Forum Replies Created
Will,
Drop me an e-mail and I will happily pass on my brokers details.
Regards
chad
Providing Turnkey Real Estate Investments In The USA.
E-mail:[email protected]
web: http://www.gr8realestateinvestments.comHi Berryinc.
As far as brokers go, especially in Texas, they will be able to assist you with lending in most parts of the United States, including Florida.
You certainly cant use a loan from Australia either to fund offshore property as they have no security over the home.
Depending on how good the deal is that you are looking at, you could either try and find a private investor to take over the note on the property, and you pay back the note to them.Obviously to do this you will need to have contacts to make it happen.
We are in the process of doing this in Texas.(However a deposit is still required). Other than that I dont know if you have to many options other than financing it through a bank and putting down a deposit.
Regards
Chad
Providing Turnkey Real Estate Investments In The USA.
E-mail:[email protected]
web: http://www.gr8realestateinvestments.comHi there Tim.
I believe you are entitled to depreciation on the property. If it is residential property, it would be over a 27.5 year period.So the newer the property, the more you can depreciate.
I think you should be contacting a qualified CPA however to get all the information you need.I am going through the process on a brand new property that I built in South Texas so I am just sharing with you my own experience, not giving you advice as I am not qualified to do so.
Some accountants actually keep their clients depreciation records on there tax software as part of there overall service. Mine certainly does. When looking for a CPA, find out what they offer as part of there services.
Good luck
Chad
Providing Turnkey Real Estate Investments In The USA.
E-mail:[email protected]
web: http://www.gr8realestateinvestments.comHi Ben,
I’m sure plenty of people on this forum would be interested to know more.
Are you 100% sure that 90% finance is avalible for Australians? Have you done loans at this rate already. I have also spoken to many brokers in the US and 90% has never been achievable.
What is the interest rate, what are the set up fees involved etc. Does it to apply to certain US states only?Do you have documentation we can read about in refernce to this offerring.
Regards
Chad
Providing Turnkey Real Estate Investments In The USA.
E-mail:[email protected]
web: http://www.gr8realestateinvestments.comHi Thomas,
Thank’s for your posative feedback. Always appreciated and glad to know you are happy with your investments.
I also look forward to spending time with you on our tour in July. Its going to be very informative as well as lots of fun.
Regards
Chad
Providing Turnkey Real Estate Investments In The USA.
E-mail:[email protected]
web: http://www.gr8realestateinvestments.comLuke,
Looking forward to it mate and definately planning on having a good time also.
All the very best with your plans also mate and hope that your last visit was also fruitful for you.Providing Turnkey Real Estate Investments In The USA.
E-mail:[email protected]
web: http://www.gr8realestateinvestments.comSolomon,
Texas is one of the hottest markets in the US right now so capitalising on that market makes sense for me at this point in time.Always of interest in hearing everyones experiences on other markets though.
There is a new market South of Texas that my partners in the US are establishing at that moment though which they will be showing us as part of our tour in July so I am looking forward to seeing the opportunities that it presents.
Regards
Providing Turnkey Real Estate Investments In The USA.
E-mail:[email protected]
web: http://www.gr8realestateinvestments.comHi Solomon,
Also try World Savings, they will lend up to 70%LTV on single family dwellings in Texas and other US cities providing you have a bank account.
I have met several brokers during my visits to the US and unfortunately they do have agreements with who’m they deal with.
I find a good broker is all you need as they will shop around for the best deals.
From a foreign national point of view though, be aware that there are restrictions with all of them and the most they will go to from what i have found is 80% LTV.
Fees and charges vary and you would need to evaluate this on a case by case basis.
Providing Turnkey Real Estate Investments In The USA.
E-mail:[email protected]
web: http://www.gr8realestateinvestments.comHi Luke,
I think integrity has to play a big part. I think its always good to work of the worst case numbers and if it works out better then great.
Personally i would not take to much notice of the “potential rent” .In the example you provided, there is $150 difference on what the property is currently renting for and what they claim to be the potential rent.With every situation “integrity plays” a major role. Even wholesalers selling rehab deals i find over estimate /over quote both the resale values and the rents.
I mentioned in a previous post about building a solid foundation first. That foundation applies to this same scenario.Realistically we need to do a market analyses/due diligence etc on what similar properties are :
A- Selling for and B- renting for to be able to determine what a property is worth and what its rent is worth.
