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I have been very fortunate to have a supurb team on the ground in the US which includes a great property manager. This enables me to buy from Australia with confidence. My first trip to the US was in conjunction with a round the world holiday. My next trip in April is in my holidays and this trip will be a claimable tax deduction and it gives me an opportunity to catch up with m team and check everything out. I do not intend to travel to the US every year. All my houses are tennanted and I have not had a single problem. I intend to only buy one or two more homes in the US as the market is moving and I do invest in Australia also.
I support what Elizabeth has done and agree in every aspect. I hahve specialised in SW Florida and jsut bought my 3rd and 4th house in Cape Coral. I buyt direct, NO middleman, I have my own team on the ground and this includes an amazing realtor with 20 years experience and an expert in the area. I have been to SW Florida and I am going back in April. My fourth house is a 3 bedroom, den , 2 bath, double garage house with an enclosed solar heated inground pool on a working golf course in Cape Coral South. House in excellent condition, pool still being maintained weekly, new plumbing, kitchen, roof ect and my realtor said this property was a steal!!! I found this house myself using the same due dilligence and principles as in Australia. I will pay $115000US for this property!!!!! Sold in 2006 for $290000US.
At the end of the day you need to become an expert in an area and know it well. I will NOT go anywhere else in the US purely because I dont know the areas. I buy for cash flow positive and capital growth!!!Tax liens are not that easy to acquire. They sound very attractive but you must do your research and learn about them. I am sure Steve McKnight can point you in the right direction. I have bought tax liens in Arizona, some have redeemed and they do work but they are definitely NOT a quick get rich strategy. Every county is different and have different rules. Some counties only have deeds and some no liens at all. Florida is a very good county to buy from but for the foreign investor, difficult to get at the moment. Liens are only available by online auction during one month per year. Florida liens auctions are in May but you can buy over the counter in June/July. Arizona are in January/February. I tried to buy liens in Florida this year but failed with my bidding. Majority sold for 2-3%, NOT 18%.
I have bought 2 properties now in SW Florida, both tennanted and cash flow positive. I have my own team on the ground, and I am still trying to buy more. I dont rush in and I wait until I find a house that fulfils all of my criteria. When I see a house I like, I speak to my realtor via skype and have a contract drawn up and submitted on the same day. Unfortunately, I recently lost a short sale deal. The owners who wanted to stay, I negotiated a lease deal with them (via my realtor) which included lawncare and finishing rehabs. There was a paper work muck up on settlement, house sold to bank and owners kicked out. Owners hired lawyers to fight this decision and bank countered by paying owners to move, End result, I lost sale!!!
The house was in Pelican area, SW Cape Coral, 3 bedroom, plus den, 2 bathrooms, double garage, concrete construction, new roof, ducted A/C, etc.
Very happy with both of my houses and my second house I actually bought for capital growth in a very good area and it is still cash flow positive. Read the API articles on US property series..Thankyou so much for the information. My property in Cape Coral is on central water and sewer and I feel I was very fortunate to get it. I missed out on so many properties that sold same day and being in Australia, I literally have to get the offer in straight away due to our time differences. I will actively look in Sth Fort Myers.
I looked at your web site and see that your focus is on the newer homes, 2004 plus. What is your reasoning for this.
I enjoyed your video presentation, gave some great insight on the area and reassurance for myself to keep moving forward.
I intend to rehab , if necessary, rent and hold for about 5 years. I ideally would like about 5 properties in total.
ShillabeerI think I had better hurry up and get a couple more properties in the area. I have been looking in 33914, 33990 and 33991 in particular and I avoid well and septic homes and drywall, of course. What is the area called or zip code for South Fort Myers. I am keen to have a look at the area and what would you expect as an average price for a 3-2-2 home.
I certainly noticed the huge drop in REO's and my Cape home was not a REO, normal sale and I paid asking price the same day the house was released back in April. Fortunately it was tennanted and I did not have to do a thing to the property.
I read your back logs and they were very interesting and I gather major business' are drawn to the area due to low land costs. Do you think LeHigh Acres will actually pick up due to the stadium being built. This is one area I certainly have been avoiding. I gather getting a tennant in this area would be extemely difficult.Thanks for the tip on Tax Liens. I did buy a few in Arizona back in January and a couple have redeemed. I dont want to spend too much on liens as I will need the cash to buy properties!!!
S Shillabeer
Hi,
I think it is great that you have actively made the decision to invest in the US, or anywhere, for that matter. It probably does'nt matter where you go in the US because there will be genuine bargains everywhere. There will be fabulous areas and then there will be the areas to avoid. You need to go where you have a genuine interest and can set up a TEAM on the ground in the US. The most important thing, in my opinion, is to have a great team you can trust. This includes a property manager, realtor, bank manager, accountant. Without these people, invsting will be difficult and problems can occur.
A good realtor can give you insight, drive you around, show you first hand a variety of properties and set you up on the internet with your personlised real estate alerts to suit your criteria. You must have a good property manger who can organise your rehabs, tennant your property, collect your rent (cash or checks) and deposit into your bank. (Usually in person). Then you have to have a bank manager who answers all of your emails and can set you up in the US. Banks are run completely differently in the US compared to Australia (and you have to learn the lingo). This is just the beginning and I am still sorting things out in the US as far as banks go.
I hope this helps a little!!!
S ShillabeerI can say I definitely agree and support everything you have stated. I have bought 2 properties this year, one in Fort Myers Shores and Cape Coral, 33990, and I am actively looking for more. I have missed out on at least 20 properties all of which have sold on the same day as released in The Cape and Fort Myers. One property actually sold within 2 minutes on the market. I dont look for the ultra cheap bargains but decent properties under 80K.
However, I am waiting for the 20% vacant bank owned forclosures to be released which are just still sitting there. Seems they are being released in dribbles. Any insight in this area???
There is a greater demand than supply at the moment which is clearly evident and I wonder, if the Americans are now getting their credit rating with banks back again, as it takes at least 2 years before you can borrow again from US banks!
I am waiting and while I am waiting and watching, I am buying the Florida Tax Liens!!!Hi Cheryl
It is fab that you are going to Florida but try and get some things set up before you go, at least some contacts and a plan. I did it on my own in January but I did have everything set up first and found my realtor over there. I did a meet and greet with my team, spoke with my bank manger and sorted that out and looked at lots of houses and of course checked out areas to buy in. There are some things you must be aware of before you buy in Florida or anywhere in US that are not an issue in Australia. Email me on mikeshillabeer@hotmail and I can help you out in some areas if you like.
SueHi Melissa,
I congratulate you on making the venture on your own to Florida. I did it also on my own with my 5 year old daughter in tow earlier this year January. I went to Fort Myers and Cape Coral and I have bought a house in Fort Myers Shores and looking for more. I can tell you the great areas to look in and where to avoid. I also have a fantastic realtor in Cape Coral I can give you his details. He drove me around and showed me homes and gor me into them to have a look. I also had a hire car for a week which is a must to get around for yourself. I have a team in Cape Coral which are fantastic.
If you would like to contact me my email is [email protected]
Now that I know the areas and have a realtor who looks at the houses I want to offer on I can buy from Australia.Sue from Adelaide
