Involved In Real Estate · Beverly Hills, CA · Member since 2013 · 4 posts · 1 vote
13y
Hi Thomas, the right way of doing is to find a best local real estate agent and let him/her handle all the process. Since the owner of the property pays service fees (commissions) to both the seller agent and the buyer agent, with other words, it's free service for the buyer, there is no reason to take any risk by yourself. In the USA, there are some paperwork is involved and it is a team work (inspector, title company, escrow company, attorey, etc) . One of the first things is a written purchase offer. Besides the address and price, there are other things should be addressed properly, for example refrig., stove, are included to the price? which contingiencies and their period? How long the contract is good? etc. did you talk to the seller about which escrow company to use? Which inspection company to use? Do you have inspection report? is everything is ok? How do you know if the price is right? Did you talk to any expert real estate agent in that area about it? Sending all cash to an email address owner, just because he/she said he/she owns a property is way too risky, how do you know there is even such a property is existed? What if it has major issues regarding property itself or paperwork, for example is the title clear? If you want, I can connect you to the expert real estate agent in that area that can help you and it's totally free service for you, because again, in USA, the owner pays buyer's agent and seller agent's fees. Buying any property by owner without any real estate agent, unless you are very experienced investor who have done for many years, knows all the details, you can't know what you are getting in too.
Involved In Real Estate · Beverly Hills, CA · Member since 2013 · 4 posts · 1 vote
13y
Meanwhile regarding deposit payment, it's attached to purchase contract and hold by escrow company or real estate attorney (different states have different rules), for example in Manhattan or other part of New York State, for up to 1 million dollar property it's reasonable $5,000, for Los Angeles 3% of sale price. But it's negotiable and part of sale price (not extra!). down payment is related with mortgage, if you get credit instead of paying cash. I don't know, if you awere of, there are some mortgage programs available for foreign buyers, too.
Real Estate Investor · Hampton, VA · Member since 2012 · 562 posts · 109 votes
13y
Hi Thomas Bernard You need local representation-Realtor, Real Estate Attorney or closing agent) Never ever send money directly to anyone for a purchase, don't even send a deposit until you secure an attorney or closing agent to work for you on your behalf to ensure that you are protected. At that point if you decide to move forward with the purchase, you can send funds (initial deposit once your ready to close on the property the balance of the funds that would be needed to purchase, after you receive your HUD statement which is a breakdown of all the monies needed and applicable charges for the closing) to your Attorney/Closing agent and order a title search to ensure the person you are buying from is the actual owner and have no liens on the property. Your real estate attorney can review all the purchase contracts and contingencies (inspections and such) who can hold the funds in a escrow account (for your protection and to work for you) until all your inspections have been completed and a written report have been submitted for your review and approval until closing. Regarding the closing part, you may have to appoint a power of attorney locally to sign on your behalf, but that may vary from state to state.
Property Manager · Dublin, OH · Member since 2009 · 1k+ posts · 291 votes
13y
What do you expect of an property with price under $8k?
I would say nothing. For this price you can only buy in Warzones or some slumlord stuff. An agent don't want to be your partner not enough money to earn and there is no bank who will lend an foreigner few money.
Only solution would be owner financing I think with max 20% down. So you can buy an propertie for about $40k.
Real Estate Coach · Venice Beach, CA · Member since 2012 · 6k+ posts · 3k+ votes
13y
The whole deal sounds sketchy, if you ask me. Definitely don't send money directly to a seller. An agent can help make sure everything is in line, but more than that, especially being from another country, you need an attorney who can confirm you aren't getting screwed. Also, if you US property as an international and you don't have the correct tax and entity structuring in place, you will get royally screwed with your taxes.
You absolutely need professionals working with you on this. You're going to be in a lot of trouble if you don't. And don't just go off numbers. In real estate investing, you absolutely get what you pay for. Never just look at price.
Specialist · Orange County, CA · Member since 2008 · 2k+ posts · 623 votes
13y
Hi Thomas Bernard,
I just read your post. I can't believe I missed it since I've invested in the rust belt years ago.
I understand that you're looking at price, but let me tell you from experience that price is one small piece of the picture. There are many other factors that will affect the outcome of your investment, particularly the market and location. I know cities where you can buy single-family houses for $500 or less... but they're in a "war zone". The bottom line is you may end up paying out more than you make over the course of the year.
If your investment capital is very limited (hence the reason you're looking at $8k properties), then save up some more and invest is stronger areas. If you're working with more capital then consider better markets. (You can start by downloading my free report, "2013 Housing Market Forecast".)
Feel free to post any other questions you may have.