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  • Profile photo of streamlineinvestingstreamlineinvesting
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    March 1, 2011 - 2:21 am

    I normally like to just make spreadsheets where you can quickly and easily fiddle around with the variables or estimations such as interest, growth rate, net rental yield. So that way the research you do can lead you to do a most probable case scenario with your expected return, and even a best case and worst case scenario quickly and easily.

    All you have to do is make sure the variables you input are accurate and realistic, otherwise you may be trying to achieve something that is near impossible, or on the other side you may pass up an oppurtunity because you were too negative in your estimates.

    Feel free to email if you wanted an example spreadsheet, nothing too complicated to start off with, but just something which can help you see what your potential is.

    Profile photo of streamlineinvestingstreamlineinvesting
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    February 28, 2011 - 8:50 pm

    Asset protection appears to be a good benefit, which is one reason we chose to go with an LLC. But the main reason we went this way is because there is more than one person involved in our investing, doing it under one of our names would not have worked too well. And this way it keeps things from getting messy later on as it is all under just one name, with a 50/50 split of the profit/loss. You are correct though and I believe if you get adequate insurances and umbrella policies then it is not really essential that you obtain the LLC, if it is going to be a single member LLC that is.

    Plus I just like the sounds of owning a company in Florida, makes me feel good.

    Profile photo of streamlineinvestingstreamlineinvesting
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    February 25, 2011 - 12:45 am

    I have a quick question if anyone has any experience. Say we have started an LLC in Florida, and now that we are looking to open a bank account, would it be an issue if the branch of the bank was in California (have a contact there who may be able to help us). The bank in question also has branches in Florida, just not sure if the different state would cause an issue and if they want it to be with a particular branch, or at least a branch in the same state.

    Profile photo of streamlineinvestingstreamlineinvesting
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    February 24, 2011 - 10:04 pm
    Jeff2InvestUSA wrote:
    From what I understand is that you will get an EIN when you set up the LLC, the ITIN* 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

    USA Citizens receive a SSN, non US Citizens cannot receive a SSN and to file tax returns you have to obtain an ITIN. From W7 from the IRS is the form you need to fill out. I have heard an ITIN is not required to obtain an EIN, but looking through the form to get the EIN it looks like it may be required, this is why I am looking for someone who has done it before who can guide me through it.

    Profile photo of streamlineinvestingstreamlineinvesting
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    February 23, 2011 - 4:12 am

    In 2011 I am hoping to really start my proper investing career by purchasing my 1st IP in the USA. Hoping to do that by mid year. And at the same time hoping to pay down as much of the debt on my PPOR as I can at the time.

    Also I really want to win the grand final in soccer this year after last years disappointing finish.

    Profile photo of streamlineinvestingstreamlineinvesting
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    February 17, 2011 - 1:21 am

    I have something similar with my brother. We bought a house together just over a year ago now. Individually it would have been difficult for us to purchase, but together it should be fairly comfortable. In an effort to save on interest and whatnot, we are pretty much just both putting in as much as we can to pay it down as quickly as possible. As I do earn extra, I will be contributing a significant amount more. However he did have a larger deposit.

    At the end of the day, every payment has been tracked, as well as the other household payments such as bills and groceries. So when the loan is paid off, it is the intent that whatever the difference is, he will owe me. Being family, he will owe me just about interest free. And then we will both own half of the house, although there is potential that a different scenario might occur, he might buy out my half or vice versa.

    Anyway, I think the important thing is to just track every payment you make, just using a fairly simple spreadsheet to show how much you have contributed. Ensure both people see if regularly to mitigate any chance of disagreements at the end.

    Profile photo of streamlineinvestingstreamlineinvesting
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    February 16, 2011 - 4:12 am
    luke86 wrote:
    streamlineinvesting wrote:
    My interest rate is about 6.88% with BankWest, however that is just a basic P+I Home Mortgage. I believe it is on some discounted rate for a few months yet where it will probably shoot up eventually.

    Will try to refinance in a couple years and see what the best rate going around is at that time.

    James

    You will probably be up for some hefty break fees if you are on a honeymoon package. The banks usually load up the break fees on honeymoon packages to stop you from taking advantage of the discounted rate in the first few years and then switching lenders as soon as the discounted period finishes.

    Luke.

    You are correct, but when it comes time to possibly refinance, I will just look at all the options available. Same as I did at the start with some spreadsheets and including all the fees and rates and see which one comes out the best.

    Profile photo of streamlineinvestingstreamlineinvesting
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    February 16, 2011 - 4:01 am

    My interest rate is about 6.88% with BankWest, however that is just a basic P+I Home Mortgage. I believe it is on some discounted rate for a few months yet where it will probably shoot up eventually.

    Will try to refinance in a couple years and see what the best rate going around is at that time.

