Hello RichH,
Sounds like your experience dealing with HouseBuyers USA was positive. Do you have to be in KC to deal with the buyer's agent, look at the property and seeing face-to-face to ensure that these guys are geniune? Or, you the deal was closed without you setting foot in USA turf? I can see using buyer's agent, when investing in the foreign market, takes a lot of the leg work and guestimate. May I ask, if you don't mine, how much HouseBuyers USA sought for their service per deal (i.e., from initial discussion to putting the tenant after closing the deal)?
Appreciate your response in advance.
Leo
Congrats on the deal! What other areas besides KC did you prospect?
RickH wrote:Hi Guys,The basics are:
Tennant in place prior to closing : Yes
Rehabbed – prior to rehabb the advert for the property listed it as being very good condition needing only minor
cosmetics.
The total price is $49,000 : Zilow Estimate: $65,000 and prior sale in 2007 was $95,000.Rent of $10,000 p/a less the normal expenses of property management insurence and taxes
for net return of just over 15%.
With the work done maintanance will be minimal.The reason i went for Kansas City is have have researched this area for nearly 6 tms and while better returns in other states, from what i see vacancy rates are very high particularly in Detriot (sorry wouldnt go there).
Finally : yes i used a buyer service. I went through housebuyersusa in the end due to lower costs.
I have been dealing with 2 buyer services one for 5 mths and housebuyers for only a few weeks.
BOTH provided great service one was pay all fees up front and one was pay on closing of property.
I would be happy to reccomend both services.Rick,
I've read almost every post you have put on this forum over the last few days and am very interested in your experience. Unfortunately the forum seems full of people simple selling there product and I'm really after some advice from someone whose taken the plunge like yourself.
My main query is what where the real costs involved of purchasing the property in the US from a US property investment site? Most sites seem to ask for $4000 upfront before you even start. I realise there will costs involved but i've thrown enough money away in my life already and want to make sure i'm going to be getting value for my dollar.
I came across a site which set out all the cost involved which i've attached. http://usprime.com.au/2011/02/53005/
Is this a realistic cost analysis similar to that you dealt with? I realise there maybe rehab costs also involved.Any advice would be appreciated.
Matt
Matt,
I can also speak from experience on this, I do not know what type of fee you would be paying $4000 and why?
A fee of the nature is not customary to my experience investing in the USA. Do you have a breakdown or reason as to what that fee goes to?
As far as the breakdown of that analysis sheet you have provided, it would be difficult to tell if those numbers are completely accurate without walking the property – or having a video tour.
Hope this helps.
Dan
Dan,
Rick stated that he has gone through House Buyers USA which has 'fees' associated with there help: http://www.housebuyersusa.com/intl/aus
Obviously they are not simple 'give me the $4000 and we will give you advice', looking at that site it seems to indicate they'll do a lot of the leg work for you to start buying and investing in the US. The site states it cost $3950 to set up and then $2950 for every property you purchase through them. Not opposed to paying for help, especially if those returns can be achieved, but would much rather pay once results have been achieved not before.
My other concern is when it says :
- Access to USA attorney
- Access to USA accountant
- Access to USA insurance agents
- Access to USA property management
What does 'access' mean? Is it free access as part of the package or are you likely to get charged hundreds of dollars every time you call them up?
Not sure what experience you also have Dan but any thoughts will be appreciated.
Matt
Matt,
I cannot speak on behalf of that firm, but gaining access to Attorneys, Accountants, Insurance Agents, and Property Managers in the USA can all be done without cost.
It is not as difficult as one would think to find a reputable accountant or property manager in the United States. A simple referral usually will take care of it.
Through my experience (I have rental properties in Michigan) I have acquired the same personnel help just by asking others who they would recommend. I would speak with the contact directly, get a good feel and either hire, or move on to the next referral until I found one that was a great fit. They have all worked out great for me.
It sounds like they offer a full service solution to investing in the United States but they are also charging you heavily for it. I guess it depends on the type of investor you are and what you are most comfortable with.
These are my thoughts on the matter – let me know if I can give you any other insight from my experience.
Dan
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