All Topics / Overseas Deals / US property investing firms

Viewing 17 posts - 1 through 17 (of 17 total)
  • Profile photo of bradking74bradking74
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    @bradking74
    Join Date: 2012
    Post Count: 3

    Does anyone use homebuyersusa or usinvest? Are they any good? Can you trust them and are their listings over priced? Are they a con? Please can someone enlighten me.

    Profile photo of speedy gonzalesspeedy gonzales
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    @speedy-gonzales
    Join Date: 2010
    Post Count: 149

    bradking74

    Please see the forum post about US Invest…..may give you some insight. I can't comment on HomeBuyersUSA but they all operate by the same mode….charge membership fee's to learn something that you can find out for free.

    https://www.propertyinvesting.com/forums/property-investing/overseas-deals/4345304

    What do you find so attractive about these firms ? The fact they do it all for you ? US Invest do seem to embelish the facts somewhat…..they make out they buy the homes, make out they do the refurb, make out they have a special relationship with a bank in Dallas to get you finance etc when the fact is they don't.

    Profile photo of bradking74bradking74
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    @bradking74
    Join Date: 2012
    Post Count: 3

    I meant housebuyersusa! Do anyone know about housebuyersusa? Is anyone from Australia a member with this firm?

    Profile photo of SamNaz116SamNaz116
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    @samnaz116
    Join Date: 2012
    Post Count: 1

    Thanks for the post I've long thought about using one of these companies .

    Profile photo of bradking74bradking74
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    @bradking74
    Join Date: 2012
    Post Count: 3

    I’ve spent many hours doing research online and by phone, it’s doing my head in!!! Lost lots of sleep!!!
    Might be cheaper and easier to hire a private investigator over in the US to check out one of the investment firms and keep an eye on their properties, tenants, costs and take lots of photos. Spy on them to see if they are cheating us Aussies. If they are true, then I might think about it.
    All the sales people out there always make it sound FANTASTIC. It’s up to us to find the truth.

    Profile photo of lifreylifrey
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    @lifrey
    Join Date: 2012
    Post Count: 5

    i have paid for membership to obtain a USA property and spoke with others personally and perused what they offer. It is better to invest your time, money and energy to DIY. It will pay off in the longrun. I bought a place myself through a local trusted Realtor over in the USA and now I have had our  place in Phoenix for 10 months. I am getting rent and the place has appreciated in value and am really happy with it.

    I have spoken with brokers and providers and I get the same answers: pay a premium for information (access to lists of properties etc).or get lost.  Once you pay up and get a place you will have a list of preferred providers (insurance, managers, etc) who will usually give kickbacks to your provider. Do not expect them to be so friendly once they get what they want – your $$$CASH$$$. When you have property and a tenant your provider will have no motivation to keep it simple- they will overservice you and keep turning over tenants and tradespeople. Sorry to paint a bleak picture but I know people who are in legal proceedings which are consuming them. and making them bitter.

    So, you will pay a slice of your hard earned cash all the way along the line. You will not get philanthopists in the property investment game- they all want a piece of the action. It is a minefield out there and very hard to know who to trust. Do not be decieved, if you go with a provider there will be people taking a cut all along the line. After you get a place, a lot of value will be taken from the property and $$$CASH$$$ will continue to be sucked from you. Americans and an increasingly number of Austraians are BIG on networking in order to make money all the way along the line. It is called 'network marketing'.

    Do not be deceived, tread carefully and get plenty of eductaion. I have no vested interest in any provider – some are more ethical than others. I built a website to warn people and inform people about investing in the USA. I am looking for another place and want help to find it- it has not been available though a provider like the ones you mention. If this post gets through I will be surprised but at least I tried to save a few lambs from the wolves. Feel free to contact me to get more specifics.

    Profile photo of Ziv Nakajima-MagenZiv Nakajima-Magen
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    @zmagen
    Join Date: 2012
    Post Count: 522

    lifrey, out of curiosity, how do you plan on handling emergencies/issues when they occur? Do you plan on personally visiting to address stuff every time, or do you count on your property manager to do everything for you?

    Ziv Nakajima-Magen | Nippon Tradings International (NTI)
    http://www.nippontradings.com
    Email Me | Phone Me

    Ziv Nakajima-Magen - Partner & Executive Manager, Asia-Pacific @ NTI - Japan Real-Estate Investment Property

    Profile photo of Joel.MacdonaldJoel.Macdonald
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    @joel.macdonald
    Join Date: 2012
    Post Count: 52

    Membership fee for information easily obtainable by networking on here and DYI via google… save that 5k towards another property purchase

    I don't want to offend people on here, but the membership fee seems to be the "moron" filter for some of these companies.

    I have no issue with paying a finders/acquisition fee, but an information fee is a bit steep.

    Zmagen, great question.

    By far the most important issue for a foreign investor is the back end support once you have purchased.