    James

    Profile photo of streamlineinvestingstreamlineinvesting
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    February 14, 2011 - 4:39 am

    I see this thread is a bit old, but it is still relevant to many I assume.

    We have recently sent off our information to set up our Florida based LLC. Have sent off the application for our Australian based Citibank Transaction Account. At the moment am enquiring about getting a US based Citibank Account. With the free currency exchange transfers we are hoping to limit our expenses for our investment.

    The US account will be in the LLCs name so I guess the Property Manager can deposit the rent into this account. And we can transfer it back to Australia if we need to. However not sure if we would need to, depends with the AUD/USD conversion rate is doing, as well as the interest rates in Australia. We can link the Australian based account to a savings account with decent interest as well, with the US bank accounts getting next to no interest comparitively.

    It would be nice if we could set up the US bank account over the internet, but I doubt this will be the case, and in which case we may have to get an attorney to set it up for us, either that or use the registered agent company we used to get the account for us. Either way, few things to do yet but getting close to having everything set up and ready to purchase.

    Profile photo of streamlineinvestingstreamlineinvesting
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    February 8, 2011 - 11:47 pm

    Hi Cheeves,

    We recently started an Florida LLC and are looking for oppurtunities for decent cash flow. I have a contact of a property manager and realtor in Tampa who is used by a friend of mine and has been given good references, so I am hoping we could use her, but I guess it depends if she deals with similar properties to what we are after.

    I agree that at the moment cash flow is what you should be looking out for, and as for capital gains in property value, well that may happen or not, if it does, then that is a bonus, and if it does not, well then at least you have the cash flow to make up for it.

    We are looking at buying the first place in cash to avoid issues with obtaining finance, also we do not want to dive right into the deep end so we are hoping to start relatively small to just get to know how it all works over there and get a greater understanding for the future investments. Basically at the moment I guess we are looking around the $40k price range, we would prefer a condo type of arrangement, despite the HOA fees, we believe it may be easier to maintain and control while on the other side of the world.

    Are you able to offer any advice or assistance as we start our overseas investing? Feel free to send an email or private message.

    Thanks

    James

    Profile photo of streamlineinvestingstreamlineinvesting
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    February 1, 2011 - 5:04 am
    Zeus111 wrote:
    I too am in the final stages of taking the plunge and choosing to invest in the U.S and specifically Miami.

    By background, i work in property development, so i have a good grasp of property fundamentals and the thing that makes investing in the U.S so much easier is the amount of research on residential property trends and analysis in the U.S. It makes the Australian residential market look very immature by comparison.

    The key fundamental in real estate is scarcity…….scarcity creates value and it also shields an asset to some extent in a downturn. That principle can be applied in any market at any time and it will hold true. Which is why i like Miami beach and downtown Miami. Water frontage is a scarce commodity and once it's developed that's it All things considered, Miami beach has probably fared the best of the Miami precincts and i think will hold the best prospects for future capital growth again, particularly south beach. There is a finite number of development sites left on Miami beach thanks to the building boom of the early to mid 2000's and this will create scarcity once the unsold stock of condo is soaked up by the market over the next two to three years. Given the amount of unsold stock, i think Miami is at least a seven year play at a minimum.

    I have been to Miami twice and area's that i think have good potential are south beach, downtown, South Miami (Cutler Bay, Palmetto Bay, Keys gate), Aventura, and the Design District.

    The other thing i like about Miami is that it will always attract foreign investment, both in the form of investors and wannabe residents. And indeed i think it's the foreign investment currently flooding into Miami which is putting somewhat of a floor on prices, particularly in the Miami beach area.

    The thing about cities like Kansas, Cleveland, Detroit etc that makes me nervous is the illiquidity in those markets if things go pear shaped for any reason……..Miami there will always be buyers at a price, particularly in sought after area's of Miami due to the attractiveness of the city to Foreign investment.

    Thanks to everyone for their advice so far…….i will share my research as well.

    Zeus,

    I am in a similar position, also looking at Florida as well, I believe there is a great oppurtunity in alot of places accross the USA and the main reason I chose to go for Florida is simply because even if it did not create as much profit as I had hoped, at least I would have a property near the beach in Florida, rather than say in the middle of Kansas City or somewhere a lot less desireable in my opinion.

    Could you please email me with your research that you said you could share? It would be greatly appreciated. Thanks

    Profile photo of streamlineinvestingstreamlineinvesting
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    January 11, 2011 - 10:06 pm

    I was in a similar position to you about a year ago now, just finished uni and was looking at purchasing my first property. Which I did in Seven Hills, obviously it is not Vaucluse or anything, but it is a fairly nice area, I grew up just down the road in Carlingford so I know the area well. Have been there for over a year now and have had no problems. It is close to the train station and shops and schools (not that schools concern me at the moment).

    However I have no plans on renting this place out, and see it as more as a home compared to an investment property. Currently am on track to paying it off within 7 years or so and am looking forward to that, however I am currently looking at investment properties to try and get me some passive income as well as hopefully setting myself up for early retirement, or at least only choosing to work, not being forced to.

