Calling all Aussies!
Rental Property Investor · Navarre, FL · Member since 2019 · 913 posts · 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.
Thanks in advance from the Aussies.
@Michael King . Great idea for a thread, I’m 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’m happy to answer any questions anyone has.
@Michael King, I feel it is a better option to have LLC and EIN before I get started. How much cost I am looking for it? There are a lot of deals in which I can find the realtor/Trulia website. But the problem to pick the right area or even the street to look in an area. How can I get started to filter a street/neighborhood in an area?
I don't think it would be necessary to have an LLC and EIN. But I'm not a tax guy and if you're filing tax returns, you'll need either a SSN or EIN. At any rate, cost varies. I understand in CA it costs around $800 annually for an LLC. In MO, it cost $51.25 to register an LLC, free for an EIN.
You're right, the hard thing is to pick the area, and then the street. Filtering is done through research. If I was doing this from Australia, I would look at the school districts. Where I am, better school districts command better rents and better tenants.
@Bryan Yokoyama if your sister is willing to move, maybe it would be best to have her look for the location she wants to live? And then work the deal that way?
If I was looking to do this remotely from Australia, I guess the way I'd research would be....where do I want to vacation or at least spend time? Colorado? Florida? Missouri? Then look at being near a major city. Then the school district. On Zillow, when you scroll down the page you'll see the school ratings for the elementary (primary), middle and high schools. The score is out of 10. I won't buy if the scores are 1 to 2, I tread carefully at 3-4, and 5 or above is a green light to continue looking into the neighborhood. That's just one of my qualification rules for properties. Am I missing a lot of good opportunity? Probably. Am I also lowering my chances of headache tenants? I believe so.
That's a good starting point for you and @Prem Kumar
Hi all,
although not an Aussie (I'm scottish) I do live in Perth and am investing in the US, been playing around for a few years with a development in Atlanta, one in Boston, both never worked out great. Had 4 doors in Detroit but have sold them all due to initial bad purchases and poor rehabs. I have 4 doors here in Perth but the market is poor, cashflow is too hard to find and properties require large amounts of finance that I'm not comfortable with.
Back in the game now with more focus and determination to get this working for me in the US, Jordan and I have spoken and I'm good friends with Marisa R.
With the cash in the US bank account I'm currently hoping to complete a few flips in Michigan but I'm also looking actively at Columbas and Cleveland in Ohio. My plan is to keep on flipping and with profits to buy doors for cashflow.
I'll be visiting the US in April for about 10 days, hoping to gather more insight and gain more contacts.
I'm open to working with someone who has boots on the ground and can show me the ropes, it has to be mutually beneficial and a win win for all parties.
Dave
Hi all,
although not an Aussie (I'm scottish) I do live in Perth and am investing in the US, been playing around for a few years with a development in Atlanta, one in Boston, both never worked out great. Had 4 doors in Detroit but have sold them all due to initial bad purchases and poor rehabs. I have 4 doors here in Perth but the market is poor, cashflow is too hard to find and properties require large amounts of finance that I'm not comfortable with.
Back in the game now with more focus and determination to get this working for me in the US, Jordan and I have spoken and I'm good friends with Marisa R.
With the cash in the US bank account I'm currently hoping to complete a few flips in Michigan but I'm also looking actively at Columbas and Cleveland in Ohio. My plan is to keep on flipping and with profits to buy doors for cashflow.
I'll be visiting the US in April for about 10 days, hoping to gather more insight and gain more contacts.
I'm open to working with someone who has boots on the ground and can show me the ropes, it has to be mutually beneficial and a win win for all parties.
Dave
Welcome aboard Dave. Since you're looking at Cleveland I figured I drop you a link to The Ultimate Guide to Grading Cleveland Neighborhoods. I also have similar guides that you may want to look over for Kansas City, Missouri. & Birmingham, Alabama.
Hi all,
although not an Aussie (I'm scottish) I do live in Perth and am investing in the US, been playing around for a few years with a development in Atlanta, one in Boston, both never worked out great. Had 4 doors in Detroit but have sold them all due to initial bad purchases and poor rehabs. I have 4 doors here in Perth but the market is poor, cashflow is too hard to find and properties require large amounts of finance that I'm not comfortable with.
Back in the game now with more focus and determination to get this working for me in the US, Jordan and I have spoken and I'm good friends with Marisa R.
With the cash in the US bank account I'm currently hoping to complete a few flips in Michigan but I'm also looking actively at Columbas and Cleveland in Ohio. My plan is to keep on flipping and with profits to buy doors for cashflow.
I'll be visiting the US in April for about 10 days, hoping to gather more insight and gain more contacts.
I'm open to working with someone who has boots on the ground and can show me the ropes, it has to be mutually beneficial and a win win for all parties.
