NEW: US Property Focus Group (Free to Join)

As a seasoned US Property Investor and currently the owner of a mid-sized Property Management Company in the US, I’ve noticed through my business activities that many Australian Investors purchased investment properties a few years ago (when the exchange rate was more favourable) without being properly educated or truly informed of their investment risk.

Fast-forward to today, and bad product, bad management, and slick-seminar-syndrome has left these same Investors with significant capital loss. Many are looking to divest themselves of their purchase, unfortunately turning to the very same groups from whom they purchased the property in the first place. In my opinion, a big mistake. The current trend indicates that issues are escalating, since my company in Kansas City seems to be engaged more and more as an “asset recovery service” as opposed to a property management service.

The thing is, property investment in the U.S. can work, really well.

I’ve decided to start a National Forum through which Investors can not only have the opportunity to share their story, but also through which I can collate data from around the country and attempt to create a “best practices for management” policy, adding my own experience as a U.S. Property Investor and National Property Management Company owner.

My goal is to identify the core needs of Australian Investors, potentially form some kind of alliance with which I can seek better management terms and results in the U.S., and thereby achieve greater profitability and full transparency. I’m not trying to sell anything, nor am I advising on where to buy – rather, I’ve had enough of the way shady U.S. operators (and their Australian mouthpieces) continue to misrepresent or neglect to disclose data relevant to the product being bought, and have a somewhat bold plan to help straighten everything out and recover or increase asset performance.

I’m doing this through Meetup.com, and I’d like to ask interested Investors to join my Group. It’s called “AUS-USA Investment Property Support Group”, and our first meetups begin next week.

Please join, and please spread the word – ask any colleagues that have invested in the U.S., especially if you’re happy with the level of service you’re currently getting – it can always be better! I’d love to hear of your experience.

I tried to sign up but received an error that Metting7 was an invalid code. In in the USA so maybe I can’t join

This is a great idea Peter. I’ve seen too many Australians invest in bad US markets because of shady promoters. The sad part is that there are many US markets and sub markets where properties keep hold their values, vacancies are low, tenants pay on time, and cash flow is easily found.

People said in usa lawsuits are very common. Would a foreign owner of a house deter the tenant from bringing on lawsuit since the owner is maybe from australia or new zealand since they have to bring their case to the another country?

I’ve started to look into investing in US property, but am wary given how many others have reported being burned.

Nevertheless, it’s still something I want to do. I think I understand the process well enough, but am reluctant to do it on my own.

I’ve come across a few sites run by Australians who seem to offer advice/services (though the charges are not entirely clear). A google search of “invest in us property” brings up several such sites.

It seems that rather than being the turnkey operators, they offer referrals to lawyers, accountants, turnkey providers, estate agencies, banks etc.

Has anyone had any experience of these companies, or any insight into whether they are any good?

OMWH wrote:

I’ve started to look into investing in US property, but am wary given how many others have reported being burned.
Nevertheless, it’s still something I want to do. I think I understand the process well enough, but am reluctant to do it on my own.
I’ve come across a few sites run by Australians who seem to offer advice/services (though the charges are not entirely clear). A google search of “invest in us property” brings up several such sites.
It seems that rather than being the turnkey operators, they offer referrals to lawyers, accountants, turnkey providers, estate agencies, banks etc.
Has anyone had any experience of these companies, or any insight into whether they are any good?

Hi Lisa, I am from NSW and learning about the risks in IP deals in USA.
Have you been in touch with anyone yet?
Thanks if you can share info.
Cheers

I have been involved in the American markets for a number of years. I am establishing a new straight forward model of buying large apartment complexes in the 2 to 6 million mark depending on the number of investors we can put together. The benefits are that we can get non recourse finance at around 70%. We have just refinanced a 26 unit complex at 5.3% for 15 years. If you have a few vacancies it does not overly effect your investment.

I am working with a finance specialist who has experience dealing with funding of up to 100 million. I have learnt that to be successful in the states you have to deal with very highly accomplished professionals. I am also working with financial planners in Australia who are experts in dealing with self managed superfunds and making sure that they are compliant with Australian law.

So the concept is simple buy b and a class assets make sure that they cash flow well and hope them for at least 5 years. We are mainly looking at Miami and other parts of Florida I am personally also interested in Texas.

Hi,

I can see this thread has been inactive for a while now, but I’m curious to know if anyone successfully invested in the US back then and to know how their properties have performed?

I purchased two properties in Detroit earlier this year and am glad I took the step, as the cashflow is great and the added bonus of capital gains in a rising market makes it worthwhile.