- PnLinvestmentsMember@pnlinvestmentsJoin Date: 2009Post Count: 4
Recently I have been looking at the positive cash flow properties available in the US. Have learnt at lot from reading the forums, it good to see people are happy to share the knowledge.
I have spoken to a few of the Austalian based companies offering the complete package to invest. This is all very nice but they all want money up front before they will talk.
I have also corrosponded with a few UK based companies, they are a bit more helpful and cheaper rates. However you have the distance factor.
I am after some feed back on companies, if any one has used them and are willing to talk about their experiences.
CheersBronwyn and MichaelParticipant@bronwyn-and-michaelJoin Date: 2008Post Count: 7
After hearing of a previous sticky situation with a friend attempting to buy US property via an Australian buyers agent we thought that we would give them a call and assess what services are offered and what cost it involves.
Therefore based on our discoveries we have put together our findings on each of the major Australian buyer’s agents serving Aussies in purchasing American property. This is what we found:
A Summary of Australian Companies advertising as US property buyers advocates
There are about 5 companies in Australia which are offering access to US properties via a few different means. They are designed to take out the hard work for Australian investors but some impressed us less than others.
All state that they have “trained professionals” that can assist you with all facets of the property market, from setting up your LLC through to tenanting and ongoing property management. Each offer referrals to solicitors and tax agents (some Australian others American) also.
The one problem is not many actually offer to introduce you to the “professional US team” so unfortunately you really have no idea who is the US is actually looking after your offers, or property management.
There are 2 types of services that they offer:
1) Some offer a service which assists you to buy a bank owner property including putting in the offer, getting all the paperwork completed once the offer is accepted and taking it through to settlement. Then they do a rental appraisal and renovation quote for you before the offer period expires so you know what you are up for. Organise the renovation and put tenants in followed by managing the property.
For this service the average seem to be about $3,500 in upfront fees.
2) Others have a service where you are just buying one of their properties which they own and have already tenanted. Naturally if they own the property they have built in a margin between what they purchased the property for and what they are selling it to you for. It was difficult to obtain any transparency in these details. We do know hard it is to purchase property from Australia and have an agent even reply to your email. A little upfront honesty would not go astray here.
One other agent is currently offering to on sell a property that was purchased very recently for more than $60,000 above the recent sales price. A property next door is for sale for $34,000 this one was being sold for close to $100,000. I guess my biggest concern is that buyer’s agents do not know the market value of the properties they are pitching and that too many people have clipped the ticket on the way through.
The very high pressure sell of some agents has left me aghast. One poor sole was being pumped to make a decision by 9pm Sunday evening. I don’t understand how that works in either Australia or the US with either time scale.
The essence is DO YOUR RESEARCH. Although you have a full time job, massive demands, busy lives it takes 5 minutes to scour these deals for what they are. Research property sale prices in the area, recent sales, comparitable rents, taxes and other required holding costs. Find out who you are dealing with, there experience, how many US properties or Aussie properties they own and successfully manage and only go ahead if you are truly comfortable with who you are dealing with. There is always another deal around the corner.
We use http://www.zillow.com for quick background research on a property to qualify if a deal is right for us. This will show you the last sale price of almost any property in the US so just punch the details in there before buying anything.
So onto our findings:
• Las Vegas and Miami property only
• States on their website that they purchase the property and then on-sell it to you with a tenant in place for 12 months. A margin is built into the price.
• Basic rehab is done – carpet and paint
• Net yield appears to be approx 7-8% nett.
• $375 initial fee to become a member
• $3750 once they have a deal which you are happy with
• They can recommend property or just be a buyers agent for you
• Detroit properties
• Didn’t hear back from them after leaving a message
• Website shows an initial upfront fee of $660 to et premium service with new property listings
• A fee of 2.5% of the final purchase price
Housebuyerusa.com (US company)
$3000 fee initially upfront
$1000 LLC set up fee
$3000 fee per property you purchase through them
They offer 2 services,
1) Where they buy for you and organise a quote for renovation of the property. They have a real estate company which will rent the property for you.
2) You may buy one of their properties which they have purchased, renovated and have rented out currently.
