Rental Property Investor 路 Navarre, FL 路 Member since 2019 路 913 posts 路 640 votes
There are a few of us Aussies here on BP, and I'm interested in hearing from those that are doing the long distance investing thing - like not just out of state, but across the ocean and investing in the USA. Anyone can join in. But looking for answers on getting financing to buy if someone lives in Australia and wants to buy in the USA. If you've got thoughts, answers or guidance, let us know, mate!
@Iris Cruz I know you have questions. @Laurence K. I know you have experience and answers.
@Michael King . Great idea for a thread, I鈥檓 sure there are quite a few Aussies on this site.
I started investing in the USA in 2014 . So far I have acquired 12 doors in Ohio. All have been purchased 100% with cash. I have found a few finance possibilities but they have been unpalatable in terms of interest rate and points.
@Michael King . Great idea for a thread, I鈥檓 sure there are quite a few Aussies on this site.
I started investing in the USA in 2014 . So far I have acquired 12 doors in Ohio. All have been purchased 100% with cash. I have found a few finance possibilities but they have been unpalatable in terms of interest rate and points.
@Michael King . Great idea for a thread, I鈥檓 sure there are quite a few Aussies on this site.
I started investing in the USA in 2014 . So far I have acquired 12 doors in Ohio. All have been purchased 100% with cash. I have found a few finance possibilities but they have been unpalatable in terms of interest rate and points.
I鈥檓 happy to answer any questions anyone has.
I've been investing in the US since 2015 and Laurie was one of the first people to help me.
Glad to see other Aussie's on here rather than chasing (mostly) negative cash flow in Australia.
Been here since the mid '80's. Did the 'walkabout' from Adelaide taking a 5 year contract JOB, got married & stayed. Every cold winter day I ask myself ... WHY!!!
But it's been VERY good to us here & now with kids/grandkids & the 23 hour flight, going home every year is too exhausting & a logistical nightmare so we just hang out in FL.
REI has been a consuming passion of ours & will be for years to come. With a JOB I didn't have a problem getting financing or grabbing seller holds. But we quickly became cash only buyers, concentrating on a niche in arms length contract-for-deeds, lease-to-owns & holding seller financing etc.
I guess I'll share mine too. I moved to TX in 2006 to start flight training with a visa. My girl is from Houston and that's why TX. I'd bought and sold a number of houses since 2008, always losing money on them, as much as $50K in one instance.
When we moved to MO for my work, I bought a house that was brand new but when my wife saw it she decided it was too small. I didn't want to sell it and take yet another thrashing on the price and realtor fees, so it became my first rental. And when I saw that it was cash flowing nearly $500 a month, I decided to buy another. And another.
Moved back to TX for a year, then back to MO and started listening to BP podcasts, which lit a fire under my tocas, and have bought 2 houses and a 4 plex in the last 5 months. Regrouping now for the next move.
@Marisa R. Thanks mate for adding your story. When you came to the US, you brought your own money right? And how did you manage to get to stay in the USA? Start with a visa? Are you now an LPR or citizen?
Been here since the mid '80's. Did the 'walkabout' from Adelaide taking a 5 year contract JOB, got married & stayed. Every cold winter day I ask myself ... WHY!!!
But it's been VERY good to us here & now with kids/grandkids & the 23 hour flight, going home every year is too exhausting & a logistical nightmare so we just hang out in FL.
REI has been a consuming passion of ours & will be for years to come. With a JOB I didn't have a problem getting financing or grabbing seller holds. But we quickly became cash only buyers, concentrating on a niche in arms length contract-for-deeds, lease-to-owns & holding seller financing etc.
Life is good but I do miss HOME !!!
Mate when you came here you must have been a huge celebrity, everyone would have thought you were Mick Dundee. Can I ask, what does your portfolio look like now?
I'm looking for a foreign national friendly bank - I'll be getting an LLC and EIN number which I'll need to open an account.
I've heard differing stories about whether or not banks will allow me to open one. Any tips?