    Sign up to a few different websites, and get a feel for their service through their email drip feeds and their credibility. I have noticed cross overs with the same properties and huge price discrepancies. 

    Tread carefully, but most of it would agree, it is an amazing opportunity, if you can get the management and back end support to work in your favour.

    A company who values your relationship and repeat business will show their true colors post purchasing

    Profile photo of lifreylifrey
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    @lifrey
    Join Date: 2012
    Post Count: 5

    Thanks for the good question Ziv. I never said not to have a manager or agent- just to be aware that companies that have been mentioned previously and others I have dealt with or spoken to have their preferred tradespeople/managers who profit from having a high turnover of tenants and getting work done that sometimes does not need doing. This does not mean all property managers, realtors, spruikers etc are crooks.

    I have a trusted Property Manager who has Power of Attorney to deal with emergencies/issues when they occur. He checks with me first in writing and I authorise him to go to my bank to draw a check if needs be. I have taken out property and Landlord's insurance to cover such emergencies/issues. I like to cover all my bases. It's my job. I am a teacher by trade and a male meaning I am a typical DIY guy. I like to know all the ins and outs and am anal retentive to boot. 

    You probably know a lot more than me considering you are a professional Realtor. 

    I know the US markets relatively well and have visited Arizona  twice for weeks at a time. I am a relatively new landlord but consider myself knowledgeable about the process.

    In fact I built a website to inform people of my journey and the contacts I made there.

    Thanks for posting as our help can be of mutual benefit to each other.

    This website may help you see where I am coming from. See:

    http://www.wix.com/jtabley/usa-property1

    Profile photo of Ziv Nakajima-MagenZiv Nakajima-Magen
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    @zmagen
    Join Date: 2012
    Post Count: 522

    I only know my own market, wouldn't dream of pertaining to be a USA expert.

    "anal retentive to boot" lol, it's the only way to do business in my book. My clients label me a pest at first, but as things progress I think (hope!) they come to appreciate this method. Beats the "it's all good, mate!" approach any day of the week. :))

    Ziv Nakajima-Magen | Nippon Tradings International (NTI)
    http://www.nippontradings.com
    Email Me | Phone Me

    Ziv Nakajima-Magen - Partner & Executive Manager, Asia-Pacific @ NTI - Japan Real-Estate Investment Property

    Profile photo of jayhinrichsjayhinrichs
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    @jayhinrichs
    Join Date: 2011
    Post Count: 1,177

    Good timing on Phoenix,

    the US market is rebounding nicely.. just want to make sure we don't bubble..

    As prices rise rents will not rise with them… So returns will be squished.

    Kind of like WI is experiencing in Atlanta… Good news is US investor will gladly buy these properties at a 5 to 8 % return.

    And hopefully that will trickle down to those that bought in the last couple of years.

    One needs to remember that the majority of income properties are still sold through wholesalers and turnkey guys off market IE not on MLS.

    I suppose those that charge membership fee's if your really getting something out of it, its just like those that charge mentoring fee's to teach you how to buy RE.  My Dad mentored me.. However many people started with Carlton Sheets Robert Allen etc etc.  Probably 1 out of 50 or 100 that paid for the boot camps ever does anything but the 1 that does get something out of it then its worth the effort and expense.

    We do not have any Real Estate class's in high School you can get some in College… so the private sector is were those that have jobs learn about the business.

    And coming to the US and DIY on your own is not necessarily a sure thing by any imagination. It really takes years to learn this business. One can get impressions of areas, but you still will not really understand the demography of certain geographic areas of the US by spending a week or two.

    JLH

    Profile photo of Precise PMPrecise PM
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    @precise-pm
    Join Date: 2012
    Post Count: 5

    I would say you do have to be careful of what you are buying in the states being overseas.  I am a property manager in the US and manage several overseas clients.  I have a list of things I would recommend before you purchase a property

    1.  Hire an independent inspector one that works for you and only you.  They have no affiliations with the company you are buying the property from. 

    2.  Actually find out what the ROI is at purchase is the property rented?  Is it section 8 or market tenant.  Is there an deposit.

    3.  Look at the management agreement and pick out all un necessary cost and cut them.  All fee are negotiable.  The management company may not want to bend on a few things but overall you might be able to find out what is fluff or not

    4.  This is most important READ your inspection Report like 10 times to make sure what you are buying is sound. 

    5.  Ask as many questions as needed to assure you are doing the right thing by your money as remember its your money no ones else. 

    6.  Remember this is an investment and there is Risk involved. 

    7.  Get a good insurance company one that will stand by you at time of need and not one that will drop you the second a shingle is missing off the house. 

    I find that sooo many investors have not done their home work gone off what other brokers have told them and just went with it.  When I sell a investment to a buyer they are getting a fully sustainable product that will last for at least 10 years without any major damages.  New Roof, ( 30 to 40 year timberline) New Electrical, New sewer lines, New bathrooms and Kitchens, and most important full Heating and cooling systems most tenants don't want window units for AC in their house.  So there is no way you would have issues other than tenant damage. 

