I have read some good and bad things about various companies that act as agents for buying in the USA.
Top ones being:
1. Cash for Gold
2. My USA Property
3. 888
4. Positive cash flow.I have talked to various peoples who have gone with these companies and now…here is a big question and I don't want to offend any one.
Out of all of those who have invested with these companies.
1. Have you received any returns?
To clarify, have received any cashflow in the positive since you have bought and how often do you receive it? I know it is a big ask, I am not looking for specific monetary figures, I just want to get a feel for the general consensus out there re the above companies.
Hi Rosa,
The one question I would ask any of these people is have they invested in any property either here in Australia….or the USA, because if one has not invested and done the hard yuards themselves….how can they advise you on investing.
Have you invested in property here in Australia?
jeffjeff2investUSA wrote:Hi Rosa, The one question I would ask any of these people is have they invested in any property either here in Australia….or the USA, because if one has not invested and done the hard yuards themselves….how can they advise you on investing. Have you invested in property here in Australia? jeffI have asked and some have replied that they have and with the company that they are working for…is that a good thing?
Rosa,
Thats a hard question, I suppose you could ask were in Australia they have invested and what type of investment?
Investing with there own company is not a bad thing…..
The MOST important area of investing in the USA is the property management…..can they provide a tenant year in and out…….
What cities are they wanting you to purchase in.
How much research have you done?
Jeff
jeff2investUSA wrote:Rosa, Thats a hard question, I suppose you could ask were in Australia they have invested and what type of investment? Investing with there own company is not a bad thing….. The MOST important area of investing in the USA is the property management…..can they provide a tenant year in and out……. What cities are they wanting you to purchase in. How much research have you done? JeffMostly Net searching at the moment… looking through government databases…searching company titles etc… to make sure it really is a company…and when it was incorporated…trawling through forums to get feedback on the companies and looking at some sights with regards to projected growth in those areas…plus keeping my eye on the news
I want a set and forget investment…well as much as possible…I don't mind other people running it as long as I get reports etc…so I don't mind paying more/fees…I am not that uptight about it.
Rosa Tong wrote:jeff2investUSA wrote:Rosa, Thats a hard question, I suppose you could ask were in Australia they have invested and what type of investment? Investing with there own company is not a bad thing….. The MOST important area of investing in the USA is the property management…..can they provide a tenant year in and out……. What cities are they wanting you to purchase in. How much research have you done? JeffMostly Net searching at the moment… looking through government databases…searching company titles etc… to make sure it really is a company…and when it was incorporated…trawling through forums to get feedback on the companies and looking at some sights with regards to projected growth in those areas…plus keeping my eye on the news
I want a set and forget investment…well as much as possible…I don't mind other people running it as long as I get reports etc…so I don't mind paying more/fees…I am not that uptight about it.
Rosa,
My email is [email protected]
If you want to email me I can at leat share with you my own experience in investing in the USA and were and why
Jeff
Hi Rosa,
I find it interesting that not one person has replied to this thread informing of their experience with buyers agent type companies? I wonder why as I know at least a couple of people who have had no issues in fact saying that it was a positive experience. The experiences of others with buyers agents would greatly interest me as I am currently researching them all to see if any are any good. Maybe people have had terrible experiences and don't want to share for fear of shame, or have had positive experiences and want to keep it to themselves due to greed? Nice post Rosa. Will keep watching this thread to see!
Adam
Rosa Tong wrote:I have read some good and bad things about various companies that act as agents for buying in the USA.Top ones being:
1. Cash for Gold
2. My USA Property
3. 888
4. Positive cash flow.I have talked to various peoples who have gone with these companies and now…here is a big question and I don't want to offend any one.
Out of all of those who have invested with these companies.
1. Have you received any returns?
To clarify, have received any cashflow in the positive since you have bought and how often do you receive it? I know it is a big ask, I am not looking for specific monetary figures, I just want to get a feel for the general consensus out there re the above companies.
