Forum Replies Created
Also with the W-7, if you tick the boxes 'a' and 'h' – you will need to include documentation of the LLC's operating agreement which in turn must include the EIN in it's content, along with the usual details of those involved in the company and the procedure under which the LLC is operating.
You will need to add at 'h'
Exception 1a – Partnership Interest.
One other tricky aspect is finding out the 'Treaty Article Number' – It is either a 2 digit number or a 3 digit code. I thought I had it at '28' but after a visit to the IRS I will have to check that again via the IRS website. They arent very helpful at giving specifics unless its procedural, but are great at placing doubt in your mind.Ian
http://theblockblog.com
Free Property Investment Info, Tools & Resources for Investors with a Sense of Humour.Great information Property Scout. I've been advising people of the same options after being asked for $1000US to do this.
Regarding the ITIN.
Yes you do need an ITIN but not to set up a company. Set up your LLC, apply for your EIN (employer identification No) and then you will be required to have an ITIN when you lodge your first tax return in April.
The form is a W-7 and it needs to be lodged with your tax return. Remember in the US an LLC is made up of partners, as in a partnership, not shareholders and directors, as in a Pty Ltd company. (For that you need a C or S corp). Therefore the tax return you make as an LLC is applicable to an individual and you will need an ITIN.
Also, it takes about 8 weeks to process and you need documents and verification of ID etc to accompany the W-7. So there are a few hoops to jump through.
To save time and hassle at tax time, I would apply for an ITIN once you have your company set up and before tax is due.
You can find the instructions and the form at the IRS website http://www.irs.gov/individuals/article/0,,id=96287,00.html
Google : W-7 IRS and the instructions pdf will come up as well. These are very important to follow and a total painPlease check all this yourself, but this is what I am going through right now and from my experience. In fact in 2 hours I am off to to a tax assessment office in Manhattan to lodge my W-7 which took me all yesterday afternoon to decipher and fill out.
Best of Luck.
Ian
http://theblockblog.com
Free Property Investment Info,Tools & Resources for Investors with a Sense of Humour.Hi Slowachiever,
The due diligence depends on what strategy and property type, but for an overall look at a ton of links to help you in your research go to http://theblockblog.com They are all there for Australia,NZ and there is access to a huge resource for the US.
Hi Engelo,
Some good points covered here from Matt, Scott and Wobbly. You may want to consider, short buy, renovate and sell deals where you aren't as exposed to monetary fluctuations amongst other variables, that may increase your risk.
Another area is the high positive cashflow deals that are available in the Uni towns in particular. One came my way yesterday for $240k with a 14% yield with potential to increase to 20% – fully managed and tenanted.
Ian
http://theblockblog.com
Free Property Investment Information, Tools & Resources for Investors – NZ – Aust – USAThere's no such thing as a free lunch and that saying is most relevant in the USA where everyone is after their slice of the 'American' pie before you get to it.
Good advice from DetroitDan and exactly what I have been emphasising to Aust/NZ buyers for the last 2 years. Check the comps. Time and again I have seen houses offered for sale to investors that are twice as much as those sold in the street in the previous 3 months and 3 or 4 times the price of the foreclosure for sale, available today. On some occasions I have seen the exact house being offered for $50k, for sale for $15k where the listing has not been deleted.
Well done on the research Morpheus. Don't over analyse too much – a lot will come to you once you are in the US and hopefully your decision making process will be a lot easier once you are on the ground.
Best of luck with your trip.
Ian
http://theblockblog.com
Free Property Investment Information, Tools & Resources for Investors with a Sense of Humour – USA, Aust, NZThere are some great opportunities in NZ at the moment but not for capital gain necessarily. That being said there are some excellent returns on offer at 13% or more for positive cashflow deals if you do wish to buy and hold.
Self and friends have been buying, adding value and selling with some great results.
You can have a look at one project here : http://www.theblockblog.com/new-zealand/property-investment-case-study-4/
Ian
http://theblockblog.com
Free Property Investment Information, Tools and Resoucres for Investors with a Sense of Humour – NZ – Aust – USADitto Terry's comments.
Power of attorney docs not recognised by banks/ lenders. In my case ING and My Rate (ING) and Westpac therefore creating a situation where the banks consider themselves to be above the law of this country.
