Thanks Jayman. I think I am probably the most impatient investor, or is that motivated??? Thankfully I am also sensible. But I am so raring to go, and while I totally understand that success in this is based primarily on relationships, I am finding it hard to be patient :-)
Freedom, impatience can be costly as it is an irrational emotion and there is no place for emotion when investing in property. Property is a business, nothing more, nothing less and all decisions have to be made on sound due diligence and grounded reason.
Before you buy anything you have to know what you are going to do with it, rent, rehab and rent, flip, demo and rebuild.. there are plenty of options, then if it goes pear shaped what is your ‘Out’?
When I started I attended a Commissioners Sale for 13,000 properties. I had spent the previous 3 months researching and ended up with a short list of around 75 properties. I hit town and started driving, after 2 days the list was down to about 20, had photos of each and a description, I knew if they were vacant or lived in and I had price ceilings for every one. I ended up bidding on 6 and won 2, the others broke my price limit.
This is what ‘due diligence’ is all about, it takes time, money and a lot of work on the internet.
For us it was 2 years before we bought anything and even doing everything right, one went wrong. Included in that 2 years was getting our structure in the US right. Now, having put in the time we can move on what ever market we want to. Look at it like a degree… 3-4 yrs of graft before you even draw a juniors wage.
There is a very old saying: “Fools rush in where Angels fear to tread” and the Fool and his money are easily parted.
There are quite a few people on this forum that can give guidance, use then to your benefit and invest wisely, knowing why, how and with whom
We have been buying redeemable deeds in Indiana. First year turned into a bit of a disaster, one was redeemed so made a good return, the other we received the deed and started planning the rehab. One day our property manager went to the house and there was a “For Sale” sign out front!!! Turns out the house should never have been auctioned as it was in receivership. We are getting our money back from the county, but all the other gas, water and contractor fees and deposits, plus material purchased, well we are kind of kissing that good by!
There is a way round though as the contractor will be rolling over the material and deposit into the new rehab, for which we are currently awaiting the deed, plus another which is already rented, so not all lost!
We are now exploring Detroit… and before any one asks “WHY!!’… we are targeting very specific areas with strong communities, architectural history and a big push from the locals to rebuild. These will be rehab to rent.
Indiana I like, it is growing and has one of the better economies where individual states are concerned, we now have all our ‘people’ and I know the area after spending plenty of time driving around.
Detroit… well we will see. Heaps of due diligence and we are now comfortable about getting our feet wet.
Michigan is my second pick after Ohio.
There is so much value in both Michigan and Ohio.
We are also looking at surrounding suburbs of Detroit.
Thanks for sharing this and well done, not many have the courage to explore Detroit and just follow what the media is pumping.
Have a great day.
EngeloRumora | Ohio Cashflow
http://ohiocashflow.com/
Email Me | Phone MeF@#$ THE REST WORK WITH OHIO CASHFLOW TO INVEST
Freedom, impatience can be costly as it is an irrational emotion and there is no place for emotion when investing in property. Property is a business, nothing more, nothing less and all decisions have to be made on sound due diligence and grounded reason.
Before you buy anything you have to know what you are going to do with it, rent, rehab and rent, flip, demo and rebuild.. there are plenty of options, then if it goes pear shaped what is your ‘Out’?
When I started I attended a Commissioners Sale for 13,000 properties. I had spent the previous 3 months researching and ended up with a short list of around 75 properties. I hit town and started driving, after 2 days the list was down to about 20, had photos of each and a description, I knew if they were vacant or lived in and I had price ceilings for every one. I ended up bidding on 6 and won 2, the others broke my price limit.
This is what ‘due diligence’ is all about, it takes time, money and a lot of work on the internet.
For us it was 2 years before we bought anything and even doing everything right, one went wrong. Included in that 2 years was getting our structure in the US right. Now, having put in the time we can move on what ever market we want to. Look at it like a degree… 3-4 yrs of graft before you even draw a juniors wage.
There is a very old saying: “Fools rush in where Angels fear to tread” and the Fool and his money are easily parted.