    The best advice I can give you is to just make sure you are comfortable with what you purchase and do not buy above your means. When I went to borrow I think the limit was around 550k or in that ballpark. Ended up borrowing around 280k so there is a lot less stress when it comes to mortgage repayments.

    Also when you do budget, plan for some pretty severe increases in interest rates, they may not occur of course, but the last thing you want is to be on the brink with current interest rates and then see them rise even slightly and all of a sudden you are left with baked beans for dinner every night.

    Profile photo of streamlineinvestingstreamlineinvesting
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    January 11, 2011 - 12:27 am

    Hi Eric,

    A couple friends and I are looking at investing in the USA, we are in the process of setting up an LLC and organising bank accounts. Could we please talk privately about maybe some finer details?

    I am very interested to hear about your stories and how you started your portfolio over there. Please PM when you get a chance.

    Thanks

    James

    Profile photo of streamlineinvestingstreamlineinvesting
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    December 25, 2010 - 10:01 am
    Zita wrote:

    Good Afternoon All and British Buyer in particular.

    My partner and I have been compelled by your posts and everyone else's on that note, since we discovered this forum a few weeks ago.

    There was a turning point about a month ago when we both started to gravitate over the idea of investing in Miami (as this has always been a fantasty for us both) rather than going all out in the Australian Property. Our goals were so high and so are Aussie prices, Miami just suddenly looked so attractive and achievable? We were pleased to see that Britsh Buyer with all his experience and knowledge had also hand picked Miami as choice for investment, which confirmed to us we were on the right  track.

    I popped down to the local Travel Agency today and deposited return flights to Miami for March next year (although after reading recent posts, I'm anticipating that we won't miss the boat?) We have alot of research and actions to take between now and then, however, I believe it is an exciting venture and if done right, can set us up for a rewarding future.

    Topics and information that really concern us now after learning the basics, is such details financially (looking into opening a bank account in Miami if necessary, a solictor/agent) making appropiate contatcs prior to heading over, having a select few properties on the market that we will attempt to go for, knowing the do's and don't of property buying in Miami, knowing whats is good for value and what is not. So as mentioned, alot to do, but you guys have inspired and helped already!

    So on that note, happy to join the forum and share eveything and anything I learn between now and then as you have and are doing.

    Good luck to all! :)

    Hi Zita,

    My mate and I are in a similar situation and are panning on visiting the US in May next year. Would love share experiences and findings. Let me know if you’re keen. We have created a joint email hence the fancy name…[email protected]

    Look forward to hearing from you soon.

    Cheers,
    Lenny (streamlineinvesting)

    Profile photo of streamlineinvestingstreamlineinvesting
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    December 12, 2010 - 11:41 pm

    Hi Cheeves Financial,

    All of your information does sound very interesting, I have always been more interested in hearing about actual examples as oppose to potentials.

    We are looking at investing in the USA, and are trying to get everything set up so that when we go over there around June next year we will be ready to purchase something.

    Could you please email to the address below and perhaps we can discuss things a bit further. 

    Thanks

    Profile photo of streamlineinvestingstreamlineinvesting
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    December 9, 2010 - 9:37 pm

    It seems that the best way to set up an account in the US is to go over there and do it yourself. However one thing I am curious about, how easy is it to link it to an Australian bank account.

    One of my main concerns with investing in the US is the fees with exchanging currencies, I am not concerned about the currency flucuations, but more concerned with fees associated with transferring between currencies. I talked to HSBC and even between two HSBC accounts, there was a fee of 20 AUD to deposit money into the US account, and a similar fee to deposit it into the Aus account (however there was no fee if you have a premier account, but you need to have 200,000 AUD in the account for this)

    I asked similar questions to CitiBank and they seemed to have a fee free transaction between currencies so I will look into this a bit further, still need to set up the LLC though.

    Profile photo of streamlineinvestingstreamlineinvesting
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    December 6, 2010 - 5:31 am

    Hi Melbourne Girl,

    I'm looking at purchasing a property in the US next year and was hoping to get some tips / advice.

    I'd be interested to know whether or not you have set up a LLC and a US bank account in order to purchase properties in the US? Or do you simply transfer money to myusaproperty.com and they do all the paperwork?

    Also, have you employed the services of an accountant and a solicitor to help you sort through all the legal / tax jargon? Could you please provide some information regarding how someone living in Australia would get taxed when purchasing a property in the US?

    Your help would be much appreciated.

    Cheers

    Profile photo of streamlineinvestingstreamlineinvesting
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    December 5, 2010 - 3:47 am

    Hi Everyone,

    We have a question regarding bank accounts and linking them to the LLC.

    We are from Sydney, Australia and 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?

    Thanks in advance,

    Streamline Investing

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