Ian
http://theblockblog.com
Free Property Investment Information, Tools & Resources for Investors with a Sense Of Humour. – USA< Aust>NZHi Oryx,
I think you may need to read up on property development and get yourself educated as much as possible. I understand you are in SA as you mentioned ‘torrens titles’. There are people who teach property development from the ground up and that sounds like it may be perfect for you. I’m not sure if they do so specifically through property investing .com, but you could have a look at a product put out by a fellow SA chap called Martin Ayles ( heres an old link https://www.propertyinvesting.com/resources/seminars/30 )
but you can find his product for sale here https://www.propertyinvesting.com/resources/products/36
If they havent got any, try: http://www.propertyinvestmentcourses.com.au/products/courses/development-blueprint-%7C-martin-ayles.html
Then you can have a look at http://theblockblog.com/propertyinvestment/strategies/property-development-2/ for 4 more options.
Also if you visit your local council and speak to a person in the town planning dept, they can answer all these questions as they relate to you specifically and the area you are looking to develop in.
Hope that helps a bit.
Ian
http://theblockblog.com
Free Property Investment Information, Tools & Resources for Investors with a Sense of HumourVery clever way to cut out all the middlemen, take a small cut and give the balance back to the consumer. I like what I’ve read and will follow it through more.
Ian
http://theblockblog.com
Free Property Investment Information, Tools & Resources for Investors with a Sense of HumourGreat start up reference. Thanks for the tip. With the 5 extras being added to this site, there should be a wealth of interesting reading ….. then the product????
Ian
http://theblockblog.com
Free Property Investment Information, Tools & Resources for Investors with a Sense of Humour.GDay Uncle Knackers
Just checked out all your vids on your YouTube channel. Great work mate! To anyone doing their own renovations, Uncle Knacks here is the real deal. To anyone who isnt sure about You Tube links, when you click on the you tube link above you will go to the site and just underneath the heading –
Uncle Knackers Shows How To Install Skirting Boards
is a little link that says "12 Videos" – Click that and you can view the lot. – Also you can subscribe if you have a YouTube account.
Ian
http://theblockblog.com
Free Property Investment Information, Tools & Resources for Investors with a Sense of Humour.Hi Kimberley,
For a whole host of website resources on USA investing try this : http://www.theblockblog.com/america/thats-arsum/
Also read up as much as possible either via the posts here on the forum or link up with those people who have already purchased property in the US and try to gather as much of their experience as well.I have 3 properties in the US myself, each purchased via tax deed auctions which not a lot of people on this forum are doing, but it's only one way of getting a positive return – there are many.
There are a few USA investing posts on The Block site that may help, but my rule of thumb is that you should be getting at least 20% net return on any property in the US at present. Anything less and I would be trying to find out why.
Best of luck with it.
Ian
http://www.theblockblog.com
Free Property Investment Info, Tools & Resources For Investors With a Sense of Humour. – USA – Aust – NZHi Matt,
Man I wish I'd started as early as you have. Congrats you have and are doing really well!. What is missing here is maybe a little more thought outside the square. Forget the banks mate. For the time being it looks like they are definitely not your solution.They are your problem, so we have to look elsewhere for the answers.
What is it you require? Is it more money to buy more property or is it the more time to be able to do deals?
Rather than go into a big expose of options here, why don't you contact me directly at [email protected]
I am in New York right now, but we also can have a quick chat via skype and am happy to talk to you from my experience. I was right where you are now.
Look forward to hearing back from you.
Ian
http://theblockblog.com
Free Property Investment Info, Tools & Resources for Investors with a Sense of Humour.Hi WealthyJVD,
Sounds like you really need to study up and there are some great resources for this. Probably the first step is Frankston Council website and check out all the info on property development requirements and fees. (600m2 site may be too small for 3) A quick phone call to council once you have studied their site and ask anything you couldnt find out.
You could look at my site (below) for a whole host of resources or http://www.rookiedeveloper.com or http://www.realestatedevelopmentcoach.com/?hop=goodcho1ce. You should 'google' property development then add frankston to the search.
