This is a warning for anyone dealing with Andrew Allan from USA Property
In December 2009 I bought two US properties through the company My USA property, when they were based at St Kilda Road, St. Kilda. The $31,000 for Detroit included the purchase of the property and also renovation costs, while the $18,500 for the Youngstown property also included renovations.
Due to the fact that I did not have a US bank account at that time I transferred some of the money directly into CEO’s account, Andrew Allan in quantities of between $8,000 and $10,000 installments. I sent through over a period of months approximately $63,000 in total, as the US exchange rate was between 85 and 92 cents during that time and so even through the properties were $31,000 and $18,500 respectively I obviously had to pay more, due to the exchange rate. Obviously this appeared to be a risky proposition however I had been recommended through a friend of mine, who had given me some excellent investment advice in the past, that Andrew was of good character and was an able businessman. How wrong this was information!
Through paying for these properties I was guaranteed by Andrew Allan and the company that both properties, would be renovated and rented out within approximately three months, and that he would organize the renovations, property manager and help me open a US bank account. Please note that such guarantees are also promised on his company’s website.
http://myusaproperty.com.au/services.php#propertyManagement
However the company has not done as they said they would, and the communication by Andrew Allan has been virtually non-existent, despite my numerous attempts to contact him. Consequently this has put me in a dire financial situation.
The purchases occurred were nearly two years ago and my Youngstown property has not been renovated, let alone rented out. Consequently this is at least 12 months worth of rent I was relying on which has not been paid.
Regarding the Detroit property, My US property recommended and endorsed Ronni Williams a property manager who they selected on my behalf to represent me when I purchased the property through the company. They obviously did not put enough research into finding a quality property manager, <moderator: delete personal comment>, that was over six months ago. Since that time tenants have been ordered to be vacated and as far as I am aware II have nobody else currently renting the premises. Consequently I have received no rental income for this property either.
As a result of the lack of rental income that I was guaranteed to get from the two properties 12 months ago, I have been forced into a corner but am unable to sell the properties until they are renovated.
Since I brought the properties, Andrew has moved to the US and My USA Property is no longer registered as an Australian business, consequently they cannot be pursued by consumer affairs. I would encourage anyone looking to invest in the US to NEVER deal with Andrew Allan. He has poor business and communication skills and is notoriously unreliable.
It would be interesting to hear other people's take on this.
Richard Davies.
since idetroit is starting up again…. i would do more research on your properties…. I have recently posted some website info… do research on the properties that you have…..that is if you do actually own them… if there are any liens… or claims on them… and who in the area can act as your agent to fix this situation….If you are able to go over, to try to find a property manager then buy all means go… remember if you already own the property… you will be able to write off the trip on tax as it has to do with your own personal investing. Consider how fast you want to resolve this situation and what you want to do… do you want to sell or continue with the investment properties…
I have had dealings with MyUS…Luckily i just paid the intro price… I checked them out with ASIC and found out that they had only been registered recently… ie a year or less… I am unlikely to trust such a young company. After I paid the intro fee… only a few hundred… i just get the occasional email.
I did let them know that i didn't have much money to invest at the moment and that i was saving…. eventually the emails stopped. However with the one that i am currently with…I kept emailing them… even though I had not yet reached my first deposit amount and they indeed answered my questions… From the time I registered to now… where i am starting my first purchase has been over a year…so they have been very patient and helpful with everything. even when i said that i i couldn't buy a property outright and was looking for finance, they kept checking back with me to see how i was doing and to let me know about any new financed properties….
Check out my topic on sites and give serious consideration to taking a 'holiday' o/s to deal with your property… make sure you email and possibly 'skype' any possible PMs before you go so that all your questions… even ones about state and property tax as well as insurance are answered.
Good luck with resolving your property woes….hope you have a better experience in the future.
Thanks for the advice, yes I should have done more research but basically because the company is poorly run is the main reason I am in this situation. Taking a working holiday is looking more like a viable option now.
NP…. good luck with that…remember that if you DON'T Understand at least or feel that the PM doens't understand what you want…. give it some more thought. Investing always carries risk, but invest and risk at a level of discomfort you are willing to take….
