Hi Rosa, I completely agree with you when you say you are looking for just good investment, does NOT matter if other people are running it. After all, in compare to the amount of time overseas property due diligence takes, it is much wiser to get some professional help. Even after paying their fee, it will be a worth while to do it.
I am looking for Florida property. I have selected few buyers agents so far like
(1) MyUSAproperty.com
(2) Cash for gold.com
(3) PropertyShopUSA.comBut I haven’t contacted them, will call them tomorrow.
I know, few buyer agents will read this post as well; and will try to convince me with all types of data (about their companies and their “preferred” states), but I like to request them that I will do my own research which company is most suitable for me.
Thanks.
Hi
I've been looking into the options of leverage through loans within the USA. It seems that things are opening up in this area for foreign investors and at a low loan entry level.
I came across this site : http://loansusa.com.au but don't know the interest rates. Also a Memphis operation offers private lending finance at 9.9% which is a stop gap measure for 18 mths while you build a credit rating through the property ownership and the use of a credit card ( issued with your bank account). The idea being to get the property revalued, refinanced and withdraw your initial investment to repeat the buying process.
There is another business offering 70% finance at 5% over 15 years. They operate out of Arizona. When I get the details I will post them.
Ian
http://www.theblockblog.com
Free Property Investment Information, Tools & Resources for Property Investors – US, Aust, NZYeah i know I have been contacted by a few people…Aside from facts… I also rely on gut feeling… if I don't feel that things are adding up…I don't… but if some things are falling in place and make sense.
I have become a member at the moment with House buyers USA…I am still scoping out the other companies though. At the moment I am in the process of registering a LLC and obtaining a USA bank account for easier transactions…etc. All going smoothly so far.
A bit more info about me…I am actually considered to be in the Low Income bracket… according to ABS… which means I earn less than 60K a year. I believe I will actually be earning less than 45-50K this financial year… However! My partner has taken on most of the financials and I am the saving/paying down loan guru.
I am planning on purchasing an investment property this year… by the end of the year hopefully. I don't own a house and have some money saved up.
I am putting this in so that people are aware that I Do not earn a lot of money, but i am still making moves towards my future… Will keep you posted, even though it may be a longer process.
sapphire101 wrote:I came across this site : http://loansusa.com.au but don't know the interest rates. Also a Memphis operation offers private lending finance at 9.9% which is a stop gap measure for 18 mths while you build a credit rating through the property ownership and the use of a credit card ( issued with your bank account). The idea being to get the property revalued, refinanced and withdraw your initial investment to repeat the buying process.There is another business offering 70% finance at 5% over 15 years. They operate out of Arizona. When I get the details I will post them.
Hi Ian,
Is this means, you can apply for finance after 18 months? I like to hear more from another business offering……please keep us posted…I'll be quite interested to find out more about this. Financing is the very issue at the moment in US to built sizeable portfolio.
Okay… progress thus far… have signed up with House buyers USA…
I have LLC and EIN…. now awaiting Bank account…good communication so far and I feel real comfortable with them.
Hi guys,
I am also interested in buying a US property. After hearing about RickH's success, I am also thinking about going with HouseBuyersUSA. I am a little sceptic about all these agents but.
After doing some reading on this forum, I heard some agents buy US property and sell them to their customers at a much higher price claiming that it has been renovated, and then slapping on $4-5k fees on top.
My advise to anyone looking at any of these companies is to understand what they are buying. You need to understand what price was previously paid for the property you are looking at buying.
I have looked at some buyers agents operating out of Australia and the properties being offered. The first thing I do is type the address of the property into http://www.zillow.com and look at the price history and see what it was last listed for.
I also do a general search of the propertyaddress on google and see what comes up including looking at the prices of surrouding properties.
I have seen properties in Memphis being offered on buyers agents lists for around 35k that were listed for sale for $8,500. I have seen properties offered to Australian Investors for sale at 62k in Toledo Ohio that were last sold for 13k.
Dont get me wrong, I think the US presents an incredible investing opportunity right now but NOT if you pay too much for the property.
If you don't know how to look up the sale history of a property I suggest you don't buy it.
Fully agree with previous poster – there's A LOT of that going on in Australia, some companies seem to do it more than others.
Just do your homework would be my advise alsoHaven't posted in a while… has been a bit slow with the set up of my US account… entirely my issue though… needed to get more current ID… grrr…. passport office…. ah well…. will have it next week and then full steam ahead again….Not really minding the delay… gives me a chance to save up more cash….
HI, I have noticed everyone talking about the 4 listed by Rosa but has anyone invested or used US INVEST?
They seem to have everything organised like bank loans for foreigners etc but I am not too sure about them. If anyone has thoughts or has read anything about them.
I know according to Zillow (not a bible by any stretch) i am about 16K in front on enquity.
Equity on paper is worth nothing unless you plan to use it or sell the property.
From my position the current value is reasonably irrelevent as I have no plans on selling and the
cash flow means i am being paid to own the house at present.I too have seem places last sold for 10-15k being resold for 40k. But seeing detailed pictures of the before
and after you can see a fair amount has been spend. in your mid west snow prone areas a tripping tap in winter
can totally destry your plumbing system….not a cheap repair !Each Property I have been sent by My USA property I have been able to find online for about 60% of the My USA property price.
When I enquire I am told that it has now been renovated, and searches done to ensure the property is legally 'clean'. But that surely cannot equate to the price differential.
Am I missing something here?
Are others finding the same practice, either with My USA property or with other like companies?
