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I found someone that will offer finance to foreigners in South and SW florida at local rates.
Details:
$60k min loan
3% fees of loan value to broker all inclusive
$900 fee to actual lender.just message me if you want me to link you
8-10% of home value or loan value? and 5% origination..
so property value = $100k, 30% down
loan = 70k
so ur saying possibly 10% + 10% +5% = $17,500 in fees? is that paid upfront or tacked on the loan?
Treasure Hunter wrote:Hi Paul, Have you considered avoiding these companies and doing it yourself, so you really know where your hard-earned cash is going? As Steve McKnight told many of us at a recent seminar – "don't be a lazy investor". (referring to using the services of turn-key companies). There may be (much) more work, but if you do your DD properly, much higher returns. Think about this :- how hard did you have to work to earn your money in the first place? So, why would you throw a large portion of it away with large and duplicated fees, and middlemen who make big profits from rehabbing and flipping properties that they buy dirt cheap and sell to unsuspecting Aussies who place blind faith in them? There are obviously many pitfalls either way to be very wary of, but keep reading through this forum and I think you will see a strong case for being an "active" investor. There's a lot of great information here, but be careful :- Many are openly wanting to sell you something, and that's fine – you can see them for what they are and decide if you want to engage them. They may offer something useful to you. Some keep promoting certain areas because that's where they have established their business. But then there are those who are more surreptitious and present themselves as objective investors generously sharing their experience, but actually are "plants" who relentlessly plug certain companies. It won't take you long to spot those ones. Just my view though! THthis post is spot on the money, go have a look at the "my USA thread", an air of dodgyness at best
CheevesFinancial wrote:Saw this video a long time ago. It does certainly portray Lehigh in a negative light. However this video was shot in 2007 I believe which is when the crash was at its worse. Builders walked away from jobs, defaults were at high levels and crime was up. Crime was predominantly theft. Empty homes = vulnerabiilty. Those that didn't have jobs would steal appliances, copper, etc and scrap them in. My own mentality at the time wasn't positive for the real estate market.Since this video was shot, I would challenge the maker of this video to answer the question as to where Lehigh is today, 3-4 years later. REO's are dwindling. Rental demand is at the highest levels in years and investors / owners of these homes are cleaning them up. Sure, Lehigh isn't Sanibel Island. Never was intended to be but it offers lower cost of living which is what a lot of former homeowners are looking for. Crime is way down, population is up.
So to be as short as possible, I agree with this video…..4 years ago… Today, far different. A simple drive thru of the area will show. They are not construction massive infrastructure in Lehigh today for nothing. This video is outdated big time
but it was posted on youtube only a few months ago…
My question is, what is exactly supporting the area in terms of jobs and economy?http://www.youtube.com/watch?v=Pgbj7znznHw
whats your thoughts on this video Cheeves?
how strong is rental demand is the major question?
well I assume their will be some sort of clause to stop a quit claim deed, I guess the question is at what number of properties is it smarter tax wise to place them all in an LLC, im guessing around 3 or 4
isnt there an issue where it has some clause in the loan whereby the sale or transfer of thte property requires the loan amount to be repaid?
say you can find financing for a property but they will only finance in your personal name.. can you transfer the property into an LLC after this? or does it cos a big tax headache as the loan then isnt a business deductible expense? (its still in the personal name)
Treasure Hunter wrote:Hi Speedy, Thanks for sharing your clear thinking on your approach. I gather from some of your other posts that you concluded that Texas works for you. I understand their local economy is (relatively) strong and unemployment is lower. But it also appears that Texas never had the property value plummet that Florida, Arizona etc had. So based on this, one must assume that their residential properties do not have a forecast of strong capital growth, as there is no low point to bounce back from…. So no disrespect intended, but I am just being the Devil's Advocate here and testing you on this point :- Weighing up the vacancy and unemployment rates potentially affecting IP cash-flow for Florida but adding the likely prospect of strong long-term capital growth, surely that is a stronger case than Texas's possibly more predictable cash-flow but lower ROI's and very limited growth? (apologies if I have been incorrect with assuming your Texas position. I have not been through ALL of your posts). Cheers, THthe reasons why texas doesnt have the boom busts compared to say Vegas and Florida is due to regulation and local legislation. When prices rise due to increased demand (population increase etc) instead of seeing large increases in price appreciation, developers see opportunity and build to bring the market back into equilibrium. Zoning and other related issues which cause issues for developers arent as apparent in Texas, regulation and a lack of free markets on the supply side generally cause markets of mass speculation.. so yes Texas will experience capital growth generally but it shouldnt experience a bubble unless it drastically changes its policy on housing..
melbourne girl wrote:So I would take it from this comment that you supply finance to the US also? What are your charges?not at all, if you scour through all my posts you will see that im not spruiking or selling anything.
On the other hand if one was to look through all your postings on this site, 100% of them is advertising either My USA or Loans USA, both located in Melbourne.
All I ask is a simple question regarding the maths, I hope you can prove me otherwise as I am interested in getting financing for reasonable value. But the maths doesnt add up from what you recommend.
melbourne girl wrote:What a statement. I can only speak for myself and my partner. We are happy. We like the service we recieve. We are used to paying for service. We are investing for the future, not a quick return. With every loan we have been given a spreadsheet that is very comprehensive as to the costs including maintenance, repayments, taxes, insurance and their fees. Sounds like you can purchase in cash – you are very lucky. Instead of down talking the services of these companies howabout calling them and asking your questions.All I can say is we are happy. We have no need to down talk their services, have you actually tried to get the finance yourself? I spent a whole morning on the phone trying to find out about the HSBC comment listed on here and that was enough for me. I would pay that fee any day for all the mucking around to be done by someone else.
im sure the 'service' is fine im simply stating the fees they are charging are too large to make deals profitable. Only on deals worth $100k plus would it even remotely make sense. But the properties being advertised arent in that range.
