Investing in USA Property

[alanimal]

Hi Guys,

I was looking at buying another rental on the north shore but as you all know the prices are insane out there.

I was talking to someone the other day and she mentioned she is looking into investing in USA residential property and it sounded like a good idea.

I just wanted to know if anyone is currently doing this? I can see some houses are very cheap providing 9-12% returns.

How does one structure, maintain and manage a purchased property like this from New Zealand? Is it safe?

I am aware their market is at an all time low and will only ever go back up.

I have heard of mortgage holders leaving the keys in the door, phoning the bank and telling them have the house back - we cannot pay the payments.

Also allot of Americans have been flagged and unable to secure mortgages anymore so many are renting?

I look forward to some advice.

Thank you
Al

[Damap]

Nice false advertising there. What you meant to say is we market US property click our link.

[alanimal]

Nice false advertising there. What you meant to say is we market US property click our link.

Dont think so buddy, not related to that company at all - I just read it today whilst researching this topic.

I have spoken to a few of these invest companies and none can put me in touch with any kiwis that have dived into the USA market so if you have done so I really want to hear about your experience in doing it

[Damap]

I've been doing it for nearly 5 years. What do you want to know?

[alanimal]

I've been doing it for nearly 5 years. What do you want to know?

Hey Damap,

As per my post I just want to know who is doing it now and how have you structured it etc (PM me if you want)

My mate said stay clear but it sounds like it could be a good idea if it isnt too hard.

Have you sourced finance in NZ for them or in USA? did you setup an LLC over there?

I guess I am looking for someone to say yes I have been doing it for a while and it is worth looking into, OR stay in NZ and stick to our crazy property prices.

Cheers
AL

[Damap]

It's not hard, any of the companies who sell in the USA can help you get set up. It's not too involved but you need good advice on which state to have your LLC, opting out of non resident withholding etc.
You can get finance in the USA easy enough, interest rates are high initially.
Overall as long as your intent is to hold a minimum of 5 homes or more it's worth doing. Not for the faint hearted though, nothing like New Zealand.

[Mary456]

Hi, I am from USA, Brooklyn in usa is the safe place to invest your money. madison property management is best investing a property in USA because its visitor place.

[front1er]

Hi Damap,
Im from Auckland NZ and have been thinking about investing in the states…..maybe memphis,atlanta…..
What interest rates have you got for mortgages,how do you get finance?
Thanks for any info.

[Damap]

Initially finance is hard money which is generally 12% and 5 points in fees.
We have that down to 9% and 6 points now.
I can get bank money at 4% now but it takes quite a while to achieve that. Lots of hoops to jump through.
Atlanta is a tough city we pulled out of there quite a while ago.

[front1er]

Thanks…..Whats your take on memphis then……Im really looking at cash-flow properties but unsure if this is the right city to start in?

[KiwiChris]

I have been investing in Northen Florida for 6 years.
One of the key points I would stress is that you should have a plan to build a portfolio of at least 5 houses as your accounting, legal etc bills will eat up a lot of profits from one house.

You also need to have an in city property manager you can trust. Either you have to travel to the US and form the personal relationships or pay a margin to someone who has already built there team.

Also buying in the US is very easy, the hard part is making sure that there is good tenant demand in the area you are looking at and that you can rent your place out.

Similar to Damap we use US hard money lenders (14% and 3 point in fees) and then refinancing with US bank at about 6%. (The refi is challenging and takes a while.)
The lenders we are seeing that will do business with Non US borrowers still have large minimum loan amounts (Min loan $300k at 70% LtV) and this needs to be factored into your strategy

Re citys to buy in: Make sure there is good job demand as US seem to be a lot more mobile than New Zealanders and chase where the work is. Good Job growth means high tenant demand and ability to rent.

Happy investing
Chris

[promre]

Property in the USA is quick turning into a standout amongst the most well known markets on the planet. The nation's sheer size gives an extensive variety of chances. New York property is very attractive for well off financial specialists because of the variety of top of the line properties and flourishing city economy.

[Damap]

Oh look the trolls are out from under their rock :-)

[jackson016]

Investing in USA property is a good idea.
Firstly Know your market price well.
Luxury homes may hold a key
Its not just what you are renting,but who's renting

[jacobholtz40]

It is good idea to invest in USA property. Firstly you know about the market price and then luxury homes may hold a key. Today it is the best way to invest your money.