There are quite a few people on this forum that can give guidance, use then to your benefit and invest wisely, knowing why, how and with whom
Great advice here.
All good things take time.
I wouldn’t be rushing in, especially when it comes to investing in the US.
Its a different world here.
Have been living and breathing the market for 2+ years now and still haven’t scratched the surface.
Thanks and have a great day.
EngeloRumora | Ohio Cashflow
http://ohiocashflow.com/
Email Me | Phone MeF@#$ THE REST WORK WITH OHIO CASHFLOW TO INVEST
I spent 15 months with my partner Rob Keeler before we put a single deal together. Unless you develop a contact and perform due diligence on them you are more likely to lose money than make it. You either have to find someone to work with or go over and hope you make a good contact. If you decide to do it all from Australia and do not want to use someone on the ground then you may well be losing money.
I deal in Orlando which I feel is a great market and a safe one
Nigel Kibel | Property Know How
http://propertyknowhow.com.au
Email Me | Phone MeWe have just launched a new website join our membership today
Thanks Nigel
When you say work with somebody on the ground, are you talking of your team, such as your Realtors, Contractors (if you are doing your own Rehab), Titles Agents, Accountant, Legal Team, etc? Or are you talking of a Business Partner as such? If you are talking of a Business Partner, do you suggest hiring somebody, or an actual business partner?
I guess we are a bit eager because we have certainly invested a huge amount of hours, and a lot of money so far (for our standards I mean, probably peanuts to some). We are itching to get cracking and make some money back. We are sensible though, and that is why the hours are being put in, as we are studying, and living and breathing all of this, and tyring to learn as much as we can. So we are asking questions wherever we can to learn more, and I thank all who have been so helpful so far.
Also…. it was mentioned a few posts up by Jayman about the inability for Australians to get bank accounts over there without setting foot on soil, and that the banks still will close accounts sometimes even if you have done so.
The rules have just apparently changed again in the last few weeks, and while a few of us were getting accounts through Wells Fargo, again they have put a stop to it also. It is a continual headache.
An easy route perhaps might be to use Escrow, and then use an Australian International Bank account in our own name for when we want to pay ourselves dividends? May not be a solution that everybody loves, but is an idea for those struggling with how to start when not being able to get a bank account over there.
Hi FREEDOMN, that was an older post, as for quite a while now, I have helped to get bank accounts opened with not to much fuss.
It used to be that some of the majors Banks used to be good for that, such as Wells Fargo / Wachovia, But Wells Fargo brought them out and then started closing accounts down, It has been a few years since then.
Now it’s very different, and it seems that many can find banks that will open an account for overseas buyers, I have successfully been doing that for a while, together with a total structure set up. No rogues or thieves involved.
But again, there are many over in the US that can and will do all that, however, as previously mentioned, there are many sharks who will promise the earth and have a very professional look and feel, and you can get into some serious problems by getting involved with them.
So again, it always comes down to knowing the team, and having had a number of successful transactions through them.
There are many horror stories of buyers going over there to set things up, thinking they have met very good people to help them, then returned back home overseas, only to find they have got in with some real shysters, and brought real duds.
So you can as Nigel says, go through someone over here that has everything set up and works on a very personal level with buyers, or, do your research thoroughly before going over, and that’s a whole new ballgame to talk about with many questions and answers.
Is that what you offer as a service Jayman? As in your business sets up bank accounts and the LLC’s and stuff?
With dealing with sellers, I am not just looking to buy a retail priced property and rent it out. I am looking for some savvy quick profits to build up cashflow right now to then invest more in buy and holds. But I am not all that comfortable until I have done all of my own research also. For example I am in with a group called BuyPd, they have been around a few years, sell fully vetted properties/land/deeds. But I still wouldn’t let them just say ‘here this land will grow in value’ unless I researched the block and the area myself extensively and was sure that I would choose that area. But then if I am doing all of that myself, I might as well go and buy below retail myself also. If that makes sense?
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This reply was modified 10 years ago by
Freedom.