Dave
Welcome aboard Dave. Since you're looking at Cleveland I figured I drop you a link to The Ultimate Guide to Grading Cleveland Neighborhoods. I also have similar guides that you may want to look over for Kansas City, Missouri. & Birmingham, Alabama.
Thanks James I’ve been looking at your Cleveland map already and will heavily rely on it when I visit. It’s an awesome resource and I appreciate your contribution. For me right now, just starting out it seems too much info, a bit of analysis paralysis. Do you have any advice on how to use it?
Hi all,
although not an Aussie (I'm scottish) I do live in Perth and am investing in the US, been playing around for a few years with a development in Atlanta, one in Boston, both never worked out great. Had 4 doors in Detroit but have sold them all due to initial bad purchases and poor rehabs. I have 4 doors here in Perth but the market is poor, cashflow is too hard to find and properties require large amounts of finance that I'm not comfortable with.
Back in the game now with more focus and determination to get this working for me in the US, Jordan and I have spoken and I'm good friends with Marisa R.
With the cash in the US bank account I'm currently hoping to complete a few flips in Michigan but I'm also looking actively at Columbas and Cleveland in Ohio. My plan is to keep on flipping and with profits to buy doors for cashflow.
I'll be visiting the US in April for about 10 days, hoping to gather more insight and gain more contacts.
I'm open to working with someone who has boots on the ground and can show me the ropes, it has to be mutually beneficial and a win win for all parties.
Dave
Welcome aboard Dave. Since you're looking at Cleveland I figured I drop you a link to The Ultimate Guide to Grading Cleveland Neighborhoods. I also have similar guides that you may want to look over for Kansas City, Missouri. & Birmingham, Alabama.
Thanks James I’ve been looking at your Cleveland map already and will heavily rely on it when I visit. It’s an awesome resource and I appreciate your contribution. For me right now, just starting out it seems too much info, a bit of analysis paralysis. Do you have any advice on how to use it?
I recommend touring neighborhoods in all of the grade levels so you can get an understanding of what level of risk you're comfortable with.
Fair enough and we’ll definitely do that. However if we were to stick to B grade areas how do I pick one city or zip code over another? I know I could look at schools, transport links, salaries and valuations etc. but if these are fairly equal how do I decide?
Fair enough and we’ll definitely do that. However if we were to stick to B grade areas how do I pick one city or zip code over another? I know I could look at schools, transport links, salaries and valuations etc. but if these are fairly equal how do I decide?
I think you're splitting hairs here my man. Take in all the information available to you and make a decision. I am sure it will be fine. B class is low risk.
Hey Thumb-twiddler, what I would recommend is to copy/paste the address of the properties you like on Zillow, and paste it into Google and you will find the ACTUAL listing agent. Many times the names you find on Zillow/Trulia are agents advertising for their name to pop up along the listing. Another thing to consider is once you contact the listing agent ask them if they have any other properties like the one you like. A good agent will have off-market opportunities as well. PS: I love Australia - sorry to hear about all the Bush fires and the poor animals ;(
There are so many variables to look at before anyone puts a offer. Please advise if I have crime rate, school rating, proximity to shops in zillow or do we use any other websites.
Hey Thumb-twiddler, what I would recommend is to copy/paste the address of the properties you like on Zillow, and paste it into Google and you will find the ACTUAL listing agent. Many times the names you find on Zillow/Trulia are agents advertising for their name to pop up along the listing. Another thing to consider is once you contact the listing agent ask them if they have any other properties like the one you like. A good agent will have off-market opportunities as well. PS: I love Australia - sorry to hear about all the Bush fires and the poor animals ;(
Thanks Mukal
Appreciate everyone’s imput and advice .
Right now my focus is on getting an Oz property back in the rental market after renovations ,that should be completed in the next few weeks. Then we are spending April in the PI finishing a few projects with our commercial warehouse and our farm.
In June Or July, if all goes to plan , I would like to go to the States and spend a few months getting a better feel for things in person.
Meanwhile between then and now , I am on here to learn what I can and become a lot more familiar with the intricacies of investing in the US.
Thanks
@Bryan Yokoyama I just want to how to get started. Going through someone seems like trust especially after reading an article about Morris invest. I really confused where to start.
I can understand where you are coming from @Prem Kumar
I would also be cautious and I am because trust has to be developed and that’s not easy.
firstly you have to decide what kind of property you want ,what area (local or interstate etc ) and the amount you are willing to invest ..I gather from my limited knowledge of the US property market and how the the system works, that using a buying agent is an option. Maybe get on some property websites and make some enquiries on properties that interest you. Talk to the agents visit some properties and get to know the agent face to face.
