Hey guys
I'm Tony, I'm fresh out of university and hungry to invest and make the most of my money.
Currently residing in Australia and plan to invest in Foreclosed (bank owned) property over in America.
I'm currently doing extensive research as to:
– occupancy rates
-default rates
-house and insurance pricing
-return on investment
-google mapping the areas of interest to be aware of what the surroundings (access to freeways, shops, transport, schools, condition of area)
I am willing to travel to make sure I can see where my money is going.
Finance will not be an issue as I have the facility or organise that in my home country. 'so that's one thing I don't have to consider (attaining a loan, interest rates, mortgage repayments and all that jazz).'
My MAIN CONCERN is that somehow my money ends up in some other person/ entity account and never seeing it again.
Any feedback or tips are welcome
Thanks
Hi Tony, Welcome, which areas of the US are you looking at. As you may know, Texas is a hotspot.
Redwood | REDWOOD | SMSF | PROPERTY | FINANCE
http://redwoodadvisory.com.au
Email Me | Phone MeSMSF - PROPERTY INVESTMENT - WEALTH CREATION AND FINANCE SOLUTIONS
You have a bank that will lend you money to purchase in USA?
Most won't because they can't hold the title. Which bank?
Can I ask why you are looking at USA? Do you know the values and whether a property is well priced? Prices have moved considerably in the last year. What's your exit strategy?
I'm looking around Henderson, NV for now. Still researching
The main reason why I'm choosing to invest in property in America is because; the return on investment is a lot better than here in Australia
I will not need to source any form of finance abroad, I have enough money to purchase a property outright.
Prices in that particular area have increased slightly since last year, but I still see it rise even further as the economy stablises and people slowly become more creditworthy.
My exit strategy is to cut my losses and put the property back up on the market if things don't work out. I have not don't gone that far into it yet.
Hi bobaaaaaa, great you can purchase outright, there are significant opportunities in the US, many growing areas, and everyone has a different opinion.
As for Henderson NV, we have placed property there for our clients, 3 in SMSF and one outright, with an average price of around $200k in the last year. quite a few forclosures and opportunity however, there are many other opportunities which may be more suitable for the price and income yield perspective…..
Keep us posted with how you go
Redwood | REDWOOD | SMSF | PROPERTY | FINANCE
http://redwoodadvisory.com.au
Email Me | Phone MeSMSF - PROPERTY INVESTMENT - WEALTH CREATION AND FINANCE SOLUTIONS
Hi Ronaldo
Thanks for the great web link.
Hope you don't mind if i give it a miss as i can get similar returns for me and my clients in Australia.
Very little risk and if they wish to gear they can do so.
More than i can say for the USA.
Now bobaaaaaaa i would have thought making sure your money ends up in the right account is the least of your concerns as presumably your Lawyer will be doing the relevant Title checks and taking out insurance accordingly.
Assume you have factored in the exchange rate, US Taxation and the entity you will be using to buy the property in. US Public Liability is not as forgiving as it is here in Oz.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Thanks for you comments, This is what this research process is for. To see if there is it's a viable option for me invest abroad.
I understand that there Legislation over in America "generally" protects the Tenant more so than the Landlord.
Is that what you mean't by not as forgiving? If not what else?
Hi bobaaaaa, Richard was talking about public liability that was not as forgiving. Public Liability otherwise known as getting sued for anything and everything.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
I have friends with property in the US. One is actually a buyers agent there and is now retired on her rent.
Yes the gross yields are great (and were even more amazing when they got in). But looking into it I couldn't see the point unless you were buying multiple properties. After deducting the fees to set it up, plus the high management fees and the high maintenance costs. Tenants are very fussy. One property was fully renovated and had to be re carpeted and painted after 2 years.
Also when you are paying cash I think you can do better with your money by leveraging it here. For example I could buy a property there for $50,000 or use that money to buy a CF neutral property here for $400,000. So if yours goes up 10% you've made $5,000. If mine goes up 10% I've made $40,000 gain.
Investing in the United States depends on who you are dealing with. If you do not know the operators then you may loose your money. You need the right structures and the right advice especially when it comes to taxation. The IRS is a lot tougher on late taxation payments that our tax department. America is a great place to invest however not only do you need to do your due diligence carefully but need to know and trust your contacts
Nigel Kibel | Property Know How
http://propertyknowhow.com.au
Email Me | Phone MeWe have just launched a new website join our membership today
Nigel who do you reccomend in investing in US property, apart from yourself.
Redwood | REDWOOD | SMSF | PROPERTY | FINANCE
http://redwoodadvisory.com.au
Email Me | Phone MeSMSF - PROPERTY INVESTMENT - WEALTH CREATION AND FINANCE SOLUTIONS
Hi
I dont generally look closely at what others do. I spend a lot of time getting what I do right. However in you look at the overseas posts engelorumora who deals in Kansas seems like a good guy also Jay Hinricks has a great knowledge. I met Alex one of his associates when I was in Florida a few months ago. Rob Keeler my partner in Florida has a lot of knowledge of the US commercial markets.
I think there are great opportunities especially as we are seeing finance especially n commercial property coming back in a large way. It makes a lot of the cash on cash returns look very attractive.
Nigel Kibel | Property Know How
http://propertyknowhow.com.au
Email Me | Phone MeWe have just launched a new website join our membership today
Thank you Nigel for your thoughts, we do alot of work in the US and yes agree commercial is a great opportunity. Look forward to catching up and discussing some time soon.
Redwood | REDWOOD | SMSF | PROPERTY | FINANCE
http://redwoodadvisory.com.au
Email Me | Phone MeSMSF - PROPERTY INVESTMENT - WEALTH CREATION AND FINANCE SOLUTIONS
hey guys the idea of purchasing two properties instead of one?
Perhaps two properties within the 70-90k range?
Are these usually hopeless investments or is there real potential depending on other factors.?
You must be logged in to reply to this topic. If you don't have an account, you can register here.
