account closed, with being a non present account holder when it was opened, it seems that most banks are now really clamping down, and many are also getting a cheque ( Check ) back for the balance, I have had clients who opened account through relatives in the US, and who looked after the account, but after a while it was still closed down.

So this became a real problem in supplying this service, sure there are still those that are able open accounts, but for how long before it does get closed, and then back to looking again.

Over the past four months, I have been working with one of my associates who is a Property Lawyer and a partner in one of my major supply companies, his family actually own a major local bank, that they also do business with and have done for many years, and after the past  many months working it out with the actual CEO, VP and Legal Council of the bank, accounts have now been opened successfully, one for an overseas client in Europe himself a lawyer, so it is now very legal and secure. <moderator: delete advertising>

But If  an account is definitely required, as many times its not, then this is probably unique in that your not dealing with an employee who leaves and your account gets closed.

As for opening the LLC etc, many sources have different rates, and what professional advice if any is included. You can get an LLC and Ein for a few hundred dollars if going direct to a source in the US,  or up to a few thousand dollars through some companies here in Australia. Many don't realize that the LLC can be taxed differently and you have to take in asset protection, in many states a single member LLC can be sued very easily, and if the wrong structure is set up, you can be in all sorts of trouble over time.

The price of the actual LLC etc, is also only part of the process, as many times have i seen someone had this all set up on the advice of some salesperson at a company, only to find that they were given the wrong advice and it was set up all wrong for their needs or circumstances, or even in the wrong State for their needs.

So getting the correct advice right at the start is so important, don't go with the herd mentality because someone says what they did and saved a lot of money, that's very dangerous. And the right structure should be in place even before looking at properties, if you know where you want to buy, or at least at the same time, certainly not after purchasing.

That's my few words, for what it's worth.

Hi Rosa,

I understand the problems your having, with so many overseas buyers trying to find good quality service providers in the US, and of course, they will all try and convince you that they are the best managers.

I don't know who you brought through in KC, as i would imagine that they should be responsible for providing good management, and even have a backup or two, as like anywhere else, sometimes a particular management just doesn't work out for whatever reason, it could be that you and they just don't get along, and another management works out better.

Of course, there are still many really bad ones, and I have had my fair share over time.

I have been working for quite a while with who i consider some of the very best management in KC, where I specialize, and although I don't normally get involved in cheaper properties under $30,000, I have successfully sold a number of them recently, and I have some very happy clients, both locally in Oz, and also overseas They are very pleased with the management, rehab, tenants, etc. and some are now looking at buying more.

So there are some very good people over there, who actually do care. Unfortunately, many find out to late and get involved with the wrong people / service providers.

It should be a good experience for you, whether buying a cheaper house or expensive one.

I hope it works out for you.

Jeff

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?

Lot's of  turmoil at Wells Fargo it seems, I had been working with a senior person at Wells Fargo in Kansas City for a long time, and never a problem. Now he has left, it reverts right back to how it has been for most others using WF, No one wants the responsibility or even willing to consider looking at opening accounts for overseas non present investors.

So right now, I'm talking to a few different sources, and also have others on the ground there also looking into it for me, and I think I've found another Bank that might be okay with opening accounts, but you must meet their strict criteria.

Hopefully, this can be sorted out very soon.

I always say that doing business in the US, certainly has it's moments..!! But it's never dull.

I have been opening US Bank Accounts at Wells Fargo for clients without any problems.

I did approach HSBC going back a while ago, they did say they could open accounts for Australians in the US, but when I told them i wanted it opened in days, I was told that it would take approx 3 months with all the red tape etc, so that was that.

I hear about others having opened accounts without to much bother, and of course, others that have been told you still have to go over there and be present, but knowing the right contacts at a senior level at the bank who understand the legalities and how to go about opening the account for foreigh nationals, is a great help.

So yes, it can be done.

Thanks

Jeff

Thanks for your post Ryan, and yes, there are a lot of grey areas as you know that can be a source of frustration when working with Bankers as well as other service providers in the US, and not second guessing as to how things do or should work.

There is and i think always will be, many points of view in regards bank accounts being opened, especially for foreign investors not present when opening an account.

I have dealt with a variety of different banks over time in the US, and you get so many different answers to questions, and so called Business Managers will invariably say it can't be done and almost always refer to the Patriot Act and their particular bank rules and regulations.

It's refreshing when you do come across someone that instead of saying it can't be done, says how can they do and make it happen, within legal guidelines of course. and that's the same anywhere.

And being on the ground in the US certainly gives you a heads up and more credibility, and that's why I, and others who are serious about this business, are opening up our own office shortly in the US, and will also have have our own staff.  Being able to provide the correct and helpful advice to buyers, and having the actual local knowledge, is far better and more transparent than just providing uninformed opinions and advice.

Thanks

Jeff