buying property in america

Coupla things (including some big news): I've only seen 1 vendor finance deal recently: a guy had 16x 2 and 3 BR condos that he was selling and would finance 50% at 8% per annum. It may be that we don't see many because we work with a local (Phoenix) sourcing partner who buys bank foreclosures almost exclusively. We also work with a local finance broker who sources hard money loans, and as a general rule he can get you all the finance you want at 50% LVR and 12% annual interest. On a case-by-case basis he can very often get finance at 50% LVR and annual interest as low as 8%, it depends on the property you're buying and who is lending in that space that particular month. In each case these are 2 or 3 years loans, at the end of that time you'd need to refinance. But the really exciting news, hot off the press this month is: We now have bank finance available for Australians! After banging on doors without success for over a year, our team in Phoenix has worked with one of the local banks to develop a loan product specifically for Australians and we now have finance available as follows: 50% LVR, non-recourse, interest-only, 6.5% interest per annum fixed for 30 years There are a couple of restrictions of course, the type of properties being financed is one but the main limitation is that the bank only wants clients who intend to borrow at least US$250k in, say, the first 6-12 months. It is a fair bit of admin effort for them to set up to lend to Australians who don't have a FICO score and thus are outside their credit checking system, so they want to make sure it will be worth their while to do so. We're pretty excited about this, as no doubt you can imagine. Personally I'm going to be buying a LOT more property this year…

Coupla things (including some big news): I've only seen 1 vendor finance deal recently: a guy had 16x 2 and 3 BR condos that he was selling and would finance 50% at 8% per annum. It may be that we don't see many because we work with a local (Phoenix) sourcing partner who buys bank foreclosures almost exclusively. We also work with a local finance broker who sources hard money loans, and as a general rule he can get you all the finance you want at 50% LVR and 12% annual interest. On a case-by-case basis he can very often get finance at 50% LVR and annual interest as low as 8%, it depends on the property you're buying and who is lending in that space that particular month. In each case these are 2 or 3 years loans, at the end of that time you'd need to refinance. But the really exciting news, hot off the press this month is: We now have bank finance available for Australians! After banging on doors without success for over a year, our team in Phoenix has worked with one of the local banks to develop a loan product specifically for Australians and we now have finance available as follows: 50% LVR, non-recourse, interest-only, 6.5% interest per annum fixed for 30 years There are a couple of restrictions of course, the type of properties being financed is one but the main limitation is that the bank only wants clients who intend to borrow at least US$250k in, say, the first 6-12 months. It is a fair bit of admin effort for them to set up to lend to Australians who don't have a FICO score and thus are outside their credit checking system, so they want to make sure it will be worth their while to do so. We're pretty excited about this, as no doubt you can imagine. Personally I'm going to be buying a LOT more property this year…

Carl,

We just closed a few transactions with a Perth Accountant that represents a group of Doctors. This accoutant does not take any fee from the client he does charge an hourly rate for his time working with us, however thats nominal. The professionals that he deals with want to walk in sign one document wire funds and leave, then collect their checks each month with no worries of property mangement or any other rental issues.

Its taken us a year to find the right investors for our program however just like the States there are those that want it all taken care of and not worries from 6k miles away.

The other very intersesting thing was these doctors used their Super funds. And according to the Accountant from Perth. The typical turn key investment does not meet the safety threshold for super fund investing, too risky,,,, Our fully managed product with its monthly return that is consistant and not subject to vacancy and mainteance, In the MIND of the Perth Accoutant meet the Aussie superfund cirteria.  Probably like our IRS rules you can do what you want until the Gov checks into what your doing.

Anyway we are excited, Our Net returns are 9% guarenteed with no down side plus equity…. Which is really hard to beat over time….

I was just about to give up on AU as most investors were looking for the 10 to 12 % or higher returns… and willing to risk it on their own.  And as we own hundreds of rentals in multiple states I know that most individual investors over time have a really hard time making anything over 10% and most rest at 5% or lower.

So red letter day for us today.

JLH

Michael,

I will try to answer without be outed as a spruieker. Thats the hard part teaching , and selling go hand and hand. Teaching about an opportunity while selling the investment.

There are no other cost period other than the investment itself. No need for an LLC or ITIN. Although if you have one set up in the states the LLC can purchase the investment as well. This is the beauty of the system.

Yes the 9% is NET no other cost… Return is always the same 9% cash on Cash regardless of the rental performance or mainetenance issues. We handle all of that… Our program is for the true hands off investor that wants predictable cash flow. Rental housing of course is anything but predictable cash flow. Our US clients that buy in their IRA's are the same way. They usually only have a certain amount in the IRA and do not have further funds for cash calls,,,, so they really like that aspect of our program,,, One time investment, Never spend another dime on the property never worry about management or tenants, just recieve your check each and every month on the 15Th…This is true because we are going to be one of Jays team in Charlotte and I can tell you compared to most. he is very picky on what he accepts from us. Yes Jay and I basically met through this forum and we both are in the USA. However he did lend us money years ago with the buy and flips to USA investors.