If the people you are dealing with are not of good integrity,yes they will give you ambitious numbers which may not really reflect the real situation.To give you an example, on my trip in March/April I had a meeting with key people in the industry. The aim of the meeting was to bridge the gap between the US and Australia and the purpose of the meeting was obviously to network and see how we could help each other.
Anyway at this meeting I
met a wholesaler who basically finds houses with equity etc and he sells the houses to investors for a fee.All the homes come with his sales price , his numbers on what it would be worth after the rehab , estimated rents etc etc.
Most of the deals on the numbers he provided had good equity/potential profit in them etc.What i did however was get my business partner in Texas, who i trust to go through the list and see what was worth pursuing.
Anyway we did end up buying some properties of this wholesaler but for less than what he initially quoted his selling price to be .He even referred to it as his best price.
This is because my business partner did the comps and it didnt quite stack up.What this wholsealer was doing was bumping up the price for me, thinking I am an Aussie and wont know any better.
He ended up agreeing with my business partner that the sales comps were to high and reduced the selling price.
This was the difference between an ok deal and a good deal.He quickly realised that he wont be able to play those games with me because i have my foundation set.He now sends me deals with the same numbers as he would send his US customers because he knows I have good people surrounding me who i will get to double check everything.
So yes, i do unfortunately think that many people will try and get more out of you unless you know your stuff and can show them that you know what you are talking about.
I am not suggesting that this particular wholesaler was bad, at the end of the day he was still selling me something with equity, it is just that they will over inflate the numbers in the hope that they will get away with it.
I’m sure the same thing would occurr in your own backyard as well.I know in my local paper, some agents have got redicolous prices on homes that are now where near as much as what they are asking. I bet you they know this but are just trying there luck in the hope someone will buy it.
There are good honest people that will do the right thing by you also, it just a matter of finding them and then building up the relationship with them.
On the MLS listings, I have been told to be carefull of the rents they put on their as well and to double check it to see if the comps stack up.
All the best.
Chad
Providing Turnkey Real Estate Investments In The USA.
E-mail:[email protected]
web: http://www.gr8realestateinvestments.comAny form of investing has an element of risk. Investing offshore certainly increases it, no doubt about that.
The key to eliminate the risk is to invest the time and money into building a “Firm Foundation” first. Guys there are some awesome opportunities in the US right now. Providing you invest in building a solid foundation first, I beleive will put you in a great position for the future.
Generally big problems only happen when not enough due diligence is done and the foundation is not built properly.If you have a strong network and solid relationships, then your level of risk will also be lower.
This goes for anything in life. It is no different in investing.
We all know that when it comes to real estate, things can sometimes not go to plan exactly as we expect, having a good network will get you through these times and you will overcome the hurdles together.My current expriencing in the US has been a mixture of good and bad. More good but I have had hiccups along the way.Things have happened which didnt go to plan but with the help of my network over there which I have now established, we got through it and still achieved our end results.
The message I am trying to get across is that by having a solid foundation, not only will it benefit you in taking advantage of the great market and returns, more importantly, when things dont go to plan, you will be able to get them fixed and you will have the support to do it. Especially when you are so far away.
There are many Foreign nationals and out of State investors doing very well in the US market. The returns are great. I have also heard and know of people who’s experience hasnt been that great.
Do your homework, research and spend some time building your foundation first and you will no doubt make it an enjoyable venture as well as profitable.At the end of the day though, if the thought of doing something will make you loose sleep at night, dont do it. You must be comfortable with the decision as it is a daunting concept for many.
Chad
Providing Turnkey Real Estate Investments In The USA.
E-mail:[email protected]
web: http://www.gr8realestateinvestments.comSolomon,
My advice would be to establish yourself with a good finance broker who has access to many lenders. Someone who knows and understands US finance as it changes from State to State.
I have sent many clients to Richard Taylor to assist them with there finance so maybe give him a call.He is at http://www.yourstatefinance.com . Also just one other tip, if you are seriously considering finance in the US, get yourself set up with a US bank account. Some of the better loan packages require you to have an established bank account over there.
If you are starting out, spend some time on setting up your foundation first as it will put you in good position for later.
