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    February 8, 2012 - 1:12 pm
    staceymac wrote:
    I am going into San Antonio myself. I head off there next month to do some due dilligence as part of a buying group. I will look at the other markets in Texas as well whilst I am there. I'll report back my findings. For me my main concern wont be paying a bit extra for insurance or taxes or whatever ongoing expenses. That's a business/investment expense as long as all the overall numbers are right that is. It will be getting the right property in the right spot at the right time but probably for me will be having the right people on the ground as my team. I know someone personally who got ripped off buying in the USA. The yanks see us as pretty soft cashed up targets unfortunately. At some point being all the way over here you need a good team behind you if you cant do this fulltime. Fulltime is my goal though.

    I would be looking at areas in US that got hammered as there will be many more opportunites for upswing/growth.
     
    Why would you purchase in Texas when yields are not much better than Oz, so much risk….. by the way, if you are purchasing only 1 property, give it away… you need to be purchasing multiple properties to cover costs, legals, interest, fudge factor ….. etc.

    For example you can purchase  in Atlanta a property  that sold in 2003 for $130,000 for 38,000, building costs in Atlanta currently $70-90 per sq foot, I am purchasing on average $25 per sq ft.  now you are talkin….. Buy 10 of these grossing over 21% and you will be sitting pretty

    WI

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    February 8, 2012 - 5:50 am
    staceymac wrote:
    Yep I agree with the Ex-FX dealer. Not bothering to wait and try and pick a high. Whilst it is now good its time to buy. Come on lets be realistic anywhere near $ for $ is pretty good you would have to say. Rather get the right property deals in a high $$ than have to rely on the $$ and then find properties – thats not my focus. Anyway thats probably just me. I have made a killing on some Cashflow Properties here in Australia. They all are getting me some great + $$ and have experienced some exponential growth in the last 3-4 years. So I am now in the lucky position where I can get maybe 4 USA properties for around that $40-50K range. Sorry to show off I am just excited about the trip and the opportunities that maybe available. :) Off to the USA next month to buy up the USA. :) Stacey

    I agree, I have usually just transferred the money over on purchase, however now that the AU $ is so good, think I will just bring it over prior to purchase as it makes sense. I am purchasing on average $60K per property.

    So where are you purchasing? Will you be sourcing your own deals?

    WI

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    February 7, 2012 - 4:39 am
    USinvestnoob wrote:
    I say you have to decide on whether or not your happy to pay circa $46kAUD for a $50k US property. There is a higher chance of the AUD to drop than there is of the AUD riding higher. Ie. How much higher do you think the AUD can go up to? VS How low can the AUD drop? People are now starting to say that the AUD can run up to the 1.50 and. Parity against the Euro… Is this possible? Definitely… If China is still strong and Europe doesn't fail. But if The Eurozone collapses (which is what I believe will eventually happen) than Chinas export will reduce as Europe is one of Chinas largest trading partner, if China slows down than their appetite for commodities will reduce and if commodity demend reduces so will the Aussie dollar. This is because the AUD is know as a risky currency and has a strong correlation with commodities. If it drops where will it go down to? During the peak of the GFC, the AUD just below $0.60. If Euro collapses, it's going to hit the world hard. So this comes back to your thoughts in the present, the right here right now situation. My thoughts… It's a good time to get your first capital investment/deposit transferred from AUD to USD. $1 for $1 isn't bad. If AUD rises, great buy some more properties – transfer more AUD or borrow in the US at lower rates. If AUD drops, great transfer some money back OR borrow in the US and use the rental return to buy more. At the end end of the day if the AUD drops that $50k property is goin to cost you $90-100k – how you going to feel about that? If you find a property now: A) do it now rather than trying to pick the high B) lets me know where this property is so I can look into properties in the suburb :) Bit long winded but hope that helps! Cheers Ex-FX dealer

    Thanks for comments, just toying with the idea of bringing the money down especially if it gets to $1.10 , am waiting on suitable property to come along.

