In every country there are up and down markets… in every state … every city …. even in neighbourhoods.
I have had a lot of advice that says "get down to neighbourhood level"… and make your assessments from that.
There is so much info online, it isn't hard.
Start with something general like demographics that you want to rent to, and work backwards … highest city market, then which neighbourhood … and then get specific about looking at houses for sale.
Don't start with the "for sale" list. End with it.
Thankz for the fast reply ……….speedy gonzales……….your nick suits you ahahhaha…….im interested in the USA market………have 30k in savings…..income 70k + girlfriend 50k …….we are both 26 years old and have one investment property in Melbourne renting out at $320 per week……..the property is worth around 400k ….owing the bank 245k………..what should be our next step to purchase in USA…..looking for postive cash flow deals……..the area im interested in is Miami and las vegas……..any advice or information will b appreciatted……….
Hi Sav
Sorry to come in on this thread so late. Another option with that amount of savings is to join a group purchasing apartments; the group sponsor should do all the research, look for apartments that have been mismanaged or are selling below replacement, with opportunities to either rehab or simply manage better, and they usually combine cashflow with capital gains – best of both worlds.
You don't need to worry about financing, that is already taken care of.
When I was starting with my investment in the US, I just used an online service for starting the company. I have used incparadise.net and got the LLC in nevada in 2 days for about $300. There are more services like that in the US, so you might find another sites as well, but that's basically all you need. I don't think you have to hire attorney for this.
The only reason why to call attorney would be to review the operating agreement in the case there would be more members in the LLC, because the generic operating agreement from the online companies might not be sufficient for the specifics of voting and transferring the ownership of the members etc.
Yes it is true that you don't have to hire an attorney for a lot of the incorporation process.
On the other hand, I have been able to ask numerous questions of my US attorney, for which there has been no charge, as I prepare to incorporate – and I am sure that the time spend answering my emails is being done for a bargain price, given that her firm only charges $695 at present to do the incorporation. Take away $300 for doing it yourself (and the time to work it out)… definitely a bargain.
If your investing in Florida you will need a LLC registered in this state to trade properties however this may not be the case if your are buying investment property with the intention to hold it long term i.e. you maybe able to buy your long term holds in a foreign entity such as a Wyoming ,Delaware or Nevada LLC. This is something you will need to discuss with a USA attorney. Also in Florida something to be aware of is a single member LLC is treated as a disregarded entity thus providing you with little to no protection therefore it is recommended to have a dual member LLC. Again you need to discuss this with your USA attorney. Every State has different requirements and rules so first you need to decide where you will be investing and how that states rules apply to your situation,whether you will be trading or holding property so you can decide your next step.
If you set up an LLC in Wyoming or Nevada, you do not need to set up another LLC in Florida, BUT you must register your Wyoming/Nevada LLC in Florida as well. Thus, the Wyoming/Nevada laws still protect, in my understanding. Check with an attorney.
Sorry guys, been offline for a while and so didn't get the requests.
My understanding is that an LLC submits a tax return but IS NOT TAXED… much like partnerships in Australia. The tax would be paid here in Australia, under the taxation law for the entity.
For those who were asking about a US based attorney, I decided to post it here…
Another option would be to seek out a syndicate investing in larger properties (ie apartments, commercial, etc) and partner with them. Apartment deals in the USA are particularly cashflow positive just now. Send me a private message if you are interested in more information.
Martha- you can set your account up so it automatically subscribes to threads you comment on. But seeing as you have not set that up you may not be subscribed to this thread so won't see my message!!
Just go to 'My Account on the right toolbar, then under the 'Edit' tab check the Auto Subscribe box which is right at the bottom of the page.
Can I suggest, with relation to your own wealth strategy, that you get advice and a sounding board from someone who is not going to benefit financially from your decisions?
It is actually not too difficult to try to do yourself… in fact a standard business consultant/planning advisor, or even someone like PWC or a lawyer might be a good idea.
If you think you aren't even up to that stage, drop me a note. I used to work as a business planning consultant, and am extremely familiar with the whole "goal identifying and setting" process.
I suggest that you start with identifying your financial goals (how much by when), and work that way.
Can I *clappy* my hands at you, for starting at your age?? I am so impressed.
The comments Michelle had above are really worth considering. If you go back a few squares, and work out what you actually want, in really specific language, the "how" seems to fall into place much easier.
Just to feed your imagination… there are opportunities called "bird dogging", which means that if you find a great deal, you "sell" that information on to someone else who is ready to invest, and make some money for your efforts … which can be saved to get started yourself.
There is a lot to learn about and lots of information available. For getting your eyes opened to the types of opportunities available, I would really recommend the Rich Dad series of books on real estate… The ABC's of Real Estate Investing; Advanced Guide to Real Estate Investing; The ABC's of Property Managment, and the Real Book of Real Estate Investing. The first three are an easy read – the last one more like a text book of different ways of doing things.
If you want someone to work with, and bounce ideas off, I love working with younger people who have a desire to invest, so feel free to mail my inbox. I can help you go step by step through a process that will help get you more focussed and help identify your next steps.
