Forum Replies Created
Memphis, Florida and Atlanta are my preferred options.
Good luck
Hi there,
I have manged to get 3 loans in the US in the last 6 months all based off my Australian credentials, but with US banks.
In Memphis I have two $25k loans – 50% LVR. 7 years P&I at 8.75%. Still well positive cashflow after all expenses. Process was pretty painless.
Florida was a bit trickier and they wanted lots of documentation, but managed to secure a 60% LVR – $50k at 5.25% P&I with 30 year term.
It does vary by state so if you are looking at getting leverage into your US property portfolio, you need to take this finance side into account.
So far no dramas…Cheers
Adam,
Where are you based? I do know of a good one coming up, but it is in Melbourne. Less of a seminar and more of a private info session for serious property investors. Some US folk are flying in.
Cheers
Mark
A Scott-Power wrote:As an Australian citizen, I have heard that Banks here don`t lend for offshore investments, & what are the tax ramafacations on my income.
Regards: AndrewHi Andrew,
You can get loans from US banks as an Australian as an option to consider. I have 3 US properties with loans
You have to lodge a US tax return but you get a tax credit for your Australian tax return
Mark
Hi Linar,
I would go direct to a conveyancer in QLD to make sure that you get the right answer on this one.
From the property I did in QLD, I seem to remember that there was a cooling off period of 5 days.
http://www.quicklaw.com.au/legalinformation/convey_qld/2c_cooling.asp
I use and/or nominee on all my contracts in all states to give me the flexibility to change names at a later date (especially important in off the plan purchases)
I would always support the view to get well educated and have read heaps of books and also completed course. There seems to be a negative view on course in this thread, but they do offer something different to books; you need to choose the right one though and they can be pricey,
In terms of your questions, I would go residential in the first instance.
Purchased properties are used to buy other properties by freeing up equity through refinancing your existing properties,
"Id like to build a portfolio that will have good capital growth and will also provide me with an income" – You will need to understand the financials behind property investing and the difference between negative gearing, positive gearing and positive cashflow.
You will also need to understand how finance works and then work out your borrowing capacity as a good first step.
Another option to consider is to find someone who has successfully invested in property and get their inside view (this can be quite different to what is said in books…)
Good luck!
no worries. If you need more ideas then let me know as I have a bookshelf full of property tbooks!!
Hi there
Chris Gray has a recent book out "Your empire" which is a good read.
In terms of principles, alot of books will stand the test of time. However if you want to be across the market then the best way is to get access to experts who are on the ground and in the know.
Cheers
Mark
Hi there,
It is a little tricky and i struggled to find good courses in the beginning of my own property journey, hence why I eventually built my own for other people!
The following website has some other options
http://www.propertyinvestmentcourses.com.au/
I have personally done Hans Jakobi which was okay but pretty $$$s and somewhat biased to a particular strategy.
I know most of the people out there advertising courses, so get into contact if you want more opinions.
Cheers
Mark
Hi Andrew,
I will take a step back and give you some overarching thoughts on the stages on getting into property investment.
1) Make sure you are clear on your own personal situation including goals, risk profile, lifestyle requirements etc
2) Increase your level of education on property so that you understand all the concepts
3) Build a good team of experts around you
4) Have a support structure / mentor to help you on your journeySound like you are starting on the right path with some research, but I would encourage you to keep on researching. Steve McNight's book is good but does flavour a positive cashflow strategy, so you might want to look at some other books favouring different strategies, so you can get a broad perspective.
Let me know if you want some ideas.
Cheers and good luck
Mark
Hi Matt,
I went to one of their seminars and seemed okay. I subscribed to their property deal list, which gives you access to the deals they have, but I find it difficult to assess the deals from this, so the only other option was to join their mentoring program which was reasonably $$.
Most of the deals seem to be regional deals at the time I was on the list.
I am interested in other people's experience too as their advertising is quite compelling!
A lot of interesting comments on this topic…
Personally I spread my lenders.
Secondly, I apply my golden rules for building my personal property team which is:
1) Are they property investors themselves
2) Do they conduct business in the right way
3) Are they aligned and have pesronal experience with my property strategyYou can quickly suss out the inexperienced brokers who are unable to think out of the box by aksing some scenario questions and see how they answer. Of course you need a degree of experience to know the right questions to ask. The use of offset accounts is pretty basic and not a good test in my point of view. Start quizzing around multiple property portfolio strategies and glazed eyes will start appearing…
Mark
Hi Ms Trump,
Pretty much the number one question that everyone asks, and "experts" often back a philsophy and then stick with this line as the best (and only sensible way forward).