Richard Davies wrote:This is a warning for anyone dealing with Andrew Allan from USA Property In December 2009 I bought two US properties through the company My USA property, when they were based at St Kilda Road, St. Kilda. The $31,000 for Detroit included the purchase of the property and also renovation costs, while the $18,500 for the Youngstown property also included renovations. Due to the fact that I did not have a US bank account at that time I transferred some of the money directly into CEO’s account, Andrew Allan in quantities of between $8,000 and $10,000 installments. I sent through over a period of months approximately $63,000 in total, as the US exchange rate was between 85 and 92 cents during that time and so even through the properties were $31,000 and $18,500 respectively I obviously had to pay more, due to the exchange rate. Obviously this appeared to be a risky proposition however I had been recommended through a friend of mine, who had given me some excellent investment advice in the past, that Andrew was of good character and was an able businessman. How wrong this was information! Through paying for these properties I was guaranteed by Andrew Allan and the company that both properties, would be renovated and rented out within approximately three months, and that he would organize the renovations, property manager and help me open a US bank account. Please note that such guarantees are also promised on his company’s website. http://myusaproperty.com.au/services.php#propertyManagement However the company has not done as they said they would, and the communication by Andrew Allan has been virtually non-existent, despite my numerous attempts to contact him. Consequently this has put me in a dire financial situation. The purchases occurred were nearly two years ago and my Youngstown property has not been renovated, let alone rented out. Consequently this is at least 12 months worth of rent I was relying on which has not been paid. Regarding the Detroit property, My US property recommended and endorsed Ronni Williams a property manager who they selected on my behalf to represent me when I purchased the property through the company. They obviously did not put enough research into finding a quality property manager, <moderator: delete personal comment>, that was over six months ago. Since that time tenants have been ordered to be vacated and as far as I am aware II have nobody else currently renting the premises. Consequently I have received no rental income for this property either. As a result of the lack of rental income that I was guaranteed to get from the two properties 12 months ago, I have been forced into a corner but am unable to sell the properties until they are renovated. Since I brought the properties, Andrew has moved to the US and My USA Property is no longer registered as an Australian business, consequently they cannot be pursued by consumer affairs. I would encourage anyone looking to invest in the US to NEVER deal with Andrew Allan. He has poor business and communication skills and is notoriously unreliable. It would be interesting to hear other people's take on this. Richard Davies.Wow I noticed his site has changed and noticed he was dealing with a a source from Singapore and Phoenix market. He does have another company not sure of the name.I do alot of research on Australian companies buying in the USA.Naturally since I am here in the states. Guys people will continue to get burned here in the states an over seas if you do not take the time to do your home work. I get pissed every time I hear some thing like that because it makes it harder for a legitimate company to deal with over seas clients.
Richard I am sorry for your loss but again simple rules to follow and simple advice to follow… Can you tell me where you are at with these properties. There are enough USA people here who can put you in the right direction and maybe even help salvage your situation. In the USA we use title companies and lawyers for closing of real estate. I have ,and do have clients wire EARNEST Funds directly to our company only . All other dollars should be wired to a title company or a lawyer .Never to a company that is saying to do that .
Guys this site it is considered spruiking as you call it. To be honest when some one is willing to stand up and back up what they say there business can do and willing to do.Then invite clients in to see the team and meet the people they deal with. Sorry in the USA we call this putting your money where you mouth is ….I been pretty laid back about what I said and even been insulted by some one saying USA people don't have pride like Australians do. Total bull..Yes I am willing to stand behind comments.
Well I am here to dispute that and say there are good people here in the USA.I can send you to several different markets and share with you the top teams in each market . I can say I know this because I feel we are one of those teams.The top teams will focus traditionally on one or two markets ( for turn key rentals ) These teams are not just selling but actively buying them selves. My company goal is owning 100 ( over 30 now ) homes free and clear in next 5 years.My wife and I are planning on owning 50 more homes separately from the company. This is even after the big crash here in the states.