    Am buying in Atlanta and have purchased 6 to date while the AU $ has been so strong.

    I would not be buying in US if the AU $ dropped back to traditional levels, as the returns would not stack up.

    I see interest rates have stayed the same today, it was predicted that if the interest rates fell .25% the AU $ would fall back.

    Be interesting to see what happens over the next week.

    WI

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    February 6, 2012 - 2:33 am
    Alex SC wrote:
    That understand the tax implications for Australian investors buying in the USA. Who also have worked in both USA and Australia.

    Please email me some contact information. I have some questions for some clients.

    Thanks
    Alex
    [email protected]

    Hi Alex
    I have used James from Tax Central, I found him to be very good, also the fact that he resides in Australia is definately a plus for me as I phone me from time to time with queries. 

    Their office is in Queensland, if you want his particulars just pm me and I will be happy to pass on his details.

    WI

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    February 1, 2012 - 5:46 am
    chuckyp wrote:
    Hi,

    Disclaimer: I'm not an accountant or a lawyer so don't sue me for telling you what I would do :)

    Yes I resolved this after sifting through heaps of cr@p online and speaking to many people each with different opinions (many wrong or adding complexity for no reason).

    You need an LLC incorporated in the state which you are buying the property. It acts as a pass through entity and any tax you pay in the US can be claimed as a foreign tax credit here in Australia. There is a way to do it with a C-Corp or S-Corp but you are adding complexity for no reason and it sounds dangerous to me. Just dissolve the C-Corp (I had to do the same with an LLC I created incorrectly at first) and form an LLC in the State you want to buy. Many states you can do this online and it's quick.

    The unfortunate side of this is you will have to go back to the US then to get the bank account for the LLC… I found BoA the easiest to deal with.

    -chuckyp

    I spoke to James at US Tax Central basically what you are stating is correct, the SMSF is the member of the LLC.

    I don't understand why  you need to go back to US to set up the bank account?

    Cheers, WI

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    January 29, 2012 - 10:53 am
    speedy gonzales wrote:
    jayhinrichs wrote:
    Astute comments.

    I never look at Zillow, I might have been on that sight once in my life…. Zillow is all over the map, It can show properties far too low in value then properteis that are far too high in value given local sales. The only way to value propert is through a BPO and get 2 of those.. And or a for fee appraiser which is what we do , apprasier is your best bet for true value. Now this does not hold true in Atalanta were you have auctions short sales and all manner of sales far below last solds.

    The Atlanta market you must have to use replacement value and common sense. I f you snag a 2000k ft nice home for 60k thats 30k a foot to build , one cannot build in the us for less than 60k plus permits. 'so as long as your not in the hood, there is going to be significant upside for these homes over the next 5 years.

    Jbelmore,,,,, At the end of the day its going to be who we are what we can do for you our proof of our capacity and experince to execute on your behalf that will carry the day and you will make a comfortable decision to give one of our investmetns a shot.
    We are not asking for 100% of someone funds and infact would never take them

    If you have a 200k portfolio we would recommend1 of our notes 2 max then go for high growth stocks.

    Jay, I think it's about time that we had a discussion about Zillow, Trulia, Redfin etc….all computer generated modelling estimates. Yes you can pick a few useful bits of information from them but by no means is the valuation accurate…..I have always found to be way off the mark. From what I have read and seen first hand….many Aussies are treating these sorts of sites as the bible of property values For example….I am just about to close on a property north of Dallas. Aside from the issue that Zillow etc doesn't work in non disclosure states like Texas and 9 other states I think….the figures are way off the mark and in NO WAY should a buyer base their decisions on value based upon the modelled estimates. On the property I am buying…Zillow has a estimate of $83,000-00. The bank just gave me a copy of the appraisal they had done for my loan and backed up a market value based on comparable sales of $147,000-00. This has been my experience so would like some feedback from you Jay on what those in the US think of these sites.

