Forum Replies Created
WI
happy to say after 7 1/2 yrs in the USA market the pain is finally over as just this month we have closed on our last property.
we quit because;
when you are 1/2 way around the world it is hard to find people with integrity,
it is hard enough managing IP's let alone be a FOREX dealer too, and
there are easier ways to make money in my own backyard.My advice for those investing or looking to invest in the USA is to ensure you have a strategy to preserve your capital as unlike IP's in Australia over there you can face a total loss.
Good luck
Tony
People who charge more are not imune to mistakes (take your pick; Arthur Anderson, Moodys, S & P spring to mind and the consequences far far greater….)
if you really want to know what others charge then suggest it could be slightly better (only just) to get a larger sample
http://robknights.com.au/cgi-bin/user.pl?download_file=1&file=220
Tony
firstly , what is fair?
secondly, what is typical?
for your penultimate sentence – <moderator: delete language> wot do you reckon? you can't make this stuff up LoL
!seriously, ITR's are a commoditised product. meaning accountants in this type of target market place are history recorders, nothing more. Jorrod has done the ethical thing and priced it up front. if he is efficient then he wins, if he is inefficient then you win, but either way you know what you are going to pay. no surprises, end of story
hope this helps
Tony
ongoing management is a challenge.
it is difficult to find integrity.
6 years on now and nothing would surprise me anymore…..
TY
try
http://www.cashflowwithequity.com/ orhttp://www.wny4rent.com dealt with Todd
personally turned a few around with these both theguys a couple of years back. chalk that loss making exercise up to experience….
TY
I agree with you sapphire101 the admin here has failed in a big way.
The punters will just have to chalk it up to experience.
tony
Hi Marty
this is the same for all professional service providers as the first thing the client asks is how much is this going to cost!!! and what you really are asking (wether you know it or not ) is why should i do business with you…
The fact you think it is steep is because the architect has failed to explain the value to you.
You havent said it you are going to keep or sell the end product. assuming you are going to sell then you need to look at the end buyer and make a call if an architect designed product is going to get you a wow factor on your sale price to cover the extra cost involved (both in the soft and hard costs)
Either way the architect fees will be a % of the construction cost. They will break it out into stages. The best hint i can give you today is to ask for a fixed price as architects are not QS's and the actual construction cost is often higher than what their original estimate and if you are on a floating % then guess what – their fee is adjusted to the actual contract price. PS it never goes down…..
As for local vs out of town, if you have a nice easy fit with the DCP then run with a local. if it is a tough site that you are going to have problems with the local council officer getting it through then it could pay to get an out of town architect and town planner as a local has to deal with the council officer on other jobs and they are not going to stick their neck out for you where as an out of towner might go that bit harder for you. Once you have it through can always switch to a local to administer the job for you.
good luck
Tony
PS I'm not an architect, just an accountant…
Hi Melissa
Give the accountants a call. Let the reception know you are looking for a new accountant and you were referred to them by so and so. This ought to get you past the gate keeper (accountants and other professional service providers get a lot of timewaster calls during the day.) If not then leave a message (as they could be on the phone or in a meeting with a client) and they should call you back. if they don't call you back within 24 hrs don't bother. Once you speak to them let them know about your needs.
What you are really doing is asking "am I your target client". The accountant ought be upfront and let you know if you are, how they can help and a ball park idea of their costs. If they don't then just ask. I've found over time the first thing potential new clients blurt out is "How much do you charge!!" and really they are just asking why should I do business with you.
I've never been asked how many IP's I own but I think if I was then I would get one of my accountants in (who does my accounts and tax returns) and have have him answer the question as the last thing I would want to do is come across as a bragger. I guess I could put a speaker phone call into my solicitor and have him say how many property transactions I have done in the last 11 years I've been with him. You have to remember most accountants sell time, and the better ones are not going to give away their intellectual property relating to how they have made money in property/or anything for that matter for $220 + per hour.
So, maybe another way to answer Darren's questions is , the doctor doesnt have to have cancer himself/herself to be able to treat it….
It is hard to develope a sense of trust over the phone in 5 minutes, but if you get the right answers to your questions then take a punt and book an hour to see if they are someone you can work with.
good luck
tony
Singer wrote:tonyy21692 wrote:If you are inexperienced you will be financially bled as quickly as possible.You hit the nail on the head. From someone who lived there for many years, I hope your post is widely read.
Somehow I don't think it has been Singer but hey, what can you do?
I guess I can spell it out;
Don't bother taking a baseball bat, as in some of the hoods you will need a gun and that is in broad daylight – dont even think about going at night as you will be dead. Before I hear the groans of ,"it can't be that bad" you need to remember these are suburbs full of $10,000 "homes" and there is nothing here in Australia to compare to the urban decay of these places.