On a pure numbers basis, a high capital growth, low rental yield will over time perform better than a low capital growth, high rental yield property. But cash flow is critical and I remember a quote someone said to me " the negative geared strategy will ultimately make you wealthier if you don't go broke along the way!"
I started with a mid range position and then went more on the capital growth focus.
As people are noting with the current rents and interest rates you can achieve the best of both worlds at the moment, but just remember that things WILL change so build this into your thinking and strategy
Hi JR,
Thought I would throw my two cents in as your journey so far is sending you down a few garden paths (very typical unfortunately). Especially in the early stages, you need to very careful who you speak with and in what sequence.
Think carefully about their people's agendas as this will impact directly on the advice you get!
Financial Planners = no, Banks directly = no. Your first step needs to be able to find a STRATEGIC mortgage broker who is able to determine options for you. You do not want a run of the mill broker who will just apply a standard recipe. Look for someone who is focused on INVESTORS not owner occupier. I also would suss out if they actually invest in property themselves as there is nothing like direct experience to give good advice.
Cheers
Mark
Concur with the above. For many people the block is a belief issue around getting into more debt and the belief that more debt is bad and less debt is good.
It would be best to have your wife's support so if you do go ahead, try and align both of you in terms of how property investing and leverage works to build wealth
How can i get access to the equity in my house?
The process is relatively straightforward; any mortgage broker would be able to guide you. I am sure they would be happy to help you! 80% of the current value (i.e. 68K in your case) would be a typical amount, but check with teh broker as it will depend on your situation.
Which financial institutions will look most favorably on my situation?
err, not that many. Casual is not greatly regarded and I have been finding the banks increasingly tight on their lending criteria. Unfortunately your equity amount is not that high.
Is is possible to get access to the equity in my house claiming just rental income? For example the income from my current IP and a signed lease for the next IP?
If your current place is already negatively geared then it will be a little tricky. As per Richard's comments, are you sure about the numbers? Maybe time to up the rent??
also would anyone suggest selling in the current market? given the FHOG and the popularity of small apartments would it be fair to say that it is a sellers market? If i sold would my position be any better then my current position?
Be careful on relying on a forum to decide on a selling decision. It will really depend on the specific opportunity and there is not enough information to make an informed decision. The main thing i will point out is that you will need to think about the transaction costs involved in selling which will offset any profit. I keep my properties if I am able too but you will need to work out a strategy that suits you!
Hi Bacon,
You probably need to be a little more specific with your questions to get good responses.
When considering your options for investing in property, you should take into account not only your personal behaviors and interests but also the type of business model that you want to get involved in. Here are some key questions:
- How much initial capital do you have to invest?
- How much ongoing capital do you have access to?
- Are you looking for an increase in long term wealth or is immediate cash flow your priority?
- How much time are you willing to invest initially?
- How much time are you willing to invest on an ongoing basis?
- What level of complexity are you comfortable with you?
As a summary, map out where you want to be and then ensure that your property strategy has a business model that fits into this.
Once your straegy is clearer, then I would be looking to build a trusted expert team around you (especially as you are overseas) to help you move forward.
Cheers
Mark
Hi there,
A fellow investor uses this strategy very successfully to date with students, and is achieving yields of 12% to 13% in a typically 4 to 5% yield area.
The downside is the time involved. He would be personally spending 5 to 6 hours a week across 3 properties to make it happen. You are unlikley to get property managers to do it for you.
Cheers
Mark
Hi Shannon,
You do have an interesting scenario; one which you will need to play carefully to achieve the goals you have in mind.
Property is simply a numbers gain, so many of the principles would still apply in terms of finding good investment properties.
I would suggest that you get independent financial advice on your unique situation to determine how much of your money you should be investing into real estate v other investment options.
Once you have better clarity on this then you will need to work out a property strategy that is effective for you and will achieve the desired wealth creation v income protection v risk profile.
It is important to educate yourself and also find a trusted team to work with. The latter is vital!! Be very careful on listening to people's opinions without understandind a) their agenda and b) their competance level!
Mark
Hi Sam,
I would concur with the duckster's view. I prefer investing in small boutique blocks in terms of apartments or townhouses. Personally, serviced apartments are not an investment choice
The article below will probably answer most of your questions and save me some time helping you!
http://www.hotspotting.com.au/index.php?act=viewArticle&productId=11
Tread carefully on your first investment property and try to tap into people who are knowledgable and on your side. You are doing the right thing by getting educated before jumping in.
Kind regards
Mark Taylor
