New to investing in the US

I don't know if this has already been asked, but could anyone tell me if there is any restriction on foreigners buying properties in the US?
Or on type of property?
As it is now, what are the areas that are 'recession-proof'?  Are they generally near the CBDs of each state?

Is it better to buy houses or condo for easy rental?

Thanks.

Hi M Simon,  check out the last couple of issues of API for a good article on Texas.

DVS

I find that the discussion in this forum has been skewed towards Texas.
Aren't there other places in the US worthy of investment?

Many suitable areas worth consideration but you need to decide whether you want to finance the deal out of the US or use your own cash or line of credit from Oz.

Have a look through some older posts and you will see many varying views.

Cheers

Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
www.tayloredfinancialsolutions.com.au
richard@tayloredfinancialsolutions.com.au.

There are indeed it just that in many parts of Texas while the rest of the United Staes has been going backwards in San Antonio the market has grown by 11.25% in the last 12 months. If you are looking for good cash flow I am told that Indianapolis is worth looking at. You will get higher eturns than Texas but not as much growth. I am hoping to go back to both places before the end of the year.

Nigel Kibel

www.propertyknowhow.com.au
www.changingplaces.com.au
Buyers advocacy
Australian and New Zealand The United States Property Researcher and education

I am thinking of going in early next year.  Don't know how long the subprime crisis will last.

check out this area i know it well, it is building up as the main area for patchwork quilts they have a convention every year and companies associated with this industry are setting up in the area, the properties i have bought in the US dont see a big capital gain but they are cash flow +

http://homes.realtor.com/search/searchresults.aspx?ctid=82572&mxp=16&bd=4&typ=1

tonkaau

We are located in the US and sell many homes to international buyers, especially from the UK.  It has never been problem for them owning and getting rent checks.  Property managers, which we refer to them in the different markets we sell (Pittsburgh, PA, Dayton, Oh, and Buffalo, NY), take care of renting the properties.  Feel free to email me if you have any questions at molo1972@aol.com . You can also see the type of properties that are being bought at www.lmgrei.com/ohiohomes.html

I'm a "non resident alien" who has visited Ohio recently looking for opportunities.

The biggest problem is not identifying good investments  - just get the properties inspected & be aware America uses a Deeds system , so you should pay extra for title insurance. for the peace of mind., 

The biggest problem is  working around the suspicion of foreigners caused  by the post - 911 US Patriot Act.  A lot of realtors & banks & others are hesitant to deal with foreigners now because they are scared  being caught up in it if the FBI labels you a "terrorist" or "money launderer".  e.g. I finally managed to open an Ohio  cheque account  while I was  there,  but the bank says it has to send all my mail via Sweden ( a neutral country ) & it takes 3-4 weeks. That's good, though - 3 other banks turned me down flat to my face.

They won't actually say in so many words, because non-resident  property investment is usually quite legal ( just need to refer to the Realtors State-by-state Guide  http://www.realtor.org/NCommSrc.nsf/files/Alien%20Land%20Ownership%20Guide%20(November%202006).pdf/$FILE/Alien%20Land%20Ownership%20Guide%20(November%202006).pdf

So you have to be really committed to doing business.

Interesting I would love to learn more about investing in USA, if anyone is free and would love to drop me an email so we can chat I am very eager to learn :)

Sean  msn - red123nz@hotmail.com

Cheers

" You only get what you put in "

" If you think education is expensive try ignorance " Robert K

Young property investor - From Auckland New Zealand

You can contact me via msn on red123nz@hotmail.com

I am very happy to talk to people from novice stage to people who are the Robert k's and Steve Mcknights of this world :)

Hi,

I can recommend a very solid market - Raleigh, North Carolina. Whilst most of the US is in a correction, North Carolina is still solid and growing with good cash flow and appreciation opportunities. It hasn't had the large spikes or troughs that you typically see in the West etc. Raleigh continues to chug along with great prospects.

A few quick facts about the market and the area...... Raleigh is essentially made up of an area called the "Triangle", which consists of 3 cities - Raleigh, Durham and Chapel Hill. It has great population growth, jobs growth, low vacancy rates, good geographical location and affordable housing. All the main growth factors you need in real estate.

It is home to the Research Triangle Park (RTP) - a business center and the largest research park in the nation that is home to 157 companies and employs over 39,000 people and growing. RTP is the headquarters of IBM. Other companies include GlaxoSmithCline, Cisco Systems and some of the the biggest Pharmaceutical and Biotechnology companies in the country.

The Triangle area is the home of 3 very credible universities. Raleigh has North Carolina State University (NCSU) - one of the best Engineering and Vet schools in the country. Durham has Duke University - one of the best Medical schools in the country. And Chapel Hill has the University of North Carolina (UNC) - one of the best Business schools and for sports (Michael Jordan went to college here if anyone cares).

So combining RTP and the 3 great universities there is a demand for rentals.

