Forums / Property Investing / Overseas Deals / Dont pay to be taught how to wholesale in the United States

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  • Profile photo of Nigel KibelNigel Kibel
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    @nigel-kibel
    Join Date: 2005
    Post Count: 1,425

    Over the last few years there are groups coming out of the states running courses on wholesaling properties. Now in most cases these companies do not do it for you but run a course and then provides mentoring.

    This does not work

    Why

    Because unless you have someone that you work with on the ground it is just too hard. How someone sitting at their desk in Australia goes on line buys a property at a discount and then resells it for a profit is frankly ridiculous. One of the main reasons is this. You can find a property on one street and one of a street two streets over and the price can vary by 50%. In many US cities slum areas cannot be streets away from good areas. How can you do this on line. One person recently contacted me and told me that when he calls for help he is told he is not working hard enough. The issue is it is impossible to do this well without being on the ground. As this market has become more competitive it is also harder to make a profit.

    Personally I am focusing on buying multi family to individuals or in groups. This is a much safer strategy as I have great accountants and property management companies on the ground. So before you spend your hard earned money on programs that do not work consider what will work. There are opportunities in the States but it does depend on who you are working with. I do this professionally and have made my share of mistakes with people. If you have no experience it can be a recipe for losing money.

    Nigel Kibel | Property Know How
    http://propertyknowhow.com.au
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    Profile photo of RutheeRuthee
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    @ruthee
    Join Date: 2016
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    Hello Nigel,
    I am looking into and just researching buying and selling in USA, if I can set it up correctly.

    I am a seasoned property investor although have only one investment property in Australia now (have had many before), renovated 3 houses for profit & now want to fix and flip in USA. Property prices skyrocketting here in Aus make it difficult to renovate for profit now and although I love doing & project managing this type of work, it’s too hard to do here. I’m stuck here with property prices where they are & with bank restrictions waiting for equity to build etc. As you mention above about a property group, I was in contact with a company doing this however I have since found they do not have enough integrity to deal with, so now am without being able to find out how to put a team together to do the work in the USA?? As I am just starting this research for USA & to see whether it’s doable, and I know it’s a big project to get a system that’s repeatable up and running, I would appreciate your advice on the following questions please:

    1. Sett up LLC for legal, accounting and taxation purposes with the intention of replicating a system that works?
    2. How to find a legitimate team of people to work with in the USA?
    3. Private Lender money?
    4. Where and who can guide me please?

    Thank you Nigel. I look forward to your answers.

    Kind regards,
    Ruthee

    Profile photo of Nigel KibelNigel Kibel
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    @nigel-kibel
    Join Date: 2005
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    Ruthie

    I have been involved in the US since 2005 and the greatest issue is finding good people to work with and a good team is always a process. However I have a great Accountant who is specialises in foreign nations so he knows the best way to set up structures and can advise you on all tax matters.

    I am staying away from houses because private money lenders are often expensive with lots of hidden fees. I prefer to put people together to buy larger deals which work more effectively and are generally easier to finance.

    As for Teams we have good people but have certainly dealt with unreliable people. If you want to do this yourself I suggest you need to put the time aside and go over there. Then ask for references and check them.

    I have learnt a lot since I have been in America however even with my knowledge you can be misled so only do things that you can control. If buying a larger property you set up the structure do your research and make sure that you have a finance expert on your team which I now have.

    Nigel Kibel | Property Know How
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    Profile photo of EngeloRumoraEngeloRumora
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    @engelorumora
    Join Date: 2010
    Post Count: 618

    Good one mate, I have had quite a few Aussie’s reach out to me wanting to wholesale in the US from OZ.

    My reply is “You are nuts” hehe

    Even to this day and after 350 deals under my belt here in the US, I still sometime loose money.

    It’s a different animal and it is pretty much impossible to make it work from afar.

    Just my opinion :)

    Over the last few years there are groups coming out of the states running courses on wholesaling properties. Now in most cases these companies do not do it for you but run a course and then provides mentoring.
    This does not work
    Why
    Because unless you have someone that you work with on the ground it is just too hard. How someone sitting at their desk in Australia goes on line buys a property at a discount and then resells it for a profit is frankly ridiculous. One of the main reasons is this. You can find a property on one street and one of a street two streets over and the price can vary by 50%. In many US cities slum areas cannot be streets away from good areas. How can you do this on line. One person recently contacted me and told me that when he calls for help he is told he is not working hard enough. The issue is it is impossible to do this well without being on the ground. As this market has become more competitive it is also harder to make a profit.
    Personally I am focusing on buying multi family to individuals or in groups. This is a much safer strategy as I have great accountants and property management companies on the ground. So before you spend your hard earned money on programs that do not work consider what will work. There are opportunities in the States but it does depend on who you are working with. I do this professionally and have made my share of mistakes with people. If you have no experience it can be a recipe for losing money.

    EngeloRumora | Ohio Cashflow
    http://ohiocashflow.com/
    Email Me | Phone Me

    "Make a PASSION an OBSESSION and you'll never work a day in your life"

    Profile photo of MTRMTR
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    @marisa
    Join Date: 2004
    Post Count: 663

    Crazy stuff, I agree, Wannabe wholesaler, wow, all the best with that one….LOL

    Anyone wishing to invest in USA market should visit the country in the first instance.

    Just my opinion but I also think they should be an experienced investor in Australia before tackling USA market, it just makes sense.

    I have read a number of threads/posts on other forums where people are giving advice/recommendations on US market and they have yet to buy one property in USA, suddenly they are the experts, unfortunately its dangerous, that is probably why many investors got burnt, getting the wrong advice.

    Marisa
    MTR:)

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