Forum Replies Created
Hey Dazzling
ha ha far out there’s just about nothing you wont get involved in!
Go for it!We’ve got 70 yrs on planet earth,Lets make the most of every day!
Luke Taylor | Hope Property Investing
http://hopepropertyinvesting.com
Email MeProperty Support,Strategist and Buyers Agent
Hey Solomon,
are you asking which of the big US banks loan to forein nationals?
Or are you asking the names of the financial institutions (usually only acsessed by brokers) that loan to us foreign nationals.
I cant give you the name of the lenders the brokers get loans for us forein nationals because I think they keep that info to themselves as it is their business and i would assume the lenders have an agreement with the brokers.
I can tell you that the big banks in the states(as far as im aware) will lend to an aussie if either
1)you have a social security number and a good credit history(this is the best way but very hard to get)
or
2)You have built a credit history within the USA in form of a mortgage (eg through a broker or somewhere) or something of that nature to build confidence with the bank
(note
have been told that if you build a relationship with one of the banks and use a business banking LLc account for yr transactions over a year or so and get a uS credit card and keep it payed up to date the bank should be able to grant loans after that period ,but as most aussies are new to US investing we still need to prove this!)
PM me if u would like to talk to a business banker in the USA to do further research.Personally I think yr best to get an actuall mortgage from a broker and then build confidence with the bank that way,but i am currently doing the credit card thing etc aswell.
We’ve got 70 yrs on planet earth,Lets make the most of every day!
Luke Taylor | Hope Property Investing
http://hopepropertyinvesting.com
Email MeProperty Support,Strategist and Buyers Agent
Hey guys!
Here is another site that may be of some help to you also.
It is the USA IRS.
It goes into specific details about Tax rules for foreigners in the US and provides links to forms for tax returns etchttp://www.irs.gov/taxpros/article/0,,id=98137,00.html
Be warned its pretty intense.We’ve got 70 yrs on planet earth,Lets make the most of every day!
Luke Taylor | Hope Property Investing
http://hopepropertyinvesting.com
Email MeProperty Support,Strategist and Buyers Agent
Personally , My favourite people to deal with in business are those that up front tell me all the negatives to a deal (ie problems with a property or repairs needed).
I usually find that these type of people will more often than not be honest as they are showing the full picture as best they understand it.
I usually share the positives and the negatives in the deal when selling and let the buyer make his /her own decision.I usually find this way , you earn the buyers trust faster than if you try and talk the property up and dont disclose fully the potential problems you are aware of regarding the property.Any other thoughts?
We’ve got 70 yrs on planet earth,Lets make the most of every day!
Luke Taylor | Hope Property Investing
http://hopepropertyinvesting.com
Email MeProperty Support,Strategist and Buyers Agent
Hey westan and joel,
Yes I do like the subject to strategy,as it saves alot of the hassles of getting finance for us foreign aliens! Especially while starting out building the portfolio fast over there.(this is why it is a big benefit for me!)
Sometimes people just want a buyer to take over the mortgage on their house and pay the mortgage up to date to save from forclosure.(and take the house)This means the buyer gets the house for sometimes as little as 2 to 5K(plus the mortgage)(in the case of if there is alot of equity in the property a larger fee to the seller can be common too)
And then when people find these in the right areas they then rent them out to cover the mortgage payments and + cashflow too.
It is a really common strategy over seas but i think it gets people in Australia a bit nervous.This is because the property is deaded to the buyer ,(and all the escrow funds ie -current insurance and taxes)but the mortgage that the previous owner had on the property
stays current and in their name as before.The only difference is the buyer makes the payments and gets all the benefits.
I have also heard of people doing this strategy because sometimes they have very little money down,therfor if they cant make the deal work they just walk away(although i wouldnt recommend this as if you do yr research fully u should know whether it will work or not before u put all the effort in to buying the deal!)
Of course the benefit for the seller is they get to keep their credit rating as the property is saved from forclosure.
The slight limit to this strategy for the seller is they often cant get another loan to buy another house while their first mortgage is still current.
Alot of investors though will refinance the mortgage later and pay off the previous mortgage .(a couple of years later when they can realise some extra equity in the property at the same time and get a larger mortgage and keep buying more property)We’ve got 70 yrs on planet earth,Lets make the most of every day!
Luke Taylor | Hope Property Investing
http://hopepropertyinvesting.com
Email MeProperty Support,Strategist and Buyers Agent
Definately! Have made plenty!
