Hi
I just come back from the usa and liked what I saw, so if anyone feels that they want to venture out of there comfort zone I highly recommend it.
I looked at an appartment complex while I was there that a couple of guys had told me about and I was looking at buying a share.It is 116 units in Texas just been refurbed and is in a good location with small vacancey rates it is all so fully managed. We are still looking for investor who are interested in the usa market . This property is +cash flow .
If anyone is interested in the usa market feel free to contact me 0408355568 or email me [email protected]Monopoly, my favourite game
Hi Rick
As you know I am going there next week. I qwill try to supply a travel log of my trip.
Nigel Kibel
http://www.propertyknowhow.com.au
Australian and New Zealand Property Researcher and education
One Day property investment research workshop just $290 Melb 26 NovemberNigel Kibel | Property Know How
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Hi Rikky
I myself have had alot of evaluating experience in the market and have been mentored by Americans. I am very interested in there market but at this stage I am cash poor. Please drop me a line in the future or I will call yourself as it is hard to find people to invest that far off shore. Have you found any finance for the deal?
Brendan 0410454122
Kind Regards
Busta_
Busta yes we have found finance for the deal,I wil give you a call Tomorrow
Monopoly, my favourite game
Financing a deal that size is a lot easier beleive it or not than it is to finance a deal for $35000.
With the changes to the Patriot Act with effect 1st October 2005 Section 32 Loans are now becoming a thing of the past.
The implications both financially and legally on the Directors of Banks and other lenders caught lending on cases where they have not verified the wherabouts of the downpayment are considerable.
Hence purchasing in some States an investment property where you require finance as a FN maybe a thing of the past. A second or vacational home is possible but the small investment deal has slipped you by.
Cheers Richard
Ph: 07 3720 1888
[email protected]
http://www.yourstatefinance.comSpecialising in US & IP finance.
Richard Taylor | Australia's leading private lender
I think the main problem with Section 32 loans is that they are uneconomic for the banks. This is not so different to small loans in Australia.
The laws that effect commercial loans are not nearly as onerous and commercial lenders place a greater emphasis on the strength of the asset and its ability to pay for itself, therefore 9it is easier to find commefcial lenders who will deal with foreign nationals. It is not easy to find one who will offer attractive conditions though, with regard to either LVT or IR.
Regards
AlistairAlistair
I concur with your post.
Commercial lenders are dime and dozen but as you say the terms and conditions vary considerably.
Did a $1MUSD loan for a FN client earlier on this year on a Commercial property through my old broking house / bank JP Morgan Chase. When I phoned them for the 2nd deal they told me they never lent to FN it was just an old favour.
The problem with Section 32 loans is not so much the fact that they are less viable for the lender but the different rights borrowers have under a
S 32 loan and the greater disclosures a lender need to provide.In saying all that in NY State alone 2 of the larger S32 lenders withdrew their facilities for investment loans after the recent Patriot Act amendments.
In conjunction with a US lender we are intending to launch a US Unit Trust product in the new year which will offer many investors the opportunity of pooling together to purchase a commercial property.
The legalities are in place and now we just need to sign off on the underwriting format for each Unit holder.
Cheers Richard
Ph: 07 3720 1888
[email protected]
http://www.yourstatefinance.comSpecialising in US & IP finance.
Richard Taylor | Australia's leading private lender
Hi Richard,
What do you mean by “we just need to sign off on the underwriting format for each Unit holder.”. Does this mean you’re going to float the unit trust on the ASX and are having the issue underwritten by a broker?
Regards
AlistairAlistair
The Trust will not be set up in Oz but in the US so will not be floated on the ASX.
The underwriting refers to how Regions Bank who I have been working with for nearly a year will consider each members serviceability.
Cheers Richard
Ph: 07 3720 1888
[email protected]
http://www.yourstatefinance.comSpecialising in US & IP finance.
Richard Taylor | Australia's leading private lender
Thanks Richard,
Is the structure going to be an REIT or some other form of trust?
Regards
Alistair007
Not sure what you are saying, do you have something on offer to investors?
Monopoly, my favourite game
Rick
Yes i will do shortly.
Cheers Richard
Ph: 07 3720 1888
[email protected]
http://www.yourstatefinance.comSpecialising in US & IP finance.
Richard Taylor | Australia's leading private lender
Well tell us what it is
Monopoly, my favourite game
Wow Things are coming a long way in finance scince my program. Sorry Rikki missed your call i dont check it enugh. I will give you a call tommoro (fri).
Kind Regards
Brendan
Hi Richard,
So how would someone go about financing a loan in the us now and how much would it cost to establish intial finance.
[email protected]
Property Spotters living in NZ
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Hello Richard,
I would be interested too when your USA venture is up and running.
Cheers
Don & Liz
Obtaining a loan in the US is not that difficult dependant on a couple of things.
If you want to obtain finance you need to stick to a couple of basis rules.
To often we see clients who have purchased the property for cash then look to refinance which is classified as a “cash out refinance” and in some instances reduces the LVR available.
Secondly many lenders are State specific. Whilst the Patriot Act obviously covers the whole of the US its interpretation vary from Bank to Bank and from State to State.
Then there is the type of property clients purchase. Purchasing just for yield expecting to obtain finance when you get home will just not work for some properties.
With one of the big UK buying groups which we arrange finance for we tell the clients upfront what types of property they should look forward for and some of the issues with regards to seasoning etc.
The US is a big Country and for those wanting to still buy in NY State for the attractive yield we hope to able to launch our Vendor Finance facility on multi dwelling properties which at present cannot be financed in NY State for a Foreign Nationals.
We are trialing this in the UK at the moment with some good results and with the monthly repayments being in the country which you reside. We have talked to some of our LLC vendors and they are happy to take the currency risk and have repayments set in Australian Dollars for Australia buyers.
Watch this space in the New Year.
Cheers Richard
Ph: 07 3720 1888
[email protected]
http://www.yourstatefinance.comSpecialising in US & IP finance.
Richard Taylor | Australia's leading private lender
It is still possible to finance multi-family properties in NY state. But there are heavy restrictions. I have only had success with clients of high net worth buying good quality properties. You require 6 months of P&I payments to be placed in an escrow account and there is a 75% maximum LVR.
Finance is also available through some NY brokers who know how to work the system, but the rates and fees are pretty high.
As Richard says, finance for foreign nationals is very different for each state in the US and more options exist for foreign nationals in some states than others.
Regards,
Cameron Perry
Finance Consultant
F.R. Perry & Associates
Level 13, 30 Collins St
Melbourne VIC 3000
Ph (03) 9662 1999
Fax (03) 9662 2044does the degree of difficulty in obtaining a loan drop if an American citizen is the one applying for an investment property loan??
If you do what everyone else does, you’ll get what everyone else has..
Yes
Cheers Richard
Ph: 07 3720 1888
[email protected]
http://www.yourstatefinance.comSpecialising in US & IP finance.
Richard Taylor | Australia's leading private lender
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