    I don't know how US banks determine valuation in the current US property market, its all over the shop, foreclosures short sales,  and foreclosure onsold to foreigners at hugely marked up price.

    I would be concerned about companies working sweet heart deals with the bank where the valuation is  above the actual true value? I know of least 2 companies using this strategy to draw in the investor, I am sure there are many more.

    I have been purchasing properties in Atlanta well below what the zestimate has been stated on zillow. My understanding is that zillow over-estimates the value of the properties, I would also look at recent sales you can also do this on refin, trulia.

    This is why I look at current building costs for example in Atlanta per sq ft is approx  $70-80 this  has been confirmed by a couple of builders in Atlanta.  I am purchasing at $20-30 per sq ft well below the real/replacement costs. This is one way of keeping the figures real.

    WI

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    January 28, 2012 - 7:24 am
    jayhinrichs wrote:
    Astute comments.

    I never look at Zillow, I might have been on that sight once in my life…. Zillow is all over the map, It can show properties far too low in value then properteis that are far too high in value given local sales. The only way to value propert is through a BPO and get 2 of those.. And or a for fee appraiser which is what we do , apprasier is your best bet for true value. Now this does not hold true in Atalanta were you have auctions short sales and all manner of sales far below last solds.

    The Atlanta market you must have to use replacement value and common sense. I f you snag a 2000k ft nice home for 60k thats 30k a foot to build , one cannot build in the us for less than 60k plus permits. 'so as long as your not in the hood, there is going to be significant upside for these homes over the next 5 years.

    Jbelmore,,,,, At the end of the day its going to be who we are what we can do for you our proof of our capacity and experince to execute on your behalf that will carry the day and you will make a comfortable decision to give one of our investmetns a shot.
    We are not asking for 100% of someone funds and infact would never take them

    If you have a 200k portfolio we would recommend1 of our notes 2 max then go for high growth stocks.

    Jay
    In terms of property prices in Atlanta, zillow, redfin and other sites are a guide, not perfect, but there is a hell of a lot of useful  information such as, ie county taxes,  recent sales etc.

    I agree with your comments that it is important to look replacement value when purchasing in Atlanta.
     
    In one of my posts I mentioned that I am buying properties in Atlanta between $20-30 sq ft,  you can not  build at this price and when you do snag a 2500 ft home at $48,000 or $34,000 well that just makes the deal so much sweeter.

    WI

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    January 22, 2012 - 12:54 am
    mmandbean wrote:

    There is a $995 joining fee which is refundable on purchase of your first property. Their website: http://www.usinvest.com.au/

    They have quite a high handling fee for their properties – over $3K.

    Someone must have used them?? Or heard something of them? If not guess I better start researching elsewhere!

    I have not heard of them, however I would be concerned about any company charging upfront fees, In the first instance I would want details ie addresses of some  properties they have sold over the last 6 months. I notice on their site they have example properties, no addresses??

    I would then research these properties using the  zillow site to establish last sales, this site will also provide you with details on other sales for that area/subdivision. There is also information on county fees, estimated rental range and lots more.

    WI

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    January 21, 2012 - 12:27 am
    Investingnovice wrote:
    Hey guys,

    Just to give you a run down on myself. I have previously invested in Kansas City MO and relatively happy with my purchase exceptions to:

    – My previous useless property manager
    – Minor maintenance issues with home

    Although I have now developed contacts in Kansas City I want to invest into a different City and from my research Ive been informed the best two cities to buy from are Houston and Atlanta

    I was just enquiring on your thoughts and if there were any other markets to look into and possibly even contacts in these areas as I found the majority of my issues arose with my first property was when I used all contacts from the middle man (Australian based). my turn key investment didnt start so smoothly however is soon to be ironed out but want to avoid similar issues had with previous property by collecting my own contacts.

    Thanks

    Investing Novice

    I have purchased all my properties in Alanta. I have also posted the properties I have purchased, just search some of my posts.

    The yields are very attractive, Atlanta hands down.
     
