Are you only interested in Atlanta? And in what price range are you looking at? Are you getting your LLC set up locally or direct in the U.S? If you haven't brought as yet, are you open to see what's available to compare?
Jeff

Most buyers agents I'm sure, try to do the right thing for clients, and like in any service business, there are good apples and bad apples, and it's always the few bad ones that seem to attract the most attention.

From an agents point of view, an upfront fee is mainly to sort out the serious buyers from those that just want to waste your time with no intention of buying, also, if the agency has spent a lot of time and effort in researching, and establishing business relationships with suppliers in the U.S. or even other countries, there are those few that would try to go around your back if they know who your suppliers are, and approach them direct, which causes many problems, just to avoid paying any fees etc.

But having said that, many buyers want to find out about their tax situation, info about setting up the right structure and opening an LLC if called for, etc, as well as having a bank account opened, all this has to be taken into account, normally that is all part of an upfront registration fee.

But in the end, it's the service before, during and after a purchase, that is very important, and also being very transparent from the start of any dealings.

Buyers have to feel comfortable with the agent of choice, and what they are offering, and if they can meet the needs of the buyer, with a good choice of properties in different price ranges, and also locations.

And lastly, are you dealing with a salesman who is just after their commission? Or are you dealing with the principle/s?

Not putting anyone down at all, and certainly wouldn't be so blatant about saying anything detrimental about any other particular agent or supplier, sure there are really good and some not so good, many with different business models.

In this case, it's a fact that they are just changing their business model it seems, I'm not judging whether that is a good move or not. just stating a fact. Good luck to them if it works out.

You can do all the paperwork yourself and also file the tax return, and if you know what your doing and have the proper set up initially, you can get away with it, but if your not sure or do something wrong, they can come down quite heavy on you.

For most investors, you really do need to talk with someone qualified, there are a number of accountants that profess to know all about the US Tax system, and you can be caught out, or, you can try to find a US CPA.

We have as part of out team, a US Tax Registered Agent, who is from L.A and now lives in Melbourne, and has been looking after not only some of the major celebrities with their tax, but for over 20 years has also been helping Property Investors, and now over here.

The difference is that a CPA is normally only state registered, whereas the Tax Agent is registered on a federal level and can operate in all 50 states, and has a direct link to the IRS.

My point about high yields were that if that's the only reason to buy property, without taking into account all the other factors, and if that's also the main point in just pushing property in the U.S. then there is a huge risk of taking on a big liability.

Yes there are a number of agents, which seem to be increasing all the time, there are those that actually do go and purchase direct from such places as banks or from on the step tax sales, etc, or through other means, then either get them rehabbed (renovated ) and on sell to the Australian market, or provide a cost of the rehab and the buyer pays for the property and the rehab, then you obviously have to get the tenant and property management and put it all together like a jigsaw puzzle, and yes, it can and does work out very well….sometimes.  On the other hand, many agents work with suppliers in the U.S. and don't necessarily go over there to oversee everything, but rely on their suppliers to put everything into place, this can also cause many problems. This is simplifying the full processes, but both have their good and bad points.

So it comes down to a number of things to watch out for, but in the end, the buyer over here must do their homework and be more than satisfied with who they are purchasing from, the source of their supply, the supplier in the U.S., why is that property better than another one, why is the location important, there are so many questions and answers.

If you want to buy to just get a high yield, then you can buy in places like Detroit, yes you can get a real cheapy and still get a high yield, but at what cost to you? What kind of budget you have is also going to be a determining factor, but you should still have choices.

I think it's important to know why you are buying, what exit strategy you might have in mind, which determines how long you intend holding the property for. I would suggest, and maybe others will not agree, but if you choose an area that will give a better growth over the next say 3-5 years, and in the meantime it is covering all your outgoings and still putting money in your pocket, then better to get a bit lower yield initially, and get a better growth over that time. 10% is not to unrealistic to expect. But in the end, it's always the buyers choice.

As a number of buyers also are after a quick flip to make a quick and reasonably high gain, we will be able to offer this very shortly, but, like buying in Australia, you should always do your due diligence.

Unfortunately, there are a number of agents selling US Property and providing bad service, bad advice, and just after a quick dollar.
Mainly trying to sell to unwary mom and pop investors, especially with trying to flog the very high rental yield  return and not caring where they sell it or what they sell. Which is a terrible thing to do.

I have had first hand experience of this and know how easy it is to sell to unwary and sometimes gullible buyers, just wanting to get their signature on the dotted line.

Also, some of these folks are very knowledgeable about the US Property market ( and slick talkers ) and their knowledge is what sells. again, this is a terrible thing to do.

The other thing is that if charging up front fee, then getting someone to pay excessively high fees again to get an accountant who knows the US market to set up an LLC and do other services, ( I know that fees up to $1,600 were charged for this service by one company, and others charging $8-$900 ) all just blatant rip offs.

So yes, be very wary of using local agents, however, as i am one myself, and i know of others that DO care, and don't take advantage, and provide a very personal and helpful service, also, can get you the best US Tax Advice from one of the very few REAL experts AND charging a very nominal fee for services provided, you should check out and talk to a number of agents before deciding on who you will go with. You should be made to feel comfortable and they should be very transparent in their information and dealings with you.

If you do get a good agent to help you purchase safely and securely in the US, it can be a great armchair investment, without the hassles.

