US foreclosures - Boholt Seminars - NO

[Sunfish]

DO NOT BUY IN A COLD CLIMATE... lesson from me this morning....
!@#$!@$!@##$!@#$#@!$@!%$@!#

Never thought of THAT problem but I am a believer in peak oil so I would think people would gravitate towards smaller, warmer towns where they don't need as much oil and gas.

Florida is a disaster area and the desert towns have no appeal to me personally. And I can't afford SF. Nothing is easy. LOL

 

[Aaron Sice]

people don't move in the US, it seems, until they retire and then they flock to florida.

i mean, i hear stories all the time of peole whinging about there being jobs in TX but not in OH - yet they won't move there.

 

[handyandy]

Handy Andy - thank you for that very interesting post. I am going through EXACTLY the same issues. Tricky. The 1031 exchange issue is perplexing.

I haven't even tackled the capital gains / exchange issues yet. Does a foreigner even qualify for a 1031 exchange?

On a first read, the capital gains tax rates applied seem to be lower but then I think you still need to overlay the dividend tax. Not absolutely sure.

Shortly, I will be engaging a CPA so that I can submit my proposed structure and my understanding of levels of tax that apply for some qualified feedback. Seeing I am getting no absolute answers from the various forums and free CPA's I have tried thus far. Be it that my current level of understanding is as a result of the free tidbits I have received from CPA's.

Cheers

 

[MandyH]

Mandy: How much are they charging for their finance? Did you find out?

Loans USA & Loans Australia charge $2000 flat fee for the first property and $600 for any subsequent properties in the same transatction.

They are accessing finance (didn't say who through) @ around the 8% mark.

The wholesalers are not charging to obtain the finance (I think that we can all agree that they are getting their money through the markup on the houses) but they will consider vendor finance of 50% with interest rate of 8-9%

 

[lawsjs]

1031's are US tax law. Therefore anyone paying us tax must comply with the rule....

MandyH - Thanks for the response! So that finance is only for their own properties? In other words they are only financing their profit to you after you pay them all the money they need to make a 'normal' profit - I can't go to them and say 'I have bought this 4 plex for $1m - will you finance it?'

Given the closeness of myusaproperty to the Kaye model, I still find it very glib of them to say 'the wholesalers are nothing to do with us!'.....

In fact not even glib, come to think of it

Aaron: A flock of retirees/grey nomads? Wouldn't it more likely be a Road Train or a Caravan? Unsure of the nomenclature for this one

 

[Aaron Sice]

Aaron: A flock of retirees/grey nomads? Wouldn't it more likely be a Road Train or a Caravan? Unsure of the nomenclature for this one

think flamingos.....pink rinse et al...

 

[lawsjs]

Flamingo's! Of course!! Silly me...

Well haunted

 

[MandyH]

[QUOTE
MandyH - Thanks for the response! So that finance is only for their own properties? In other words they are only financing their profit to you after you pay them all the money they need to make a 'normal' profit - I can't go to them and say 'I have bought this 4 plex for $1m - will you finance it?'

Given the closeness of myusaproperty to the Kaye model, I still find it very glib of them to say 'the wholesalers are nothing to do with us!'.....

In fact not even glib, come to think of it
QUOTE]

I imagine that anyone could approach Loans Australia and Loans USA to organise finance for your own find? www.loansusa.com.au

I am planning on giving them a call tomorrow to see what the deal is with finding your own property and using their resources to fund it.

If I call up and they tell me I can only purchase THEIR pre approved propertys or some other rubbish then I will be very disappointed.


On another note: I can't remember if I read the answer to this question or not but..... if you don't have a US bank account how does your tenant pay you? I mentioned that I had heard that you don't need a US bank account to purchase a house and he looked at me like I was an idiot and said "How do you expect to get paid?"

 

[lawsjs]

Straight into your regular Au (or UK or Polish) bank account, just like any Australian property manager would do...

Emma was a genius working out how to get that one happening...

Be interesting to hear the response on finance. As far as the US is concerned NO BANK will touch subprime areas so it can only be private money. I will be VERY surprised if the 'private money' does not have the very same source as the money to buy these things in the first place. Private money is being VERY careful right now - hence the rise in Gold etc. Though it will be heavily disguised, I'll eat my hat if they are not generously charging interest on the nice profit they are making.

