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Texas Cash Cow Investments AustraliaParticipant@texas-cash-cow-investments-australiaJoin Date: 2011Post Count: 71DHCP
For the purposes of clarification (see WI's comments above) it seems you have 2 homes in Atlanta owned by your SMSF and 1 in Atlanta presently owned by yourself so a total of 3….. right ??
I guess you will get all the usual comments about being a risky strategy to borrow that amount of money to buy a home in the US and nobody knows your financial situation to give a fair comment. Seems though that you have some common sense about you and have run the numbers. Does the combined "net" rent that you will get from property 3 & 4 cover the monthly loan repayments in the first 5 years. You probably wouldn't transfer funds each month back to OZ as it would prove expensive but if you HAD to does it cover it ?Texas Cash Cow Investments AustraliaParticipant@texas-cash-cow-investments-australiaJoin Date: 2011Post Count: 71ben1990 wrote:I have previously looked into investing in the US, I had got in contact with some company that catered to Australians looking into investing in the US.. I ended up getting the impression it seemed like a dodgy scam. I forgot the idea since until I just found this topic. Is there many worthwhile areas in the states to really buy? or should I just stick with what im doing in Australia? Cheers, Ben.Ben,
Odds are that the company you were dealing with were a dodgy scam so your instincts were probably correct. You need to do plenty of research and educate yourself about the US before you consider investing there. Read through some topics in this forum…you will learn some stuff in that. After you read a few you will start to pick up who has the knowledge and experience. There are the guys from the US such as Jay, Kyle, Alex, Cheeves, who all operate in different markets and have many years of experience between them all. Then there are some Aussie investors such as Emma who I think lives in the US and helps Aussie investors. World Investor has been doing well and knows her stuff and Speedy Gonzales seems to be having success.
Then once you have a plan in place you need to spend some dollars and jump on a plane and go and investigate the market you have chosen for yourself and spend some time doing some due diligence. Yeah it all adds up to dollars so if your only considering 1 property in the US then it's probably not worth the effort. If your considering multiple or building a portfolio and treating it like running a business then it's worthwhile in my opinion. It's not a sit and forget type of investment and it will require your input and monitoring although Jay has the only type of opportunity that I think would qualify as sit and forget type of investment.
Texas Cash Cow Investments AustraliaParticipant@texas-cash-cow-investments-australiaJoin Date: 2011Post Count: 71I second exactly what Jay has mentioned. I don't know of anyone has has finance like what we have to offer our clients….we are one of the rare ones who has access to genuine bank finance for foreign national buyers. Again to mirror what Jay has said….they are not interested in the sub $50K loan amount market. With a 30% down payment required that means the purchase price can't be lower then $72,000-00 but most of the buyers I deal with pay around $120,000+ for SFH so we aren't talking the low end of the market. There are no mortgage brokers involved….buyers deal with the bank direct.
Texas Cash Cow Investments AustraliaParticipant@texas-cash-cow-investments-australiaJoin Date: 2011Post Count: 71Looks like Texas is leading the way with new home construction as well…
http://www.theatlanticcities.com/housing/2012/06/texas-housing-juggernaut/2288/#
Texas Cash Cow Investments AustraliaParticipant@texas-cash-cow-investments-australiaJoin Date: 2011Post Count: 71Alex,
Thought you might be interested in this link….
http://blogs.wsj.com/developments/2012/06/12/builder-branches-out-sets-course-for-charlotte/
Texas Cash Cow Investments AustraliaParticipant@texas-cash-cow-investments-australiaJoin Date: 2011Post Count: 71This video is also a good link for anybody wanting to know a bit more about Texas.
http://www.youtube.com/watch?v=KmqKic5Y8DI&feature=player_embedded
Texas Cash Cow Investments AustraliaParticipant@texas-cash-cow-investments-australiaJoin Date: 2011Post Count: 71According to the 2011 National Association of Realtors Profile of International Home Buying Report….
Florida (31%), California (12%), Texas (9%) & Arizona (6%) account for 58% of all foreign national buyer transactions.I'll accept it's not the cheapest market but it is certainly being found attractive by foreign national buyers due to the many positive factors such as low unemployment, high jobs growth and high population growth. We have finance available for foreign nationals with 30% down and a rate of 5.75%. Many of our clients find it more attractive to put say $30K down as a deposit on a home and get a much more solid investment that will be paid off in full in less then 15 years by the rental income alone. Really depends what the investor is trying to achieve I guess.
Texas Cash Cow Investments AustraliaParticipant@texas-cash-cow-investments-australiaJoin Date: 2011Post Count: 71Emma,
Texas…pro tenant ?? No you have it wrong. Texas is very pro landlord. One of my places….just went through an eviction process and he & his contents were out in the street in 21 days straight.
