Hi All,
I have had positive and negative experience in the States.The negative being poor property management and evictions.Overall it has been a good learning curve with many a late night phone call to the USA to sort out issues.The yeilds and return on investment has been ok witout being startling.It hasnt cost me anything to maintain the properties over there as yet ie incomings have been able to offset outgoings.I would like to hear from those who have invested there both their positive and negative experiences.Perhaps even your investing stratey.I was buying and holding in WNY for the yields,now I’m looking at rehabbing and flipping in both San Antonio and Buffalo.As a number of people know (world changer, Westan and Alvin,Chad Simmons, just to think of a few) there are many different investing structures in the States.There are 3 types of people:1. People who make things happen.
2. People who watch what happens.
3. People who wondered what happened.we just sold ours!
Our biggest problem was poor property management and lack of control.
For us, our money can work alot harder and faster when invested in Australian real estate!
Xenia Ioannou-Mena
Property Manager &
Property Sales Consultant
E: [email protected]
M. 0412 437 582Good post Brisbane man!
The positives definately outway the negatives !
Ill try give some of both.
Um,negatives (we always seem to like going to the negative first hey ha ha,these are funny),
All within a period of a month, in one of the areas I have property .
(WNY)one house.-My upstairs tenants boyfriend had a late night and apparently had some nest time in his car (thats sleep),out the front of the house,when he arrived home.Then shortly after , he was awoken with a bullet .Yes thats right the dude got shot.Far out,mate ,so of course we had to try and calm the tenant and encourage them how good a place it really is to live ,but gave them the option if they wanted to move on.They are still there now.
(Earlier in the year a little boy was shot in the same street the tenant tells me)another house.-I got a call from the PM saying there had been a raid done on the house where the perps just smashed in the doors and found what they were lookin for (drugs i guess),then left.
And no sign of the tenant.2 hours later we find the house is cleared out.( except for a billiard table and heaps of rubbish)
Then the police squads came over and did there thing.another house-.I find out that the girl is running a brothel in my house,from the tenant in the other side of the duplex. I just leave this one in the hands of the PM.
But these types of problems are just part of the whole package when buying in some places.You have to expect them otherwise you would be a nervous wreck.
The positives with this same area just to balance out yr fear are ,
One house (the brothel)I got around a 50% return cashflow on (for around 5.5months out of
and also did a rehab and had sold it within 8 months with a nice profit with no work on my part (just managing managers.which can definately steal yr emotional bouyancy if u get yr feelings involved)So my strategy in this area (WNY) has changed with future purchases.Now if i expand in this particular area ( to counteract other issues ive had with repairs)I will make sure i get specific reports done on all items on the house(heating ,electrical,roof and plumbing)& then look only to buy propertys that either:
have new furnaces,roof,full electrical upgrade and new plumbing(copper is best) already in them and are still under market value(not investor market value) so that if i need to re sell ,there is little chance of losses..
Or:
I look for a property that has enough equity in it that after i put all new stuff(upgrades noted above) through it (to make it a reliable and trustable investment if i buy and hold it) & it is under local market value,so i can sell it at a profit if needed.
Of course this takes a lot more work than just buying something u see through somebody elses recomendation or pictures but is worthwhile if u have the time and have made some good contacts you can trust .(which is very difficult in WNY).But good contacts unfortunately only become good contacts after u have tried them and tested them over time.Some of the Positives
I have bought some great propertys in another area through some great contacts from Westan and Alvin johnson.and went on a great tour with a whole group of us which helped grow my investing journey by a long shot in the US.This was awesome.
I have learned also that ,what strategy which is good and positive and right for the guy next to u ,may not be the best or even work for me.and vice versa.
I have learned that you have to check up that advice that u r given by people , measures up to yr standards.By that i mean that often people will try and help u out of the goodness of their heart but can be wrong in their advice.(thus making it worse than if they didnt tell u anything)
You need to test everything because everyone is still learning,even the best investors from here and in the states.My Basic US Strategy in one area is to buy with equity built in ,in an area next to areas that have already boomed with good cashflow returns (and without finance if possible(on subject to mortgage)and hold for 5 yrs.(or untill mortgage has to be paid out(sometimes 1 to 3 yrs on s-to)
I am also starting to research condo conversions with a thought of possibly doing a small one in the future.
I am also keen to build my FICO score in the next 6 months so i can get easy finance without HUGE fees and v high LVRs.
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
Hi World Changer,
So are you saying as your score gets better with time you can apply for finance at a higher lVR.?
Do you think you would be able to get above th 90%?The Positives for me in the US is the obvious.
You can buy under market without to much trouble and good returns.The main negetive and I’m sure other people have found out is poor property management.
Once you have these details ironed out eventually everything falls into placeThe main negetive and I’m sure other people have found out is poor property management.
Once you have these details ironed out eventually everything falls into place
This is surprising given that the US is such a service driven economy – you would have thought someone would have sorted this out / tapped into this market ..