 

[lawsjs]

MandyH I cant work out how to do quotes either


The website looks OK. I look forward to hearing back from them myself. I need a new hat anyway

Rolf - Can you help us out here? Heard anything about these guys? What are your thoughts?

 

[bevk]

Lawsjs, do the banks not charge for this?

I know that if we have money sent to Aus from overseas, the originating bank charges a fee for the transaction. In this case it would be the Prop Managers bank, which in turn would get passed on to you?

 

[lawsjs]

Yes, you are correct re banking, but the removal of hassles is huge....

Just get the rent sent once every 3 or 6 months.

Got say, I am (so far) quite impressed at the finance. 8-9% probably takes the fun out of the game for me, but on the surface it looks like they might be genuine. And if that is the case Ms H we owe you a huge debt for posting.

I still object to buying property through wholesalers and am still surprised anyone would finance those deals - clearly those properties are WAY 'above market' purchases by any definition, but if someone will finance then who are we to argue.

Massive difference between a nice website and good story and actually getting reasonable money to buy a property, my hat is still safe - for the moment...

 

[MandyH]

Omg!!!

I know the OMG is a bit juvenile BUT...

loans USA lend ALL over the USA!

They are an affiliate of myusaproperty but they are totally independent.

I spoke to a lovely lady called Melinda and she said that if you need finance you should call 1300 767 986

She let me pick her brain and I told her minimally about what Emma is doing in LV and how I was interested in that area and she said that Emma should give them a call. That they could team up with her.

They will also recommend solicitors ect....

I am really so excited. They don't care where you buy, they just want to get you finance.



I mentioned that I was posting here and she said that she can't post as that would be spruiking/soliciting.

 

[Perp]

Flamingo's! Of course!! Silly me...

I wondered what the collective noun would be, and found there are several options. I quite like "a flamboyance of flamingos".

 

[Chui]

I know the OMG is a bit juvenile BUT...

loans USA lend ALL over the USA!

I am really so excited. They don't care where you buy, they just want to get you finance.

I don't know why, but my spidey sense is tingling. Even professionals in US are having trouble borrowing money.

 

[Aaron Sice]

I don't know why, but my spidey sense is tingling. Even professionals in US are having trouble borrowing money.

i'd be checking the all monies clauses etc.

people chucking money into 'anything' usually have an underlying protection.

 

[MandyH]

I don't know why, but my spidey sense is tingling. Even professionals in US are having trouble borrowing money.

Oh no Really? (to the spidey sense)

 

[MandyH]

If they are legitimate mortgage brokers in Australia, isn't there a good chance that they are just as legitimate for the USA?

 

[Aaron Sice]

it's not a question of legitimacy. it's a question of everything else.

 

[lawsjs]

I agree with Aaron. It is a lot better than no offer of finance at all, but there are some major issues I don't 'understand'.

And the one issue that they are affiliated with two tiered marketeers

Principally to do what they are doing by definition means they are very happy to finance something that they will not (at least inside 10 years) get their money back on in the case of a default. The Australian people who are buying these things often have no clue whatsoever about property, let alone US property in areas that have a history of poor tenants. There will be defaults which is why US banks wont touch these areas in any way shape or form.

So they MUST (if they are 'really' legitimate) have priced this into the game. They will lose some (and I suspect quite a lot) of their money - no ifs or buts about it.

The properties they are 'financing' have (thanks again MandyH) as we now know have bank values of 80% (or even more) LESS than the purchase price. There is no getting around the fact that from their perspective this is open to massive rorting, and from the buyers perspective that type of thing is usually priced into any financing.

It has to be primarily private money and if they are offering money at 8-9% there is not a lot of spread there for profit.

I am going to follow up on my initial enquiry. I am not sure it would work for me personally - I get better gearing and way better rates by asking the vendors to carry paper themsleves, but for the foreclosed market **IF** it is as it seems at face value it is pretty exciting.

I caution everyone who hasn't been down this road before that it often ends in a lot of paperwork for no result, OR there are some very nasty stings in the tail...

But, MandyH, huge thanks for sharing your story and contacts with us all..