How we do this is we partner on the equity side.. And there is not a lot of sales load added into the purchase price… So when you have an asset that your all in for 40k say thats renting at 850 a month there is adequate cash flow to put aggressive reserves away and pay the 9% to the investor and have a very safe return… We make a hundred or so on the cash flow per month as well so thats whats in it for us. Either way is a great option buy and hold or Jay system. At the end of the day it is companies like mine that will supply the product. So we do offer this program but this is strictly through Jay's company.

but we do not hire PM's.  our management team are all equity owners It makes a huge difference in how our property is selected and how its treated long term…. Not only do our partners that manage the asset not get paid if there is an issue with tenants rehab excetra it comes OUT OF THEIR POCKECT if there is a problem… Now thats what I call accountability and everyone on the team working in the same direction for the asset. The protection this allows the investor is simply the bi product of having a great team all financinally involved in the asset. At the end of the day our deals depending on where the market settles in 5 to 7 years will return with the trailing equity kicker. 15% plus NET NET per year.  All for a investment you never have to work at or worry about. Yes our team gets 25 % of the equity so we need to make sure that we take care of the property since this is long term.

Can you do better on your own, for certain some will, but they will work very hard at it… thats for certain, And I am certain many will not come close to the return we will give them as there will be things out of their control that negativly affect their investment. If you add in all the time and effort and travel coming to the states, Unless Lithonia, Georgia is really were you want to spend your vacation looking at a rental I would say travel cost are part of the total investment and must be included to establish NET returns. I will agree and disagree this is more for the hands off investor or ones who have had negative experience with rental properties. Nothing is 100 % guaranteed but this is a safer bet.

The Due diligence on our product is really more focused on us than on the Asset. The asset is important of course, however we are the ones executing it. So to that end in our typical DD package we have.

1. Deep background and  Criminal Back ground check on my self the owner.
2. Copies of all my Real Estate Licenses that show I am in good standing in 3 states and licensed since 1977.
3. copies of my State of Oregon Mortgage Banking License and my Federal NMLS license.
4. Letters of Banking stating our average daily balances in our company that average over 7 figures. And that we have current credit facility's of 7 figures on top of our liquidity.
5. And for larger investors I will provide a personal credit report on myself… showing fico 750 plus never a late and over 4 million in personal mortgages. 

Like Alex on this site I am wholly invested in all that I do we do not just flip property, We own every single one of them.. Yes he is backing up what he says 100 % .I flew out to check out his operation. Then Jay came out here and spent a few days with my team .

Then on top of that we give a  90 day no questions asked money back guarantee… If your not satisfied with your TWH investment we will resell or buy back with in 30 days of written notice from our investor. You keep the 9% cash flow you made up until the date I buy the Note back..  Because our investor is the BANK in these transactions and HOLD s first Mortgage over the property there is no need for a rental guarantee or maintenance guarantee like some companys offer for the first year or so.  We are there for the life of the investment…. It is hard to sell a property in today's market after it went from wholesaler to investor. With selling the notes we are in the property much less. Which is a distinct advantage of liquidation if needed.

I will tell you this investment model is very very popular in the states, our investors here tend to be a little more hands off than the Aussies from what I can tell.. And all of our investors to date already own rentals and are just really burned out on managing their managers and the unpredictibility… Watch our 9 minute video and listen to some of our investors… Like I said they have all been there done that with owning rentals.. I have a local couple here in town that has IRA if $180k they purchased 2 rentals and tried to do it by them selves.  Now f they would have let us make it turn key. Things would have worked out better. Now that they have a bad taste from real estate .  Jays program is a no brainer for them

I kind of liken our product to a mutual fund as oppossed ( Jay did I find a spelling mistake ) LOL  to you picking your own stock…

As to your question on liquidity, you are free to sell your position at anytime, if you just sell your note position the equity goes to the new buyer, the 9% stays with you…..

And in practice if anyone really needs out we will just buy the note back and resell to someone else….For instance if there is a family emergency or something and someone needs to get liquidity,,,, All of our investors are long term I have not had any of the 80 or so ask to exit…In the US this need for cash is usually 2 things,,, they need the money to help their kids buy a house, or they need the money to bail out their kid and hire a lawyer, and I am not kidding,,, Having had a very large investor portfolio over the years 250 investors and 35 million under management, these were the 2 major items when my investors needed out.

One last thing Liability:

In our program since you hold the 1st priority mortgage over the home, there is no liablity that is typical with owning a rental, that all falls to us we own the asset. And as the owners we have the proper insurances in place. Our investor is the Loss payee on the insurance policy in the event of a fire or tornado flattens the home. The investor gets the check straight from the insurance company…. Just like if you have a loan on your personal home.. The bank is insured and is a priority creditor.

Well thats about it.

[email protected]

Looks like if I am going to continue with AU investors I need to get to the busy professional that does not have time on their hands to search all these things out and that task's their accountant to find them suitable investments.

Yes I am advertising my Charlotte deals not really just saying they will be available through jays program after they have met his criteria.  So hope this helps.

Alex

all the best

JLH