Forum Replies Created
- angelinsydney wrote:Thanks,
I'm looking for income.
Hi Angelinsydney,
I am investing in Rochester NY and am working with a very good team, ROI up to 20%+ If you woud like more info please email me
Simon,
Are you based in Canada? If so I have contacts in Canada that can assist you….if you are living in Australia and from Canada that’s different.
i have emailed you before.DHCP wrote:Hi Guys,First of all, I would like to thank those investors who shared their investing experienced in the US. Certainly, Steve McKnight will be proud of you by sharing your knowledged of investing.
For those investors who have invested already in the US real estate market, and have not used a buyer's agent, as part of your due diligence, I have some questions to ask:
- How did you managed to find a good property manager to manage your property?
- How can you tell a good property manager from a bad one, there?
- Did you have to flew over there and meet with him or her face-to-face?
- How frequent your distant communication with your property manager after the settlement (i.e., tenant has moved in)?
- How much is the management property fee each month, letting fee and advertisement to find a tenant in the event of the property being vacant?
Thanks in advance.
Leo,
I have invested in upstate NY, I have partnered with a group of like minded investors who do all the rehabs, find the tenants, have property management in place. Very well run group
I believe that it does help to work with locals who have the contacts….to deal with people half way across the world is really going out on a limb.
I pay 10% management fee per month.Jeff
Leo,
That’s very good advise, despite the insuranc epolicy covering any damage, as an Australian investor why would you want to invest in an area that is prone to natural disasters.
Where are you looking to purchaseJeff
From what I understand each state has different rules & regulations. I have set up a LLC in New York LLC, I needed an attorney to do that.
He got me the EIN which helped me open the bank account with HSBC.
His advise to me was to use an attorney , eventhough it is a little more expensive it is worth it to know that one has proper legal advise.
Jeff
I am not suprised at BB’s experience, my NY partners have told me for MONTHS that banks will NOT lend to foreigners, and as BB states certainly not REO property’s.
I have made mention on a number of occassions that Miami is not a good place to purchase…as the sheer volume of bank owned property.
I have a US partner based in Denver who is a 30 year + real estate guy who will NOT even give the name of a real estate agent in Miami because it is such a BAD investment.
Despite this many aussies continue to make the trek over to Miami….good luck is all I can say.
There are better cities to invest in that WILL give you positive cash flow
Jeff
S.Imetuti wrote:HiThanks for taking time to read my question. I'm a Canadian investor looking to buy investment properties in the US to rent and hold. Lately someone told me i could get 90% finance if i used my business to buy these. I'm do not work or live in the US.
Could anyone advise me on the best strategy or refer me to someone specialising in this area.Thanks
Simon
Simon,
I can help you my email is [email protected]
Qlds007 wrote:Sorry Michael but i have to disagree.
The investment decision making of the fund is set by the Trustees and not the Accountant / Financial Planner and whether such an investment can be made is outlined in the Investment strategy normally set up with the original Trust Deed.
Certainly a member might take advice from an Accountant / Financial Planner.
I own property overseas in my SMSF (In the Uk admitedly not the USA) and have done for years and such investment has never caused a problem on the Annual audit.Cheers
Yours in Finance
Richard,
From what I understand the SMSF is considered a trust by USA and when setting up a trust in the USA, this is were it can be complicated, I have 2 accountants in Sydney who understand whats involved in setting up LLC’s who cannot give me advise on the trust implications in the USA. How does the UK see a SMSF re tax purposes?Has anyone used there SMSF to buy property in the USA ? If so how was the trust set up to pay tax….it is a perplexing question as these accountants know there stuff
Jeff
streamlineinvesting wrote:Hello all,I hope what I am asking has not been asked before in different posts, I did have a look and could not find much. I also had a bit of a look without much help.
I have been trying to get everything set up to allow us to start investing in property in the USA. Basically, we are two mates who wanted to pool together some funds to buy a property over there, starting small but working our way up higher if it all goes well.
Our LLC formation should be complete within the next couple days. And once this is done we are looking at getting a bank account based in the US set up. We are hoping to use CitiBank as they have branches in Aus and USA and we can do international transfers for free aparently. I hope this is the case and there is not just some fine print in their terms and conditions adding an extra fee on or something.