In Texas, there is no defense for non-payment of rent. Rent is due on the 1st of the month….it's officially late by the 3rd. On the 3rd day a Letter of Demand was hand delivered by the PM. Most property managers in Texas use a promulgated TAR form (Texas Association of Realtors). The TAR agreement provides a demand notice of three days for tenants to vacate the property. If it's not paid by the 3rd day an eviction notice is filed with the county courthouse. Within a few days the sheriff delivers papers to the tenants. Generally you then have from 6-10 days for the judgement to be awarded to you. Once judgement is awarded they have 5 days to appeal otherwise a Writ of Possession is issued and the Sheriff will oversee the tenants and their possessions being removed to the street.
My only bugbear….if the contents weren't removed within 24-48 hours…I would have to pay and arrange for the contents to be removed and disposed of (thankfully they were!!)
Generally speaking…the red states are good
Texas Cash Cow Investments AustraliaParticipant@texas-cash-cow-investments-australiaJoin Date: 2011Post Count: 71Alex,
You wouldn't believe it…..I am actually listening to a webinar you did with Kevin right now !! One you did with RWN. It's educating me on your market. Sounds like you have a good thing going on there. I'd love to drop by and visit you when I am over next but will avoid November.
Yeah there is lots of good stuff happening in the state of Texas. Jobs, population growth…all adding up to good things for investors
Texas Cash Cow Investments AustraliaParticipant@texas-cash-cow-investments-australiaJoin Date: 2011Post Count: 71emma171 wrote:NO NO NO NO NO NO NOguys, SERIOUSLY? I love you guys… Don't do this to me….
every investor is different – we all have different needs, we all have different goals. I was with someone yesterday who asked me "why on earth would you go for yield????" I had to point out that I live totally off passive income, someone retiring might be too and thus our houses are in totally different areas and subdivisions (I view the Select thing as a pure hobby to help fellow fanatics at this point and as pocket money for things like the Masters etc and to find "like minds" for an addiction I have had since birth… ergo investment club… all for one, one for all..)… but that being the piont….. EVERYONE IS DIFFERENT…
Cattle herding has rarely led to anyone appreciating that Daisy at only 3 years of age and Mabel at 10 years of age were both going to the slaughterhouse…..
Totally agree with you Emma.
Investing in the US is no different to investing in OZ in that there is different courses for different horses so to speak !! EVERY investor is different and has different needs and objectives. Tell me if I am wrong but the person you were speaking to yesterday you mentioned has only ever been used to investing on the basis that homes only ever go UP in value ? So concentrated on equity via appreciation ?
We don't do large tour groups. Most of our buyers come on their own accord under their own travel arrangements. We do suggest some places of accommodation close to our office for convenience and you get our corporate discounts at them under no obligation. Most will spend a few days meeting property managers etc & looking around at the homes for sale or sold. The object of large tour groups is to promote a sense of urgency so you feel you have to buy so you don't miss out. Reminds me when I was over last I had a couple of clients that wanted to come with me. As we were looking at homes this lady kept on saying oh I don't like this and oh I don't like that. When we stopped to buy a coffee she pulled me over to the side and said I want to buy those two homes. I said to her but you spoke like you didn't even like the homes and she replied well I didn't want the other person buying them !! Funny when emotions and investing combine….
Texas Cash Cow Investments AustraliaParticipant@texas-cash-cow-investments-australiaJoin Date: 2011Post Count: 71quickchick wrote:Thanks for the clarification of notary at point of law, lawsjs. Complex! True, you don't need a #SSN to open a US bank account. But post what we Aussies called the GFC, I don't know if any Aussie investor has borrowed from a US bank without a #SSN. So as a pre-GFC known borrower, you personally are still able to borrow in US (I presume) without current residency or #SSN. I doubt if anyone has been able to start borrowing here post GFC as a new client, and a foreign non-resident without #SSN(?) But would be interested to hear if that has been someone's experience? Ruth Propertyinvestingusa.com Phoenix AZRuth,
Both myself personally and many of my clients have been able to borrow funds from a bank in the USA over the past 6 months….without a SSN. All new borrowers and all foreign nationals.
Texas Cash Cow Investments AustraliaParticipant@texas-cash-cow-investments-australiaJoin Date: 2011Post Count: 71Gavin,
Well done for speaking out. I hope this serves as a training tool for people contemplating investing in the US real estate market. Looking forward to hearing the whole story from you. You have the support of many on this forum believe me.