So go ahead and say what you what . It is time some one says things the way it the way it needs to be said…Listen if you going to get involved in Real Estate and you did not do you home work( YOUR FAULT ). Come on this is a business you need to take investing serious . I don't care how professional or how serious the guy sounded. Research is the key , communication with the clients , open door policies ( so the investor can see every thing involved with the deals)do research . If you would have taken some of that money flown out to the USA checked out the deals. Taken the advice of alot of people on this site you would not be in this situation …Sorry to be harsh but this is the truth..Again email me privately where you are at with these properties and let me see if I cant get some people in those areas to jump in and help you out ..
Sincerely
Alex Franks
Heads up for anyone else who may not know, he is also heading up a number of other companies and selling USA properties.
If you buy property from prime USA property, us buyers agent, Orlando wholesale property just to name a few your still dealing with Andrew Allan. I found a great link http://www.corporationwiki.com/Unknown/Melbourne-Victoria/andrew-j-allan/36034143.aspx which helps identify corporations registered to particular individuals by searching his name in particular. You can also search via company name so if I type in my USA property LLC it’s interesting to see that Andrew is no longer the managing director? Likewise if you type in prime USA property LLC it also has his name in it. Do your research on the company you are dealing with before handing over hard earned cash and then finding out you have been taken for a ride.Alex,
I have a good client in Detroit that I lent money to for years and 99% of the deals worked.
Richard, I would be happy to refer him to you…. He has a sweat equity program that you may be able to get your property into that will at least get you a little cash flow with no further investment.
Not to be negative however if your home has sat unattended and un loved for a year in inner detroit which it probably is, there is a high probablity its beyond salvage. IE has been completly stripped of copper appliances heating and air conditioning etc. Unless you bought it boarded up and it stayed boarded up.
Youngstown is one area I did not make any loans, although I did a lot in columbus and like certain parts of OHIO.
For anyone reading this forum. This transaction as described from Mr. Davies if accurate is out and out theft and fraud. It would be interesting to see if this company actually bought the properties and did not just steal the funds that were wired direct.
All real estate transactions as matter of law do not need to go through a title co. or attorney, they can be handled privately and be legal. However for a out of town regardless if your foriegn or US investor to wire money direct to a marketing company or sales orginization is very danegerous and not recommended. Proper procedure is to wire funds to National title co. or Closing attorney. And you have to be careful with closing attornies as well not all are what they should be…
Mr. Davies your recourse is to file a criminal charge of theft with the District Attornys office in which ever county you wired your funds. And to the State attorney generals office in which ever state you invested. Companies like these need to be shut down.
here in the states we have so many fraudsters its not funny, To then get Aussie fraudsters on top of it makes it that much more difficult.
The scenerio you describe above is far more common than one would like to think. And if you buy the cheapest war zone hood properties in the US. It does not matter if you visit do everything right excetra your going to lose your money or you will put so much money continually in the property that you will never ever get your money back and will be just flushing it down the toilet bowl.
I know there are some good operators in Aussie helping folks, and they make their fee's. but the ones that are bad are really bad.
Jay you have much more know how then me on the banking side.If he misrepresented the homes can Richard not go after him for fraud. Well go to run have the LA Clients in town they are landing at 5pm from LA and then heading to Rock Hill.
Talk soon
Alex
after joining my usa property for $500
and before buying i thought i might do some more DD
i used the PDF files my usa property sent me
to get the state and street namei used google earth street view to get the house number
after i had that info i used zillow to find out that the houses they sell , sold 2 months before for half the price they were asking
If any one would like some of the MY USA property pdfs to check for your self PM me your email address
my usa property is now this mob http://www.uspsa.com.au/index.html
thanks for posting richard
Mr Davies
Please contact me I will be happy to bring charges against this person company. Need imperial data to support your claim
Also paid to be a "member" of my usa property.
They had 3 properties they recommended to me and wanted an immediate answer over the phone. Luckily they offered a "new finance deal" with 70% LVR. During the next 6 mths of messing about with the "finance off" I pulled the pin and got our deposits back via Tony Richards. But he refused to refund the membership.
Some months later i got an email from Andrew Allen offering properties. I emailed him and asked for membership refund. He promptly refunded my money in full.
Would i use myUsa or related services ……. no.
Why did i contact them , the accountants they used were local to me and very well respected. I have no drama with the accountants….but they were also charging 1000's to set up LLC and want to charge nearly 1000 per property to do tax returns.