I would try Bank of America. I opened an account in Florida while I was working on cruise ships in 2001 or so. All I needed was a mailing address within the USA; I used the cruise line's head office. Times may have changed. Terrorism and all that nasty stuff.
I am looking for Swedes. Are they here. Sorry if I posted to the wrong forum.
Hate to tell you this but back in Aussie a Swede is a root vegetable we put in stews.
haha you said root!
Now that's some Aussie vernacular I had forgotten, much like "man that cars in good nick".
On a visit in 2012 we had some USA friends in Adelaide out for dinner & when the waiter asked how her meal was she simply said "I'm stuffed", he smiled & walked away. God I miss the place!!!
Hard money lends, CASH or Private Lenders (Your folks)
My folks have a line of equity in Australia and have allowed me to borrow against it for some properties, Americans would call this a HELOC. Maybe look into that.
What have you guys learnt about opening an LLC, I'm thinking I should use an attorney to start my first but at 1k a pop I'm hoping to be able to open future LLCs (online maybe?) once I know what to do for a better price.
@Wendy Brockman Where are you located? Are you in the US? My understanding, which is very limited BTW, is that you would set up an LLC to operate in the state you have a significant presence in. I have my LLCs set up in Missouri, where I and my properties are located. If I bought properties in Texas, then I would set up an LLC for that state too. To start an LLC in Missouri, I went to the state attorney general's website and paid $51.25 to file the business name, then opened up a bank account in that name. I am yet to transfer my properties into any LLC as I am concerned about the 'call due' clause. I had to set an operating agreement, which I more or less carbon copied from one my banker gave me. I don't see a need for an attorney. But I do see a need for title work on my properties when/if I transfer them to the business name, which will cost money; I don't know how much.
I wonder what exactly an attorney is doing for you?
We can send you the contacts of a few lenders that lend to foreigners on US real estate and you can PM me and I will send their info. In regards to building a team, it is similar to investing long distance. You need to find, contact and interview; property managers, lenders, brokers, vendors etc. PM if you need a specific list.
Yes I'm in Australia - hence being in this thread :)
I agree - I'm inclined to set-up my own LLC in my preferred state as it certainly seems like an expensive route otherwise. I may continue to gather info on pros / cons of this.
Another Aussie here investing in the US. Rather than accumulate rentals i focus primarily on flips, purchasing distressed properties, renovating them, tenanting and selling as tenanted investment properties. Have been working in the market for around 7-8 years now in Michigan, Texas and Florida
There are certainly lending options available and it would be just a matter of shopping around lenders. The rates are higher using private equity, although its really just a matter of budgeting this into the numbers.
@Wendy Brockman - I would certainly recommend an LLC, I wouldn't be too quick to invest in the US as a foreign investor in your own name, but certainly check with a qualified accountant or US registered tax agent to discuss the tax implications on this :)
@Lindsay Stewart - Never fear, definitely using LLCs and a trust back here in Australia. Just trying to make sure I don't get ripped off in the creation of the LLCs.
@Lindsay Stewart G'day mate! So if I'm reading that right, you're in the US, physically? I am too, I have 9 doors here now. I have a commercial lender that I use here in Missouri. I've been set up in the US for about 14 years now.
There seems to be a few Aussies that are drawn to the positive cash flow available here in the US. The dream is alive and financing is the single biggest issue for them. Private money, hard money lenders are the probably the most likely source for them to make it real.
You mentioned the LLC. I like where that idea is headed, but would you have to have the LLC for 2 years to build a credit score before using it to secure a loan? This is an interesting concept.
Conversely, if I wanted to invest in Australia, I don't know how I'd get financing over there.
Then the other flip of the coin is that, for me, I do not like long distance relationships. I like to be able to see, hold, cherish and love my properties.
Yes I'm in Australia - hence being in this thread :)
I agree - I'm inclined to set-up my own LLC in my preferred state as it certainly seems like an expensive route otherwise. I may continue to gather info on pros / cons of this.
Costs do vary by state. Also be mindful of the registered agent fees. An advantage of an Attorney is a better prepared operating agreement.