Kenny,
Guarantee that you will find this quite common. They will tell you stories like Zillow or Trulia is out of date, were renovated since, blah, blah, blah. <moderator: delete language> I think you would find plenty of info on MyUSAProperty in these forums which will give you the right idea. They will also suggest that financing is easy through LoansUSA but I haven't seen 1 poster yet that obtained it through them.
I am going to Dallas this Sunday to purchase some properties myself without the assistance of a so called "Aussie Buyers Agent" and have the ability to get finance up to 50% minimum over a normal 30 year term. I likewise purchased last October ….again without a buyers agent and again had finance approved over a 20 year term.
Appreciate that not everybody has the time to research and go to the US themselves to do it all and some assistance is needed but there are alternatives to the same company names that keep popping up (MyUSAProperty, Cash Flow Gold, 888 Wealth, Homebuyers USA and yet another new one US Invest)
PM me if you want details or wait until I return early June so I can pass on the details after I have been through the processthere will always be a mark up if a company buys and renovates to on sell. They will always add the renovation cost as well as a margin (profit).
I believe they do make good money on reselling but you are paying for the service and also it seems they work the prices out to acheive a gross return somewhere between 10 and 15%.
My thoughts are not aimed at any certain company but just in general across the board.RickH wrote:there will always be a mark up if a company buys and renovates to on sell. They will always add the renovation cost as well as a margin (profit).
I believe they do make good money on reselling but you are paying for the service and also it seems they work the prices out to achieve a gross return somewhere between 10 and 15%.
My thoughts are not aimed at any certain company but just in general across the board.Rick… your spot on. You can't expect any company to take all the risk when they
(a) buy the property with their cash,
(b) do all the refurbishment at their expense and
(c) lease the property to a tenantand still expect a bargain !! ….life just doesn't work that way.
If you are chasing that bargain property then you need to go to the US yourself….snap up that bargain ahead of a US investor on the ground, do and organise all of the refurbishment yourself and then lease it out which is out of the question for most investors in Australia. This is the reason why all these companies have popped up in the first place….it would literally take weeks extending to months to do it on your own.
I do believe the issue however is just how much profit do they need to make at your expense PLUS charge you fee's on top again. (This wasn't aimed at you by the way Rick…I know you are happy with your purchase and you have the right investment attitude and wish you every success)
Thanks Rick.
That is my impession exactly.
I do not begrudge anyone making a reasonable profit. If they didn't, then I would be concerned.
The problem is a combination of (1) the fact that they must be making a massive profit – suggest 35% minimum – on the property sale itself, (2) that they then charge a fee on top, and (3) that they misrepresent their interest. They actually deny the profit on the sale.
Yes, they do provide a number of services, and introduce the property management etc, but if they misrepresent the aspects of the property sale, then you would surely have to assume they they are taking a sling with every other service.
YAY!!! got the US bank account!!!… also registered with Ozforex to be able to transfer money OS no fees if the transfer is over 10K… nice!!!!
HouseBuyersUS now can offer finance… 50% down though… So I am a little short for that at the moment…. BUT am working on it ASAP…. Have applied for a permanent job where I work, with more humane hours. It is a little less per hour, BUT plenty of chances for overtime and weekend work… yay!!!! time and half and double time!!!
At the rate that I am currently saving I should have enough for a 50% down by the end of the year…or early next… So any OT money or tax return is bonus!!! fingers crossed for OT and money back from tax…
One of the reasons that I am posting here about my investments and general finance is to allow people who DON'T have a few hundred thousand in their super or just lying around to see my journey and be encouraged that something can be done for your future.
Snaps for rickiH getting his first rental cheque!!!!
KennyFrampton wrote:Thanks Rick.That is my impession exactly.
I do not begrudge anyone making a reasonable profit. If they didn't, then I would be concerned.
The problem is a combination of (1) the fact that they must be making a massive profit – suggest 35% minimum – on the property sale itself, (2) that they then charge a fee on top, and (3) that they misrepresent their interest. They actually deny the profit on the sale.
Yes, they do provide a number of services, and introduce the property management etc, but if they misrepresent the aspects of the property sale, then you would surely have to assume they they are taking a sling with every other service.
You are spot on here, and maybe as much as 100% in some cases, unfortunately these business' do not disclose their costs.
Typically in Australia a buyers agent purchases a property at the best possible price for their client, they disclose the cost and you are charged a percentage. The most I have ever paid was $10,000 on $510,000 property.I recently signed up with one of these groups mentioned on the forum purchasing in USA, they tried to sell me an inferior property for $52,000. I researched further to find out that it was listed for $25,000, now how much below that price did they secure the property is anyones guess. This was a small home. I am currently looking at rehabing/renovating a large home in comparison around (1600 ft) which needs major work for approximately $10,000.
To cut a long story short I requested a full refund and an explanation for the discrepancy, I was told initially it was an administration error and then the second story was that it was an exxpensive rehab, no costings were provided. I did not buy either. Interesting, they could not give the refund quick enough.
Since looking at US and doing my own research I would not touch any of these companies with a barge pole.
I think the mark ups are obsence.
CHeers, Marisa
Hi,
I assist people buying in the US. Yes, I have my own property in the US and intend in buying lots more. Location and management are the key. I also have references as well- because trust is important.
Research is important in buying in the US. I myself stay clear of places like Detroit and areas that have falling demand. I focus on places with low entry points, strong demand and good potential returns.
Regards,
Steve
[email protected]
You must be logged in to reply to this topic. If you don't have an account, you can register here.
