NEW: US Property Focus Group (Free to Join)

John, I think you will struggle to find anyone. Let’s hope I’m wrong.

Probably the first thing to consider is what your overall goal is for investing in the US then what structure are you going to invest under, an LLC or what, from here you need to get the structure set up first.

Let’s say you are going to use and LLC.
1. What State are you going to register it in?
2. What are the State taxes for companies?
3. Are you going to look for a Tax Free state like Nevada or Delaware?
4. If you are buying out of the LLC’s state of registration, does the state you are buying property in require you to have ‘Foreign Entity’ registration?
5. What bank are you going to use for your accounts? Forget Wells Fargo as they don’t cope with foreigners running LLCs.

Now you have watched anything up to a year go by, and the property market has moved, so you research is down the tubes.

Don’t get me wrong, I am not trying to put a dampener on things, just bring a bit of reality to the venture. It took us about a year to get everything in place before we really started looking at property and because we have everything set up properly, asset protection is in place and everything works better.

Finally I have heard so horror stories of investors working with “All-in-one” companies, and I personally know of two people who purchased property this way, looked great on paper, but that was all. They can’t rent them except to ‘trailer trash’ and they are worth nothing on the real market.

Hey CDER,
Contrary to what a lot of people will say, you can do it yourself. The tools that are out there and a basic knowledge of real estate markets makes information widely available. I’ve only just started to reignite my interest in the US property market again too after the mess that is beginning here in Aus. Looking to go over there myself and have also come across what seems some pretty legit providers that I will check out. Let me know if you want me to fill you in on my experiences…

Hi all,

came across this site and forum while doing my research in Australia. We are a developer in USA, MICHIGAN, DETROIT as well as a property management firm. My passion is ignited as I see similar investors in this forum discussing about USA properties.
our website http://www.midasdev.com
we focus on Detroit, the returns and capital gains are extremely positive from a city which emerge from bankruptcy within 17mths. the potential of Detroit is fantastic as USD250 Billion, YES BILLIONS was being pumped into the economy from government and private sector. its all due to an upward recovery cycle. Cheap rentals and work force draws the business from all over USA thus pave the way for more jobs and opportunities, all leads up to increase in properties values and rentals. its mostly good news in DETROIT.

https://www.youtube.com/watch?v=N0E8a_L91

contact me if keen to know more about this opportunities for investors. the properties are between USD30-60K for a 3bedroom landed freehold and tenanted single family home. returns are at nett 13% per year.

We don’t do trenches investment, we sell with title deed and managed your property for you in DETROIT. we are the developer and property management company over there.
http://www.midasdev.com

[email protected]

Agree with Nigel on this one. Detroit is a lovely place to invest if you like throwing your cash away. A few of my clients babe property there and none have seen anything to bring home yet and are not likely to. There are issues with poverty, gangs, unemployment and a lack of care on the tenants part to take responsibility to ensure the landlords home is kept in as good a condition as possible ie do not let the kids swing on the doors for one. It is possible to buy well there but you need a super reliable realtor and property manager. In my experience, finding a property manager to help my clients out, was an onerous and almost fruitless task.

Personally I am involved in Florida. The weather is great all year round.

There are 1000 people a day moving to Orlando, plus you have a growing tourist market. Florida has just become the third largest state in America overtaking New York state. Plus Florida took a huge hit in the gfc. However now the markets are recovering there are many great opportunities.

Turn Key

I hate the phrase turn key. When I hear the phrase, it is like listening to the screeching of fingernails on a chalkboard. I believe that there has probably been as many investors hurt by in investing in “turn key” properties than were hurt investing with Bernie Madoff.
What does the phrase “turn key” mean? It doesn’t mean anything. I stick a key in a lock and turn the knob that lets me into my house. This is where any similarities with anything to do with real estate end.
There is nothing turn key about real estate. In order for real estate investing to be profitable, the property has to be managed by a competent manager. Competent property management is the last necessary ingredient in the real estate success recipe that includes real estate price analysis, economic analysis of the market, rental market analysis, and property inspection.
Turn key is a phrase bandied about by shady marketers use to lull want-to-be real estate investors who don’t want to take the time to become educated in that particular market, into believing that investing in real estate is easy. It is not. Someone has to be doing the day-to-day “heavy lifting” of the property. Rent collection, evictions, move-in/move-out inspections, cleaning, repairs and maintenance, etc. are a short list of the responsibilities of a property manager.
The phrase can be attached to anything building in any condition, in any circumstance. Here’s an example. Next to a main artery into one of the cities in which I invest, I have watched a vacant building for several years which used to house a restaurant for probably 20 years. The restaurant fell victim to changing demographics, changes in available local cuisine, and urban blight. The building sat empty for a few years. One clever real estate agent placed a sign on the building reading, “Turn key” restaurant space.” During the subsequent five years the building has housed three different restaurants and is now empty again.
Obviously there is nothing “turn key” about that particular location.
Remember, when you hear someone touting “turn key,” think to yourself, “This guy is a tur-key.
Good Luck and Profitable Investing
Ryan

Ok show me :)

It’s generally arguable if the US property market is as attractive now, at least for overseas investors, as it used to be. The USD is much too over-rated at the moment and still getting stronger (good for American buyers, of course, but not so for sellers and exporters). The UK, EU or China (!) sound more interesting to me..

This is unfortunately very true. I have found most Americans spend everything they earn and have “stuff” Eight TV sets is not uncommon. Everyone in the household goes to their room to watch what they want on TV and do not sit together as a family. I hope this is not a trend in Australia too.

Almost all of my tenants are late with rent if there is anything like a car breakdown. There are way more tenants than rentals available in SW Florida