Well I believe I have provided everything to the bank so they are happy now to continue, at least they seem so for the moment anyway.
I do not really understand how one piece of paper saying how much I have earned in my current job signed by my payroll officer means more than all the payslips also signed by my payroll officer? But anyway it is what they wanted so that is what they got.
And no I am not offsetting the loan against one of my current properties, both my current properties are owned under my LLCs, this one will be owned under my personal name, because the bank would not lend to an LLC. Perhaps down the line when the LLC can show a steady income from all the properties they may change their mind, but for now it is just under my own name.
Would be good to be able to use collateral or leverage against other properties so did not have to provide a deposit every time.
Just imagine being able to buy a new property every day that is positively geared, paying for itself comfortably. There would be no limit to the money you could make, but sigh, for now still need to save up for the deposits. At least it isnt as bad as saving for one in Australia.Daniel_95Participant@daniel_95Join Date: 2013Post Count: 25
Good to read about your progress mate, i wish you all the best with your US journey.
Only one last thing left outstanding, just need to organise insurance for the property, should be just about there by tomorrow, frustrating having to wait for US to go over the weekend, everything just goes on hold for a few days.
Still worried something else will pop up causing another issue, I guess just a healthy bit of pessimism
Thought everything was sorted, then I got another hurdle to jump, hopefully should be the last one though. Unfortunately it may prove to be a near impossible one logistically.
Basically, with all the loan documentation, there is one document that needs to be notarised. Now that would be simple enough (about 6 documents needed notarising and that was no problem), except that there is also I need a US Agent who also needs to sign the document, and their signature also needs to be notarised. Which again is not too difficult, except according to the US Regulations, this document needs to be signed on the same day!
How can it be possible to sign the same document on the same day when we are halfway around the world from each other? I did the best I could, I had to leave work at about 1pm and drive 2 hours right on to Toowoomba where my nearest Notary Public was located, and then once the documents were notarised get back in the car and drive on to Brisbane (another 2 hours) to the FedEx drop off near the airport (the only FedEx in QLD it seems). Even if I sent it express post with Australia Post it would only get to the US straight away, it would still then go on the road in the US and take a while to be delivered. FedEx would be the fastest way (at least that's all I could think of), but unfortunately by the time I got to the FedEx drop off point it was 6.15pm, their last plane on the night leaves at 5.30pm, this was on Friday, so I now have to wait until Monday before the next plane leaves.
So in the end, the documents are not expected to reach my US Agent until Wednesday anyway, I scanned copies through to them so they have the documents, just not the originals. Will it be enough? Will they accept signatures at different dates? Only time will tell, but if it does not work, I just do not know what other alternative I have….
Why must they make things in the US so difficult…
Its called the Dodd Frank laws.. With very few exceptions all banks have to run under the same rules.. You have the Patriot act, and Dodd Frank.. It used to be commerical and portfolio banks were exempt for most of the rules. But this year they are having to conform. I got my first letter from my commerical bank I have been dealing with for 2 years letting me know that I had made a loan request and have the right to the copy of the apprasial.. Had lunch with my banker last week and he said now he can only do 6 loans a year to OWNER Occuppied properties.. Otherwise they have to adhere to the full Safe act and NMLS licensing structure.. Thankfully I am getting one of the 6exempt owner occ loans. I reserved mine early this year !!
You will get your deal done sounds like your dealing with a small regional bank and they are portfolioing the loan..
Well I appreciate your admiration, I just do not know why they make it so difficult…it has almost broken me I can tell you that.
All I am trying to do is give the US Banks some money, but doesn't even seem they want to let me.BennyteeParticipant@ten_burnerJoin Date: 2006Post Count: 242
You might need to tee up vendor finance if your loan falls over.Julsss1Member@julsss1Join Date: 2014Post Count: 1
I’d be interested to see how this purchased goes for you.
With your figure’s it will end up being a $112,000 property.
Have you included other costs, insurance rates Maintenance etc.
So the rental covers all costs, so it will be a positive property.
They are rigorous due to the patriot act. I hope it softens up one day.
It took me a while to find my feet. I will be applying for a loan also in the near future but I have established a credit score and also have a social.
What a journey that was lollol
Julsss1, the property is only $82,000, broken down into a $50,000 mortgage and $32,000 deposit (roughly, with some fees and such in there). The rent should cover everything. Currently the tenants are in the property paying $800 per month and the monthly repayments will be $425. So this leaves $375 a month for maintenance, property taxes, fees etc etc. Hopefully it will pay for itself anyway.
I do have two other properties in the area that were bought outright and they receive $700 and $800 per month rent, so I will have no issues being able to pay off the mortgage and not have to transfer money from Australia over there.
Just an overall update, I had to visit FedEx again, luckily this time I was in Sydney so it was a much easier experience, they needed the originals of all my loan documents. When I sent the first documents over last week I only sent the ones that were Notarised and I scanned and emailed the other ones through, I was not thinking straight and didn't realise they would need a wet signature of the ones that I had just signed myself. Regardless, they are all sent over there now, they should currently be on a plane headed for USA. Estimated delivery for 21/3/2014 which is good to get there before the weekend.
Been a long and tedious journey, but I have a feeling I am almost there (but I am not cracking open the champagne just yet)
Streamline I hope you used blue ink
I just do not understand why they are so pedantic about some things when other things seem so trivial….they cannot spell my address properly (despite telling them right from the start my suburb is spelt Carlingford, not, Carlingsford). And also telling them I do not work for Murphy Pipe Engineering, and that I am an Engineer at Murphy Pipe and Civil.