We… want to start an LLC in the USA and then open a bank account in the USA in the LLC's name to then buy property.
Our question is should we then open a bank account in Australia under our individual names or form a company here and then open a bank account in that company's name in Australia?
The reason I'm asking is because we want to link the two bank accounts and minimise transaction fees. Are our individual assets protected from litigation if the bank account in Australia is under our individual names?
It is my understanding that your personal assets will be protected through the LLC, and so you shouldn't need the extra layer of a company in Australia. That is the whole purpose of having an LLC, and individuals do invest directly through LLCs. However, I do recommend you check this with a US attorney.
I really think you would be better speaking with US corporate Attorney firm about it. Essentially no difference between Wyoming and Nevada, except for filing fees and charging orders against a corporation (to do with when you are sued, how people can access compensation if the case is found against you).
The following notes (in blue) are from an information package from Corporate Direct, a law firm in the states, and from my email conversation with my contact there.
When forming LLCs in Nevada and Wyoming the protections offered by state law are very similar. Garrett feels the these two states offer the strongest charging order protection for LLCs. When forming a corporation the main difference is when there is more than one shareholder. In this instance Nevada would be better as Nevada is the only state that includes charging order protection for corporation, but there has to be more than one shareholder.
Why would a person form an entity in one state and then qualify in another state?
Many people will form an entity in Nevada for the privacy and asset protection benefits and then qualify to do business in their home state, California, for example. The qualification process involves having our Nevada office, for example, provide a certificate of good standing for the Nevada corporation and then file with the California Secretary of State for permission for the Nevada corporation to do business in California. It is not an overly complicated process, but it is an important process to ensure that your entity's limited liability protection follows you into the states in which you actively conduct business. Corporate Direct provides this qualification service at an affordable price.
Why incorporate in Nevada?
For many reasons, Nevada is one of the best places in the United States to incorporate. Nevada has excellent privacy laws, minimal reporting requirements, close proximity to the major California market, good road and air transportation connections and a business-related infrastructure that continues to attract major businesses such as Starbucks, Barnes & Noble and amazon.com.
Privacy: Nevada does not share shareholder information with the IRS. In Nevada shareholders are not a matter of public record which allows for maximum anonymity and privacy. In addition, nominee officers and directors can be provided to further enhance privacy.
Asset Protection: Nevada's asset protection laws are viable and the corporate veil remains one of the strongest in the country.
Corporate Flexibility: Directors, officers and shareholders do not have to live in or hold meetings in Nevada. Telephone meetings are permitted. One person may hold all director and officer positions, and directors/officers do not have to be stockholders. Corporate bylaws can be made or expediently changed by Directors. Nevada law also allows for various classes of stock and debt, securities and voting restrictions, rights and preferences to be included in the articles and bylaws. These and other favorable features of Nevada corporate law provide for great corporate flexibility and ease of maintenance.
Favorable Capitalization: No minimum capital number is required to incorporate. Shares may be issued not only for money or assets invested, but also for personal services, leases and options granted, and personal property. In addition, a Nevada company may purchase, sell, hold or transfer shares of its own stock.
Why incorporate in Wyoming?
Wyoming is one of the fastest-growing states for low-cost, low-maintenance and no state tax incorporations. Why? Because Wyoming has actively sought to make it’s corporate law and business tax structure friendly and attractive to out of state companies looking for the best all-around tax and legal structure.
Privacy:Wyoming requires officer and director information only. No information on shareholders is collected or shared with the IRS. Nominee officers and directors can be used to enhance privacy.
Asset Protection:Wyoming has strong asset protection law – perhaps the strongest in the United States today.
Formation Costs:Wyoming is inexpensive compared to other states, even Nevada. Minimum filing fees add up to maximum savings for you.
Maintenance Costs:Wyoming has one of the lowest annual fee structures in the United States. Because the Wyoming annual fees are based on assets or employees physically located in Wyoming, you could pay as little as $50 per year to maintain your non-resident Wyoming entity.
Low Capitalization: Wyoming has no minimum capitalization requirements. Some states, such as Texas insist that you put at least $1,000 into your entity on formation!
Corporate Flexibility: Directors, officers and shareholders do not have to live in or hold meetings in Wyoming. Telephone meetings are permitted. One person may hold all director and officer positions and directors and officers do not have to be stockholders.
I agree with you all. Yes the USA is a different market. Yes lots of people say "oooooh, risky". I think … GOOD! you keep thinking that, and it leaves all the more opportunity for me.
Due diligence is the be all and end all. As mentioned, properties do need to be viewed, but not necessarily by me. If I have a property manager, building inspector, pest inspector *at least* doing inspections, taking lots of photos and keeping me in the loop, I don't need to go there myself.
All the information we need is online.
I think that the danger of the one stop shops is that some people believe that tagline! So much better idea to have a few different people on your team from different sources … means no one is likely to be conspiring to rip you off.
I'm quite happy for people to think it is all too hard
You can't lose anything by looking . Vegas is not the strongest market at the moment, high unemployment and so on, but I do know of Americans investing there successfully.
The biggest thing is to look at each deal individually. Seeing as you will be in Vegas anyway, why not check it out.