All Topics / Overseas Deals / My Trip to the US

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  • Profile photo of streamlineinvesting

    By this time next week I will be over in the US and finally be able to look at my property. I bought it over a year ago and have never even seen it! I am definitely getting excited to seeing what the town of Fort Myers and Lehigh Acres. I have read so much about it and looked around on the internet, but there is just no comparison to actually being there on the ground and seeing what the vibe is like.

    I have a bit of a list of things I need to get done while I am over there, I am only there for a finite amount of time (about a week) so I need to make sure I get as much done as possible. So far I want to get the following done – 

    * See the property (obviously)

    * Open up a bank account for the LLC

    * Try and get a new property (at least check a few out anyway)

    * Talk to a bank about getting a loan

    Can anyone suggest anything else I should do while I am over there? I will be based in Fort Myers but I will be hiring a car so I might drive out to see other places of Florida, but I am happy with my property agent in Fort Myers so I hope I can continue to invest there.

    Profile photo of EngeloRumora

    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.

    EngeloRumora | Ohio Cashflow
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    Profile photo of MosquiMosqui
    Participant
    @mosqui
    Join Date: 2010
    Post Count: 43

    Sounds very exciting, I was last year after I bought my house in Fort Myers. I drove from Miami, nice and easy. FM is a nice place, cheap clothe as well. I opened my account and saw a few house and drove around to see what it's like.

    Hope you have fun

    good luck

    Mosqui

    Profile photo of streamlineinvesting

    Thanks for your nice words.

    Do you think there is realistically any chance of meeting with a bank who will allow me to obtain a loan for a property? I really think I need to leverage to really take advantage of the situation over in the US. And having to save each time to buy a new house outright is taking too long and in a couple of years I have already seen property prices rise dramatically in the area I am investing, and the amount of 'quality' houses on the market is significantly less than what it used to be.

    I do not want a ridiculous loan that led USA to get in trouble in the first place (like a 100% loan with no proof of income and such), I am more than happy to provide up to a 50% deposit and pay a slightly higher interest rate (given I will be a foreigner). But it would definitely be a step in the right direction.

    Profile photo of EngeloRumora

    Personally I don't know of any bank that will lend to foreigners.

    There are other finance companies tho that will. They do require a higher deposit and also the interest rate is higher.

    If you get a US number please feel free to give me a call when your in Florida. I would love to chat.

    816 372 5334

    Thanks and have a great day.

    EngeloRumora | Ohio Cashflow
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    Profile photo of BoughtWithEquityBoughtWithEquity
    Participant
    @boughtwithequity
    Join Date: 2013
    Post Count: 68

    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

    Profile photo of SteevgSteevg
    Participant
    @steevg
    Join Date: 2007
    Post Count: 14

    Hi,

    I was in Dallas a year or so ago, and setup an account with the Bank of America there . .  so just a few suggestions to help get the account open:

    1. Take your passport with you when you go to the bank

    2. Take a letter from you current bank in Australia, ask them to include things like the loans you have with them, savings accounts and anything your current bank feels may be beneficial – regular income, deposits etc.

    3. Take evidence of your current home address – utility bills etc.

    4. Take evidence of your current income, and if possible a letter from your employer advising how long you've been working for them – or if self employed, get a letter from your accountant advising that you have xxx amount of years  trading in a successful business (etc).

    5. Anything else which support your request to setup the account – again your bank or accountant should be able to advise.

    Don't expect them to offer a loan immediately.

    Expect to pay around 40% down, when you do buy.

    Expect to pay around 2% higher than USA nationals for loans

    And probably most important . . . . try to contact another investor who's currently doing deals there (especially if they are from outside of the country), as things can change quickly, and they will know who to speak with, what to tell them, and what to ask.

    There are also hard money lenders to use for short term loans, send me a PM if you want more info or need a contact for that.

    DO DO DO – find an investors club to attend during your trip (try – http://www.meetup.com/find/), or do a search for Ft. Myers Investors clubs, as these can be great to meet other investors and get some invaluable info while you're there. Don't waste the opportunity.

    You may also want to visit a few Real Estate agents for a chat too.

    Also, you may want to buy one of these to get real cheap calling back to the USA when you get home.

    http://www.magicjack.com/plus-v05/

    (Product is great, but support not so good – but still worth buying if you intend to keep in touch with your Property manager, or other investors in the USA while you're there)

    Hope all this is of some help . . . .  enjoy your trip.

    Profile photo of streamlineinvesting

    Thanks for your helpful pointers

    I have been in Fort Myers for a couple of days, and so far it has been a real eye opener. The place is a lot different than I expected, but it is a really nice area and I look forward to more trips here in the future.

    I was able to set up business bank accounts for my LLCs with Wells Fargo, so that is great to finally have online access to my money and can tell it will be a great benefit down the line.

