Sarah from Canberra Australia

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Sarah from Canberra Australia

Sarah Singh
Rental Property Investor · Canberra, Australian Capital Territory · Member since 2016 · 21 posts · 3 votes

Hey Everyone

So excited to be part of the BP community and looking forward to learning so much on this journey! 

A bit about me I'm 30 years old and I run a couple of successful hospitality businesses here in Canberra. I guess upon working really hard for the last 5 years and still not being rich like i thought i would, i started to ask myself if there was a better way to achieve financial freedom!

I stumbled across a Rich Dad, Poor Dad seminar and have registered to do the education which is happening mid next year!

I have recently had a friend from ATL visit us here in Australia and he was showing me some of the deals he has done and pointed me to this website! I've been listening to all the podcasts and i love the community feel of this forum!

I am seeking more information on how to invest in the US remotely from Australia and how i go about setting up an LLC and Bank Accounts etc in the US to begin my investment journey

Also wondering how Aussie citizens get financing for the deals they do, is it in the states? or do they take money from Aussie banks and invest in the states. I do have enough capital for a few cash deals but want to take it further then that.

Lastly would love to start connecting with people and making connections and building an awesome team of people to continue the investment journey!

Love to hear your feedback!

Cheers

Sarah

1Reply
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Most Popular Reply

Lindsay Stewart
Investor · Melbourne, Victoria · Member since 2015 · 203 posts · 58 votes
9y

Hi @Sarah Singh

We are property investors in the US based here in Melbourne, Australia.  Happy to help out in any way, feel free to reach out!

Cheers

Lindsay

2Reply
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  • Chris MasonPro Member
    Moderator
    Lender · CA · Member since 2015 · 9k+ posts · 10k+ votes
    9y

    Welcome, @Sarah Singh!

    It's a challenge. The ideal scenario is you go do all the immigration stuff to get a SSN and establish US credit. Second best is to get an ITIN. Third best is portfolio products for foreign nationals. Fourth best is hard money. Fifth best is cash.

    1Reply
  • Sarah Singh
    OP
    Rental Property Investor · Canberra, Australian Capital Territory · Member since 2016 · 21 posts · 3 votes
    9y
    Thanks so much Chris will start researching the options you posted
    0Reply
  • David Traeger
    Investor · Adelaide, Australia · Member since 2016 · 39 posts · 5 votes
    9y
    Originally posted by @Sarah Singh:

    Hey Everyone

    So excited to be part of the BP community and looking forward to learning so much on this journey! 

    A bit about me I'm 30 years old and I run a couple of successful hospitality businesses here in Canberra. I guess upon working really hard for the last 5 years and still not being rich like i thought i would, i started to ask myself if there was a better way to achieve financial freedom!

    I stumbled across a Rich Dad, Poor Dad seminar and have registered to do the education which is happening mid next year!

    I have recently had a friend from ATL visit us here in Australia and he was showing me some of the deals he has done and pointed me to this website! I've been listening to all the podcasts and i love the community feel of this forum!

    I am seeking more information on how to invest in the US remotely from Australia and how i go about setting up an LLC and Bank Accounts etc in the US to begin my investment journey

    Also wondering how Aussie citizens get financing for the deals they do, is it in the states? or do they take money from Aussie banks and invest in the states. I do have enough capital for a few cash deals but want to take it further then that.

    Lastly would love to start connecting with people and making connections and building an awesome team of people to continue the investment journey!

    Love to hear your feedback!

    Cheers

    Sarah

     Hi Sarah

    I've been in contact with Lima One Capital who'll lend to an LLC with Australian owner.

    Keep us updated on how you go. 

    Cheers

    Dave 

    1Reply
  • Sarah Singh
    OP
    Rental Property Investor · Canberra, Australian Capital Territory · Member since 2016 · 21 posts · 3 votes
    9y
    Great thanks heaps Dave will check them out and keep you posted 👌🏽
    0Reply
  • Ron Gosling
    Philadelphia, PA · Member since 2015 · 17 posts · 6 votes
    9y

    Hi Sarah,

    Interesting question. As an American thinking of opening a business in a foreign country, one of my first questions was where to invest (in which US city or state) and what type of RE investment class makes the most sense.  Have you visited the US before?  How much are you thinking of for an initial investment?  Single family rental, four family multi unit or a buy and flip rehab?  Once you decide you can partner with a US citizen or business to help get your feet wet.

    1Reply
  • Mark Nolan
    Professional · Carlsbad, CA · Member since 2012 · 12k+ posts · 1k+ votes
    9y

    @Sarah Singh

    Welcome to Bigger Pockets. Make sure to check out the very informative blogs.

    https://www.biggerpockets.com/blogs

    1Reply
  • Sheryl Sitman
    Rental Property Investor · Philadelphia, PA · Member since 2015 · 479 posts · 362 votes
    9y

    Start with getting a social security number. You can not do anything without one. You do not have to have any immigrations status to do that. Then look into opening a bank account. It is virtually impossible to do from overseas although there are some online banks that make the process possible - but if they have no way to confirm your identity (credit check, address confirmation...) federal regulations make it near impossible. If there are US banks with Aussie branches, maybe start there. 

