US foreclosures - Boholt Seminars - NO

lawsjs said:
Chui,
Don't believe what they say. Yes they are Notaries, but whether they are accepted or not is up to the County Recorders office.
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So, how many days do I have from the time a buy offer is accepted by the vendor until me having to physically sign the document on US motherland? The decision is in the hands of the county recorder's office right? Is that why your sister could do this in LV, while you have difficulty doing the same elsewhere?

Isn't the land on a US embassy technically part of the US territory? I saw it on the Simpsons, and they even have contraptions which makes the toilet flush clockwise.

By the way, it looks like electronic notarization across state borders have been vetoed by the President http://www.businessweek.com/news/2010-10-07/obama-rejects-notary-bill-amid-foreclosure-caution-.html
 
Chui,
Firstly it is the actual recorders office in the County I deal with (LA) that is the complete pain. And they are wrong. But they are idiots and you cant argue with them.

You are correct, an Embassy Notary is accepted for the reasons you mention. You have to book (pay a fortune) and then enter Camp X-Ray and be treated like a criminal for 3-4 hours. In fairness to them I have been away when they have had available bookings. In Sydney its something like Thursdays between 8:30 and 11:30 - and only a limited number.

I wanted Emma to be a Notary, because she may be persuaded to have lied for me and had a bunch of witness forms pre signed by me to be used when necessary.

I did NOT need to informed the Notary process could be made harder:)

It is not a reason not to buy property though - it is just a pain in the butt..
 
This is an excellent thread and very useful to those of us who have yet to take the plunge.

I just had a look at the IRS website and it says that foreign owners of real estate in the USA, will pay a flat rate of 30% witholding tax and it did not appear that foreigners could use depreciation in their IRS returns.

To Emma, lawsjs, and those who are already invoved, are you being slugged 30% IRS tax?

I'm just thinking that together with the cost of annual taxes, property management fees plus losing 30% to the IRS, is this still a good deal?

My apologies if this was covered earlier in the topic, I just couldn't go through 19 pages of thread again.
 
bevk said:
I just had a look at the IRS website and it says that foreign owners of real estate in the USA, will pay a flat rate of 30% witholding tax and it did not appear that foreigners could use depreciation in their IRS returns.
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I'm not involved yet, but double taxation agreements with Australia means you won't have to pay tax twice.

lawsjs, How quickly must the documents be signed?
 
Hi Chui,

yes I read that you get a tax credit for anything that you pay in the USA, but I suppose that it does seem harsh to get slugged 30% flat rate in the first place!
 
I have only sold one building and I didn't make anything on it so I cant say...

Generally when you buy or sell something you are in the country and getting a Notary is not an issue if you are there. There is no time limit, its just I want the cash to move onto the next building. Fortunately the buyer is a guy with long experience with property so he hasn't moved onto the next deal.
 
bevk said:
This is an excellent thread and very useful to those of us who have yet to take the plunge.

I just had a look at the IRS website and it says that foreign owners of real estate in the USA, will pay a flat rate of 30% witholding tax and it did not appear that foreigners could use depreciation in their IRS returns.

To Emma, lawsjs, and those who are already invoved, are you being slugged 30% IRS tax?

I'm just thinking that together with the cost of annual taxes, property management fees plus losing 30% to the IRS, is this still a good deal?

My apologies if this was covered earlier in the topic, I just couldn't go through 19 pages of thread again.
Click to expand...

Feel free to correct me if I'm wrong, but i have share/option accounts in the US as i work for a US company. The concept of "withholding" tax is simply if you have not completed the correct forms to declare you tax file number etc. In terms of the share transactions, i have filled out the appropriate forms with the IRS and as a result, no withholding tax is deducted from the share sales or option exercises, it is all declared for taxation here.

I'm wondering if the withholding tax you are referring to would be the same deal.
 
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The solicitor in Manly IS a US Notary.. Has to be. From signing the offer paperwork to acceptance depends on whether you are the winning bidder. I always say that if I haven't heard in 12 hours, I didn't get the property. Next, within 24 hours of your offer being accepted, you may need to represent a new cashier's check for the earnest money deposit and you may need to have a notarized signature in a hurry. Manly is closer than the US. I use Spooner & Hall in Manly. Take cash, they only accept that! $195 for a notarized service...but cheaper than an airfare! Phone 9977 7177.....also, closing is generally 3 weeks from countersigned offer acceptance contingent on title company and when you will need to present residual funds. Wire transfer works for residual.
 
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Elvis is alive and well (referring to the earlier post.... )... I have bought multiple properties without being in the states and in Vegas, the reality is you will be making offers from Australia on a few before getting one.... I have also closed on multiples from afar.... Obviously you do want someone there for the final walkthrough to verify the property is a it was when you viewed it (nothing missing etc) but the notary just isn't an issue, 6 years ago I could only use the embassy but now there are quite a few around the place so this just isn't a biggie!

As for financing llc's.. If you go partnerships for refi purposes but worried about insurance for liability, you may want to consider "umbrella" insurance.. $2 million is about $200 -$300 a year
 
Myoung.. My information is the same. When you fill in your W8 I think it is... Make sure you check the right box that says you are applying for your tax number as a non resident not paying US tax and make sure you DO pay your tax here ;) I also need to point out that I am not an Australian resident for tax purposes but have been talking to someone who is doing an SMSF so consult your accountant etc! I have the same in reverse for my Australian properties though in the US and it is painless .. I have a great US accountant!
 