To get the bank account for the LLC, it seems that we need to obtain and Employer Identification Number (EIN), even if it is just for banking purposes. I found the form SS-4 with the instructions at http://www.irs.gov, it does not seem to be too complicated, however I just want to make sure I get it right so I do not have to do it again. Although it does come with the instructions which are fairly helpful, I would like to talk to someone who has done these forms before from a similar position who may be able to assist me?
Also the form asks for an Individual Taxpayer Idenfitication Number (ITIN), however reading the instructions I am not 100% sure if this is required for our case as we do not pay individual tax in the USA. It would be good if it was not required as they say it takes up to 6 weeks to get the number after applying.
Has anyone had first hand experience filling out these forms, mainly the EIN one. It would be very useful to have a discussion on some of the points.
Thanks
From what I understand is that you will get an EIN when you set up the LLC, the ITTN if I am correrct is for USA citizens,. The best advise I could give is to contact an accountant based in Australia who has USA knowledge.
I have set up a LLC and all I need is an EIN number… to open the US bank account.as tax time approaches I will have more info.
Jeff
Rosa Tong wrote:jeff2investUSA wrote:Rosa, Thats a hard question, I suppose you could ask were in Australia they have invested and what type of investment? Investing with there own company is not a bad thing….. The MOST important area of investing in the USA is the property management…..can they provide a tenant year in and out……. What cities are they wanting you to purchase in. How much research have you done? JeffMostly Net searching at the moment… looking through government databases…searching company titles etc… to make sure it really is a company…and when it was incorporated…trawling through forums to get feedback on the companies and looking at some sights with regards to projected growth in those areas…plus keeping my eye on the news
I want a set and forget investment…well as much as possible…I don't mind other people running it as long as I get reports etc…so I don't mind paying more/fees…I am not that uptight about it.
Rosa,
My email is [email protected]
If you want to email me I can at leat share with you my own experience in investing in the USA and were and why
Jeff
Rosa,
Thats a hard question, I suppose you could ask were in Australia they have invested and what type of investment?
Investing with there own company is not a bad thing…..
The MOST important area of investing in the USA is the property management…..can they provide a tenant year in and out…….
What cities are they wanting you to purchase in.
How much research have you done?
Jeff
michaelandre70 wrote:jeff2investUSA wrote:RickH wrote:Jeff,Why do you say that ?
What evidence do you have to support your statement ?
I have looked into KC and their are good and shocking parts (like all cities). The middle of the run areas still provide solid returns.
It is a stable city and UE rates ect are all at are below national averages.
I am happy to read anything you have on KC that may change my thoughtsHi Rick, I have a business partner in the USA who is one of the leading buyers agents in the USA, he has a research company that advises investors on where one should invest and not invest, his assesment of Kansas City which can be backed up by data is that Kansas City on a long term basis is not a city that he would advise his investors to put money into. This company researches over 250 markets and has over 30 years experience in real estate. Everyone is open to investing in wherever I do invest in the USA and I am getting good returns. Rick H are you investing in Kansas City? Jeff
Hi Jeff,
It would be nice if you could share the web address of the research company you are talking about. I am sure as we gather more information we would be benefited while deciding where to invest and where not to.
Does the company suggest that the cash flow won't be adequate to cover the investment because of low rent?
Hi Michaelandre 70
There is NO web site to share this is a pure research company, one generally pays a fee to have research done. The business is set up for investors who have a certain amount of money to invest. Barry who runs the business has been in the business as mentioned for over 30 years investing himself an advising clients.
I trust his judgement….his assesment for KC over the long term is that you will not get much capital growth…..there are only a few streets that he would reccomend…..yet there are many markets that offer better deals than KC, the same for Florida as far as capital growth. I could email you personaly his assesment of Miami to give you an idea.
He will not even give me a contact in Miami because he feels that it is such a bad investment to make.
As already said …….everyone on the forum can agree or disagree….fine with me…..We all have to make decisions that we feel comfortable with…..
JeffJeff
ActToday,
You have had 30 years experience in investing in the US market? or 30 years investing in property?
JeffHi Rosa,
The one question I would ask any of these people is have they invested in any property either here in Australia….or the USA, because if one has not invested and done the hard yuards themselves….how can they advise you on investing.