So on that spreadsheet may I dare ask how on earth you are getting a positive return after deducting loan repayments and all the associated property costs. My argument is simply a case of mathematics.
Also to charge someone $4400 when they wanna do it themself when all they are essentially doing is sending a few emails to their US lenders is quite alarming to me.
melbourne girl wrote:We got 7.75% fixed for 5 years. Purchase price $42,000.Our fees were $2200 for finance. Worth every last cent. They answered so many questions and spent so much time going through everything with us. I think the non My USA Fee is $4400. They said thats because they know the quality of the My USA homes and that when you dont buy them they have a hell of a lot more work to do. Also they dont get any commission at all from the banks.
and that there lies the problem… the bulk of good cash flow properties are in the 40-70k range.
Say you bought through MYUSA for a property worth $60k with 7.75% on 80%LVR ($48k loan) for 5 years.
LLC/bank account formation $1000
MY USA membership $300
My USA Fee $3,750
Loans USA membership $99
Loans USA Fee $2200
Actual lenders fee at say $1000so now your 60k property is $68,350 (not including closing costs) ie 14% in initial costs
now say you were expecting a 18% gross return (on 60k), in reality slightly under 16%
so you have $900 a month in gross rent ($10,800 pa)
your repayments on the loan if P+I are around $970 a month, so your great cash flow investment is already negative without considering vacancy, prop management fees, property tax etc.
Those loan terms and ridiculous fees make it a terrible investment.
am i missing something here?
how can someone charge between $2200-$4400 for loans that are realistically sub $50k, compare that to Australia…
EdmundSt wrote:melbourne girl wrote:Also, Melinda at Loans USA has mentioned to us a number of times now that she has to build a great picture of us here in Australia because they have arrangements with banks that they dont have to have a US credit rating. We have given financials, bank statements and even had a credit file done on us.I would call her, she is really happy to chat about what is required. Stephen her boss is really knowlegable. Its hard to get through to him as he seems to be in high demand. their office will find out what you need to know.
I just got off the phone with Melinda – very upfront and informative. I am in the process of setting up finance to purchase within 2 months. I am not going through myUSAproperty.
what sort of fees do LoansUSA charge if you do it by yourself and not through myusa?
out of interest, those buying in KC, what side of the border are you looking at?
Nigel Kibel wrote:That's right we find properties before they are forclosed. We take them over and part of the deal is that they have to leave the note or mortgage in the property. So in most cases you are taking over a property worth between $120,000 and $140,000 that will cost you between $20,000 and $30,000 with an existing mortgage of say $80,000. In all cases the properties are positive cash flow and in all cases have equity. To me this is a much better deal than buying cheap second rate properties in slum areas for $30,000. In our market property prices have held up. In many of the other markets being promoted we have seen falls of around 45-50% since 2006. In Texas prices have not only held up well but will more likely rise faster than most of the other US location.could you explain this to me cos it doesnt make sense to me…
if the property is 'worth' between 120-140k and is going to be foreclosed why would you pay effectively a heavy premium for it, or was it originally bought at around $180k? And if property prices have held up why is their so many foreclosures?
Troy McErvale wrote:Achieving a mortgage for a non resident is almost impossible, but still able to be achieved, depending on a number of factors.The biggest problem is that the almost sole source of liquidity for US lenders is Fannie Mae, and Fannie Mae (nor Ginnie Mae or Freddie Mac for that matter) extend credit to individuals who are not a citizen nor resident of the US.
There are some international banks that offer international mortgages to offshore investors, as well as some local state-based lenders that may consider credit to offshore investors – espcially in Florida or Texas for example. So the answer to your question is that the lender selection will depend on where the property is located, as well as the purchase price.
If you want to research this yourself, you can; but I promise your efforts will exhaust you. You are best to use a broker that specialises in this area.
link me to said broker or firm that does international finance…
kong71286 wrote:I strongly believe that Silver is biggest investment of this decade. Not only has it been a monetary metal for thousands of years, but it is also an industrial metal used in all sorts of applications (http://www.silverinstitute.org/silver_uses.php). I am so confident about Silver that I have invested all of my funds into Silver Bullion and Silver Equities, and with my portfolio increasing by 30% in the past month I am glad about my decision, and am excited to be able to participate in this great bull marketdefinitely a post for the mistake thread, silver is a bubble, dont store too much of the physical, when it crashes and it will, every parabola does, physical gold and silver holders will stubbornly hold or will be selling well below spot. Also no matter the result its a bad investment with that allocation of funds imo.
As a trade however its awesome..
RickH wrote:Hi MelbGirl,We are going through Melinda at Loans USA. They said they are using us as a test case with a new financier and that it would take longer to get through but LVR upto 70%. She has been no problem to deal with and was 100% correct it has sorry is taking a looooooooonng time to settle. It has been approved by all within the bank. They are now at the stage of valuing the properties
and we should hear sometime in the future.
This has been the only disappointment with the whole process. The settlements were originally booked for 20th October !just out of interest, to get loans through Loans USA do you have to purchase property through MyUSA property?