Refinancing LLC's information I am digging up from when I was looking at it. this may be clear or make it all more confusing but a few are asking.... This is from my notes with my CPA and paralegal in the states.

Banks want properties in an individual's name not an LLC. You can keep it in an individuals name until financing has been obtained. After financing, it can be deeded into the LLC BUT must check fine print of loan document to see if it is prohibited. deeding to the LLC...if it needs to be deeded back into the individual's name at sale time, it would cost transition tax fee. I don't know if the bank would actually need it to be deeded back into the ndividuals name or how it would work with title and processing payoffs.

PARTNERS

The CPA said that the way around this with two or more is to put the property into a partnership ... Get an EIN from the IRS, don't need a license, have a partnership agreement written up, tailor it after an LLC agreement and make sure that you get additional umbrella insurance as mentioned above to cover for the loss of protection that you don't have by being in an LLC.

Suffice to say, I am digging up information from my research many months ago.....hope this helps.
 
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Emma can you verify this info I ve ben given.
To do any buisiness in LV you must,
Have entity (LLC)
have Nevada Buisiness license ,
have LV Buisiness licence
have a Nevada Bank, personal & buisiness account
Register buisiness with Nevada Taxation department
have clarke county buisiness license.
Thanks for all the great info. Have got far more usefull info of you than DB. Who incidentaly, said at the start of her semminar I went to, "no need to take notes as these will be made available after the semminar".
They were available alright on CD s but you had to pay something like hundreds of dollars to get them. I guess the poor millionaire needed some money. Oops one more question is true you dont have to use licensed tradesmen, for rehab, just go to a certain street corner, pick up some Mexicans and presto, you have a rehab and your wallet is not much lighter.
 
Sorry Em, Spooner & Hall are not acceptable. Passed through them 10+ years ago.. I need a US Notary. Guys, this is not a big deal, I just want a simple solution. Or, look at it another way, buy in Vegas and you seem to deal with Adults who accept an 'international Notary' like you find on the US embassy recommended sites. Ca I have had explained to me has 'higher' standards - like you must stink of BO and not be able to speak English if my last few experiences of Ca Notaries are anything to go by. Clearly Emma is not a fool choosing LV, Nv. BTW my Au property solicitor has been thru this before. To the extent he has (and supplied) a stamped lifetime endorsement from DFAT (dept foreign affairs and trade) signed by the Foreign Affairs Minister personally - and even THAT is not good enough... I had high hopes that would work this time. At law it means his signature carries the endorsement of the Australian Govt. Unfortunately (or maybe incitefully given our current govt????:) LA County's Titles office didnt have that authority listed in their book as 'recogniZed'.
 
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You gotta love questions that have "is it true that...."

Anyone here actually got the cojones to actually go to Vegas within the next 6months and do some real due diligence and/or pound the pavement? If I can liase with someone in LV in march-ish 2011 I'll post my findings for anyone mildly interested. If you see a kiwi bloke with an Elvis like appearance in any photo I post please do not be afraid..it's just me taking the micky.
 
I have it on good authority that 'taking the micky' in the US is a death penalty offenSe. I would be very careful if I were you:)

'and in late breaking news tonight we cross to LV, Nv. where a New Zealand man was arrested at 2am for displaying a drunken rendition of the traditional 'Haka' tribal dance whilst dressed in an Elvis costume in the middle of heavy traffic on Vegas' busiest road 'the Strip.' Several women who were present at the time declined to comment...'
 
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dear lawsjs

thank u n emma for reply.
i looked for ip in aus for the last4years.as kyosaki says,u make money when u buy.but in aus every one believes properties always go up.tell my friends in germany.haouse in 1997 was $300 000 now in 2010,lucky to get $140 000.
i saved some money and can invest,i want $500/passive income and in 5 years $2000/week.
this forum is great.
so you guys dont use llc,just in ur name.i want to refinance in 6months after first property,so i ll use my name too.
how did u set up an account in usa?would i need to have an address(po box from ups?)
i want to set up all to purchase my first property.
i ll contact my accountant in melbourne.
what else should i do?need contact to someone to inspect property after offer accepted.
put clause in "title insurance and subject to building inspection.
i ll pay cash for first ip.

ps,went to germany last month,loved to drive over 200 again.haha
its a joke here in melbourne to drive 100 on eastlink.
u and emma pls keep up your great work.
emma sent me a short reply too.

thanks again heaps

bernie
 
On a more practical note, can emma or one of you with property over there show me a typical costs breakdown for a relatively new house.

EG according to web relatively new house in 89113 rents for 1200 a month. So per year:

Rent: 14400
minus
Management: 1152 (8%?)
Insurance: 1000??
Taxes: 2000 (though isn't this reducing next year?)
P&I loan repayments: 4625
Utilities: Do SFR tenants pay utilities?
Other: $??
Profit: 5000

At 5000, only need 11 to replace my employment income and they become easier to afford with each one.
 
Loopnet.com is great. Generally for my stuff 30% expenses is about the norm.

A bit got lost. sorry.

Basically my expenses on MFR are around 30%, including Ca taxes which are best left avoided. 10-15 would, if not see you actually retired, would certainly allow your life to be lived a lot more comfortably. It is not that hard to get to.

Bernie, if you are serious about this you will have to go to the States and get things like bank accounts etc. Start by getting an ITIN number from the US Embassy.
 
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