Hope this helps.

Using a local agent depends on your own circumstances and how involved you want to get in the process.

Yes, you can certainly go over to the US, and if you have the time ( which is what most people don't have ), the money ( and most people don't seem to include what their time is worth, never mind all the other expenses ) doing research on areas, not just the cities, bit suburbs, then down to the streets, then what part of the street if it's a very long one that goes into different areas, are you after just a good cash flow, or are you after a higher growth? Has it been renovated if it was a foreclosure that tenants have made a mess of, if so, how good is the reno? Then you have the tenants and arranging property management ( which is where many foreign investors get most of the problems through). So if you are prepared for all that, then by all means go ahead, many have been very successful.

I also know of investors that brought through some of the better and larger known real estate agencies, and have been sold duds, which became a nightmare, again, you can be lucky.

If the above doesn't appeal to you, then you should investigate using a local agent, just make sure whoever you choose to buy through, is not just trying to sell on the basis of a high rental yield, and nothing more. As these types of properties can be the worst type of investment for unwary buyers. You also have to get the right tax advice, and there are only a few real experts who really know the U.S. Tax system.

So if you get the right advice, get the right help from the start, the cost of paying a local agent can certainly save a lot of problems and headaches, and can make the whole process a lot easier and more pleasant.

There are also various ways in which you can invest in the US.

I suppose it all depends on what the investor is after, whether for just a good positive cash flow, with a limited growth over time, or a little less cash flow but still giving a decent cash flow after expenses, but giving a higher growth, or even if you are looking at flipping and making a good gain over say 3-4 months, although that strategy is not for everyone and has a number of variables.
Even doing joint ventures. is a great way of getting into larger projects with limited funds.

Also, why just follow the herd? Has anyone thought of other forms of investment property besides just single family homes? There are a number of different investment opportunities, many offering far greater returns than just a single home.

Just a few possibilities to think about.

Not everyone can afford to pay US$100,000 or more, so if $40,000 to say $85,00 is the max they can pay, then they still have to know they are buying right.  Also, agree that only being sucked in to buy just one cheap property that might have a high rental yield but is a lousy overall investment, is a terrible thing to do to unwary buyers.

But to build a good quality portfolio, you can certainly get some very good properties in the mid range bracket as above, and in some very good locations. Good Quality Property in Texas in the right locations can still be a great investment at the current price levels, but so can property in other areas.

Reading some of your posts, I thought to throw in my two cents worth.

Yes there is one of the best US Registered Tax agents in Melbourne ( From the U.S. and over 20 years working with property investors both in the U.S. and now over here as well ), and the difference is that a CPA is normally registered on a State Level, whereas the Tag Agent is on a Federal Level and has direct access to the IRA, therefore, can help you in every U.S. State. And the fees are VERY reasonable.

Also, there is still so much confusion as to where to buy, what to buy, how much to spend and even which method of purchasing is suitable for you,  as you can buy through a Land Trust, Direct Cash Purchase, Lease Purchase, Even through Tax Sales, etc. are you buying for pure high rental yield with high cash flow from day one, or for longer term growth? As where and what you buy will determine this. Do you also want to get involved in renovating it, finding an excellent tenant and property management? Or pay a reasonable service fee to have all this done for you so it becomes an armchair investment process?

Yes you can and certainly should go over to check it out, the thing is though, how long do you have on your trip? Where do you go? California-Florida-Texas-Ohio-Missouri-Tennessee? Or other States? All great places, so will you be able to go to each one and spend time and money to do all the research? Which cities / suburbs would you go to?

Opening a Bank Account in the U.S. can be done in 72 hours from over here, and your tax file number and LLC, is also easy to open and not expensive to do, also from over here. Again, Most local accountants don't have this knowledge, so you have to make sure you get the right advice and help from the start,

I hope this has been of some help, and one last thought. If you can meet and discuss in person with a major U.S. Turnkey Property Company, so you can judge in person ask questions and do your DD at the same time, would you be more comfortable knowing who your dealing with? very important.

If you want any help on the above points, let me know. or you can email on [email protected].

Jeff.

Hi All,

With all the different posts on this forum, ranging from those that have actually traveled to the US and have gone through the process of purchasing property, and from those that have purchased US property from over here without having traveled over there, as well as those that would like to invest in US Property, but are not sure how to go about it, or where to go for help and advice, It's very clear that there is still a lot of confusion being thrown around.

Yes, many would be investors have brought property in the US and have done everything wrong, leading to it being a nightmare for them. A number of investors have done their homework and have brought very well.

Most first time buyers of US Property are not aware of the many differences in purchasing over there, as well as such things as Tax Implications..What structure should you buy through ( most people have heard about an LLC, but how many actually know what is an LLC or it's implications, or about other forms of Business Structures, both for an individual or company?) Buying through or setting up your own SMSF? How about the right location? As even buying in the wrong part of a street can make a huge difference, never mind what City / State / Suburb is right for you? Are you after mainly Cash Flow  / High Yield, or longer term Capital Gains? Would you want to buy an already fully renovated property ( surpassing Government housing Standards ) making sure you are buying a FREE and CLEAR Title that contains NO Hidden Nasties, Never mind qualifying Tenants, ( Do you know about Section 8 Tenants with the Government Guaranteeing the rent?) And Property management can be a nightmare if you choose the wrong company.

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Jeff