So they were going to make a tidy income from their association to MyUsaFirst of all Richard…..I am sorry to read about your situation. I hate to say it but there will be more bad stories coming out in the future. Before throwing good money after bad….
1. Find out of you even own these properties or if they even exist any are any liens against them.
2. If you do in fact have title to the places (not thinking likely)….chances are they are deserted…probably with city liens for cleaning etc….ascertain the value of any liens against them.
3. Find a local realtor who can give you some idea of the present valueYou need to do all of this before you even think about jumping on a plane…the "investment" may be beyond salvaging. Would you be kind enough to keep us updated on the outcome ?
If it's all bad news and you don't even own them……if it were me I would be getting documents together and going to the Australian Federal Police. This is outright fraud and he would be lower then roadkill in my opinion.
For others reading this forum….some things to take from this experience…
1. Transferring money into the CEO's bank account ??????? If this were a ligitimate property deal……why would there be a need to transfer funds into his personal bank account ? A Title Company would be involved and you would transfer the funds to them for closing.
2. I don't care if the investment is $25,000-00 or less your making…..get on a freakin plane folks and see where your money is going. If you can't afford the airfares or the time off work…….don't bother trying to think of it as an investment…your kidding yourself. Save yourself the bother and put it all on Race 7 horse number 3…..Just as good an outcome guaranteed.
3. Never hand over funds for "proposed refurbishments" Your just inviting people to rip you off.
4. Read points 1, 2 & 3 again
GREAT post Speedy, particularly:
speedy gonzales wrote:I don't care if the investment is $25,000-00 or less your making…..get on a freakin plane folks and see where your money is going. If you can't afford the airfares or the time off work…….don't bother trying to think of it as an investment…your kidding yourself. Save yourself the bother and put it all on Race 7 horse number 3…..Time and money on airfares etc is NOT inconsiderable – especially when considered as a proportion of the investment as a whole. The ‘thrill’ will wear off quickly – more so with sub-prime hassles thrown in.
These guys ARE scum of the earth, it is not fair when there ARE very legitimate guys doing a very good job that get a bad name from (as my LA agents says) bandits like these guys…
Don’t feel stupid, it is not your fault that you are dealing with people well practiced in being on the very edge of the law (and I am being deliberately generous there for the sake of the website).
Guys please there are good teams in the USA and other places. I have spoke with a few Aussie resellers of USA properties but before I do any thing .I am going to take the time to get on a plane fly over and meet each of them.
IF you are looking at any one from the USA do the same take the time…
Speedy yes good advice but also common sense…..
Please if any one is getting started and wants a quick list of 1- 5 must things to do for starting out or even advanced guys
send me email
Alex SC wrote:Guys please there are good teams in the USA and other places. I have spoke with a few Aussie resellers of USA properties but before I do any thing .I am going to take the time to get on a plane fly over and meet each of them.IF you are looking at any one from the USA do the same take the time…
Speedy yes good advice but also common sense…..
Please if any one is getting started and wants a quick list of 1- 5 must things to do for starting out or even advanced guys
send me email
Alex,
With all due respect…this particular topic was started about a specific company and the person behind it and why potential buyers should stay clear of them and those that operate exactly like him/them. Most on this forum are aware that some good teams based in the US exist and that's why this forum exists…to seek them out. If the points given were so commonsense….the topic wouldn't have begun right ??
As far as the Australian based "buyers agents" (& I use this particular term loosely)………your posts to date have given helpful advice to us Aussies because you have the benefit of being in the US & with experience to back you up. For some advice to you & from this side of the pond and my years of experience…….before you jump on a plane to come and meet these marketing organisations you need to do your due diligence. I could easily list a dozen or so companies that sell US real estate to unsuspecting Aussies but I won't because the forum moderator would remove them all. They all sell the same overpriced crap in bad areas that nobody else would buy in their right mind. They all promise the earth and have all the answers and have "people on the ground" in the US….fact is when is comes down to it they have no control or influence over them. It may or may not surprise you that some of the ones involved in selling US properties have never even been to the US. Even worse….a lot of them don't own any US real estate so how can they profess to be the experts ??speedy gonzales wrote:Alex SC wrote:Guys please there are good teams in the USA and other places. I have spoke with a few Aussie resellers of USA properties but before I do any thing .I am going to take the time to get on a plane fly over and meet each of them.IF you are looking at any one from the USA do the same take the time…
Speedy yes good advice but also common sense…..