    Profile photo of RickHRickH
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    @rickh
    Join Date: 2007
    Post Count: 137

    Yep,

    Brad i have purchased through housebuyers usa. No problems at all. Yes you pay for a service but i have found Nathanial and his team always quick to respond to messages or issues. Even over 12 mths after purchase.

    They assisted with bank accounts and have a full team on the ground to make things as easy as possibel.

    We have some issues with property management we are working through and i see light at the end of the tunnel.

    If you want a turn key investment with grear back up and on the ground support you should contact housebuyers and talk to them.

    Profile photo of J.SimpsonJ.Simpson
    Member
    @j.simpson
    Join Date: 2010
    Post Count: 8

    All I will say is make sure you can easily see the full address up front and then Google it for past sales data and see the margins as you would with any US property.

    Also another great resource is:

    http://www.trulia.com

    http://www.Zillow.com

    http://www.city-data.com

    Also look at the companies through Google and see / investigate and negative feedback and again this should be standard homework before paying any monies for US property.

    I hope this helps

    Profile photo of FacilitatorFacilitator
    Member
    @facilitator
    Join Date: 2012
    Post Count: 14

    Step 1:

    Dont buy off anyone who buys the property rehabs then onsells to you….your paying above true value.

    Step 2:

    Buy through someone that can get you US bank finance which means they are a US based operation as well as Australian, critical.

    Step3:

    Dont buy cheap rubbish stay in the $70K + zone. You can still get a gross rental return of 20% and a new home in good neighborhood

    Step 4:

    Buy in a city where there is good population and job growth…ie your place will rent (Dallas)

    Step 5:

    It can be best sometimes to use a family trust as the member of yourt LLC to own US property. That way you can split income and take advantage of the new $18,200 tax free threshold for any beneficiaries. Only adult children can use this though, minors are taxed heavily. <moderator: delete advertising>

    Mark

    Profile photo of Ziv Nakajima-MagenZiv Nakajima-Magen
    Participant
    @zmagen
    Join Date: 2012
    Post Count: 522
    Facilitator wrote:

    Dont buy off anyone who buys the property rehabs then onsells to you….your paying above true value.

    I find that to be a very generalizing and unfair statement, Mark. It's like saying "don't use a realtor because they charge". There are excellent turnkey operators out there (quite a few reputable ones on these forums too) who save international investors weeks, months or even years of time, resources and trial and error disasters, and some of them resell at very reasonable prices, based on their experience, teams and local know how, which helps them do the rehab at far less than it would cost the average joe (particularly the out of town average joe).

    if you perform thorough DD and pick the right turnkey operator, you can get a great investment, even if its not "a bargain" (and I, for one, am very wary of "great bargains" even in my own market, let alone three continents away), often already tenanted and fully managed, with a fraction of the hassle and headaches associated with the DIY route. Well and truly worth compromising on 2-5% net returns or whatever it boils down to in every specific case for the foreign investor, who just wants to park their money abroad without having to worry too much about deal mining, management, rehabs, finding tenants, etc etc.

    Choosing to go with a turnkey operator is a matter of investor criteria and preferred management style, nothing as clear cut as a "do" or "don't", in my opinion.

    Ziv Nakajima-Magen | Nippon Tradings International (NTI)
    http://www.nippontradings.com
    Email Me | Phone Me

    Ziv Nakajima-Magen - Partner & Executive Manager, Asia-Pacific @ NTI - Japan Real-Estate Investment Property

    Profile photo of lifreylifrey
    Member
    @lifrey
    Join Date: 2012
    Post Count: 5

    Hey great discussion from both sides of the fence- DIY and turnkey approaches. Generally speaking I find generalising ok!

    We need to weigh up the options and pros and cons of both sides. I am not blowing it out my a… as I have a place in Arizona purchased in November 2011 through DIY Super and I found that most professionals in the USA are just that- professional. I would add friendly, genuinely helpful, resourceful, humble and articulate. I would be happy to endorse agents, tradies, etc  who have helped me deal efficiently with peoperty sourcing, banking, tax and management.

    Mark, (www.uspropertyfacilitators.com; [email protected])

    your guideline is great and if you have on offer what you say in writing here, I will get my attorney to check it out now

    as we are interested in purchasing in the USA again soon. To see where i am coming from, you may want to check out my website at www.wix.com/jtabley/usa-property1

    To those who have not invested in the USA yet, it is not that hard and it is quite easy to set up your company, jump on a plane and check it out. Once you get the process going, things fall into place. Many of us regret missed opportunities so get to it. This discussion would put things in perspective and allow us all to make informed and profitable decisions.

    What a great thread of discussion!

    Happy and prosperous Christmas to you all!

    Jeff

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