When you arrange to meet an agent and look at a property, you are not committing your self to do anything but look, ask a lot of questions and learn.
You can even post links or questions on here and ask more experienced members for their opinions.
I am pretty sure most members would be more then happy to help ,if given the chance.
@Prem Kumar I'm going to echo what @Bryan Yokoyama said, first thing you need to figure out is what you want and what your budget is. Do you want a single family home in backwater Tennessee or an 8 plex in Los Angeles? I imagine budget is the driving force? How much do you have to spend? Are you borrowing money and if so, where is it coming from? Do you have it already in place waiting to put to work for you?
Then, do you plan on buying distressed and fixing it up? Will you fix it up yourself? So the cost of coming to the USA and setting yourself up temporarily will be a factor. Do you want turnkey? There are good options of turnkey I'm sure, and I'm sure you can do your research on BP to find the companies. I've entertained the idea myself, but for me there's too many variables, and like you say, Morris.
As Bryan said, buyers agents can help. I would find an agent on BP that services the area you are looking at. I imagine the best way to figure the area out is to throw a dart at a map of the USA. Or pick a place you'd like to vacation like Florida or Colorado for eg. Then you can dive in a little deeper and get to the neighborhood, the school district, crime maps etc.
Thinking about this as I'm typing, I think if I was in your shoes, I would set my sights on turnkey. Spend your time researching those companies, and I believe there are some great ones on here, then look at their offerings. I believe that might be your best option with less headaches.
@Michael King I am looking at under $70k to start with my investment. I want positive cash flow of at least $500/month or cash on cash ROI 10%. I still haven't decided on the area and will think about. The important factor for me is crime rate in my investment area should be low. I will be visiting Florida at least as a tourist.
Do you think I get single/multi family home in these area for my budget? I haven't heard turnkey solution providers. How do I source them in that area?
Thank you for help so far.
@Michael King I am looking at under $70k to start with my investment. I want positive cash flow of at least $500/month or cash on cash ROI 10%. I still haven't decided on the area and will think about. The important factor for me is crime rate in my investment area should be low. I will be visiting Florida at least as a tourist.
Do you think I get single/multi family home in these area for my budget? I haven't heard turnkey solution providers. How do I source them in that area?
Thank you for help so far.
Prem I'm not so sure your budget will get you exactly what you want. While I know it will buy a house that probably can be rented out without any work on your part - and you may get $500 cashflow...I don't think you'll tick a lot of boxes, such as crime rate. In my area, that money can buy you an older 3 bedroom 1200sf house in a low income area. As for crime? Who knows? Will you find something in Florida for that money?
Step 1 complete; budget, and most likely a single family due to budget. Now you can look into area and you can throw a dart at the map. I'm not familiar with anywhere but St. Louis MO and Houston TX. But I do know you would find something in those markets.
I would look for a good turnkey company. I'm not going to throw out any names, since I may be throwing out another Morris Invest.
@Prem Kumar first choose an area that interests you , then start searching for single/multi family homes in that area and that are with in your budget.
Ok, here is where I am at the moment.
My goal is to be in the States by June and find our first investment property, preferably a MF we can Buy renovate and rent.
I have spoken with my bank and organized to switch out a security on one of my investment loans.
Loan balance is currently $115k Aus with $20k overdraft , total mortgage = $135 which is currently secured with our PPR that is valued at around $480k.
I am exchanging the PPR with a rented SFH valued at $180k. Bank is fine with this and the paperwork has been submitted, just waiting for approvel.
Once the PPR title is released, I will apply for a line of credit using our PPR as security.
At the beginning of the year, I asked one of my property managers to with hold sending me monthly rental payments and so far they have put aside $3.2k . By end of June it should have around $9k..
I have put aside another $6k and will add to that amount between now and June.
I’m in the process of paying off my credit card 10k limit - $2,200 owed.
Priced tickets to LA for around June 15 -30 ($1500aus)
We will apply for B1/2 visa the US embassy.
Tomorrow we will drive out and spend a few days at a property we are just about to finish renovating.
Carpets are being installed tomorrow,local contractor is meeting me on Saturday to help us finish a few things and I hope by the time we leave next week, it will be back on their books ready for the next tenant @
$250-280 per week.
I made contact with friends in LA to start looking for a 2nd hand vehicle we can buy on arrival, one friend has let me know we can borrow their RV while we are in the states at no charge , just pay fuel and maintanence costs incurred during our trip. Awesome !
The plan is to drive to Nevada and stay with a good friend there, who has begun looking for properties that fit my budget. Take a look at anything he has found and then either stay or move on to other places.
I have connected with @James Wise @Remington Lyman and a few others In Ohio such as Daniel Lane from Prodigy Properties and have also made contact with an agent in Albany NJ.
