My company has been supplying properties from the Phoenix market to Australian agents for the last 18 months, nearly 150 in all. We have worked with most of the agents mentioned in this thread.

We stopped doing business with one agent who did not tell us he had changed his fee from a flat charge to a substantial percentage of the total purchase price. We valued the relationship and relatively sophisticated investors he brought, but did not like the way the numbers were being cooked to support the exorbitant fees. At that point we began working directly with Australian investors referred to us by clients who had done business with us in the past 18 months.

There is a place in the market for Australian agents for investors who don’t have a relationship with a US property supplier who has experience with international clients. The value of avoiding buying the wrong property in the wrong area is equal to the price of most agents. But why pay an extra $8,000 if you don’t have to? That is good sum of money even if it is USD.

And in regards to the earlier post that Phoenix is not a cash flow market- when the income and expenses of a property are fully disclosed Phoenix performs as well as any market with the added benefit of excellent opportunity for equity growth.

Good news!
Our first test case in establishing a bank account for one of our Australian clients was successful. He did not have to travel to the US. I’d be happy to help, it is a fairly simple process. We do not charge, or receive a referral fee, to assist in setting up the account.

The Phoenix market has been heating up throughout the summer, yes pun is intended. The investor market is very active with wholesale prices up about $15K since the first of the year. Retail prices remain flat as yet, but it does look as if we have hit the bottom of the market. Available inventory is the lowest in years and sales each month are at all time highs. Banks do still have a high number of homes in the foreclosure pipeline but they seem to have realized flooding the market is not a good thing.

So many people have ruined credit due to foreclosure they are unable to obtain a new mortgage so are renting single family homes. Vacancy rates in phoenix are sitting at 5%. Having said all this I agree that reaching a true ROI is important. When all true costs and vacancy average is factored in, 8% to 12% is a valid range for a good investment. It is important to ask for an itemized account of all costs, including rehab and agent fees.

Phoenix is a great market as the prices are at the bottom and the economy is trending up (retail sales up 7.5% this month). Capital growth should be good over the next few years.

Another positive for markets like Arizona, Las Vegas and Florida are the high number of newer homes. The number of homes constructed this decade significantly contributed to the crash, but they are available now in large numbers. These homes require less maintenance and typically lower rehab costs . Again it is important to have a good agent on the ground to make sure that the home has not suffered significant damage from the previous owner as they were evicted, or from vandals if the house has been vacant for some time.

You may want to consider a Warranty Deed as opposed to a Quitclaim. The Warranty Deed should prevent having to purchase new title insurance.