Listening to people who say”oh you better get in fast and buy as you’ll miss out” This is a load of rubbish.
Not taking responsibility for my own purchases,ie expecting other people s word to be truth in the DD area
Not doing my own research using my own gifts and abilities and experience.
Not following up real estate managers.
Dealing with “new to the job” commercial property managers and not stepping up and speaking straight to the boss when i see a problem occuring.
Giving full responsibility of my investments to people I have only known for short periods of time and trusting them based on there word instead of giving it time for them to earn trust,and respect
Getting too emotionally involved in deals and rushing in instead of just being patient and wait for best deals.
Putting all the responsibility of the outcome of an investment on 1 person in the operation
Telling people all my business dealings
Trying to convince someone (who doesnt agree with the positive aspects and huge benefits of property investment) that its great and they should get into it and trying to get acceptance from them.
Not being generous enough
etc etc etc.
But for every mistake u look back and say “far out look at how far ive grown in such a short time due to having the confidence to step out and not be afraid of the what if’s” !We’ve got 70 yrs on planet earth,Lets make the most of every day!
Luke Taylor | Hope Property Investing
http://hopepropertyinvesting.com
Email MeProperty Support,Strategist and Buyers Agent
Hey Kiwi
What is the market value of the property ?
have you had a recent valuation?
Of course yr prop is slightly above due to yr terms but interested to know local valuesWe’ve got 70 yrs on planet earth,Lets make the most of every day!
Luke Taylor | Hope Property Investing
http://hopepropertyinvesting.com
Email MeProperty Support,Strategist and Buyers Agent
Hey guys,
Buffalo definately has plenty of great opportunities available still!
The management can be a hurdle to over come though.You definately need someone who is aggressive and doesnt take any rubbish from the tenantson one hand but is caring and looks after them on the other hand.
The choice of tenant in the first place is important too.
From my limited experience in buffalo I have found the tenants seem to live for the moment.If they feel one day they like it somewhere else they try to move on. This attitude of living for the moment is a big reason why the crimes rates are high in Buffalo too.
The other thing is the maintenance on the propertys.They are mostly 80 plus years old so of course they need up keep.The other reason the maintenance and expenses are higher is the extreme weather conditions.Especially the snow and freezing in winter .So this obviously means the heating bills are high.(mostly tenants pay this but it is a cost none the less that puts pressure on yr tenants)
The positives are the bargain propertys that are still available,so if you can get settled with a good management company I think Buffalo is still a profitable place to include in yr portfolio.We’ve got 70 yrs on planet earth,Lets make the most of every day!
Luke Taylor | Hope Property Investing
http://hopepropertyinvesting.com
Email MeProperty Support,Strategist and Buyers Agent
Hey Solomon,
to answer yr earlier question,
I have purchased a fair few propertys in the states.Some of these were “subject to ” existing mortgage.I really like this option.It makes it so much easier for a foreigner as setting up loans and stuff can be a bit of a headache.
Some of my other propertys i purchased cash up front and then mortgaged out.I had to pay the up front fees which are mega pricey with my lender (he is one of very few who do 80% LVR under 50K loans) on the first one (about 4.5K)but after that go to 2.5K on second property then 1.5K on the third then 1K on fourth and so on.
Most of the lenders charge this sort of price with these loans to us foreign aliens.
(note :you can choose interest only or P&I if u wish)
If u PM me i will give u details of the lender, or talk to richard on this forum he mentioned he is doing similar 70%LVR loans for $995 fees.(although i think u would need to wait 12 months to refinance with him if u paid cash)We’ve got 70 yrs on planet earth,Lets make the most of every day!
Luke Taylor | Hope Property Investing
http://hopepropertyinvesting.com
Email MeProperty Support,Strategist and Buyers Agent
I totally agree!
Life is short!
Ultimately property is just “stuff” and we cant take it with us!
Enjoy yr young years , and be wise at the same time with where u invest yr money and time.
As its not how much u make but what u do with it that seperates a smart worker from a hard worker !We’ve got 70 yrs on planet earth,Lets make the most of every day!
Luke Taylor | Hope Property Investing
http://hopepropertyinvesting.com
Email MeProperty Support,Strategist and Buyers Agent
Thanks for that mate!
Last time i used an airless sprayer on one of my propertys it was a complete disaster!! I got more paint in my lungs than anywhere else . !