I will keep looking for contacts with agents in other states as well.
I have recruited a few close friend who live in or near Atlanta GA ,Chattanooga TN and Miami FL, as well as my sister in-law in NJ and all are keen to help ..
This last few days our PI farm manager harvested and sold some of our crops, so our PI bank account Is looking very healthy , now we won’t have to dip into our AUS saving to cover the trip there next month.
My wife and I also hope to sign the lease agreement with the telco when we are there , which will give us a good amount to save and put some towards expanding our business.
I am still getting my head around the different aspects of investing in the US compared to Australia and slowly learning new things as I go along.
All in all, things are starting to come together.
I know a lot of things can happen between now and June , but I am looking forward to the journey.
Great to hear mate! The first step is the hardest and it is always the action step. That and the fact you are taking huge steps outside your comfort zone toward your goal is very impressive. Are you bringing your financing from Australia? How is the exchange rate?
If you make it through St. Louis, give me a good old Cooee and I'll buy you a coffee.
Great to hear mate! The first step is the hardest and it is always the action step. That and the fact you are taking huge steps outside your comfort zone toward your goal is very impressive. Are you bringing your financing from Australia? How is the exchange rate?
If you make it through St. Louis, give me a good old Cooee and I'll buy you a coffee.
Thanks Mate
To be honest ! I have wanted to do this since 2008 and I am really looking forward to finally doing it Soon.
I’m looking at a few options on how I can take finances there.
At today’s rate - 151k Aus = 100k US approximately...ouch !
My budget for property is up to 50k US or 75k AUS
Line of credit with my Aust bank and access through my ATM card or online banking then wire transfer ?
Transfer Aus funds into a Travel card and exchange to US dollars that I can draw down at an ATM ?
open a US dollar account with our Phil Bank and transfer some of our Phil peso saving into US dollars and then draw down from an ATM when we are in the states ?
Buy US dollars and bring in 10k cash each =$20k ?
I may also to look at transferring funds into my sons account in Aust and have him wire me the money via western Union etc
I should probably also look at how I can open a Bank account in the US ?
@Bryan Yokoyama Hello mate. Lots of options but you are taking quite the hit with the exchange rate ow. Maybe I should be bringing US dollars to Aussie to buy the place up. I'd love to see it hit the 2 for 1 rate that I saw it hit back in '01 when I first started working on cruise ships. I know you want to start building, but wonder if it's worth waiting for a better rate? It comes and goes in waves, and about 4 or 5 years ago it was roughly 1:1 I seem to recall. Anyway, only you can answer that.
Not so sure you'll get a MF for that kind of cash, and if you do, it will probably need a ton of work and more cash. Mind you, I'm only thinking about MF that I've seen around here for lower cost.
I opened a Bank of America account years ago before I had any kind of legal residency. All I needed to give them was a US address. I gave them the address of my cruise line's head off in Florida.
You seem to be aware you can bring in $10K to the USA; not sure if it's per traveler or per family unit. I recall filling out one declaration per family unit every time I returned from overseas, which was every 2 months when I worked in Africa. I would certainly research that though before hand. It would be a disaster to have it confiscated at the border.
Well gee aren't I just a big old bag of posetivity? Don't forget corona virus may cause a lot of grief yet.
Keep us posted.
Up to 10k US you don’t have to declare and anything 10k and over , you have to declare the amount you are bringing in ..So theoretically, you can bring in any amount in cash over 10k us , as long as you declare it on arrival.
I know this from past experience and also from times when I have been a team manager and carried large amounts of US dollars to pay for hotel and competition fees etc for competitors.
Great to hear mate! The first step is the hardest and it is always the action step. That and the fact you are taking huge steps outside your comfort zone toward your goal is very impressive. Are you bringing your financing from Australia? How is the exchange rate?
If you make it through St. Louis, give me a good old Cooee and I'll buy you a coffee.
Thanks Mate
To be honest ! I have wanted to do this since 2008 and I am really looking forward to finally doing it Soon.
I’m looking at a few options on how I can take finances there.
At today’s rate - 151k Aus = 100k US approximately...ouch !
My budget for property is up to 50k US or 75k AUS
Line of credit with my Aust bank and access through my ATM card or online banking then wire transfer ?
Transfer Aus funds into a Travel card and exchange to US dollars that I can draw down at an ATM ?
open a US dollar account with our Phil Bank and transfer some of our Phil peso saving into US dollars and then draw down from an ATM when we are in the states ?
Buy US dollars and bring in 10k cash each =$20k ?
I may also to look at transferring funds into my sons account in Aust and have him wire me the money via western Union etc
I should probably also look at how I can open a Bank account in the US ?
OFX or Transferwise