My Trip to the US

Hi streamlineinvesting,

Thanks for your post.

I bet you are very excited.

On thing I can suggest is to stay connected with the banker that opens the bank account. They will assist you with future wires and transfers so its always good to have them on your side.

I haven't had a chance to visit Florida yet but have many contacts there always inviting me over. I will have to go soon as I have herd awesome things.

Thanks and have a great day.

Fort Myers is a great area.  You might want to check with econohomes and see if they are doing anything with foreigners.  I only know of one lender who does those kinds of loans and his group only works in AZ or Phoenix market.  You may want to try and find a local community bank.  The big name banks are awful to try and do business with.  Most of my foreign partners have opened accounts here in atlanta with Fidelity Bank.  You may want to try pooling funds with relatives and the sort…some of the wholesalers are able to offer financing but you pay for in the purchase price of the asset.  Enjoy yourself and let us know how it goes!  Andy

Personally I hope your trip is not a success for the following reasons:

1. your buying at or near the top of the market
2. the AUD/USD pair is swinging in your favor (as a buyer)
3. as an international buyer you are making the mistake most make. Namely you are under capitalised. You need a minimum of five + properties to justify the costs and efficiencies needed for a partisan management team
4. the US credit bubble is near its peak again. When it pops is is almost always follwed by a property correction. See the below graphic.

I have repeatedly said the US market is a trap for the uninitiated. Anyone who buys sight unseen in a market they know diddly about is almost certain to be separated  from their money. This forum is full of well intentioned US market PI's who have been burned for far less. My guess is we will be adding your name to that list over the next 12 months unless you happen to be one of the few lucky ones who get every aspect of o'seas investing bang on.

Nope but the point I was trying to make (rather poorly) was that recessions immediately follow collapses in margin credit. Market corrections usually see the top end (property) take a hit while the uber wealthy try to cover losses. Then you get the pensioners who loose a whack of their investment capital along with retirement income and so it trickless down the social chain.

Given the degree of difficulty the US economy is in any nudge in the wrong direction will be magnitudes greater than previous events. The rationale of QE has been to goose stocks to enable the wealth effect. Stock markets usually go arse up for a while when margin credit vanishes. That in effect will likely demolish any positives QE has been able to generate post GFC08.

The next 3 – 6 months will be interesting as corporate earning are revealed as BS. Corporate America is tanking big time. It's only survived this long because of cheap credit (share buy backs) and balance sheet hokus pokus. Corporates are at the end of their ability to goose their books. We are starting to see who has been swimming naked as markets dry up and anti American sentiment towards corrupt corporates gather momentum especially since Snowden's revelations. The backlash towards America from that alone could knock the US over as the BRIICS and Europeans develop measure to isolate US control and influence. Throw in a Chinese Saudi energy alliance as China becomes the largest importer of oil and the US is in deep doda.

The US dollars advantage as a reserve currency diminishes day by day and within 3 years will present serious issues for the US economy even if it retains reserve status. As the worlds trading blocks need for US$ to complete trade transactions diminishes (currently down to 60%)  there's going to be a lot of US$'s looking for a home and that will in all likelihood devalue the currency considerably.

Any foreign property investor who entered the US property market over the last 2 years and especially the last 12 months is almost certainly going to take a hit when any number of threats come home to roost.

I think that there are risks of the market over heating in some areas. For instance the values in Texas never fell after the GFC and now the property markets are booming. However states like Florida is still improving and does offer opportunities but it is important to do your own research.

Freckle what you say may be right however there are large numbers of families moving to both Florida and Texas. I think you have to be selective and careful in what you buy.especially when hedge funds are buying up  large amounts of property. I think this market still offers great opportunities but you have to be careful and do plenty of research.

Blackrock unloading their dogs by the looks of things… just before everything turns to custard perhaps.

The Smart Money Denies They’re The Smart Money As They Franticly Sell Their Crown Jewels Before The Bubble Blows Up

“It’s a great time to sell,” mused Anthony Breault, senior real estate investment officer at Oregon’s state pension fund.

And Blackstone Group, the world’s largest “alternative investment” firm, is doing exactly that, feverishly, relentlessly, hand over fist, at peak valuations, cashing out, maximizing its profits. That's how capitalism is supposed to work.

Drugs where would I be without them