It takes about 4-6 weeks for the bank account process with HSBC . Obviously you can go into a bank in the US and open an account over there.
Just for the record for those visiting San Antonio, Bank of America is great. I set up an account with them on my last visit. They provide you with internet banking immediately which is of great convenience.
Those with existing HSBC accounts will know what I’m talking about.There is a minimum period which you have to have your account for before they will provide you with internet banking access.
Some of the major banks will also expect an extra 5% deposit on the loan if you have no bank account. No biggy I suppose but hey, if you can put 5% less of your own money down then it’s better for you.
Once your bank account is established, why not apply for a credit card as well.This will assit in building up a credit rating within the US.
I hope this helps.
Chad
Providing Turnkey Real Estate Investments In The USA.
E-mail:[email protected]
Hi Kate,
Saw your post. Another recommendation is the USA. Have a look at San Antonio and Austin Texas especially.
If capital growth and 10% plus returns is what you are after, then you should do some research on it. If you are not to worried about capital growth but cash flow focused, then check out Buffalo NY.
You will also achieve a good ROI on buy and hold properties there.Regards
Chad
Providing Turnkey Real Estate Investments In The USA.
E-mail:[email protected]
Piggy,
I agree with everyhing you have said in your post. Including the issues that Buffalo currently has going with homes being sold overpriced.I am one of those Aussies who are buying,rehabbing and selling for a small profit in Buffalo. I have established a great relationship with a guy in Buffalo and we go Joint Venture on the deals. I felt obliged to reply to your post because I do have a real estate business focused on investors .I actually found your post very encouraging as peolple do need to be aware of the “potential” risks associated with the USA market.
Thanks for the word of caution. I think everyone contemplating investing over there appreciates it.Providing Turnkey Real Estate Investments In The USA.
E-mail:[email protected]
Mintman,
I agree with Westan, “Essential for finance”
You can do it with a 35% deposit without a bank account . I have done it with a client with World Savings who didnt have an account at the time of his purchase. Also needed for rents etc not to mention it provides you with a financilal history as well which could be of benefit in the long term.It is essential to have an account set up in my opinion! I would’nt do business over there without it.
Regards
Chad
Providing Turnkey Real Estate Investments In The USA.
E-mail:[email protected]
Hi Julie,
I have a bank account set up in the USA. If you are going over there in April, your best option is to go directly into a branch. They will set it up for you and provide you with an account number immediately. My bank account is with HSBC which is a checking account. The only ID that was required was my passport. They also took a copy of my license.There was no charge to set it up but I did deposit $50usd just to open the account.
If you are going to be in LA , there are quite a few HSBC Branches and locations to choose from.Have a look at the HSBC website for there locations.
http://www.banking.us.hsbc.com
My bank account was set up in Buffalo WNY so you may want to double check if there is anything else they will require from you before your trip and sometimes different states have different rules.
I did not have to provide them with a USA address when I set up my account however I’m not sure if this is now a requirement.
World Savings is another option as well. I dont have an account with them but they are one of the biggest banks in the USA and I have dealt with them for finance.
I do know that you can also open an account with them in a branch.
There is a contact in Sydney who can arrange banks accounts in the USA as well. The process takes about 4-6 weeks. If you want to go down that track, here is his contact number:HSBC Bank Sydney: Contact is Sri Prayag ph. 02 9006 5016
If you are going to be there though, going into a bank will be a much easier process.
It would be worth while giving Sri a call anyway as he would definitely be able to advise you of any new requirements that I may not be aware of.Hope this helps and have a great trip.
Chad
Providing Turnkey Real Estate Investments In The USA.
E-mail:[email protected]
Westan,
Thanks for the advice once again . I will defiantly keep those “potential problems” in mind . If I do encounter anything major, I will definitely post it on the forum to make everyone else aware.
Cheers
Chad
Providing Turnkey Real Estate Investments In The USA.
E-mail:[email protected]
H Westan,
This is actually a very low risk investment with very high returns .Which is why I am investing in them.Implying that the failure rate is high is a very general statement. A bit like saying that the property bubble in the USA is about to burst which in general terms may be correct in some states but doesn’t apply to the entire country. It also allows investors to enter the market with very little money down, but provides them a very nice cash flow.The failure rate in my opinion is extremely low with the success rate very high. Once again our strategy is very specific and the risk profile is very low.In any market some make a success out of it some don’t. It all depends on whom you are dealing with. I have seen the mobile home concept, I have spoken to investors doing it, it is huge in America with many investors using this strategy.