Adam2011
RickyH has had some feedback re: buyers agents…I am currently sussing out one that he went with… homebuyersus…I am also checking out vincent selleck's 888 property… one of the main reasons for me checking them out are the face that…homebuyersus has appeared on a tv program…tv stations do a lot of research into their articles…and vincent selleck has been interviewed in a few financial magazines. based on this i would say that at least they have some credability. Have ditched the idea of my usa property in favour of these two at the moment…
I have also been checking of the blockblog of free research information…trulia and zillows. trulia being my fav because it's free.
As I don't have bucket loads of money… being a semi-skilled worker…I am currently looking at getting a personal loan to get started.
Interest rates vary from 15-25% depend of course on how good a customer you are and the risk involved. This may of course lead to a -ve cash flow for a bit…but taking on the fact that if i pay more than what i need to it will take a short time to get to positive.
Basically the rent in US will stay there in that account if possible and I can handle the loan here… or i can transfer some of the rent from the us back to here… will lose a little at the moment due to the exchange rate, but it will help pay off the debt faster… or reverse… and get a loan possibly in the US and do the same but the rent will be the basis and i will put money in the accounts for it to be paid off….which will keep accumulating until i have enough to pay it off in one lump or contribute one lump and thereby decreasing the principal and making it positive… possibly take about 1 year max. all things considered.
if i am lucky i would be able to get a loan and have it zero out with all the expenses and the loan. BONUS!!!!
Jackpot!!! if it is even a little positive.Yes i am pov…i don't have a few hundred thousand in my super…
I have been a casual worker most of my life and as such… am seriously lacking in super…I am an excellent saver and payer down of debt though….well here's hoping. will allocate the next month to sussing out possible loan options.
Rosa,
My advice, its worth what you paid for it, is don’t……………….
You got to be absolutely nuts to take a personal loan to buy US property. You will never get enough net return to be even close to an even cash flow.
World gone mad… greed rules………………… crazy
As i said IMC newbury…just checking out the loans thing… p;ersonal or home loan or something else… will keep looking… ideally getting a loan from a US bank would be better than here because of current rates… however, buying for cash is the best….not having enough cash though…i would have to either buy something really low and gradually get it fixed up as money becomes available or wait a bit to have more money.
we were looking at buying 3 under part US finance. In the end got one for cash. The cash flow on paper was the same from one unfinanced as 3 financed. Feel a bit safer not needing to worry about overseas finance in the event of vancany.
I personelly would not go down the path of a personal loan at15% to obtain a property in USA.
Rosa if you are a home owner here can you draw down on the equity and at least you with be paying home loan rates.Keep up the reseach and from experience the one stop company fees can vary a lot from place to place …….. good luck
RickH wrote:we were looking at buying 3 under part US finance. In the end got one for cash. The cash flow on paper was the same from one unfinanced as 3 financed. Feel a bit safer not needing to worry about overseas finance in the event of vancany.
I personelly would not go down the path of a personal loan at15% to obtain a property in USA.
Rosa if you are a home owner here can you draw down on the equity and at least you with be paying home loan rates.Keep up the reseach and from experience the one stop company fees can vary a lot from place to place …….. good luck
Unfortunately I don't own a house here… all i have are my savings… due to many a family business/financial/realestate issue…I have ended up paying off debts from them and helping them for the better part of 10 years and about 100k…and being investigated ( still by the ato) you know that if they find anything they follow you for 3-5 years and if they find anything again in that final year the clock starts again?
So after having cut off all but a few family ties and much burning of the candle at both ends in casual jobs purely for the higher rate I have managed to pay off all debts barring my own for an operation and put my credit line in good stead as well as saving up a bit of money. not much considering how old I am, but a lot better than most who are now currently struggling with mortgage repayments. so avid renter at the moment as it is around 1/3 to what we would have to pay in a mortgage.
am keenly looking at other options such managed portfolios of property….etc….
good on you for all you have done ……. does make it tough. Things like property trusts ect may be another way to get ahead.