Forbes.com rates the Raleigh area........
Number 1 for best cities for jobs.
Number 1 for best place to live and work.
Number 1 for Business and careers.
Number 1 for Biotechnology region.
Number1 for High-Tech region.
Number 4 for strongest economy.

My wife and I (Both Australians) purchased a 4 unit building near Downtown Raleigh in July 07 for $160K. It positive cash flows $390 per month. And this was with 100% financing (deposit coming from LOC in Oz and mortgage financed in US. Imagine our cash flow if we paid our deposit in cash?) We hope to actually move back to Raleigh later this year, we previously lived there in 2004 -2006 so are very familiar with the area.

We recommend you look at this website for finding credible real state agents in all states of America that are also active investors themselves so know how to crunch the numbers: http://www.narreia.com./
NARREIA stands for National Association of Residential Real Estate Investment Advisors. They have agents all over the country and the website has great articles on each market.

We found our agent in Raleigh through NARREIA. Her name is Tiffany Elder:  http://www.tiffanyelder.com/
Tiffany is very knowledgeable on investing, invests in the area herself, and as I said knows how to crunch the numbers. If the numbers don't work, she walks away, no emotional attachment! She is familiar with single-family homes, multi-families, rehabs, pre-forclosures, you name it. Her website has a wealth of  information on the market and what she has to offer. Tiffany is awesome and we will definitely be buying through her again. She also has contacts with lenders and property managers - very important. Feel free to mention that you found her through Caroline and Craig Makepeace on a forum.

A few more websites you can look at for info on the area:

http://www.researchtriangle.org/
http://www.rtp.org/main/
http://www.newsobserver.com/     (local paper)
http://raleigh.craigslist.org/
http://www.realtor.com/                   (nation wide real estate search)

Anyways, I hope that helps anyone whose interested in learning about an area other than Texas.
As always, I highly suggest you make the investment in time and money to visit any area in which you plan to invest. Spend some time there getting a feel for the place, the market, and to build the necessary relationships with Realtors, property managers, lenders  etc who are critical to your success. Whilst the internet is great, nothing beats "feet on the street" as they say!

Feel free to contact us personally.

Craig and Caroline
camakosinvestments@yahoo.com.au

Become a Wildly Wealthy Woman
www.WomenAttractingWealth.com

I cannot see an answer readily to the question. We have read and are aware that there are no restrictions on foreigners / non nationals buying property except in Oklahoma where foreigners are not allowed to buy land but they can buy condominiums.

That said of course you cannot use the property as you need to adhere to the time limits set by the government regarding time resided. Last time we looked into it - it was 3 months in a year.

Hope that helps

Paul

Paul, Director - International Property Directory

I've never had trouble buying, but tonnes of trouble with everything else. After 18 months I've decided to get out of US market. Hopefully will sell my Mobile house in Texas soon (anyone interested can message me), then can close  that door for good. I feel like anything that could go wrong has gone wrong.

I say good luck to anyone thinking of being a landlord on US properties! :)

Hi delt,
what was going wrong? Are there any specifics to look out for? Somethings to avoid?
Cheers
Macocam

Macocam,

Finding good property managers is the first challenge and depending where where you buy, finding good tenants may also.

I have been blessed with two excellent property managers and problems have been minimal, however remote investing from the other side of the world can also be a challenge.

The results are there if you do your homework and groundwork but it's always good to compare with what you can do here.

All the best...Aussie

Thanks, Aussie! I'm going over there next month and have a look at some properties.
Macocam

Which area?  I have done very well in Rochester NY.

All the best...Aussie

Dear Aussie,

Would it be possible for you to advise your agent's details?    If you would rather not I understand, but it would be appreciated.   From the investing I have done in Australia, I have found finding a good agent to be the most important critieria in doing well. 

More generally, I get the impression you need to go to the States to open a bank a/c there.   Is it absolutely necessary, or has anyone tried to invest while only having a USD bank a/c with an Australian / Kiwi bank?     Would lose some extra bank charges when rent is TT'd into it, but save airfares etc.

Rgds
Keith

Keith

I'm more than happy to give you the details of the agency that I am currently using to prepare a couple of duplexes for sale, also managing the properties, as well as some other recommendations from people I have used.

The previous company I was dealing with has gone out of property management and these guys now manage the portfolio. They seem the real deal.

PM me your email and/or phone number and I will give you their details and provide some feedback on their service, together with some USA investing tips.

For banking, I just opened a USA HSBC account at my local branch here in Aus. There are some restrictions for use, however, for the first 6 mths.

All the best...Aussie

Thanks very much Aussie - appreciate it very much.   Email address is keithsmith@frachtsyd.com.au.

Rgds
Keith

I currently live in indianapolis, although we only have our on home and no IP i am definately knowledgeable on which areas from a locals standpoint are desirable and which are scary!! I've fixed up 2 and sold them on for small profits.... people dont have much pride in their own homes!!!
mike

still don't know what i don't know