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.
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…
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 quesitons.
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.
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.
white_goodman wrote: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.
So I would take it from this comment that you supply finance to the US also? What are your charges?
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.
100% Agree with you mate. Also with your numbers. It is not about what price for what service, It is just there monopoly at the moment. Since ideally no one in Australia is providing loan for US. Bad for consumer. Simultaneously, I would like to say something is better than nothing. At least someone is providing loan facility. They have taken a step ahead than any other, so they are making money. But, will receive bad branding, if they care about it. People remember these and willn't do the business again and more importantly will tell 10 people not to do business with these folks.
I think this thread needs now other people's opinion as well, not only few people repeating same stuff again and again.
No offense to anyone. I don't like offense please.
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.
[/quote]There has been a fine line tread on advertising/promotion of certain businesses in this thread. I've had to moderate some comments and probably could have moderated quite a few more. Future posts will be treated more rigorously.
I can also see that this conversation is on the way to stagnating from any real value add to the online community and would like further contributions to this thread to keep this in mind.
– Moderator
Using LoansUSA suits those who do not have the excess cash or available equity to purchase a portfolio. Personally, my cash / available equity has capped my spending between $100,000 – $150,000. With this being the case, a decision I have to make is to purchase either
A) via a lender to maximise the # of IP i can purchase
or
purchase properties using cash and cap the number of purchases to 2-3 (depending on purchase price)Advantages of using option A is that i can build my portfolio quicker. Disadvantage is paying interest which ultimately inhibits cash flow and decreases net profit which ultimately makes investing offshore a less attractive thought than originally thought.
Advantages of using option B is that I maximise net cash flow. Disadvantage is that I am limited to the number of properties I can purchase.
However, Using option B to maximise net returns over a 12month period will provide sufficient funding to act as a deposit to then purchase via a lender.
What are people thoughts on this? Remember – not everyone is in the position to access a pitfall of cash reserves / equity to not worry about the need of using a lender.
Melbourne Girl – Does LoansUSA allow you to use equity and leverage for future purchases – similar to investing in Aust? and what was your LVR?
white-goodman, thanks for reminding us of an excellent point with your numbers :-
– particularly when buying properties of lower value, it is imperative that we are mindful of the need to keep costs in check. Larger projects may be more forgiving, but smaller ones quickly lose their viability when multiple costs/fees apply.
TH
I agree with you White Goodman,
It’s all in the numbers…..not in the spin. My USA property don’t mind reminding you of the fact when comparing Australian property to USA property….it’s part of their sales spiel. They tell you the amazing fact that when “you pay stamp duty on an average Aussie property in Victoria of $450,000-00 you pay $27,000 in stamp duty which equates to approx 6% of the purchase price” Well if you bought only one property through My USA property for say $40,000…got a loan from LoansUSA for whatever loan amount….you pay approx 15% of the purchase price in set up costs….more then double what they spruik as outrageous in Victoria !!
I couldnt resist posting again, White-Goodman, this thread is called My USA Property, I thought I was doing the right thing posting in this thread. We havent used the services of any other finance or property people so I have nothing to compare to.
To make things crystal clear for you – I am based in WA, I grew up in Melbourne and desperatley want to move back – hence the name. I am dealing with My USA in Gold Coast and yes Loans USA is in Melbourne.
I have no vested interest in either of the companies, just thought I was posting in the right area.
melbourne girl wrote:I couldnt resist posting again, White-Goodman, this thread is called My USA Property, I thought I was doing the right thing posting in this thread. We havent used the services of any other finance or property people so I have nothing to compare to.To make things crystal clear for you – I am based in WA, I grew up in Melbourne and desperatley want to move back – hence the name. I am dealing with My USA in Gold Coast and yes Loans USA is in Melbourne.
I have no vested interest in either of the companies, just thought I was posting in the right area.
You have done the right thing…don't worry about people who flame you. As for the figures… they can be manipulate…so whilst he is working on percentages…you might actually be working on numbers…and there is a difference. I have restarted up my savings plan… 50% of income… pretty sweet.
I don't make a lot of money or have a lot tucked away so still investigate getting a personal loan out for something like this. lots of number crunching…
EdmundSt wrote:Using LoansUSA suits those who do not have the excess cash or available equity to purchase a portfolio. Personally, my cash / available equity has capped my spending between $100,000 – $150,000. With this being the case, a decision I have to make is to purchase either
A) via a lender to maximise the # of IP i can purchase
or purchase properties using cash and cap the number of purchases to 2-3 (depending on purchase price)Advantages of using option A is that i can build my portfolio quicker. Disadvantage is paying interest which ultimately inhibits cash flow and decreases net profit which ultimately makes investing offshore a less attractive thought than originally thought.