Rgs
QL
Building your FICO score will not alleviate the problem that you will still be treated as a Foreign National when it comes to financing option and not able to find a standard US lender to provide you with greater than 80% LVR.
If you are paying high fees for finance then you are using the wrong lender.
Cheers
Richard Taylor
Residential & Commercial Finance Broker
100% Finance on selected properties in the USA.
Email us to be added to our mailing list.
[email protected]
Ph: 07-3720 1888Richard Taylor | Australia's leading private lender
Hey guys,
Richard i actually meant it will help us be able to get the same 80%lvr finance but with lower fees.
U say high fees are not necessary so may i ask who u would suggest we go through for 80% lvr loans for propertys valued at less than 50K ? Because i havent found any lenders other than 1 that will even offer these to us foreigners.(and they charge high fees)
From memory when I asked u ,u couldnt arrange these 80% lvrs for under 50K?
Has something changed with yr lenders?
Thanks
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
Hello Gentlemen,
One thing to be aware of is that US lenders which offer Foreign National loans programs may be looking at more than just your fico score. You see, typically these are done as a portofolio products and require a manual reviews by the lender. Manual reviews are how underwriters use to approve loans before computer programs were made to automate the whole process. In a manual review, the underwriter may also be looking at the number of tradelines opened and the length of the accounts.
Theres 2 ways they can look at this.
1. If a foreign national does not have a fico score then the lenders will usually allow some type of bank reference letters.
2. On the other hand, if you have been able to establish some US credit producing a score, that may not be enough. Once a score has been generated, the lender doing a manual review may now ask that at least 3 accounts have a 12 month history and also must have been active in the last 2 month period. Your option of producing bank letters may no longer be available. It should be noted here too that if the score is less than 620 the lender will usually deny the file. 620 is the bottom of what most portfolio programs through the lenders will allow.
Even here in the US, these portfolio programs with manual reviews can be changelling. US clients with 700 scores (which is around the top) may not be able to qualify for some programs. It is very common when you hear that they were misinformed by someone else to close out accounts no longer being used. That is incorrect and will only lower a credit score.
I thought this would be a good opportunity again to help establish the fact that 90% LVR is available here in the US. This has been discussed in several of the past threads dealing with finance from US lenders. Please feel free to search through the existing messages or contact me directly.
Luke,
There are lenders that can do your 80% LVR for loan amounts under $50,000.
Richard is correct when he states that lenders wills till classify you as a foreign national, even with a fico score. What the fico score will do for you though is improve the rates available on your loan. Rates are usually determined by the fico tier that you fall under.
620-669
661-679
680-719
720+As mentioned earlier, 620 is the bottom of what is usually acceptable. If you are using a no credit report program, the lender will use a 620 credit score for determing the rate.
The difference between 620-720 could be anywhere from .75% -1.25% higher in your rate. (depending upon the loan amount).
Rates are not that high either on these deals. A good range to plan on is 7% – 9% on 30 years.
Ben Carmona
Mortgage Planning Consultant
“Specializing In Investment Loans”
First National Mortgage Sources
314-914-6052 c
866-226-6309 f
[email protected]
http://www.BenCarmona.comLending Nationwide Throughout the US
Thanks for the info Ben.
I have got 2 loans for under 50K already.
The problem has been the up front fees!Have you done loans to aussies for under 50K?
If so,is it possible to share which lenders they were and how long ago they were put through and settled.Thanks again Ben!
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
Minimum loan i have done in NY State is $20,000 at a maximum 75% LVR purchase or 70% refinance.
Took about 8 weeks to go through although lender will only lend on single family home and not duples/triplex etc.
Cheers
Richard Taylor
Residential & Commercial Finance Broker
100% Finance on selected properties in the USA.
Email us to be added to our mailing list.
[email protected]
Ph: 07-3720 1888Richard Taylor | Australia's leading private lender
Hello Worldchanger,
I’d love to share my services with you. If you have projects that need financing of low loan amounts, then I’d suggest you contact me privately by email, Skype, or cell phone.
There is a lender available for me to do loans under $50,000. Maximum LVR is 80%, refinance or purchase, 1-4 units ok.
There are several people on this board that can confirm my commitment into helping Aussie investors achieve their investment goals.
Look forward to hearing from you.
Ben Carmona
Mortgage Planning Consultant
“Specializing In Investment Loans”
First National Mortgage Sources
314-914-6052 c
866-226-6309 f
[email protected]
http://www.BenCarmona.comLending Nationwide Throughout the US
My Skype address is Ben.Carmona-US.Investmnet.Loans
Ben Carmona
Mortgage Planning Consultant
“Specializing In Investment Loans”
First National Mortgage Sources
314-914-6052 c
866-226-6309 f
On Skype at: Ben.Carmona-US.Investmnet.Loans
[email protected]
http://www.BenCarmona.comLending Nationwide Throughout the US
You must be logged in to reply to this topic. If you don't have an account, you can register here.