    If you read some posts by jayhinrichs he mentions Texas and that the taxes are too high, this would wipe out your cashflow, too risky.

    Cheers, WI

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    January 21, 2012 - 12:16 am
    Alex SC wrote:
    Yes Jay is a wealth of information on USA markets being he comes form both sides of the fence.The lending side and the rehab side. For me I have been the type of  buy and flip guy Jays companies lent money to. So  I understand the rehab and management aspect  pretty well .Where I am learning the lending( banking  side pretty quick in today cash market.

    With alot going on in the USA I do hear the rumbling about hedge funds coming to look at single family homes and rental market. So that is saying some thing  going on.

    I would be interested to know whether you are finding the foreclosure market tighter, in other words has it become harder to secure good properties, ie more competition.

    Cheers, WI

    Alex

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    January 16, 2012 - 10:57 am
    CasaHunter wrote:
    H there, Could I please ask if anyone who would like to share their experiences with any Atlanta property management. Has anyone had acquired or has a property managed by Key Property Investment, http://www.keypropertyhomes.com/turn-key-process I would really appreciated any comments about them. Thank you! http://usapropertyadvice.blogspot.com/

    CH
    I had a quick look at one of their properties for sale on their site.

    Sorry, Nothing whatsoever to do with property management but…… 6131 Deerfield Crt, year 1971 – too old and you are paying 44 per sq ft, I would not pay this price for this property.

    Cheers, WI 

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    January 16, 2012 - 10:47 am
    [email protected] wrote:
    Thank you for the comments and question. Yes, there are many reasons. But first I don't believe excessive cost cutting can bring higher returns on investments. Our fees are very competitive in Atlanta, but I am almost certain you can always find someone charges less. The questions are what services you gonna get, and how much investment returns he can help you achieve. Our fee structure is transparent and has room for negotiation for selected clients, depending on the services requested, the level of client maintenence required, and we reward client loyalty, referrals too. We buy, sell, rehab, and manage properties. Generally, if we do everything for you, the fees are little less at each stage. But you can choose to use just some of our services. E.g. You buy, and rehab. We manage the property for you. If the property is poorly renovated, we have to do some work to bring it up to our standards, we will charge a little more to compensate the extra work we have to do. In short, I would rather to discuss specific case individually to avoid any misperceptions. Appreciate your question and comments. Regards, Mark [email protected]

    If you are transparent you should then be posting details on your services including all fees.
    Cheers, WI

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    January 15, 2012 - 3:09 am
    Alex SC wrote:
    worldinvestor wrote:
    jayhinrichs wrote:
    Hey you guys stay out of my county :)

    .plenty to go around  :),   though picking them up at $38,000 may be a  tough call in Henry County.

    Cheers, WI

    So true about Atlanta alot to go around ,that is why I feel strongly about the rental market prices are going to come down. The  inventory  for sale now is tremendous  Now more of what we call shadow inventory that banks and government programs (  Fannie Mae, Freddie Mac and the Federal Housing) are about to release. Read the link below. Our company is actually looking at pulling out of Atlanta and concentrating more on North and South Carolina. Oh it does help that where my office is located right on the border of NC and SC.  Not saying Atlanta is not good just think rents will be lower and longer time for recovery then most are saying or planning. If we take retail area and turn it 90 % rental area. There are alot of things that will negatively affect those areas long term. So  if and when the retail market does come back. What appeal would a retail home located in a  rental neighborhood for a buyer. Food for thought.

    Good read below..
    http://www.bankrate.com/financing/mortgages/government-to-unload-foreclosures/

    Alex

    [email protected]

    Thanks Alex.

    Alex and Jay

    Here are some predictions from Kathy F. with vested interest she would be only highlighting positives, but would be nice if some of her predictions came true.

    http://www.realwealthnetwork.com/blog

    Also interesting that she states the cost to build in Atlanta is  around $80 per sq ft ??

