Hi trevor here this is mt first post.
So Ihope im inthe right place to say what i want to say and that i adhere to the rules of the forum I guess i'll be told if im out of order.
My post started because i read onther post regarding Investing in USA.
Its My opinion that it would be an excellant time to Invest in America.
Several reasons for this based on The state of the economy and haven read several books on Investing in real estate in the USA
My opinions for it being good are as follows :
* The result of Sub-prime loans = foreclosure sales,bank happy to get what ever therefore possible to pick a place up well under normal sale conditions
* Tax Liens… You can buy the ammount of tax owing to a county and the owner is requireed to repay you in a set time at a set interest rate. If he defaults the title of the property goes to the buyer of the tax lien. This could be as low as 2-3k on a 200k home.
* The general principle that real estate doubles in 7-10 years
I'm an experienced investor and have decided to try and encourage people to go for it.
I have taken a couple of my employee's under my wing with regards to investing in B+m and both of them have thanked me as the homes they bought 3 years ago have alreadt increased in value by as much as 50-60k bought for 200k
I hope this article will be of some help to those thinking of Investing inUSa but as well as here in OZ
Trevor
Hi Trevor
Couple of small things potential investors should also be aware of with investing in the USA;
1) property managers who collect the rent and keep it for themselves.
2) property managers who charge you 4 times the normal rate for repairs (created by tenants)and more often than not the job is substandard if it is actually done at all.
3) tenants who stop paying rent, trash your place and once terminated leave piles of crap that cost $100's to dump
4)local thieves who watch for empty houses and then strip furnaces and copper piping for scrap causing $1,000's damage
5) insurance companies who refuse to provide cover once a tenant moves out
6) city and county inspectors who troll the records for non resident owners and issue fines for the most minor of infringements. Why? Because the city and counties are literally broke and they see foreigners as easy revenue raising targets and there is nothing you can do about.The moral of the story? Do your homework carefully.
Tony
Thanks for your comment Tony
Most of what you say is true also for investing in australia
* property managers not doing thier jobs properly….. allowing known problem tenants into your property allowing properties fall into disrepair,due to unsatisfactory or no regular inspections
* tenants trashing the place and doing a runner
* cost of repairs
* etc.etc.
Tony Ive been through all those problems
You are right and like all Business's you Must Do Your RESEARCH and own Homework as you say, but wouldnt you agree, 4 houses in 6 years for 695k and now worth 1.2 mill? Makes it all worth while
I dont know of anything that gives the same rate of return except for High risk Share portfolios
Nor do I as a Businessman Electrical contractor Know of any business that does'nt have it's own
Set of unique of problems
My Motto in life and in business is This ……
"IF YOU'VE GOT A PROBLEM BUT YOU CAN FIX IT, THEN YOU DONT HAVE A PROBLEM AT ALL"
All the best Now is the time to invest in Real estate
Trevor
Trevor
Which US lender have you used to finance these acquisitions.
Richard Taylor | Australia's leading private lender
Richard,after reading my last post i can see that it could
be taken that the properties i mentioned were in the US
They are not I is in southport Qld ,3 in Adelaide.
However it is possible to purchase properties in US with no money down
Get a long settlement date
do any upgrades ( a lick of paint)
Flip it to sell to someone else with a settlement date earlier than your own date
Pay original owner and pocket the left over.Trev Yes sorry i assumed you meant you where buying in the US.
Again dont want to disagree but even with a long settlement, using VF, flipping the deal etc you wont get a no money down deal being a FN.
Trust me i have financed enough deals with uS lenders in the past 5 years.
In Oz this is standard practise for wrappers or flippers.
Richard Taylor | Australia's leading private lender
[Adversiting is a no no.]
Hi guys this is interesting.. im a newie i only have the one IP in VIC and am very interested in buying US. And will be ready to purchase around March however I havent a clue where to begin. I will need to do some extensive research. I was considering getting a reputable buyers agent. Know any?? Your assistance will be greatly appreciated.
Hi all,
Just bcome a member to this site and am very interested in this topic of investing in property in the US, fairly experienced investor want to expand portfolio O/S i have been researching on tax liens, deeds and forclosure/ pre forclosure properties in da states as i hav ties there but i dont no how to can get moving on it as im a foreign national to get finance, do you contact a bank here with branches over there?? or just contact a bank over there?? how do you open an account over there without a soc. sec. no.??? Would love any feedbackcheers manny
There are no Australian based Banks here than lend and have branches over there.
There are also a very limited number of US Banks that still ofer FN loans.
We deal with 2/3 depending on which State the security is in.