Please if any one is getting started and wants a quick list of 1- 5 must things to do for starting out or even advanced guys
send me email
Alex,
With all due respect…this particular topic was started about a specific company and the person behind it and why potential buyers should stay clear of them and those that operate exactly like him/them. Most on this forum are aware that some good teams based in the US exist and that's why this forum exists…to seek them out. If the points given were so commonsense….the topic wouldn't have begun right ??
As far as the Australian based "buyers agents" (& I use this particular term loosely)………your posts to date have given helpful advice to us Aussies because you have the benefit of being in the US & with experience to back you up. For some advice to you & from this side of the pond and my years of experience…….before you jump on a plane to come and meet these marketing organisations you need to do your due diligence. I could easily list a dozen or so companies that sell US real estate to unsuspecting Aussies but I won't because the forum moderator would remove them all. They all sell the same overpriced crap in bad areas that nobody else would buy in their right mind. They all promise the earth and have all the answers and have "people on the ground" in the US….fact is when is comes down to it they have no control or influence over them. It may or may not surprise you that some of the ones involved in selling US properties have never even been to the US. Even worse….a lot of them don't own any US real estate so how can they profess to be the experts ??Speedy trust me already have been speaking with quite a few clients on this site. I have been in this real estate game a long time Most of the people I am coming to meet are clients who have an interest in the USA. The resellers I have already done my home work on them to be honest only one so far to work with .I found her from this forum and some. The houses she is sourcing and what she is doing for her clients is truly AWESOME .
So flying over to meet her and her husband. Would not waste a trip trust me on that . I would rather continue this conversation privately. Email me anytime
Thanks for the heads up…
AlexSpeedy
The selling of junk US properties is a global activity. And just as many US companies that run the gambit of poor to out right felonias activity as described in this thread
Bottom line you get what you pay for……Just seems like sales agencies are really preying on those that want to believe in the 20k house that’s going to give them some huge return all in the comfort of their Easy chair
Of course there are basic s one should follow when buying properties
Would a buyer in OZ just wire funds direct to a seller or would they use an attorney or closing company?
jayhinrichs wrote:Speedy The selling of junk US properties is a global activity. And just as many US companies that run the gambit of poor to out right felonias activity as described in this thread Bottom line you get what you pay for……Just seems like sales agencies are really preying on those that want to believe in the 20k house that's going to give them some huge return all in the comfort of their Easy chair Of course there are basic s one should follow when buying properties Would a buyer in OZ just wire funds direct to a seller or would they use an attorney or closing company?Yeah, I went to a property conference in Sydney where there were several stalls advertising US properties!
I talked to some of them, and I did see a number fo 20k US properties which I was amazed at. I did think that the returns were too good to be true, and I preferred to do due diligence on those properties (which I can't do atm) so I prefer to buy domestically for now.There is no question that the US has some great pops
My 30 years expience dictates that arm chair investors. IE. Out of area need to be far more cautious than those that live and work in their markets
ONE THING TOU CAN TAKE TO THE BANK IS THAT 50% OF ALL US FORECLOSURES COME FROM LANDLORDS THAT GAVE UP AND WALKED AWAY FROM THE PROPERTY. AFTER DUMPING GOOD MONEY AFTER BAD THEY FINALLY GIVE UP AND LET THE BANK TAKE THE PROPERTIES.
Fast forward to the new wave of investor. 95% that buy hood properties. IE super cheap us props will at the end of the day let them go to taxes….. I know I havE let my share of props go for tax’s in hoods that turned and the hoods are beyond salvage
Jay was just speaking about a the lower end homes that the USA investors tried to make work and lost out. Now these same deals are being sold to international clients . The hood is the hood for a reason and chances of changing it slim to none. A good friend of mine she is 76years old met her at the real estate groups a few years back. She had acquired low end homes in Memphis. That was 4 years ago.After flying there to view the deals for her My advice was walk away she was so upside down. I would bet that same property is now owned by an international client.
just my two cents and it did not work out for her…
Alex
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