I do not know, they just seem to run very strangely over there.
Also I think I used black ink, I could be back to square one now…
for us underwriters of your employemnt would be if your work for the company your an employee if your self employeed and work with he company on a contract basis then your underwriting and qualifing guidelines are different vis a vi a US loan
Just an update, it looks like all the frustrations I have had over the last couple of months have been worth it! The house is now mine and deposit has been paid, still awaiting the actual title documents to come through but it look like I have finally made it!
I guess looking back there are a few questions I will be asking myself –
* Would I do it all over again? Definitely
* Would I do it the same way? Definitely not, I have learnt a lot about how the finance process works over the in the states, hopefully I will be better prepared next time (I do not think I could do it much worse though).
In time I will reflect on everything I have been through and try and write a comprehensive step by step guide based on my experiences, hopefully with a few lessons along the way. For now, it is just time to celebrate (or sleep)
Ok I have had the day to let it all sink in try and reflect on the experience, I will try and put it all in a summary so if anyone did want to follow in my footsteps they could hopefully have it a bit smoother than I did.
Step 1 – Met with Mortgage Broker while I was over in the US (October last year), overall he was not too much assistance, but he did get the ball rolling so I guess I give him credit for that. I guess with him being American he did not really understand how difficult it was for an Australian, and the cultural differences we have over here, particularly with the language barrier (I know we speak the same language, but the terminology is just too different and hard to have a proper discussion).
Step 2 – Put an offer on a property, was mid January at the start of this year. My property manager set me up with this one through her real estate agency (Century 21). I was lucky that I had very understanding sellers who were able to hold on to the property while I dealt with all the issues of closing the finance. I have not physically seen the property, however I do trust the judgment of my property manager enough that I will take her word for it when she tells me a property is a good buy. Also it is only down the road from my second property (which I have visited) so at least I know the general area is good.
Step 3 – Provide proof of income for the bank to obtain loan approvals – this was probably the most difficult step, it did not seem whatever I did provide them was enough. What was required was 24 months of earnings, apparently payslips were not enough either, I needed a bank from filled out and signed off by my current employer which states my current income as well as a few other things (like expected job stability and such), I also needed a similar form from my previous employer (because I had only been at my current employer for 20 months). In the end it was not difficult, I was just frustrated that providing all my payslips and tax summaries were not enough for them.
Step 4 – Provide extra documentation to the bank – Another tricky one to provide was 3 credit trade lines. I had never heard of this before, and at first it made no sense. In the end I just needed to provide proof that I have maintained good credit. Unfortunately, unlike Australia where they only seem to require 3 or 6 months, they needed 24 months proof of good credit. Again I tried to provide to them what I thought they would like, statements from my mobile phone, internet, and 2 credit cards for the past 24 months showing them that I had always paid on time, but in the end it was still not satisfactory. In the end I went to a credit report company, at first I tried Veda (which was free) but it did not give them the required information, I then went with Dun & Bradstreet, and I had to pay $30 (I think?) for a credit report the next day in the mail, and I scanned this through to the bank and this seemed to satisfy them. Basically it just had a blank page when it said any infringements which showed I had never shown signs of bad credit. I think it is a lot easier in the US with a credit score available to everyone, so they were hoping to get something like this, unfortunately they just did not realise that we do not have these facilities in Australia.
Step 5 – Organise insurance for the property – This is a step I did out of place, I did not do this till last, did not realise it was required so it became a bit of a rush in the end. Luckily my property manager knew a insurance agent and was able to organise it very quickly and it did not delay the closing at all. You will see as part of your deposit there is a provision for insurance (it was $1,500 for mine, insurance was only $1,333 in the end).
Step 6 – Get loan documents signed/notarised – I had a few forms initially from late January which I sent off, but these were useless because by the time the final loan documents had to be sent off I just had to do them again. So I did the same documents more than once over the 1 month period from initial loan documents to final loan documents. Having loan documents notarised was also tricky given I was working in the bush, far away from any Notary Public. If you are in a city it should not be too difficult to have documents notarised, however it is not cheap. I believe I paid about $300 to have 6 documents notarised. Once I had these documents notarised I immediately went to FedEx to get them over to the US as quickly as possible. Not sure if this was essential, I just didn't want to take any chances. One mistake I did make was only sending the notarised documents through FedEx, the other documents I just scanned and emailed them through. Unfortunately, they needed originals so I needed to visit FedEx again and send off those documents. One hint I can provide is just make sure you have everything organised, you will receive approximately 30 documents that needed to be signed off or initialled, just double, triple check that you have everything sent off so that nothing is missing. A lot of the documents do seem to be very useless and not too important, but the last thing you want is to be waiting for them to review the documents, only to find they are missing one.
I think that was pretty much everything I went through, it does look fairly simply, but I guess it was made more difficult given all the travelling I do for work (also had a trip to NZ in the middle of there too). In the end, it is not complicated to give them what they want, but it just took me a while to understand what they actually did want. I kept trying to give them what I thought they were after, only to find it was of no use to them. I would say the next time I go for a property it would be a lot simpler.
I will also add another post with all the costs involved as a summary, so you can just see if it is economically viable (to be honest I am not even 100% how profitable it will be myself)RedwoodParticipant@redwoodJoin Date: 2013Post Count: 340
Well done Streamline, hope it was all worth it, and great you have a PM on the ground that you can trust. Without someone on the ground, I think it would be extremely tough.
Look forward to hearing the 'costs' involved. Will you include the posts on this site in the costs?
cheers, IvanJohn CarneyParticipant@americapropertysourceJoin Date: 2010Post Count: 15