USA Properties are REAL

[Rosco]

Structures, bank accounts and other basics

To people who have purchased in USA,

- What structure have you used? Have you purchased in LLC, or just used personal name(or other)?

- Is it difficult to get a USA bank account?

- what are the risks of being sued in USA as a property owner/landlord?

- are the taxes you mention, like rates? So taxes to provide rubbish pick up, street's being looked after, local community facilities etc etc.

- are there any other catches, or things that are done weird in USA relating to investment properties?

Awesome post, and always great to hear real stories!

Ross

[JMCI]

To people who have purchased in USA,

- What structure have you used? Have you purchased in LLC, or just used personal name(or other)?

- Is it difficult to get a USA bank account?

- what are the risks of being sued in USA as a property owner/landlord?

- are the taxes you mention, like rates? So taxes to provide rubbish pick up, street's being looked after, local community facilities etc etc.

- are there any other catches, or things that are done weird in USA relating to investment properties?

Awesome post, and always great to hear real stories!

Ross

- Personal name to purchase, it's all rather straight forward. If you're purchasing more than one, perhaps look at a LLC
- Bank accounts are a peace of cake to set up, I can get this done for you online - PM me
-Sued? for what? you're paying your taxes you should be fine
- catches you should look out for if doing it alone is past debts/liens on title, use a solicitor to close as the solicitor will undertake all due diligence to make sure title is 100% clear

[Dean@Massiveaction]

What structure have you used? Have you purchased in LLC, or just used personal name(or other)?

Never in your own name, always in an LLC. LLC is trustee for an NZ trust, no double taxation issues then.

- Is it difficult to get a USA bank account?

Not once you have a Tax number, no.

- what are the risks of being sued in USA as a property owner/landlord?

Negligible as long as you use an LLC

- are the taxes you mention, like rates? So taxes to provide rubbish pick up, street's being looked after, local community facilities etc etc.

Basically same as NZ in many states. Our rates they call taxes

- are there any other catches, or things that are done weird in USA relating to investment properties?

Good property management is everything and follow the golden rules for location:
1. No boom bust cities
2. Strong employment
3. Positive population growth
4. High rental demand

[Rosco]

Thanks for the response!!

Ross

[jadelotus]

[QUOTE=Dean@Massiveaction;241193]

Never in your own name, always in an LLC. LLC is trustee for an NZ trust, no double taxation issues then.


who owns the LLC? the NZ trust?
seems a bit circuitous?

wouldn't tax be liable in both US and NZ and the former can be offset against the later?

[Dean@Massiveaction]

LLC is in your name and is trustee for NZ trust. No tax in NZ as long as set up correctly

[jadelotus]

LLC is in your name and is trustee for NZ trust. No tax in NZ as long as set up correctly

so how does the NZ trust fit in the investment.
I own LLC which buys the properties in US.


LLC is trustee of a NZ trust.
what does the NZ trust own?

As LLC [assuming long term investor] will be earning passive income [net rental returns positive] the profits will be attributed back to me under the FIF regime, so would that not be liable to NZ tax [my personal tax?]

[Dean@Massiveaction]

Email me if you want more info. Don't own in your own name in a litigious country and so if you use an LLC you must set up correctly in NZ to eliminate double taxation issues.

[donna]

Hi Dean,

I know you market USA properties to Kiwis so I guess you know the market well - how many USA properties do you have and how long have you had them?

Cheers,

Donna

[Dean@Massiveaction]

Hi Donna, the company I recommend in the USA has been supplying and managing homes for international investors for 30 years.
I first looked at the market about 3 years ago, started investing myself last year after much research. My main advisor/partner is an expat lawyer and publisher who has been in the USA investing for over 25 years.
It is the best cash flow solution I have ever found :-)

[ellalouise]

Whereabouts have you invested as it's always good to talk to other investors who have invested in the states.

We have invested in Sarasota, FL but are looking at other areas to invest in.

Regards

SJ

[Dean@Massiveaction]

Memphis is my favourite spot to date. Pittsburg and Cleveland are also in the top 5 performing cities for investment. Florida is a bit boom bust for me :-)

[ellalouise]

We went for florida at the moment as this area has seen the biggest price drops as the lenders seemed to have got carried away down there in the boom. Low entry points but high yields, some units 30% net. In sarasota itself it has a large medical industry, arts scene, and lots of service industry to support that sector and we are purchasing in the area where the medical industry is. It's has great demographics and purchasing power but most the service industry and tourism seem to rent. As it's on the gulf coast the area gets a large amount of snow birds but we're sticking to annual rents. Pittsburgh seems interesting though, Sarasota has an airport and does go to some major cities in the us and canada so we will look at other areas once we are there.