I would talk with a financial planner advisor and discuss all options. Be prepared for them to discredir direct property investment as they can not help with that and it is not "in their interest" to reccomend it….. unless they can do a loan for you .Best of luck
Hi Rick- Just wondering who you were going through to get finance for your USA properties? I would expect to pay approx 5-8% interest so am struggling to see how you wouldn't be better off financing 3 properties with a 15-20% net return compared to paying cash for one?
Interested to see how you went about getting finance, who through, and what hurdles you hit.
Cheers,
Luke.simpily because you are unlikely to get 5-8%….you will be looking minimum 9-10% through most banks. Factor in mortgage broker charges and very high bank fees for overseas investors 1000's of dollars . I think you will soon see my reasoning
Hello Rosa,
Cash flow for Gold has a good team though their fee is slightly higher, about $6.3K. Steve from Cash flow Gold is quite helpful and very unfront about fees.
Tony from My USA Property has tons of experienced in real estate investment and has good contacts in the US. His fixed fee is $4.9K and areas that he mainly recommends are tourist areas. Finance is available for 7%, with 50% LVR, principal and interest payment for 7 years.
This is not in your list but hey, what the heck…….House Buyers USA, has been in the US market for 8 years long before the GFC and got good track record as being buyer's agent. RichH has been instrumental of suggesting to try them out which I did…just signed up with them and hopefully, in few weeks, I get my property settle…will keep you posted.
I see leverage a very important part if you want to maximise your investment which help you to build your portfolio. I don't mind borrowing with 8-9 percent, with 50% LVR, with principal and interest payable in 7 years. Taking loan with 9 percent, with principal and interest payment, with 7 years term….much like financing car in Sydney but the main difference is the former is incoming producing asset whereas the latter is depreciating asset (car). It is no brainer which one to go for!
With leverage, it still gives me some money left over, then using some saving from my monthly salary, I can quickly save up and borrow again and purchase another IP. For me, leveraging, plus savings helps me plan to purchase again.
Each investor has his or her own strategy, my strategy will be different from you due to our circumstances are different. What's yours?
I spoke to my finance broker about getting personal loan; His advised was STAY OUT of it because of the interest charge is very high… is not worth even thinking about.
Hope this helps.
Thanks Leo
leo… i may have to do the same as you as i don't have anything other than cash to leverage….i have been talking with someone from house buyers usa and he has so far been very helpful..
my usa talked to me for a bit…but after i signed up…no much happening now… so i am down a little money there. I will possibly send an email to them shortly with regards to how things are.
I find that most of these guys when they ask how much i have saved and i tell them, figure to put me in the too hard basket. But so far the contact that i have with house buyers us is keeping me posted.
will check back with my usa property later this week to check the response.
Those multi millionaires who wrote books, conducting seminars etc., would not have made it without LEVERAGE…it is not possible to grow multi million dollar portfolio without financing. Again, it is case by case and different for individual. But, I plan to use someone else money to grow my portfolio.
DHCP wrote:Those multi millionaires who wrote books, conducting seminars etc., would not have made it without LEVERAGE…it is not possible to grow multi million dollar portfolio without financing. Again, it is case by case and different for individual. But, I plan to use someone else money to grow my portfolio.Hi Leo,
Don't forget though, that leverage can work both ways. As Warren Buffet says, "You can't go broke if you don't owe anyone money"
SteveDouglas wrote:Hi Leo,
Don't forget though, that leverage can work both ways. As Warren Buffet says, "You can't go broke if you don't owe anyone money"
Hello Steve,
How you going mate? Agree !!! That is why not all properties make good investment. There are so much variables to consider and it is balancing act .
What I've seen is this, the IP will take care of itself property provided you bought the right property in the right area, in the right location and in the right street.
I like to approach property investing as "business" and just like in business, there is risk.
Have a good one.
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