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Steve,

Don’t get me wrong 10% minimum is great, I am about to close on a deal that will give me 26% net. There are plenty of deals like this. If one is happy with 10% thats fine no problem. I know that there are better deals that will give one better than 10% more like 15-25%. I know it sounds to good to be true, these deals are out there

you need to know were these deals are these properties are not REO or foreclosed, you will not find these properties on any MLS listings.

If you are interested you can contact me if serious

I have watched the US market fairly closely since 2004 when the overbuilding began (and coincidentally, the lending standards became more lax). Resisted the opportunity to buy multi family a homeunit block in Texas when the weakness in US housing was becoming apparent (I thought the market had bottomed in 2006 and still wondering if we are there yet!) . Glad that I didn't jump in when there was much further falls to happen. Big differences between the US and Aus ppty market persist. Largely around management (Aus ppty mgrs are more active and effective) , use of non-recourse loans (less commitment to hang on to the house and owners find it to easy to walk away creating a snowball effect, with falling ppty prices) and static population growth. 'Bargains' can prove be expensive in the long run. These days I stick to fundamentals and recommend the same for my clients

Hi Jeff,

I am interested in some more information about perhaps some recommendations you have. Could you please let me know where I could contact you. Alternatively you could contact me on [email protected]

Thanks

James

Hi Steve

Some awesome information you have posted in this thread, well done.  I have just purchased my 1st property in Orlando and will be heading over around the 15th of next month to close the deal.  I know it could be done from here (Perth) but we want to snap up a few more when we go over.

We used our line of credit here in oz to finance everything.  1st property was $205K – my sister in law will rent this property from us.  We plan to purchase a condo for about $100K in cocoa beach and grab a few single family homes in orlando around the $50k mark. 

We chose Orlando based on the fact thats where the sister in law lives,  We have read some shocking stories of useless management agents and maintenance people.  By purchasing here we can have the sister in law manage the properties and her husband do all the maintenance.

Not particuarly fussed about positive cashflow as our plan is to make the money in capital growth.  Plus as we have everything financed here in oz when the $AUS drops and the $US rises we will be getting more for our rental dollar.  In the meantime some negative gearing wont go amiss.

I know you are keen on Miami (and we may even grab some down there too) but hopefully when we get back we will have some usefull information on Florida in general to share with fellow posters regaring reputable accountants, setting up LLC's, registering with the IRS  etc.

Once we have exhausted the cash we will then look into borrowing to purchase more.  We have the option of selling investment properties here in Perth and tapping into the SMSF but I feel 6 or so properties in the US will add a nice balance to our investments wiithout throwing all our eggs in one basket.

Good luck with your purchases
Jason

British Buyer, I´ve been reading your posts as well as other´s in this thread for an hour… very very interesting!!!
I´m on the other side of the world, Argentina, and I´ll be traveling to Florida this October 30st and I´ll be just a week there.
My main goal on this trip it to open a bank account, see some real estate agents, visit some properties and find out about loans, mainly to start building credit. I think my wife will hit the beach meanwhile….

I think market in Florida hasn´t bottomed yet, we have at least a full year ahead of us with prices still going down, maybe is time to buy cheap condo properties in the 50k range, trying to get a loan just for 10 or 20% of the property value, with the only purpose of setting a foot there and start building credit for the right moment. I thing rental return is not important in this phase, and tax and hoa fees for the next year should be considered as part of the investment amount.

I´m focused in the Broward County area now, mainly because I´ve got a personal friend that lives in Fort Lauderdale and she can assist me in management tasks and be my eyes on the field. She has lived there for 30 years.

Maybe we can meet to discuss strategies and start this investment journey as a cooperative force. We have the same goals and as far as I can see all of us in this forum can profit from the failures and success of each other. Through my research online all this months I´ve found that buying a property in the US can be tricky and challenging, there are many legal and tax issues to be considered, but even the most conservative approaches suggest it´s still a very good investment. We just have to be careful and choose the right people to work with to maximize the ROI of our hard earned money and avoid potential mistakes that can ruin our plans.

Don´t forget I live in a country with an exchange rate of 4 pesos to 1 dollar, that makes each dollar valuable to me.

I dont have 250k as you, I´m below 100k but I think the US real estate market can give me the tools to double or triple that money in a few years, and that´s just the beginning.

Sorry about my english as it´s not my native language.

you can contact me at [email protected]

As I understand, correct me if I´m wrong, as an individual, you can request an ITIN, which is a personal tax number and make the choice to treat your rental income as a business, that way you have to make your tax declaration but you can deduct expenses, maintenance fees and so, thus resulting in much less that the tipical 30%.
As for the sale, I understand the withholding figure is 10% as long as the property sale value is equal or above 300,000… but I could be wrong.
Putting your properties in an LLC has its benefits but it´s difficult to get financing that way….

Gullotemi,

I read the article that you posted. I am amazed at all the people that are purchasing in the Sth Florida area, I know that there seems to be good deal out there but as far as capital gain is concerned there are better area’s in the USA.

I am investing in cities that has good vacancy rates, unemployment figures are promising and in some area;s there was no housing collapse.

Getting positive cash flow around 25% net

Jeff

Hi Steve

Compared to Perth the Orlando market is a steal.  To be honest we dont care if prices go lower, we are in it for the long haul so will still make good money when we decide to sell. At this point in time prices are a steal and the exchange rate is almost on parity so we are jumping in.

This may go against most investors strategies but I go by gut feel, and Orlando feels right.  Some folk over analyse things to the point they find it hard to make a decision.  I have no clue what the unemployment is like in Orlando, but with disney and universal close by we will turn the properties into vacation rentals if need be. I have not looked at any graphs or statistics nor do I intend to.

There may be better buys in better cities and good luck to those who do purchase these properties boasting cash flow positive figures.  For us we feel good with Orlando plus as I mentioned earlier we have family there who can keep an eye on things for us.

My wife and I have used this strategy for the last 20 years, gut feel.  I have been retired for the last 8 years, since I was 30 so the strategy has done well by us.  Nothing ventured nothing gained as they say!

Booked our flights today so hope to come back with some good information for other investors.  Folks no doubt will do more research than me and thats fine but at least I can help with the setting up information which seems a closely guarded secret by those posting for their own business gains here.  Fair call however we all have to make a dollar somehow.

I wont be using the agent we bought this property with (extremely bad handwriting, looks rushed and my 8yr old writes better) May be trivial but the gut says there are better to be had.