    1Reply
  • Sarah Singh
    OP
    Rental Property Investor · Canberra, Australian Capital Territory · Member since 2016 · 21 posts · 3 votes
    9y
    Thanks Sheryl S. Will look into how to get an SSN I have come across an agent that's charging a bit but can open up an account for me in the US looking into that...
    0Reply
  • Gaynor Pendleton
    Investor · Gelorup, Western Australia · Member since 2016 · 13 posts · 4 votes
    9y

    Hi Sarah

    Welcome to BP, as an Australian who already owns properties in the US, has a bank account etc as a Non resident you can not get a SSN. Once you lodge your first Tax return and get a ITIN number this is what you will use in place of the SSN. If there is more than one person in the LLC then it will require a Employer Identification Number (EIN) which is requested at the time of creation of the LLC.

    As a Foriegn Investor the best option is to find a company in the US who will manage and look after your LLC's, this is normally a Law Firm as all LLC must have a local Registered Agent or process agent who can accept legal service, should your LLC become involved in a lawsuit. There are heaps to choose from most charge a monthly fee for this service.

    Step 1: Organise a LLC - this is equivalent to a Business Registration here. You will need this to be able to open a bank account. The cost to register ranges from anywhere from $100 to $600 depending on how you do it and which state the LLC is in, then there is a yearly fee to keep the LLC operating this is different in each state eg: Utah is $15 and allows out of state business.

    Check out this link it gives the basic requirements of forming a LLC in the US.

    http://www.wikihow.com/Form-a-Limited-Liability-Co...)-in-the-USA

    Whilst it is best to have the LLC in the state in which you want to own the property it is not essential so long as the state in which the LLC is registered and the state in which you are buying the property allows you to do"out of state business". for example my first LLC was in Utah whilst my properties were purchased in Florida and Detroit.

    I will send you an email with some additional info.

    Happy investing.

    1Reply
  • Lindsay Stewart
    Investor · Melbourne, Victoria · Member since 2015 · 203 posts · 58 votes
    9y

    Hi @Sarah Singh

    We are property investors in the US based here in Melbourne, Australia.  Happy to help out in any way, feel free to reach out!

    Cheers

    Lindsay

    2Reply
  • Upen PatelPro Member
    Lender · Nationwide Lender · Member since 2015 · 1k+ posts · 814 votes
    9y

    @Sarah Singh As @Gaynor Pendleton already stated, you can't get a SSN. As a foreign national buying a property in the US, you would get a ITIN # along with the formation of your LLC. Your representative/lawyer should be able to handle this for you. Be sure this individual will handle your tax filling as well. Reachout to @Brandon Hall (a rock star investor friendly CPA) and see if he could be that person for you.

    In terms of financing, as a foreign national your options are limited. You can get a foreign national portfolio loan (typically 50% LTV) or look for HML/PML (not ideal for long term).

    Good luck.

    [email protected]571-200-6180
    2Reply
  • Steve G.
    Real Estate Coach · New Zealand / USA · Member since 2014 · 296 posts · 82 votes
    9y

    @Sarah Singh - welcome. I'm in New Zealand (I know Canberra well) and have a few investors & an IRS Registered CPA living in Australia. Always happy to help wherever I'm able, let me know if you'd like to chat sometime.

    1Reply
  • Sarah Singh
    OP
    Rental Property Investor · Canberra, Australian Capital Territory · Member since 2016 · 21 posts · 3 votes
    9y
    Steve G. Thanks so much for the reply would like that was actually looking into NZ in May next year for investment purposes as well and noticed on your profile that you invest in NZ would love to connect! Cheers Sarah
    0Reply
  • Sarah Singh
    OP
    Rental Property Investor · Canberra, Australian Capital Territory · Member since 2016 · 21 posts · 3 votes
    9y
    Upen Patel thanks so much for the response looking for a legal rep in the states at the moment to look at opening an LLC Gaynor Pendleton suggested Utah as it allows cross state investing which is also what I'm looking for...
    0Reply
  • Sarah Singh
    OP
    Rental Property Investor · Canberra, Australian Capital Territory · Member since 2016 · 21 posts · 3 votes
    9y
    Lindsay Stewart that would be great to connect also helps getting investors from Aus that have done this before
    0Reply
  • Sarah Singh
    OP
    Rental Property Investor · Canberra, Australian Capital Territory · Member since 2016 · 21 posts · 3 votes
    9y
    Ron Gosling thanks for the reply at the moment I'm just starting off so was focusing on single family homes and possibly duplexes but then looking to slowly climb up the pyramid I haven't visited the states before I'm planning a 6 week trip but ideally would like to invest in the states remotely as I already run my businesses here in Aus. Do you have any recommendations? Have you partnered with anyone foreign to the states before? Would be interested to hear your thoughts... Regards Sarah
    0Reply
  • Hadar OrkibiPro Member
    Rental Property Investor · USA / NZ · Member since 2016 · 1k+ posts · 812 votes
    9y
    Hi Sarha, interesting that you are considering New Zealand. What are your buying criteria for NZ PI?
    1Reply
  • Paul Ewing
    Investor · Boyd, TX · Member since 2014 · 688 posts · 467 votes
    9y