    Cheers, WI

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    January 14, 2012 - 12:49 pm
    jayhinrichs wrote:
    Hey you guys stay out of my county :)

    .plenty to go around  :),   though picking them up at $38,000 may be a  tough call in Henry County.

    Cheers, WI

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    January 14, 2012 - 10:09 am
    WA2012 wrote:
    Hi Kefter
    We are new to this and are really interseted in the US market using our SMSF. I have spent hours reading the posts here and am on an amazing learning curve but would love to find someone who is using their SMSF to buy proerty in the US. Or someone with the correct info(esp if the ATO is a bit vague ) We live in Perth.
    Thanks
    Alex

    Hi Alex
    I am from Perth happy to help,  have been purchasing in US, pm me and I can fill you in on what I have been purchasing.

    Cheers, WI

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    January 13, 2012 - 1:32 am
    Lets US wrote:
    Hello WorldInvestor and Forum Members.

    Is there anywhere in Atlanta you should avoid buying?
    Im very new to this US property market, I have thought of going to Florida to look at
    some properties there but Im sure there are other States like Atlanta I have overlooked?
    If so, what areas would be a good start to look into?
    thank you and Congratulations on your properties World Invest, gorgeous homes indeed.

    Miss K

    Hi Miss K
    I have properties in Lithonia, Conyers, Douglasville, Covington, Dallas.  For me it is important that the sub-division is well maintained, nice homes and good facilities.

    I like to target homes no older than 10 years if possible, homes around 2000 sq ft + (Cost – $20-30 per sq ft) , gross yields over 20%. I think this will help mitigate some of the risks involved – buying at such a low base.

    When I met up with Karina in Atlanta we were pretty much on the same page in regards to what we would buy and what to stay away from.

    Check out Select Amercian Home (you tube) to view various sub divisions.

    All the best

    WI

    PS
    I also like Henry County (McDonough), just waiting for suitable property to come along.

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    January 12, 2012 - 11:32 am
    ed01 wrote:
    Hi guys, Love the new house worldinvestor. Just a quick question as I'm brand new to the forum, and stumbled across this post whilst looking around. Where do you get your finance for this type of thing? In Australia, or USA? My brother and I are planning to start investing in the US property market this year, but just not quite sure where to start with finance. Thanks, Ed

    Thanks, will post the next property once renovated.
    At this point in time have not been able to access funds to purchase have been using cash.
    This may change down the track, but I would not be holding my breath. Am told it is almost impossible for a foreigner to finance properties in US.

    Cheers, WI

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    January 11, 2012 - 9:25 am
    jayhinrichs wrote:
    law sys this is the concundrem right now nationwide, what is the true value….. Atlanta particularly, is dominated by foreclosure short sales. No one really knows the true value, where as other markets most of the foreclosures are pretty beat up and require a ton of work thereby creating added value. Most of what I see in Atlanta is very new homes or newer that only require flooring paint and modest fix up. I just look at the atlanta market one way. By the best neighborhoods you can. If your buying substantially under reproduction values. at some point there will be a return to a higher price. We bought one this week for 38k that needs maybe 3k. and there is brand new construciton 10 houses down selling at 120k same house same sq ft. etc etc. So what is the value?????

    Could not agree more, makes perfect sense to me.

    I am purchasing properteis in Atlanta  at $20-30 sq ft, where building  costs in Atlanta is somewhere around $80-90 per sq ft

    WI

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    January 9, 2012 - 11:50 am

    Hi Jay
    Thanks for the post I get what you are saying,  that is why I need to buy bargains to improve the figures and mitigate the risk.
     
    I am more than happy to  post figures down the track to keep it real.

    Cheers, WI

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    January 6, 2012 - 1:13 pm

    Hi Lawsj,

    I can not comment for all areas in DC, however my experience  was positive, I lived in Georgetown, University area.
     I would definately want to stay clear from the undesirable pockets.

    Alex
    Can you post the final figures once the property  has been rented. Thanx

    WI

    ..

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