Richard Taylor | Australia's leading private lender
I have recently been buying OS properties with a company based in Hong Kong that has an Australian client base. They have been seeking out opportunities in the US that represent good solid opportunities which are very well researched. The name of the company is IP Global. Once they find a property that meets all of the investment criteria they set themselves they produce an extensive free due diligence report on the project. They also negotiate finance for their clients and find all of the relevant professionals you need to do the deal such as solicitors etc. They also have a property management service for all of the properties their clients have anywhere in the world.
In the US they recently found two above average projects in LA that they believe will be strong investments over a medium term. They have arranged the finance for clients with HSBC bank or Wells Fargo and its possible to get 70% LVR with the banks already accepting the values as given. It apparently took them considerable time and effort to secure the finance in this current climate. The finance is only open to non US citizens.
If anyone wants to know more just send me an email and i can forward you their reports. There are good deals out there with the hard work done!
Cheers
Adrian
Hong KongAdrian,
Why the change in opinion? What market forces has made you change your opinion from a few months ago.
Adrian previously wrote:
I have invested in a few countries now but am avoiding the US market for a number of reasons. After the instability there, which still has a long way to play out and some prices have not seen their bottom, some commentators are saying that it will be many years before you start to see some real gains and confidence back in that market. If you are just chasing yields then its really about your rental returns and perhaps your growth is not so important to you.
Now more than ever would be a time to be extra careful in not being taken advantage of as an overseas buyer. You would really need to have confidence in what was happening with the area you are looking at and who are the reputable people there to deal with or you may become victim to some type of scam.
Unless you really have a burning reason to invest in the US I think there are plenty of other places to look where there is stability etc. As an example I just purchased a beach front apartment in Malaysia for about $300,000 AUD with a 70% lend at 4.75% interest with a guaranteed net rental return of 7.25% for the next 5 years with a further 5 year option after that. This makes the deal cash flow positive to the tune of almost $900 AUD a month guaranteed for 5 years without any hassles for me.
If anyone can find me a deal like that in the US or anywhere else I would love to know about it.
If you want to tap into a network of Australian professionals in the US who may be able to help you find some direction, try the Advance Global Australian Network who link up Aussie professionals around the world with an online networking service.
Cheers
Adrian
(Hong Kong)I suggest anyone interested in US property should read:
The Great Depression Ahead – Harry S Dent (2009)
He makes many good points about the past, current and future real estate prospects in the US.
I'm reading it right now and I can't put it down!
– Steve
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Thanks for that book reference Steve,
i have just joined up to the site. I am an Aussie now living in California and about to get my social security no in next 2 months. Just purchased our first IP with my wife and looking at more.
will read Harry S dent with great interest.Andrew
USAArticle from August 2008 regards the housing collapse there:
http://www.commondreams.org/archive/2008/08/08/10875
Extract from article:
But with the locals out of cash, who is buying? “The foreigners are coming in droves: 80% of the people coming into our office are from England, France, Germany, Italy. Between the falling prices and falling dollar, they can buy here for practically nothing. Who wouldn’t be here?” says Paul Merlesena, a local estate agent who notes that some of the first homes at auction have just sold for $240,000. “Last year they were selling for $660,000.” Looking a bit sad, he says: “If this was all reversed, America would be eating up Europe.” Another group of buyers has started moving in at the luxury end of the market in parts of the Miami area – wealthy Russians. Fond of winter sunshine and gated security, Russians are picking up mansions whose price tags have become increasingly attractive thanks to the weak dollar.Trouble with that quote is the usd has since strengthened against almost all currencies as part of the flight to safety – hence making it (in our case with the AUD ) now 50% more expensive to get into the US market than it was only 6 months ago. The fall in US housing is due to the bubble – meaning the place that sold for $660,000 was never worth that inthe first place. Or as the late Rene Rivkin used to say "a half price $98 dollar lettuce is still an expensive lettuce.."
Tony.
C2,
No real change in my opinion on the US. I still think its a yield play in most parts and real growth is some way off. I still also think you need to deal with reputable people in the industry there or you run the risk of being burnt. I personally still don't want to invest there because that market does not fit my current strategy. Same same with Japan. As with all of us our funds are limited and for a number of reasons i have committed all i have elsewhere.
My real point in my post on this topic was that there are companies/services out there that can help those who have troubles finding their own finance and or have concerns about property managers in the US. If people really want to invest there I have no doubt there are some good buys in such a vast market but as stated in previous posts, personally it doesn't fit into my plans. Sorry if I didn't make that clear.
Cheers
Adrian
Hong Kong
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