Texas Cash Cow Investments AustraliaParticipant@texas-cash-cow-investments-australiaJoin Date: 2011Post Count: 71He lists himself as a Financial Planner and an Accountant. You would think that the Financial Planners Association or Chartered Accountants Association would think he doesn't act in the best interests of his clients and withdraw his membership ?
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I know the ACCC tend to be toothless tigers but couldn't these guys go for unconscionable conduct under the Trade Practices Act ?
Texas Cash Cow Investments AustraliaParticipant@texas-cash-cow-investments-australiaJoin Date: 2011Post Count: 71kylermrice wrote:http://www.uspropertyinvest.com.au/anybody heard of this site?
Kyler,
STAY CLEAR of them is all that I will say. These guys were part of the break up remnants of the company MyUSAProperty featured on the story. I'll say no more !!
Texas Cash Cow Investments AustraliaParticipant@texas-cash-cow-investments-australiaJoin Date: 2011Post Count: 71Spot on Nigel. You hit the nail right on the head. If all of the people buying property treated this as making a proper investment decision they wouldn’t lose their hard earned dollars. Don’t be sold purely on the numbers. You need to jump on a plane and go and have a look at the city your planning to invest in and meet the people who are selling the property and those who are managing it. Be prepared…..have an endless list of questions and make sure they can back up what they are saying and not just talking through their hats. Yeah the numbers on these places in Detroit look great on paper but anyone can make that look good by excluding real expenditure items you WILL have. But what it’s like on paper compared to what it is in reality are two different things.
If you want to play with the war zone area’s though (and when you pay around $30,000-00 you are getting a war zone)…you shouldn’t be expecting nice middle class areas to begin with so you are just blowing your money period. You will be lucky to find someone who is willing to collect your rent but if you had travelled to do some investigations I guarantee you wouldn’t have bought it anyway.
So please….take the time, do the research, do the travel, meet the people and ask the questions.
Texas Cash Cow Investments AustraliaParticipant@texas-cash-cow-investments-australiaJoin Date: 2011Post Count: 71The interesting part is that the woman’s father….the one that shot Mr McNicol…he had recently won a million dollars so the McNicol family is taking civil action against him as well.
I agree with Kyler….wouldn’t touch Detroit as a foreign investor….best left to the locals to play inTexas Cash Cow Investments AustraliaParticipant@texas-cash-cow-investments-australiaJoin Date: 2011Post Count: 71Welcome aboard Steve,
Make sure you drop by Dallas and come visit our office. We have a busy month ahead with lots of out of town investors flying in competing with the local investors. You mentioned your interested in foreign national financing…well we have that in place already with one of the local Texas commercial banks. Rates is 5.75% with a 30% down payment. Being able to leverage certainly opens more opportunities for investors. You also mentioned vacancy…..we have well over 500 homes under management and average a vacancy of 2-3% overall.
We also offer a few choices for accommodation where you get our corporate discount.Texas Cash Cow Investments AustraliaParticipant@texas-cash-cow-investments-australiaJoin Date: 2011Post Count: 71Since we are speaking of economists….
The First Law of Economics…the only thing more dangerous then an economist is an amateur economist.
The Second Law of Economics…..the only thing more dangerous then an amateur economist is a professional economist.Remember…amateurs built the Arc….Professionals built the Titanic !!
Texas Cash Cow Investments AustraliaParticipant@texas-cash-cow-investments-australiaJoin Date: 2011Post Count: 71Kim,
You will find some groups will offer to arrange a bank account for you in the USA (for a fee or for paying members only)……9 times out of 10 it's Wells Fargo. Still haven't been able to ascertain why or how they do it….all about contacts they have I assume. Under the Patriot Act it is against the law to do what they do. Some I know have had their attorney arrange an account under a Power of Attorney I assume.
Couldn't agree more with what Jeremy said though…..you really do need that personal relationship. Anything to do with US banking is like stepping back in time so be prepared. Have a read of this link
http://www.usatoday.com/MONEY/usaedition/2011-05-26-electronic-payART_ST_U.htm
now think back how long we have been able to do this in Australia and you might start to appreciate what we're talking about !!
Texas Cash Cow Investments AustraliaParticipant@texas-cash-cow-investments-australiaJoin Date: 2011Post Count: 71Hey Worldy,
Most definitely 100% full income verification loans. Tax returns for last 2 years, payslips, evidence of deposit etc etc. No major hoops to jump and most of my clients get a pre-approval in place within a week before we let them go to contract on a property.
To be honest the most technical part is after approval and getting the Deed of Trust (mortgage) witnessed and Notarised here in Australia. After it is notarised and gets the Notary Seal you also need what is called an Apostille Seal which is issued by DFAT. All to do with the Hague Convention and international law and signing outside of the USA but that's also straightforward once you get pointed in the right direction
