Forum Replies Created
Hi PropertyGeek,
Thanks for your long answer, it is very helpful.
My brother is not a US citizen, he is a permanent resident.
Just a few questions additional questions:
Does the LLC need to be in the state where the property is purchased or can it be in any state? Can you outline the reasons why you suggest it be set up in Nevada?
Are you saying that if we were to approach the lending institution as an LLC partnership they would require a large deposit because one of us is from Australia?
Would it be an alternative to get my brother to get finance, buy the property in his name then transfer it to the LLC where we are both partners? Will the lending institution have a problem with this? Would this scenario make finance easier to obtain and reduce the deposit required?
How easy is it for US citizens to obtain finance at the moment?
Cheers
BecI think you may be able to do a low doc loan, but you would have to pay mortgage insurance and I'm not sure what the amount is for a house around the $550K mark.
Also, if you have only just gone on maternity leave and your payslip is still current, then you may be able to get a full doc. When I went on maternity leave I took my last pay slip borrowed as much as we could and put it back onto our loan in a redraw facility just in case we wanted to buy anything while I was on maternity leave.
Cheers
BecA few thoughts:
Speak to your conveyancer first thing on Monday and advise them of the situation.
From my understanding, if you have presented a bank cheque it should clear straight away, but I might be wrong.
There is normally a penalty clause in the contract which outlines a rate of interest you pay if you don't settle in time. This is normally about 10% per annum and is calculated daily. So if the property purchase price, for example, is $100,000 and you have already paid $5,000 deposit, then you would pay 10% of $95,000 divided by 365 (as you are only one day late.) This amounts to $26.00. From my understanding you only pay this is the solicitor from the other side decides to pursue it and this is rare with such a small amount. Even at a million dollar purchase you are still talking only $260 for one day.
I definitely suggest to speak to your conveyancer, as they will have information and figures specific to your circumstances. It is their job to handle this. Make them work for what you are paying them for.
Cheers
RP2606Hi Kylie and Lalibella
Thanks for your input. You both asked me about the walls, suggesting painting the walls or asking about the wall colour.
The wood panelling IS the walls. Sorry, I must have made it sound like it was something else, the ceiling perhaps? The whole walls are made of this stuff! So it is this very dark colour all the way up the walls to the ceiling. The ceiling is white, but the beams are a similar colour to the walls.
The carpet is not so bad, but the property is in Sydney's northern suburbs towards the beaches. It's in a prime location, so maybe I was just thinking it wasn't good enough for the expectation. Then again, maybe its just me. There's no way it will actually be changed at this stage, I just mentioned it as it might effect what people suggested.
The blinds are custom made hardwood venetian blinds that blend in with the wood panelling. Again that same dark colour. There is a quite a but of light as there are several windows all the way around the house.
Thanks again.
RP2606and tax free!
Hi Carpe
It will take you a lot of time, knowledge and planning to take it on yourself, especially if it is something that you haven't done before. There are many pitfalls but its not impossible. The other option you might want to condider is to go into joint venture with a developer. If you are just after a townhouse for yourself on the block where you live and that's the only reason that you would take it on, I would buy a townhouse from the developer that you sell it to. If there are other reasons that you would want to do it, then you need to think through it more thoroughly.
Cheers
BecHi Linda
I was in a similar situation with renting, helping my mum pay off her mortgage (which I received no income for) and trying to save for a deposit. My situation was a little different in that I was single and that probably provided me with a little more flexibility.
I agree with Marc, the first thing to look at is a budget, as boring as it is. However, there are also lots of creative ways of cutting back on expenses and earning more income. I came with a list of various things. The things that ended up working for me – I went on a game show and won a car, then sold it for part of my deposit and we also decided to house sit for a year or two. I am currently house sitting for a couple for have gone OS for a year.
They have to find ideas that will suit their situation, but if they really want it, there is always a way.
Cheers
Rebeccattman, didn’t get the PM. Can you send again?
Hi ttman,
I use Southland RE. One of the PM’s there is Evan. He is okay. I haven’t had any monthly bills like that come through in the 18mnths I’ve had my IP, but you have to push him a bit to get things going on occasions ie. he isn’t terribly proactive.There is an older retired guy called Fred who lives on Yarrow St who I get to do work. He is a great handyman and can do lots of different jobs (I got him to fix the garage roof which had rotting beams, tidy the garden etc.) I’ve just moved and can’t seem to find his details or remember his surname, but I will have a good search for it.
By the way, which PM are you using? I would like to know for future reference. If you still are thinking of selling, I’d be interested in purchasing your IP’s. PM me if you are go ahead.
RP2606
Hi Guys
Sat 14th in Parramatta is good for me. I have had a couple of PMs about it. Please PM me if you are interested in attending. I will organise a time and location (somewhere in Parramatta), so at least we can get it off the ground. Kurra or Easymoney, can at least one of you help me organise this?
Bekstar
Is anyone from Sydney or surrounding areas interested in meeting together? Once off to start and maybe regularly after that. The aim would be to get together anyone who is interested in buying cash flow positive properties in the US?
Bekstar
Hi Easymoney
I would be keen to go over with you to check out Buffalo (and other areas). Would that be 5 interested parties so far?
I am currently talking to my brother. He lives in the US (in Virginia) and used to live in New York. I am going to get him to help me set up a LLC (he is a lawyer and property investor) and hopefully get some help with one of the big issues – finance.
Has anyone got a partner over in the US to help with finance? Any wisdom to share?
Has anyone got any books on US property investing to recommend?
Bekstar