I encourage yourself and others to have a look at some of the USA forums to see all the “positive” things and success stories associated with the mobile home strategy.
Like anything you need to know what you are doing and have the right measures in place.
Our market does not need marble countertop or grade A carpet or top of the line appliances. So therefore it’s actually easier and less expensive to get our properties back on the market in the event that anyone does foreclose.. With that said, do we have to do work on them, of course just like with anything else but it’s less work and less expensive.
As far as being prepared to “become owners” of the home again, well those who are using this model and understand it, also don’t see that a threat but as an opportunity to make even more out of the investment. We are offering these homes to investors and selling them for double what they paid for it. In the event that the home does become vacant, we simply find another buyer.
The home foreclosure rate is very high in the United States. I only see this as a huge opportunity to pick up great investment opportunities. It also makes the mobile home investment that more attractive and in demand.
This is a fairly new strategy to the Australian market and like anything will take time to understand it so I do appreciate and understand your concerns. I however think they are a great cash flow vehicle and will definitely be adding more of these to my portfolio in the future.
On your comments on owner finance, once again you can look at the negatives and the positives. For me I see at again as an opportunity. Many have made a huge success from “owner financing” and has been a vehicle of many high profile investors.
At the end of the day, you either like it or you don’t. All investments have risk and all have there place.Everyone has there own view on investing and the mobile home strategy wont be everyone’s cup of tea. I do however encourage investors to do there own research, and to get the facts about mobile homes before discounting it because the true picture is actually a positive one and it actually works very well.
Anyone interested in finding out about the mobile home strategy can call me or e-mail me directly. It is up to the individuals if they wish to pursue them or not.
I simply just responded to flash who was asking if anyone was doing it.
If you have any further questions on the subject feel free to e-mail me as I would be happy to explain it in more detail.
Once again I do understand your concerns! Initially I had the same view and doubts until I saw it for myself. The way my business partners have set up the operation has allot to do with my confidence in the concept.
Regards
Chad
Providing Turnkey Real Estate Investments In The USA.
E-mail:[email protected]
Westan,
Thanks for the advice on the mobile homes. I appreciate the word of caution. We are not actually renting them out however but owner financing them therefore the upkeep is not our responsibility which is great as it takes away the tennant issue as you rightfully addressed.The strategy is also done under a joint venture arrangement in which my contacts in the USA actually have an interest in the program. This also eliminates the investors risk as they are not in it on there own and the investment is fully managed for them as one of the responsibilities for the life of the investment.
It is a powerful strategy as the investors initial investment is paid back to them within 12-15 months depending on the deal and the rest of the term is pure cashflow with no money tied up in it.
Also just recently got back from the states and planning another trip in April.
Again, thanks for the word of caution.
Providing Turnkey Real Estate Investments In The USA.
E-mail:[email protected]
Just to add to the topic on USA Finance, as recently discovered with one of my clients, you can get away with a bank loan without a US bank account with a 35% deposit. Obviously I would highly recommend a bank account though for convenience and to benefit from the lower deposits.
At the moment the only bank I am aware of that actually sets up bank accounts from Australia are HSBC in Sydney. The process takes between 4-6 weeks. For those interested in setting an account up, here are the details of who’m you will need to call.HSBC SYDNEY
Contact is Sri Prayag ph: 02 9006 5016
If you get a message service, do leave your details as he does return calls.Providing Turnkey Real Estate Investments In The USA.
E-mail:[email protected]
Hi Flash,
Yes I am getting into mobile homes myself. What a great cashflow vehicle! With very similar returns to what you have predicted. 50% ROI is being very conservative. I also work on these numbers. I purchased the mobile recently for 6kUSD. It is a big home, 3 bed 1 bath and looking to sell it for anywhere between 12-14k under owner finance at 12.5% interest.I have a buyer from California who is looking at it tomorrow so we shall see how it goes.It is a great time now to be getting into these deals as it is tax time in the USA and people are on the lookout again.
Keep the posts coming, I’m enjoying reading them.
Regards
Chad
Providing Turnkey Real Estate Investments In The USA.
E-mail:[email protected]