Good LuckIan
http://www.theblockblog.com
Free Property Investment Info, Tools & Resources for Investors with a Sense of Humour.Hi Allbyallen,
If you go to http://www.theblockblog.com and scroll down to the 'Property Development' links on the right hand side. (Rookie Developer.) Clink that link. It will give you the opportunity of obtaining exactly what you are asking for either via The Block site or directly via Rookie Developer. In particular, a complete property development checklist and a 5 minute deal cruncher that you can use to evaluate any and every potential development opportunity.
Best of luck.Gday Hados
Congratulations mate on the forward planning and saving so well. I think you have things sorted regarding the accounts and prerequisites regarding both FHSA and the FHOG. I've had experience buying my first residence when I already owned investment properties and was eligible. Check all the details as they pertain to the situation now though.
If you have the deposit funds and can keep the LVR as low as possible, then no problem buying an investment property now. Buy well (area, price, future prospects), buy what you can afford and move forward. Agreed, no need to pay more than required on an investment property so interest only loan and if you've bought well, then the tenants will pay your mortgage and holding costs.
Keep saving and in 2 years reassess your situation. You should be in a position to then buy a principle place of residence, receive the FHOG, have a sizeable deposit to reduce your interest payments as much as possible and rent out the other rooms to friends to help pay your mortgage. Your investment property should also be a positive income producing one by now if it wasnt right from the start.
The key is to keep earning and to increase that (wage) as much as you can and to save while you are young to give yourself the leverage you need to start with.
Best of luck with it – you are certainly doing things right so far.
Ian
http://theblockblog.com
Free Property Investment Information, Tools & Resources for Investors with a Sense of Humour.HI 1NVEST
If you want to invest in a house in the USA as many Aussies and Kiwis are at present then go for Option 1. Find a bigger house for the family but at a purchase price of around $420k. Make sure you can sell your current property for at least $490k. If you realise these 2 figures you should have approx $35k cash to buy in the USA. (I have allowed for a 5% add to the purchase price for fees and subtracting 3% to the sale price for agent fees.etc)
Obviously if you manage to buy a new house for less and sell your current house for more then add to the $35k but that figure will buy you an average house in a reasonable neighbourhood in many US cities.
(You may be asking where did my $100k equity disappear to? Scarey isnt it!)Ian
http://theblockblog.com
Free Property Investment Info, Tools & Resources For Investors with A Sense of Humour.Does anyone wake up to Kris Sayce from MONEY MORNING?
I think the people he hates most in this world are Property Spruikers and his angle on the market is an interesting one.If he wasn't an advisor for shares and wealth management, he'd make a great stand up comic.
Ian
http://theblockblog.com
Free Property Investment Info Tool and Resouces for Investors with a Sense of HumourMaxpowerchappy wrote:Hi Guys
I am currently looking to invest roughly 20K AUD on something that will look after itself. As a realist I understand that this kind of outlay is not going to see a huge return but I am very interested to hear some opinions.
Need help guys
Thanks,
Max
Hey Max – go to your profile and add in some contact details ( email) or you can email me at [email protected]
After reading all these comments, a couple of things stand out very clearly. The first is that Detroit Dan and High Income Property both have a great insight into the Detroit market for how it is panning out today and in the near future. The second thing is that Nigel Kibel is full of it when it comes to talking about anything other than his own property spruiking in Texas, so why dont you stick to what you are good at Nigel and Im sure you are very good at it. Stay in Texas, do a great job but stop spreading all this demographic BS about areas you have little knowledge of it seems.
Suburbs mentioned such as Dearborn, Dearborn Heights and Redford as mentioned by Detroit Dan are excellent little pockets of Detroit to invest in as are Livonia and the Uni District and a couple or others. Have a look at this post for pictures of the houses in these suburbs .http://www.theblockblog.com/america/detroit-dodging-the-bullet/ – not exactly the slummy picture painted of Detroit by all and sundry.
Sure there are other areas one can invest in in the US – too many in fact, but hey stop bagging people and their choices in favour of your little slice of pie in cowboy country. Most investors are not complete idiots and will have at least looked at the stats for Detroit and Michigan and will make up their own mind. They don't need you to be stupidly quoting rapper movies to add to the negative hype.
Ian
http://theblockblog.com
Free Property Investment Info, Tools and Resources for Investors with A Sense of Humour.