As for thinking PM's or anyone else in the US for that matter, would be frightened by the threat of being sued is simply naive.
You need a miracle to make money out of these "cashcows". For me that came in the form of the AUD hitting 63c to the USD late 2008 and I was finally able to end the pain.
Tony
Hi Michael
Being on the ground for 2 years is a big commitment and will put you miles in front. You ought to be able to build a network of people who you can trust in that time then manage them remotely. Listen to the locals and take care in some neighbourhoods.
good luck.
tony
Read this tread with a great deal of interest. And while reading it I have had a sense of seeing this all unfolding exactly the same 5 to 6 years ago on this and another property forum.
Some of the old long time posters, who have been and done it in the US (they know who they are) have made some highly valuable comments in this thread but their message seems to have been missed in all the excitement.
So let me share some of my property investing insights into the USA with you.
An long time client of mine who was the CEO of a USA ship building company said to me, when you have business dealings in the US it is treated as a game. You are a player in that game and people will size you up quickly. If you are inexperienced you will be financially bled as quickly as possible.
This sounds dramatic but from my 6 years property investing in the US it is pretty on the mark. It applies to almost everyone you will come in contact with, from your buyer agent , property manager, attorney, the tenants, the welfare agencies, your mortgage broker (Richard excluded of course) , the guy who mows the grass / clears the snow from the sidewalk, your property neighbour, the power/gas company, your plumber, your electrician, your insurance broker, the local city inspector who fines you for having cracks in your driveway and right through to the city court judge who can turn a $75 fine into $7500 because the city / county is technically bankrupt and there is no downside what so ever to gouge a non resident foreign national……..
I guess the message is no matter how much Australian property investing experience you may have or thought you may have, it is a difference set of rules and culture when dealing in the US. So take care, pound the pavement yourself and dip your toe in carefully otherwise be prepared to have a 100% capital loss on your investment.Tony
Pretty much it but there is a a few wrinkles to the cals that effectively reduce the amount – gets even more complex if you end up selling with in the 5 yr rule.
Your accountant ought to have raised this, unless you are self preparing you own BAS's……..good luck
tony
Rules for some and rules for others…
Tony
BTW I made the comment I joined over 5 and a half years ago purely as I really don't remember the rule that McKnight referred and please don't infer anything other than that.
Trouble with that quote is the usd has since strengthened against almost all currencies as part of the flight to safety – hence making it (in our case with the AUD ) now 50% more expensive to get into the US market than it was only 6 months ago. The fall in US housing is due to the bubble – meaning the place that sold for $660,000 was never worth that inthe first place. Or as the late Rene Rivkin used to say "a half price $98 dollar lettuce is still an expensive lettuce.."
Tony.
I joined 5 1/2 years ago and don't remember the rules but hey I'll take it on what you say.
I guess some get away with it in a thinly guised veil and others don't – but the message is the same.Tony
This old chestnut of which is better never seems to go away in Australia – the society and the institute have voted on merging a number of times (CPA's have the large #'s of members and therefore the huge cashflow from subs whereas the CA's have no money but the perception of prestige). I think the last time it was the young ones in the intitute who voted it down. Don't know why and don't care.
Having said that, I have worked for both CPA and CA firms and can recommend it to you. Yes the larger firms will hammer you (it seems the larger the firm the harder they work you and when you work it out for less pay) but you do get to see a wider range of business's than you would in a smaller firm. Just depends on what you are keen on. If you have your degree, registration is 1 years guidance under a registered tax agent, then you can hang your shingle out. BTW when I started you only had to get a credit in Tax A & B and send off your $2 to the ATO to get registered.good luck
tony
Try the city (council) web sites. you can download the foreclosure auctions list for non payment of city taxes ect.
Also, try fannymae site which list all the bank held properties.
Buying is the easy part. Getting them fixed up with out being ripped, a decent PM and even getting insurance whilst looking for a tenant is not without its challenges. good luckbespoke
the ATo do have a ruling on acceptable markups on billing trusts and service entities. as long as it isn't inflated or artifical (ie a scheme) then ought to be OK (if you are looking for concrete answers get a privae binding ruling). yes it is a mirror image, a deduction for one means income for the other and has to be in the same financial year when related parties – don't forget you will need an ABN otherwise trust will have to withhold 48.5% tax
hope this helps
tony[Edited because advertising is not permitted in the forum thanks.]
dsuovann,
Anyone can buy in the USA (as long as your last name isn't Bin Laden)……
Tony
[Adversiting is a no no.]
!
