[mojorisingMember@mojorisingJoin Date: 2010Post Count: 28]

February 23, 2011 - 1:37 pm

Does not sound that bad. If the finance hurdle had stopped you from closing it would be a major pain in the ass but sounds like you have the option of getting finance once the work is done and you are not looking at purchasing a second short term so apart from the initial surprise and frustration suonds like not such a bad situation.

[mojorisingMember@mojorisingJoin Date: 2010Post Count: 28]

February 20, 2011 - 1:41 pm

Just checked in on this site to see if this thread was still going.

Hope things work out with the waterfront BB and great that it came back on the market at just the right time. Let us know how it goes.

Cheers

[mojorisingMember@mojorisingJoin Date: 2010Post Count: 28]

January 5, 2011 - 2:33 pm

$270

pretty much same rate as TS

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January 3, 2011 - 3:14 pm

if the LOC is secured against PPOR doesn't that mean it is not an investment loan and would not be tax deductible?

[mojorisingMember@mojorisingJoin Date: 2010Post Count: 28]

January 3, 2011 - 2:19 pm

Thanks for ideas. I went with EBM.

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December 6, 2010 - 2:15 pm

If there is no physical inspection of the property and the place burns down with a tenant in it due to poor wiring, can you imagine the lawsuit you would have!

Probably sucks for the tenant too

Good OP runway.- I am also torn between the idea of trying to do this remotely and getting over there. Ideally would like to go and stay over there for a while and do it properly but opportunity cost re loss of work income is significant when I am negatively geared on property here.

[mojorisingMember@mojorisingJoin Date: 2010Post Count: 28]

December 6, 2010 - 2:04 pm

Some say you can have the LLC with any rental income coming into a private bank account (though how that works I don't get. How can a company own a property with the rental income going to a private account?).

The LLC is the legal owning entity but you call the managing agent and tell them to find a tenant. They say 'where does the rent money go?' and you give them your bank details. The managing agent/tenant don't need to know any details about the LLC until they try to sue you.

Just guessing.

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December 6, 2010 - 1:51 pm

>>I can transfere the properties at anytime into the LLC name

Wouldn't this involve paying stamp duty twice or whatever the US equivalent property ownership transfer tax is called?

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December 6, 2010 - 1:47 pm

I thought you would be able to transfer funds to the vendor bank direclty from your personal US account for the purposes of settling a purchase even if you nominate for the property to go into an LLC. But just guessing.

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December 2, 2010 - 10:40 am

Sounds like a good idea Aussie.

If the investing gets enough traction then maybe they will rename a new Miami suburb Little Australia!

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November 29, 2010 - 1:20 am

Great OP Miniman. These stories of peoples experiences of travelling to the US and eyeballing the difference between what you see on the net and what you see for real are so helpful.

Good to hear you actually got a purchase through.

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November 23, 2010 - 3:08 pm

property manager would have to withhold 30% of your rental income and forward it to the IRS

Just heard back from an email conversation with a Miami based property manager and they have not heard of this rule.so maybe if you stick with PMs who haven't heard of the rule then you will be OK!

[mojorisingMember@mojorisingJoin Date: 2010Post Count: 28]

November 23, 2010 - 2:46 pm

>>I would be absolutely crazy if I purchased in my own personal name even if I had Landlord Insurance on a property as I would be minimising my risk of litigation

By wrapping a property in an LLC I guess that you limit litigation liability for a claim against that property (by a tenant or other party) to the value of the property itself as opposed to other US assets in your name.

If you are only buying 1 property and it will be the only thing you own in the US then isn't an LLC ring-fence redundant. Litigants couldn't touch your assets outside the US I would have thought.

>>a property manager would have to withhold 30% of your rental income and forward it to the IRS….if it were in the name of an LLC this is not the case

An LLC is a 'pass through' entity for tax purposes so I would not have thought it would make a difference. Be useful to see a link for all these rules on the IRS website.

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November 22, 2010 - 9:59 am

Hi Kev,

Please send me a copy also. I spoke to HSBC call centre on Friday and they promised I would have a PDF by close of business. Nothing so far

email addy sent by pm

thanks

[mojorisingMember@mojorisingJoin Date: 2010Post Count: 28]

November 21, 2010 - 11:35 pm

Thanks Steve,

makes sense – that is pretty much identical to the Australian process

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November 21, 2010 - 8:47 am

Thanks Steve,

Most of my liquid assets are in shares. I can turn them into cash in 1 day and an EFT to my US bank account in 1 day. The local EFT to the vendor would be an additional day.

If I am paying cash for my 1st property seems like that would be fast enough.

Do you know how fast you need to come up with the cash if an offer is accepted?

I might look at gradually selling shares anyway and sending money to US account. Don't want to be forced to transact during a bad shares week or a bad currency exchange week.

Thanks again for the inspiring and motivational commentary on your experiences and good luck!

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November 21, 2010 - 8:40 am

Thanks, spoke to HSBC. They said $200 fee to open an account from overseas. They said just open the basic savers account.

No minimum deposit. No monthly fee.

It has internet access and the ability to do electronic bill payments and Electronic Fund Transfers to and from both locally and internationally.

Seems like all you would need.

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November 19, 2010 - 1:48 am

Hi Steve,

Someone like you who will be on the ground and living there and managing their own proerties can obviously make the best purchase decisions and make the most cashflow. But for an investor planning to buy form overseas and rent out without being there do you think going for properties within a condo development which has an onsite building manager would be better than an buying a private house? The thought of my property standing by itself unattended with no active property manager (they don't seem to do property management with the same hands on approach as in Australia) makes me nervous. Squatters would be a worst case scenario – is that common from what you've heard?

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November 13, 2010 - 8:24 am

Thanks for the informative insight into your foray in to the US property market BB.

Hope you take the setbacks and frustrations in your stride.

Work it off on the surf-board! Don't know if Miami is a surf beach but the waters warming up nicely in Sydney.

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November 5, 2010 - 12:25 am

Thanks for the tax info BB.

The house sounds great. Good luck.