Average 12-14% nett rental yield (not including $3K fee)
Properties located in Kansas Missouri and smaller town St Joseph 50 miles north
Small boutique company which on-sells properties it has renovated and tenanted
Properties in Detroit. Only 2 properties for sale at the moment with 3 more coming soon.
The owner Jason seems very genuine and is offering a service taking people over on a booked tour and introducing them to his contacts.
He may be able to offer a buyers agency service but does not at this time have a fee schedule. He has invested in Detroit for 12 months and is now offering to share contacts in his area to others.
As you can see the market is quite diverse.
If you have any further queries or wish to ask any questions on USA property please check out our blog at usaforeclosures.blogspot.com or email me below.
[email protected]Nigel KibelParticipant@nigel-kibelJoin Date: 2005Post Count: 1,425
I was based in San Antonio running a real estate business in 2006. I am flying there again on Friday to establish a buying service. My service will be a combination of education and a direct buying service.
I do not buy properties and then on sell them.
I will personally assist clients to set up there structures through a top accounting firm in Texas.
I will personally select and buy a property that will match what the clients is looking for.
Personally I am not that keen on Detroit. It was named by Forbes magazine as the most dangerous city in the United States.
I much prefer Texas. It is the fastest growing state in the United StatesPnLinvestmentsMember@pnlinvestmentsJoin Date: 2009Post Count: 4
Thanks for that guys, I have spoken to a few of the ones mentioned above. I realise they are running a business however I do not like the idea of payment upfront before you know what is totaly invlolved.
I hope you will keep us informed on how you go over the next few weeks. I would be very interested in hearing on your deals and others once you are up and running.
PaulMiccaladyParticipant@miccaladyJoin Date: 2009Post Count: 23
How long do you think before you will have this service up and running? It sounds good and it's great that you are willing to help others given you would have a great local knowledge and are aware of the laws over there. There is so much support on this forum. It's great and I feel like I have learned so much – thanks to all.
<br /:)” title=”>:)” class=”bbcode_smiley” />Nigel KibelParticipant@nigel-kibelJoin Date: 2005Post Count: 1,425
It depends on how good the people are on the ground. I have a great deal of faith in the accounting firm I am dealing with.
I am looking at a buying trip for JulyhirensinghMember@hirensinghJoin Date: 2009Post Count: 1
Caution on tenancy rights!
I heard from a friend of mine in US that it is sometimes impossible to extract rent from tenants or to get them evicted.
Has anyone got any knowledge on this?
Anything else we should worry about such as rental Insurance, the ongoing property maintenance costs, flood/tornado insurance, etc???
Whats the catch and why arent many locals involved in this profitable venture!!!Bronwyn and MichaelParticipant@bronwyn-and-michaelJoin Date: 2008Post Count: 7
The process seems similar to Australian property for tenant eviction. I have copied this off an American solicitors website:
“Can a landlord ever terminate a tenant’s right to use and possess the rental property?
Yes, in many cases. The more common reasons why a landlord may terminate a tenant’s right to use and possess residential rental property include:
(1) failure of the tenant to pay rent when due
(2) “waste” to the rental property caused by the tenant
(3) possession of pets in violation of the rental agreement
(4) occupancy of the rental property by persons not named on the lease or rental agreement
(5) material disturbances of other tenants (such as extreme noise disturbances)
Before a landlord forces a tenant out of residential rental property, the landlord must provide written notice to the tenant and provide a reasonable amount of time for the tenant to cure the default. If the tenant does not cure the default within a reasonable amount of time, and does not voluntarily vacate the rental property, the landlord must then initiate a formal eviction proceeding. In a court of law, it is commonly referred to as an “unlawful detainer action.” (An action in which the landlord alleges the tenant unlawfully continues to detain or have use and possession of the rental property). The law abhors “self-help” evictions, in which the landlord or the landlord’s agents show up and physically take the tenant and the tenant’s possessions out of the rental property, change the locks on the doors to the rental property, or shut off water/electricity in an effort to force the tenant to leave. Formal court orders are usually required to get a recalcitrant tenant out of residential rental property.”
For me investing in Amercian property is the same strategy I would use with my Australian property:
Buy in quality areas. I personally would not purchase a terrace in Everleigh St Redfern or in a town or 50 people. I want to know I have a good possible teancy pool with little chance of vacancy.
Although there are cheap areas to buy property in America spend the time finding a property that good quality tenants want to live in.
