Is this possible?

Mick, i will let others answer a lot of your other questions but in relation to finance Yes it is now possible and we have more and more lenders coming on stream.

Been hard work but we now have formal agreements in place with a number of institutions and are starting to close deals with regularity.

Minimum loans, locations, type of properties are all barriers but can be overcome.

Loans can be variable or fixed and in most case there are no pre-payment penalties so most clients are taking the 30 year fixed rates. Rates can vary from 4.5% fixed in AZ to 6.75 in CA.

Maximum lvr 75%.

Certainly been an interesting journey (We closed over 100 loans between 2004-2008 before a 3 year absence when the GFC wiped out the FN market) and we are now starting to work with some very interesting lenders.

Good luck in your investing journey.

Cheers

Yours in Finance

Don’t see the point in an LLC – unless you have very serious tax issues to contend with. Provides no more security than your own name (hard and very exxy to serve papers on you in Aus) and is look through from a tax/liability perspective and immediately adds $’s to your tax returns each year.

I am intrigued with richards finance offer above. Sounds almost too good to be true though I would take at face value what anyone says – initially. I would be interested in details if you have them richard?? PM??

My ‘opinion’ is that people get carried away with LLC’s and structures unnecessarily. The easiest thing in the world to do is build up legitimate expenses. You don’t need a team of accountants on both sides of the Pacific to do it on your behalf.

It's better you do, it's more for legal purposes than for tax reasons. 

My thoughts on LLC’s as they relate to the Off shore investor…

my answer is it Depends!!!

If your buying low end cheapy properties. your chances of getting sued by a tenant are remote to the extreme. And its better to just get an umbrella insurance policy they are cheap and they will step in and Pay in the event of some calamity…

NO CREDITOR in the US is going to go after any AUSSIE unless your talking large money,,,,and again the umbrella policy will protect you there.

Just a data point I have never been sued in 37 years and owning well over 300 rentals in the US… Had battles on evictions but never sued for the dreaded slip fall or other negligent type claims.. And if I was I would turn it over to my insurance company ( see comment on umbrella policy)

Although I do hold most of my properties in LLC.. I have 20 or so in my name as US banks will not loan to LLC’s, only commercial banks will do that.

I echo Cheeves comments on the rates quoted for non owner Occ loans, and Non recourse to boot….

what I see actually closing is 50% down 8 to 10%… I was at a RE investors function in LA Wed. Night and my co panelist was doing these loans.. Although his capacity is limited.

And of course my last comment is in my humble opinion super low priced real estate in the states is a very risky adventure
for any investor other than one Like Kyler who lives and works it… It is my opinion that out of area investors should look at higher value ergo better tenant properties

JLH

Priced accordingly low income rentals are just as good as any investment.

Super low priced real estate in the states is a very risky adventure
for any investor other than one Like Kyler who lives and works it…

If I can do it successfully for myself why wouldn't it be the same for my investors.  After some research and networking, I have been able to make the numbers work that i guarantee so many months rent for the investor till the initial investment is paid off.    Still making close to 15% to 20% ROI

I love my ghetto properties

Kyler:  LOL @ I love my ghetto properties.  One of my biggest investors is out of New York City and they buy every building in East Orange NJ that yields them a 10% + Cap Rate.  Personally, if I invested in E. Orange, I'd want closer to 20% but it just doesn't exist in areas in close proximity to NYC. 

For 10%, I would rather go to Medellin, Colombia and wear a billboard sign on my chest saying "I HATE PABLO ESCOBAR AND HIS ENTIRE FAMILY" rather then investing in a warzone that gets me 10%.  Get me 20% like you get and I'm in.  Problem is, I don't have a plan for it like you do.  Sounds like you have a really good system in place and have a niche that works.  That's what its all about.  Different strokes for different folks.  I tell every one of my international buyers who come to me with information overload from reading, meetings, and classes that they need to find a niche they like.  There is something to do in every niche.  You just have to have a plan. 

FYI, I've been to Medellin several times.  Absolutely love it (love the housing market too   But if you walked around with a sign about Pablo, you would be torchered, beaten, stoned, waterboarded, violated, and maybe 3 years later killed!