Hi, Detroit is beginning to move quickly again. However, there are a lot of bad neighbourhoods so great care must be taken. Check out crime stats. Unemployment is going down dramatically and industry is on the move so there are opportunities. Again, care is needed but there are good opportunites.
Argyle
Phone MeHi Jayman, we have found it difficult to open a bank account in the US without actually setting foot on US soil. Apparently it can be done by having documents witnessed by an attorney in a US consulate. Unfortunately, we live 200ks from our nearest consulate. Are you saying you can organise it differently?
Argyle
Phone MeWe have no problem opening US bank accounts for clients. Not all banks do it
The banks we use require a passport and drivers licence to be notorised. If you go to the US embassy on line they list Nortories in all states.
Nigel Kibel | Property Know How
http://propertyknowhow.com.au
Email Me | Phone MeWe have just launched a new website join our membership today
Hi Jayman, we have found it difficult to open a bank account in the US without actually setting foot on US soil. Apparently it can be done by having documents witnessed by an attorney in a US consulate. Unfortunately, we live 200ks from our nearest consulate. Are you saying you can organise it differently?
Yes it is difficult and most of the big banks which have retail banking centers in a wide range of states will require you to front up with all your documents.
We managed to open with Suntrust in Florida, but had to get all documents notarised by an approved Notary. They have limited reach and are mainly represented in the south east. There are still a few frustrating limitations which we have to deal with such as no wire transfers until we do our first one in one of their branches!!! Everything is checks and mail!
We’ve developed ways of working with the archaic US banking system, but it still frustrates the hell out of us!
If you are thinking of buying in Detroit, visit and do on ground research and set up an account with a major bank while you are there, I would suggest looking at Chase, they have been very helpful for us and we plan to move to them next time we are in the US. Forget Wells Fargo, Citi is mainly ATMs with limited retail representation and don’t think “they have a branch in Aus” will be of help, it won’t!
to invest in the USA, what is the best way to get the money there to buy the properties you want? if your partner is a US citizen, does that make it better and which financial institutions to work with is the best from Australia?
Before you send money over you will need to have somewhere to send it to, ie a bank account, as for which and where.. I will not make any recommendations that one you will have to sort out with your partner.
On transferring funds, we used AFEX, http://www.afex.com very helpful and seriously competitive rates, much better than any bank and you are going to have to watch your exchange rate as the AUS$ is bloody terrible currently. Might be worth waiting for QE4 as this could soften the US$ a bit, but no guarantees.
I must admit we use OZFOREX after having some poor experiences with AFEX however unless you intend to go to America and invest a lot of time and money to do due diligence I would strongly advise you to either not invest or work with someone you trust.
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However although the dollar has dropped keep in mind that all your earnings will be in US dollars. We are doing everything from flips to buying hotels and other quality commercial property. As for markets like Detroit I think there are better markets to invest in. we like markets lie Florida where you have a growing economy.
Nigel Kibel | Property Know How
http://propertyknowhow.com.au
Email Me | Phone MeWe have just launched a new website join our membership today
this is an informative thread, just found it.
will have to take time to read :)thanks everyone for sharing
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This reply was modified 9 years, 9 months ago by
CharlieX.
Some of the smaller banks are being very helpful in opening accounts. The bank I use does not need passport and drivers license notarized but a form stating that these ID documents have been sighted needs to be completed. This needs to be witnessed by a Notary Public which is fairly easy to find. I also use Ozforex for transfers to USA and Usforex for sending money home. The home transfer is all done on line direct from my bank account so no need to complete the transfer myself.
Judith Ottosen | Outback Realty LLC
Email MeHi. I have been buying, rehabbing and renting houses in St Louis Missouri for the past 4 years and found it an interesting experience. The key to success is to find the right property on the right street (local knowledge is key here) and to have a good team behind you to property manage and maintain them. It took me via trial and costly errors to now have the team that now makes buying and renting properties much easier. From my experience I now share and help others to get their US property portfolios up and running. But I agree the signs of recovery in the US market are happening and with the stronger US dollars I believe I am on track of being a very content and very comfortable (financially) self managed retiree. I could never achieve this if I invested in Australia.
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This reply was modified 10 years ago by
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