Your property amanger is integral to yout investment strategy. Buy 4 properties and use different PM for each. That way if the level of service you expect is less than brilliant you take your business to another manager. Your PM should be able to screen your tenants and their refernces. This is no different to owning Australian property.
In essence buy a quality property in demand in a good area and use strong property management services. You are just as likely to have grief in Australia.
Otherwise buy a block of land sit on it for years for capital growth pay your yealy taxes and avoid tenancy issues.
Property investor fears are the same the word over. The choice of our investment and team makes the difference between sucess and failure. Otherwise in the most litigous country in the world. Insure, insure, insure….
Depending on the area you will purchase there are seperate governing bodies for example that cover hurricane insurance in addition to your home and public liability insurance. Prior to purchasing find out your holding costs. If you are not comfortable with the adverse risk of tornado or hurricanes – invest in other state.
At the end of the day don’t let your hesitation stop you from moving forward. Do the research, mitigate your risk and go for it!
Hope this helps.Neville_DiasMember@neville_diasJoin Date: 2010Post Count: 2
Recession has given opportunities for real state investors to think more about investing in property. The current market halt has triggered an ideal opportunity for many investors to buy property at greatly reduced prices. This is especially true in property hotspots Florida and Las Vegas, where, owing to climate and excellent leisure activities, the market remains more buoyant than elsewhere.
You may want to consider building your own ground team. I replied to another topic that covers some helpful hints.
Hope this is helpful.kyliewMember@kyliewJoin Date: 2010Post Count: 4
Our experience with MyUSAproperty has so far been a bit hit and miss. On the one hand, we are glad we joined as we are much further ahead in our USA property search than we would have ever been if we hadn’t have been with them. Within a few weeks of joining my partner decided to go over to the states and look at properties and they did provide some excellent advice. They have also put us in contact with a fabulous accountant who provided some great financial advice around tax, setting up a company , bank accounts etc etc.
My main grip is an attitude of overpromising and underdelivering. Prior to our trip everything was ‘no problem’. Yet they were really pushing to even provide us with contacts in the places they were suggesting we visit. My partner had landed over there and there was nothing lined up for him to see. I ended up being up at all hours of the night madly trying to make contacts myself for him so that the trip wouldn’t be a waste of time. I had imagined that if they were sending through on the email properties to purchase then it would be fairly easy for them to arrange for us to view them. But we were better off contacting our own realtors.
Also the finance guy could not help us at all with getting finance on in the state that we wanted to purchase in. Etc etc etc…
I guess it all gets down to personal taste. Are you prepared to do your own research? Or would you prefer to pay someone to help you out and hold your hand a little????
Kyliedavemax22Member@davemax22Join Date: 2009Post Count: 1
Just wondering if anyone has purchased a property through My USA Property. I am thinking of becoming a member. Any feedback on them would be great!
I work with My Usa Property as their ground partners in Detroit. I have enjoyed working with them and as far as my side goes, things have always gone well. Obviously I’m not an end user but my experience as a provider has been positive. We have taken care of Andrews clients well. Hope this helps. Thanks.djjkParticipant@djjkJoin Date: 2010Post Count: 87detroitmarketexpert wrote:Obviously I'm not an end user but my experience as a provider has been positive. We have taken care of Andrews clients well. Hope this helps. Thanks.
Is that because you receive part of the $4-5k in fees they charge?
No, I don’t receive any of the money they charge as fees. I provide a finished product to them that they market at prices listed clearly on my website. How they market that property and make money is not part of our agreement. David asked if anyone has worked with My USA Property before, and I have as a ground partner. As a ground partner My USA Property has been a fair and honest company. He did what he said he was going to do when he said he was going to do it.
Also, I work with several other marketing companies around the world, and one other in Australia. From an organizational and procedural perspective, My USA property is better than most. (logistics and timing on my side). Thanks.sparky59Member@sparky59Join Date: 2010Post Count: 15
Hello Bronwyn and Michael,
My company also does US property – Florida only. We like to concentrate on Orlando, as prices are good, properties are fairly new and demand for rentals are good. We do not pressure people. I will be having a foreclosure tour in November if you are interested. Yes, there is a fee, but you get to see the properties and gain insights from professionals on the market there.