It was just a cheapy from K Mart I guess that is why .
Once i realised I had oversprayed over the fence on the neighbors figurines I thought that was a good time to go back to the brush.We’ve got 70 yrs on planet earth,Lets make the most of every day!
Luke Taylor | Hope Property Investing
http://hopepropertyinvesting.com
Email MeProperty Support,Strategist and Buyers Agent
Well done ginnybear!!!
I know there are people out there keen to connect up.It just amatter of finding them.Just be cautious before commiting to a relationship with someone you have only known a short period.(even if its just business)
Have you tried searching through the forum search section? i dont know maybe under “partner required”? or something .I am sure if you keep going through tem youll get a connection somewhere.
Also have a documented plan set out of what you are looking for in a partner , what you can offer and maybe some photos and figures of what you have achieved already(making mention of the effort and determination you had to put in doing it while rareing yr kids on yr own all at the same time too!!)
All the best!
Go for it ,you’ll do it no worries!!We’ve got 70 yrs on planet earth,Lets make the most of every day!
Luke Taylor | Hope Property Investing
http://hopepropertyinvesting.com
Email MeProperty Support,Strategist and Buyers Agent
Hey Wealth for life,
The other question i would ask is, Do u need to rent a building? ie do you have a business that can support the mortgage etc with high cash flow? Because the bank/lender will need to see that u/yr business can support the extra liability of the mortgage on this property(I am assuming it has a mortgage) if u rent it to yrself, but if you rent it out to tenants at market rate at least you will have a contract which will have the mortgage and some extra cashflow accounted for to show yr serviceability for the property and maybe future purchases to the lenders.
Even if you dont have a mortgage on the property the lenders will have to be able to see that you have sufficient income coming in from somewhere to pay this “inflated”rent .We’ve got 70 yrs on planet earth,Lets make the most of every day!
Luke Taylor | Hope Property Investing
http://hopepropertyinvesting.com
Email MeProperty Support,Strategist and Buyers Agent
Hey Eamo!
Sounds like youve already blown away 99% of all other 19 year olds by saving the 10K!!! You ‘ve done extremely well and yr not far off starting yr investing portfolio!!
I would say keep saving untill youve got about 20 to 25K and then go for it!! Keep researching and getting around people who are like minded and have done some succesful investing already.This is really powerful as you can feed off them and grow and learn from others mistakes before you embark on yr own journey.I probably wouldnt give up work just yet also,as you will need to show the lenders that they can trust you with their money.
It is good to be able to feed yr portfolio with extra cash too when u are starting out. ie work in yr job and save up for another deposit or just pay down yr first prop mortgage a bit till the equity has increased and you can re mortgage it to buy more, then keep going.
This is how i did it from the age of 21.
I would say be wise in yr plans if you decide to team up with someone .(think it through-do we have the same goals /reasons for investing,do we both have utmost integrity etc etc)
It can be really helpful starting out but also can cause probs if not on the same path.All the best mate, Definately Go for it !
LukeWe’ve got 70 yrs on planet earth,Lets make the most of every day!
Luke Taylor | Hope Property Investing
http://hopepropertyinvesting.com
Email MeProperty Support,Strategist and Buyers Agent
Hey Solomon,
As far as whether or not to structure yr property in an LLC straight away or after yr loan doesnt matter with certain lenders out there i have found as even if yr property is in an LLc ,they can actually take it out of the llc,(ligitamately) then put it back again after the loan is set up.(on the same day).Also,as far as whether its better to pay cash and refinance ,or get finance when u purchase,is that it does depend on the circumstances.
A benefit can be if you have managed to buy the property underpriced or are adding value some how,you can pay cash then add the value/rehab (if yr strategy) then go to the mortgage company to get re valued at full market price and get the loan and pull all or most of yr cash out of the deal!
The reason this is the best way in this situation is because the US mortgage companys wont refinance the property at the higher value for at least 6 months(some 12) after purchase.And also if you do do it even after the 6-12 month s later time frame you have to pay the 3.5K ish loan set up and closing fees again .(taking some of yr profits)As far as US set up structure I know you could ask 6 different experts in the field and u would get different answers.
I have taken the opinion of having an LLc per 5 to 10 propertys.Tryiing to keep the highest risk ones together. Then i think it is wise to have yr full insurance cover on every property.Also on top have an increased blanket policy that covers yr whole portfolio.