Have you invested in property here in Australia?
jeffActToday wrote:Jeff, I disagree with you on investing in Florida. To say Florida has some of the worst vacancy rates does not tie in with what I am finding. If you price your rental according to demand you have no problems securing a tenant. There is a glut of available houses and where are those previous home owners now….renting. Florida has been vey good to me financially.Hi Act Today,
You are entitled to your opinion and that is fine, I have a very experienced partner in the USA over 30 years experience in the US market, has a company that advises on over 250 markets, were to invest and why, his thoughts on Florida is backed up by solid data.
I have NO problem with anyone wanting to invest anywere….however it is the long term that one needs to think about will you have a tenant in place 2-5 years down the track…..I think that in a few years we will read of some horror stories coming out of Florida.
I am happy to email you off the forum on why Florida is very risky….if you are interested.
Jeff
RickH wrote:Jeff,From what i read and seeing your website you are working in NY state ?
How is that part treating you. I read alot of people are turned of that area and in particular Buffolo .
Is this your area of specialty or do you have a wider market ?
Hi RickH,
Not touching Buffalo because my partners there do not invest there, I am getting very good returns dealing with like minded investors who have a turnkey operation, every property is rehabed and comes with a tenant in place.
Some property’s are section 8 and some not.
Returns up to 25% nett……. good intro market. Vacancy rates are below US average. good rental mangement in place. All my partners are experienced investors themselves who decided not to invest in the “sunshine states”I have No problem recomending this area, despite the fact that years ago some people have been burnt……
I do have other area’s that are available that are a little of the radar bringing in good returns.
I would be happy to give you those you can email me [email protected]
jeff
karlred wrote:Hi – I'm looking for some advice from those more experienced than me. If you were looking for a balance between cash flow and capital growth with approx 120 – 140K to invest would you buy:
One condo
Two Condos
One house or
One of each
And where would you target. I have looked at Fort Myers, Tampa and Orlando in Florida and could probably swing any of the above deal options. I was wondering what the opinion of the forum is on Florida as an investment centre and the type of property mix which would yield a good blend of returns. I envisage a 5-10 year timeframe.Also what potential pitfalls are there for Australians investing in the US. I intend to travel there and have a look before agreeing to buy.
There are so many options is hard to know where to start. I thought it would be useful to seek out my own independent Lawyer in the US when I'm there. Has anyone else done this?
Thoughts?
Karired,
My advise is to keep away from Condo’s, they are fraught with danger eventhough they may look good on paper, you have HOA fees that can eat into your ROI, in some cases the HOA’s are broke and have NO money to fix anything that may break down.
Single family homes are OK, if you can invest in duplex’s or triplex’s better ROI.
I would NOT invest in Florida some of the worst vacancy rates in the USA, there is a glut of property. I know that many investors are keen to go to Florida, the number do not add up.
You should try and speak with a local accountant that has knowledge of US tax laws, how to set up the proper structure to suit your personal needs. Do you intend to purchase many property’s or just the one.
If you want some advise you can email me
Jeff
RickH wrote:Jeff,Why do you say that ?
What evidence do you have to support your statement ?
I have looked into KC and their are good and shocking parts (like all cities). The middle of the run areas still provide solid returns.
It is a stable city and UE rates ect are all at are below national averages.
I am happy to read anything you have on KC that may change my thoughtsHi Rick,
I have a business partner in the USA who is one of the leading buyers agents in the USA, he has a research company that advises investors on where one should invest and not invest, his assesment of Kansas City which can be backed up by data is that Kansas City on a long term basis is not a city that he would advise his investors to put money into. This company researches over 250 markets and has over 30 years experience in real estate.
Everyone is open to investing in wherever I do invest in the USA and I am getting good returns. Rick H are you investing in Kansas City?
Jeff
USA wrote:hi thereJust read up above someone called "Troy" on this forum has foreign national finance available, could someone please let me know his details
Thanks
From my research it is very difficult to get loans in the USA for foreigners. Also the foreign currency component would have a negative effect if the Aussi dollar starts to drop against the greenback, your loan would not be as attractive.
Better if one has equity in a local property to try and get a line of credit here and pay local rates
Jeff
jeff2investUSA wrote:propvest78 wrote:jeffplease do, email through your companys reply. would be interesting.
Willl do!!!
If you email me you private email adress I can email you the article as it is to large to copy & paste on the forum….thats if you would like to receive it.
Jeff
my email is [email protected]