Advantages of using option B is that I maximise net cash flow. Disadvantage is that I am limited to the number of properties I can purchase.
However, Using option B to maximise net returns over a 12month period will provide sufficient funding to act as a deposit to then purchase via a lender.
What are people thoughts on this? Remember – not everyone is in the position to access a pitfall of cash reserves / equity to not worry about the need of using a lender.
Melbourne Girl – Does LoansUSA allow you to use equity and leverage for future purchases – similar to investing in Aust? and what was your LVR?
I am in a similar situation I don't earn shite loads of money. Plus I don't own any property…so ….getting loans can be interesting.
PropertInvestor wrote:100% Agree with you mate. Also with your numbers. It is not about what price for what service, It is just there monopoly at the moment. Since ideally no one in Australia is providing loan for US. Bad for consumer. Simultaneously, I would like to say something is better than nothing. At least someone is providing loan facility. They have taken a step ahead than any other, so they are making money. But, will receive bad branding, if they care about it. People remember these and willn't do the business again and more importantly will tell 10 people not to do business with these folks.I think this thread needs now other people's opinion as well, not only few people repeating same stuff again and again.
No offense to anyone. I don't like offense please.
white_goodman wrote: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.
Does anyone know of any other US property consultants? aside from 888 and Gold? Would be interested to hear from them… I have been investigating IPINglobal…any thoughts?
i am at the end of my patients…. last chance.
After 5 mths and rubbish requirements from financier I am almost done with it.
No fault of my usa property or loans usa but had enough.
3 properties in KS were spot on for what we wanted and 70%LVR (looks like being
50% at best now) and after 5 mths no concrete answer on the finance.
MYUSA have looked at alternitive areas where they can secure finance easily but the
numbers dont stack up for what we want.
One last property being priced up at present. See how it goes.
On the positive side it has given me time to do a lot of my own research on KS. I am comfortable
buying in KS and the returns are good.See what happens
RickH wrote:i am at the end of my patients…. last chance.
After 5 mths and rubbish requirements from financier I am almost done with it.
No fault of my usa property or loans usa but had enough.
3 properties in KS were spot on for what we wanted and 70%LVR (looks like being
50% at best now) and after 5 mths no concrete answer on the finance.
MYUSA have looked at alternitive areas where they can secure finance easily but the
numbers dont stack up for what we want.
One last property being priced up at present. See how it goes.
On the positive side it has given me time to do a lot of my own research on KS. I am comfortable
buying in KS and the returns are good.See what happens
has loans USA and my usa still taken their pound of flesh regardless?
if we dont go ahead there will be no flesh taken i will promise you that
[/quote]
We have dealt with My USA Property, and so far have had no issues at all. Here are my answers to the questions you have;
1. once you have bought your property dont have to pay any extra for the renovations. All the work is done, you can even ask for a list of what work is done, on some of the property sheets they list the details.
2. If you want to know any informaiton about the tennant they supply you with a lease agreement, you can then ask them questions………..actually why wouldnt you ask the question?
3. We have dealt withUSA Loans quite a bit now, you can call and ask them questions too. From our experience it depends on how much you pay, where the property is as to what the interest rate is. And check with some US banks yourself, the current home loan rate over there is 7% for a normal family.
4. Dont know the answer to this one – never bought an unrenovated property – even though I know they have them.
I think you should call back and ask the questions directly to them. Each dealing we have had they are happy to help and any information we have asked for we have gotten without a problem.
[/quote]Hey MELBOURNE GIRL,
can you give any tips on how to prepare to make the purchases smoothly?
Hey Rosa
I am very scared to post latley, I have looked and not replyed, thank you for your kind words though.
We have found in our experience that making the purchase smooth just have the information available that the finance company are after. They have a good idea of what is available and where. Contrary to one ray of sunshines post, no fees or 'pounds of flesh' are payed until the closing has happened.
I would call and speak directly with them. They have a wealth of information.
Melbourne Girl.
Oh just a question White_Goodman, Who do you use to buy properties and finance them? They must not charge fees ,have all the answers immediatley when you want them. I would be interested to change if you have a better deal?
purchase properties using cash and cap the number of purchases to 2-3 (depending on purchase price)
You must be logged in to reply to this topic. If you don't have an account, you can register here.