    Welcome to BiggerPockets. I worked in Canberra several times in the past twenty years and really liked it. I can't really help you with investing remotely, but can answer questions on other things.

    1Reply
  • Sarah Singh
    OP
    Rental Property Investor · Canberra, Australian Capital Territory · Member since 2016 · 21 posts · 3 votes
    9y
    Hi Hadar Orkibi thanks for the message I'll be able to give you a better idea in mid April as I'm heading over there but the basics are that it's better cash flow and tax exceptions in NZ compared to Australia also social housing and HMO's are very big there... there is also high rental demand as well so that always helps the investor hope this helps happy for you to check in with me in April/May I would have done a few deals by then
    0Reply
  • Dean Letfus
    Specialist · Memphis, TN · Member since 2012 · 1k+ posts · 1k+ votes
    9y

    "but the basics are that it's better cash flow and tax exceptions in NZ compared to Australia also social housing and HMO's are very big there..."

    I dont know where you got that idea @Sarah Singh but it isn't true. I am a kiw and have invested in Oz, USA, Nz and Fiji.  There are very few advantages in NZ over Oz anymore, unless you come to Auckland in which case an entry level property is over 600K now and yields will be sub 5% gross.

    1Reply
  • Hadar OrkibiPro Member
    Rental Property Investor · USA / NZ · Member since 2016 · 1k+ posts · 812 votes
    9y

    I agree with Dean on this @Sarah Singh, Maybe you have not noticed but I'm based in NZ and been investing here for over a decade.  Rental demand is only high in Auckland, Queenstown and parts of Central Otago. Christchurch values and rents been declining for the last 12-18 month. 

    Wellington prices are rising now but they are only catching up as the city is the last to grow. 

    There are hardly any Tax benefits for Property investors, apart from no capital gain if you hold for over 10 years and no stamp duty. Depreciation is allowed only on chattels and Social housing is mainly operated by special organisations and local authorities/councils. 

    Cashflow in Auckland for most is more like 3%-4% Gross Yield, that would not cover your holding costs. 

    0Reply
  • Ron Gosling
    Philadelphia, PA · Member since 2015 · 17 posts · 6 votes
    9y

    Hi Sarah,

    I can offer any services you may need if visiting the US.  I live a few miles north of Philadelphia and very close to central and southern New Jersey as well as an hour from New York City.  We can help with buying, selling and property management for out-of-area owners (remote property management).  Please provide a means of contact if you would like further info.  We have access to SFHs, multi-families, co-op's and commercial property (mixed use - residential & commercial).

    1Reply
  • Sarah Singh
    OP
    Rental Property Investor · Canberra, Australian Capital Territory · Member since 2016 · 21 posts · 3 votes
    9y
    Dean Letfus thanks for the heads up I'll be sure to crunch the numbers and analyse the deals properly and if they don't work then I won't be investing in that area. It was mainly the advice we were given by the rich dad poor dad education so we haven't had a chance to have a look at the deals ourselves yet... where abouts in Aus have you invested? We find the entry price here to be quite high
    0Reply
  • Sarah Singh
    OP
    Rental Property Investor · Canberra, Australian Capital Territory · Member since 2016 · 21 posts · 3 votes
    9y
    Ron Gosling would be great to connect with you and see what kind of deals you have at the moment, are you able to private message me and I can provide me email address look forward to hearing from you
    0Reply
  • Timothy H.
    Auckland, Auckland · Member since 2016 · 20 posts · 5 votes
    9y

    @Sarah Singh  @Dean Letfus thanks for the heads up I'll be sure to crunch the numbers and analyse the deals properly and if they don't work then I won't be investing in that area. It was mainly the advice we were given by the rich dad poor dad education so we haven't had a chance to have a look at the deals ourselves yet... 

    The Rich Dad Poor Dad education - just be careful with them.  The book is great!  I have not heard the same of their education classes.  The fact they told you NZ had better tax benefits is a bit bs if you ask me.  

    There are good deals in NZ, but like Aus, the main cities are very overpriced and the regions are slow to grow. 

    1Reply
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