    I also met with a mortgage broker this morning who was very confident in being able to get a loan. There is still a few things I have to provide to get pre-approval (tax returns, proof of funds etc) but if I am successful I will definitely be sharing the contacts and experience with fellow investors!

    I only have a couple days here left (quick trip I know) but hopefully am able to close on a property I put an offer in before I came here, it was meant to be accepted by now…

    Profile photo of EngeloRumora
    streamlineinvesting wrote:
    Thanks for your helpful pointers

    I have been in Fort Myers for a couple of days, and so far it has been a real eye opener. The place is a lot different than I expected, but it is a really nice area and I look forward to more trips here in the future.

    I was able to set up business bank accounts for my LLCs with Wells Fargo, so that is great to finally have online access to my money and can tell it will be a great benefit down the line.

    I also met with a mortgage broker this morning who was very confident in being able to get a loan. There is still a few things I have to provide to get pre-approval (tax returns, proof of funds etc) but if I am successful I will definitely be sharing the contacts and experience with fellow investors!

    I only have a couple days here left (quick trip I know) but hopefully am able to close on a property I put an offer in before I came here, it was meant to be accepted by now…

    Sounds like your trip was a success.

    Well done ;)

    EngeloRumora | Ohio Cashflow
    http://ohiocashflow.com/
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    F@#$ THE REST WORK WITH OHIO CASHFLOW TO INVEST

    Profile photo of Freckle

    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.

    Profile photo of jayhinrichs

    Frekeles   this is a graph of the stock market which does not really track the RE market.. Pull up Cupertino CA. Palo Alto CA SF CA  Los Altos CA Saratoga CA Los Gatos CA.. this is were I was born an raised..

    Profile photo of Freckle
    jayhinrichs wrote:
    Frekeles   this is a graph of the stock market which does not really track the RE market.. Pull up Cupertino CA. Palo Alto CA SF CA  Los Altos CA Saratoga CA Los Gatos CA.. this is were I was born an raised..

    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.

    Profile photo of Freckle

    In addition to the above Lance Roberts evaluation of where markets are at the moment and their risk of correction seems to be a growing theme amongst commentators.

    Chart(s) Of The Day: Is A Major Correction Coming?

    Written by Lance Roberts | Thursday, October 24, 2013

    It's hard to argue with historical evidence. If (when) markets correct that will almost certainly induce moar QE which will invariably suppress the dollar, push gold ever higher and put upward pressure on IR's as yields spike on bonds and T's.

    Can't see property performing well at all under these circumstances.

    A speculative assessment of coarse, however, the odds that something will snap increase by the day.

    Profile photo of Nigel Kibel

    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.

    Nigel Kibel | Property Know How
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    Profile photo of Freckle

    While property speculation for the time being (I hesitate to call it investing) looks attractive (goosed by Wall Street hot money flows) to the not so knowledgeable (gullible and greedy), few understand (too blind to see) the potential for serious economic difficulties (financial Armageddon) in the near future (anytime after today).

    Detroit and seven other cities that have declared bankruptcy since 2010, is it time to look at Florida? Florida at the state and local levels are burdened by what destroyed Detroit – the growing costs of retirement and medical costs for government retirees coupled with shrinking revenues

    These warning are eerily similar to the predictions for Detroit. The time bomb is getting closer to exploding.

    PEW Center on the States (pdf)

    Florida and Texas both underfund their pensions and FL does not fund it's healthcare obligations at all while TX covers less than 50% of healthcare obligations. Detroit here we come.

    Profile photo of Nigel Kibel

    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.

    Nigel Kibel | Property Know How
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    Profile photo of jayhinrichs

    Texas in my mind is a market that just stays neutral.. IE properties sell for build cost plus some profit for the builder and then just stay there… There is just no arguing the fact that those that bought ATlanta ( like we did) when houses were 25 to 40k  did well. AS well as Vegas at 50k AZ same CA same.. Texas if you bought a few years ago the prices never really fell but they don't rise either.. Texas in my mind is a very long term pay it off then you have equity.. These other markets have equity by capital growth.

    Profile photo of Freckle

    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.

    Profile photo of jayhinrichs

    Freckle  its blackSTONE   not blackROCK… I live in Oregon but I do not partake in the Oregon state Pension fund.  It is really going to be interesting to see how this all unfolds. Blackstone and other hedge funds could be just like banks where they unload properties at huge loss's.. The Hedge funds were late to the game.. When i bought atlanta I bought my houses with my investors for half of what blackstone paid.. I am not sure they have any huge equity gain.. Now they bought a billion in CA and that market could resuce the whole enchilada ( US term of Mexican origin)

    Profile photo of Freckle
    jayhinrichs wrote:
    Freckle  its blackSTONE   not blackROCK..

    Drugs where would I be without them ;-)

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