TEN TIPS ON BUYING US PROPERTY FROM THE TEAM AT BUYING PROPERTY IN THE USA
1. Work out what type of investment suits you
Are you chasing income returns or capital gains? Maybe you are close to retirement and cash flow is key … or maybe you want to lock in a low purchase price and shoot for capital gains. Perhaps you want a blend of both. Different cities and states have different characteristics as investment locations. Work out what your needs are and it will be easier to hone in on one or two locations to get started. In Buying Property in the USA: A Foreign Investor’s Guide we break done these markets in detail.
2. Decide on your investment timeline
Do you want to on sell your house within one year, two years, three years ... or are you prepared to buy and hold and just bank the rent cheques? We believe most foreign investors are looking to buy US property and hold for at least three years and believe that’s a good approach. No doubt there’s money to be made in flipping properties - and we discuss this in the book - but for many people, buy and hold will be a more profitable approach.
3. Do your research
Once you have worked out your needs and your preferred investment location, start doing your research on where to buy your first US property. In the book, we’ll tell you the key internet sites to find properties that are available and assess their real value.
4. Preparation to buy
By now, if you’ve decided that investing in the US is for you, you need to make the preliminary preparations for purchase. By that we mean you need to set up a bank account and most probably a limited liability company (LLC). You’ll also have to make arrangements to transfer funds from your home country bank to the US. The book gives you quick and easy methods to get through these preliminaries without tearing your hair out.
5. Start thinking about assembling a team.
There is no one-size-fits-all approach, but in general foreign investors want to find a source that is a one-stop shop: ie sources property, performs repairs and facilitates property management. In Buying Property in the USA: A Foreign Investor’s Guide we discuss how to ensure that in opting for a vendor offering all services, you don’t get taken for a ride in terms of added extra and uncompetitive prices. And for those who go it alone in sourcing their own tradespeople and property management, we have some advice too.
6. Entering the buying process
When you’ve located a place that looks good, you need to start quizzing your vendor - in detail. Buying Property in the USA: A Foreign Investor’s Guide will give you a checklist of things to ask your vendor to safeguard your interests and find out if the investment really is as good as it seems.
7. Making a purchase
Once you’ve decide to buy, you’ll generally have to provide proof of funds (foreclosure investing is largely cash market) and to put down a deposit. Then you’ll have 10 days to do your due diligence. This can be disconcerting to foreign investors, but in the book we tell you all the things you need to do during this period to make sure you aren’t buying a dud investment.
8. Closing the transaction
If your potential purchase passes your own investment criteria, then it’s time to close the deal. We discuss what to expect in closing, things to watch out for on the closing statement such as title insurance, closing costs and making final arrangements such as insurance.
9. Selecting a property manager
Even if you have bought through a vendor offering property management, you aren’t obliged to use this manager, although often it’s easier. In Buying Property in the USA: A Foreign Investor’s Guide, we provide a checklist of questions to ask a property manager and how to choose the right one for you.
10. Monitor performance and next steps
Now you are in the market, it’s important to monitor your investment and stay on top of income and minimise expenses. Is your property manager performing? Do you have stable tenants? Is the rent flowing without hassle? We talk in the book about the monitoring process and once you have made this important investment beachhead, what your next move should be.
If for any reason you aren't completely satisfied with the investment secrets and information contained within Buying Property in the USA, just contact us and we'll cheerfully refund your money no questions asked.