I am still making enquiries as to whether you can just have one (largely increased cover)policy over the whole lot without the individual policys on each property as well .(I think this will depend on how many propertys in the portfoilio as to what insurance companys can offer.)
all the best
lukeWe’ve got 70 yrs on planet earth,Lets make the most of every day!
Luke Taylor | Hope Property Investing
http://hopepropertyinvesting.com
Email MeProperty Support,Strategist and Buyers Agent
Hey Nigel,
Hope the Texas time is going great for u!
Sounds pretty exciting the company yr building.A great opportunity!
Buffalo is going well so far(its my first morning here)
We have a great contact in the HSBC (jamie) bank whom i just met with for 2 hrs!!(she is a sweety, very generous!) Set up some interest bearing accts ,LLc accts etc
Jamie is happy to accomodate anyone who needs a bank account setup etc.She is hoping to help with mortgages too down the track once people build confidence with the lenders by using there business llc accounts and paying back credit card accounts etc
(she is business banking manager for Buffalo)
PM me if you need her.
I cant report much more about buffalo yet this time as just arrived.all the best
lukeWe’ve got 70 yrs on planet earth,Lets make the most of every day!
Luke Taylor | Hope Property Investing
http://hopepropertyinvesting.com
Email MeProperty Support,Strategist and Buyers Agent
Hey Westan,
Hope things are going well for you!
Yr contact Kelly in Texas has given people a real head start in investing over there.
Someone is definately smiling on you!!
I can recomend to anyone who is looking to invest OS to give Kelly Kenne a try .She has awesome integrity! Of course spend some time there and get on the ground and do yr own research too.
All the best
LukeWe’ve got 70 yrs on planet earth,Lets make the most of every day!
Luke Taylor | Hope Property Investing
http://hopepropertyinvesting.com
Email MeProperty Support,Strategist and Buyers Agent
Yes Texas has got some exciting things going on!
I just left there this morning and arrived in buffalo.There are so many different areas to invest in Texas,heaps with good returns and growth prospects!There is a real positive vibe in the city!The people actually love their place.There is less of the victim mindset of other areas of the US I have seen.Also it is SOOOO big there is plenty of room for growth and i think good returns will be around for at least a few to 5 years yet(only a guess).There is heaps of room for development!
I have found a dude who can do 80% loans to us foreigners too.(limit of 4 under 50K loans though)(any where in USA)
PM me for details if u need them.(note: first loan is pricey 4.5K then they come down to about 1K on the 4th loan)(I have 2 loans closing with him this week)
Something to remember though most Aussies who are investing in the states on this forum are new to the US.So there are things to learn constantly and mistakes also.But this is part of the journey.Just be careful and talk to lots of different people who have been in there for some time to help keep them to a minimum.
All the best.
LukeWe’ve got 70 yrs on planet earth,Lets make the most of every day!
Luke Taylor | Hope Property Investing
http://hopepropertyinvesting.com
Email MeProperty Support,Strategist and Buyers Agent
Hey Teach,
There is Jim Hickey at Ljhooker (go to ljhooker .com.au)
There is Schinellas.com.au also
Personally I would try find yr own deals as well by advertising in the local papers.
B.Hill prices have pulled back abit over the past 6 months so just do yr DD.
Pm me and i might be able to give u a couple of leads.
All the bestWe’ve got 70 yrs on planet earth,Lets make the most of every day!
Luke Taylor | Hope Property Investing
http://hopepropertyinvesting.com
Email MeProperty Support,Strategist and Buyers Agent
Hello Caitlin,
All the best with yr new steps!
As far as the banks taking into account income from property deals,I have found that they need to see more than one property deal profited from .If yr income starts to show a pattern though of succesful deals they will look at you with more favour.
I would suggest to make up a specific plan and show yr bank how,why , & what returns you expect from yr ventures.
(This is just my experience with banks,Maybe its different with brokers . )We’ve got 70 yrs on planet earth,Lets make the most of every day!
Luke Taylor | Hope Property Investing
http://hopepropertyinvesting.com
Email MeProperty Support,Strategist and Buyers Agent
have been told that if you build a relationship with one of the banks and use a business banking LLc account for yr transactions over a year or so and get a uS credit card and keep it payed up to date the bank should be able to grant loans after that period ,but as most aussies are new to US investing we still need to prove this!)
