USA investment property

The best cash flow we've found is in the urban core where investment homes can be purchased at the least expensive prices, yet achieve a good gross monthly rental income.  

Paul
  

Hi ausInvertor,

Sorry for the delay.
We are purchasing 3 properties in Kansas City via My Usa Property.
This is a one stop service they handle everything from soursing property, LLC set up
property management and tax accounting as well as US finance and bank account set up.
I am happy with their service and the only hold up has been the finance in US. They are going through
a bank that will do upto 70% LVR . (smaller bank and does take alot longer than other finance options)

Overall I have no problems reccomending MyUSAProperties . The 3 we have are all rehabbed and tennants in place
healthy returns and reasonably priced. (between 40-60k mark)

Hope this helps

Rick

Hi Lucigoosey,

There is no such thing as US financing at 2%. When you hear in the media that rates in the US are close to zero percent….that is like a wholesale rate that the bank buys the funds and the re-lend it to customers. If your a US resident you would expect to pay as low as 3-4% if your credit score is solid.

As a foreign national borrower you are obviously a higher risk. The other thing to consider is that the bank can't off-sell your mortgage or get it securitised via Fannie Mae which is their source of funding. So you should not expect to get rates the same as a US resident. I met with a Regional President of a smaller regional bank north of Dallas when I was over last and an Australian resident would pay anywhere between 6-7% depending upon the strength of the applicant and what type of property you were purchasing. They considered a single family home the best security and were quite happy to lend in the name of a newly formed LLC.

I used to work in the US, 9 years ago and had a lot of dealings with banks and unfortunately the delay that RickH in his purchase of the 3 KC properties has is common. From experience, more often then not such delays indicated that a negative response is likely…hope that's not the case for you Rick

exchange rate risk

I have a house in San Francisco Bay area. Works GREAT!  Cost $US110,000 for lovely house that just needed paint. Last sold for $400,000. Got 20 tenants that want to rent a $1550/mth, in the 3 days I advertised. Property Tax is 1.25% of purchase price.
Closing a similar one soon.
Only problem is cant find USA finance under 12%. Paid $500 for application fee with likely Florida based firm, but no luck. Anybody found that elusive 5% finance yet?

No, was trying to finance through USA BOUND, a Florida based outfit catering for us Foreign Nationals.

G’Day all,

RickH, sounds like you’ve got them over the line, with regard to the finance. Well done!
Can I ask what rate are you being offered? (apologies if I have missed this elsewhere).

Hi Speedy….. i may sound like i know what i am talking about but not really….
I dont understand the exchange rate risk, could you explain?
thanks

Hi Lucygoosey.

I have a suggestion, you can email me and I would be glad to speak with you. I have had a number of investors make contact with me from this forum, I can only make suggestions based on my own personal experience, research, due dilligence

My USA partners are investors themselves who have done the hard yards long before any locals started to do business in the USA.

They have a proven track record that can be verified.

Many on the property forum are first time investors and are all wanting some type of advise were to invest..Miami…Tampa….Orlando….Atlanta…..so many markets.

The key to success is the infrastructure that has been set up. The most important is property management if you can purchase a house for 30K…..20K what ever and you CANNOT get a long term tenant then you will be sitting on a lemon.

Have a look on Zilliow.com and look at some of the cities ie Miami…Detriot and see what the prices were 5 and 10 years ago, this will give you some idea of the topsy turvy markets they are.

I invest in an area that has had NO boom or bust steady 3% growth. good positive cash flow average 20%…..wouldn’t say that I will get much capital growth I am not concerned if I am getting these type of returns year in & out.

That’s my opinion many will still want to invest in the sunbelt areas to them i say good luck!!

Jeff

[email protected]

I

Hi Marie123

I notice all of the properties on the investusatoday.com.au website are in Rochester, New York State.

Cheers, TH