US foreclosures - Boholt Seminars - NO

[Emma171]

exactly.

people are stil required to run the city with 37mil visitors pa. that's nearly double australia's population.

food for thought.

Lol.. Someone got the point! Ditto on the market within market.

Vegas population for the record is 1.8 million... Give or take. Fascinating.

Thing is, these principles apply to every market and you do need to ask yourself "is this a sustainable economy"? That principle IS vital when you are about to invest funds and be uber critical.

 

[Klimmy]

HSBC application form

Hi All
I just received the HSBC application form emailed to me to open an account in USA. If PM if you want me to email you the form
Cheers, kev

 

[Making The Jump]

Just to back up what Emma said about Vegas...sure there's heaps of places that have shut up shop but there are heaps more that are still open. There's a Facebook page called Las Vegas Ghost Town or something like that and the fear from reading stuff like that makes you worried that if you buy a place you'll never rent it out. FWIW, I went to Vegas the last two Novembers and there were heaps more tourists there this year than last on the Strip. Buy in a good area and you should be fine. I was stressed about buying in Vegas before visiting but I left there feeling relieved. Hope this offers some sort of assurance. Kudos to Klimmy for opening a HSBC account. The only accounts I could find with them online involved having a LOT of assets with them and it was untenable. I understand Wells Fargo will open an account from Oz so long as you jump through the hoops.
BTW Emma, you are a gun. Thanks for all of the info! I'm just starting and some of your information has been invaluable.

 

[Perp]

An interesting article about a man in the US who traced who actually owned his mortgage. The article includes this chart:

Now, they just have to do that a few 10s of millions of times and the confusion over who owns all the mortgages will be sorted!

 

[mmerlin]

Also citibank

... exploring the bank account options. Ie. Both Bank of America and HSBC have branches in Sydney and Vegas..

Another option is Citibank, who I went with for my USA accounts.

I read that you can open a USA bank from Australia via Citibank or HSBC, but it takes time and persistence.

It's better to actually go over there and walk in with all your ID's, Australian utility bills, etc and open an account.

However if you are not going the USA any time soon, consider HSBC or Citibank and open a USA account from here.

 

[bernie006@hotma]

hey guys,vegas is great.been there many times 1988-2001.what growth.follow companies like walmart,they do their research.if im not wrong,didnt they build train connection from long beach to bring containers to vegas,all under customs.
so much more to vegas than gambling.
billions of dollars into hotels,land areas in our fav,mountains and dessert etc.i believe land more limited than phoenix,so prices should go up.but who knows haha.i thought prices would drop in australia around2007.
anyway,got my appointment with hsbc in2days as well.can open an account first here in aus than in america from australia.

emma,again u r such a motivation.once i have my itin and account i come to vegas with my partner,and bring u some vegemite lol

 

[Amadio]

The article includes this chart:

Oh, my goodness Perp, that is hilarious. I just love the little black hole on the right hand side.

 

[Emma171]

Perp.. Ditto.. BRILLIANT. Thought I had already written this reply but obviously not! LMAO... I have a few mortgages still that we ere sold at least twice ... The ancestral tree would look similar.

yes, mmerlin that is the point. If you are wanting to start bidding on properties, use an HSBC account with an international link. citibank asks for too much $$. That way, if game, you don't even have to enter the states to buy a property and could in theory even buy one or at least wait until you can make it to the states and then open your account in 30 minutes and just $20 at any branch in any bank of your flavor.... Having everything else already rolling... Ie proof of funds, EMD, LLC, ITIN, EIN etc

see earlier posts on that.... But getting back to main point... Brilliant Perp, very funny.

 

[bevk]

Thanks Emma/lawsjs etc, for continued brilliant info.

I was just in South Africa for the last 10 days on holiday and continued to follow the thread from internet cafes (yes I'm addicted ).

We were originally going to the US and Canada on holiday in December and now that we have decided to become property investors ourselves, we will look into opening bank accounts whilst in the US. We won't have much of a chance to look at homes on this particular trip as we are only in the US for 8 days, but I suppose it helps to get the ball rolling.

PS: we were thinking of looking at properties in South Africa until we realised that their prices have shot up about 450% in the last 10 years or so! Definitely not an investors market.

 

[Aaron Sice]

Hi All
I just received the HSBC application form emailed to me to open an account in USA. If PM if you want me to email you the form
Cheers, kev

post it up anyway, Klimmy.

 

[Emma171]

Oh thanks everyone! I think the key is that, as Bevk says, just get the pieces done thatbyou can, when you can and if you are interested, you can have everything ready to roll so that if something really, really yummy comes up, in whichever market you are looking at, you can do it.

Think about the name that you would have the property in... Even if you think it is a remote chance you would buy, it doesn't hurt to go through this. Are you going LLC or not, do you have your proof of funds in an account that matches this?

Opening the bank account in the states is obviously a genius idea if you happen to be heading there for a holiday. It really takes no time once there and they have yummy lollipops and sweets at most of the banks to keep even the most bored occupied while waiting! If nothing else you will have a US bank account to use on your next holiday. If you can't do that, ask Klimmy for a copy of the HSBC info.


You don't want to have to wait weeks to go through this further down the line when economic indicators suddenly make it look as though the market is gone!

Oh, I also just heard that it may be possible to finance at least one property as a vacation home as a non resident. Think 40% down etc... Food for thought for those trying financing.

I am going to post some price differentials within my target market of sales price to list price on foreclosures as you do need to realize that a list price (advertised price in the MLS listing) is basically a random number that may bear little semblance to the final sales price.

At the 140k level the foreclosed list price is a lot closer to what they sell for but the good "cheapy" ones, they can go fast and above list.

 

[Klimmy]

Hsbc

post it up anyway, Klimmy.

Hi Aaron. Pls send me your email address as there are 3 zip files that will be forwarded. By the way, I just handed in the application form in Perth branch and paid $200 fee. Have to wait for 2 to 3 weeks to get the account opened. Cheers, kev

 

[grossreal]

hi all
I have not posted for a while as been a bit busy
some one asked can you buy with a credit card and the answer is yes
not only yes but it does have its advantages as you can buy in a group with a group of cards
so say the property cost 50k and there is 5 people thats 10k from each on each card
now you don't need to go thru the problems of organising a bank account in the usa
yes you do have to have the structure in place to buy and and also the people on the ground to manage the assett but
by the use of cards with cirrus you can supply the card information to your legals in the us and they can do card transfers as they do if you are buying a pair of shoes.
now you may think well I don't wish to give my legals my card details
thats fine you ca get a single use card from most aust banks that allow you to pay into the card and use it over the net and the above can be done the same way.
now why use a card
credit cards in particular
couple of reasons

1. you don't have to be there you can buy via a legal team and invest that way very passive investment if done correctly
2. the cost of the interest on the card can be 17% interest rate but if you buy correct and the rent is at the right levels you can be upwards of 25% return after tax's and you have not had to go thru the banks can you buy this item
3.the cost of these funds is unsecured credit that is that the the card is its own debt and the property is debt free from an asset base so it can be used at a latter date to secure against
credit cards are a relatively easy form of credit and relatively easy to access
when you use this credit into a market that has a problem with gaining access to credit you have a very interesting mix
just a little idea of how to use not free credit but accessible credit that most people can access today
and if you think you can't invest
heres another idea one 4 k credit card buys a colour tv
10 x 4k credit cards buys a 4br house in vegas
the repayments on the 40k cards @ 17% is 6.8k the rental at 2k per month the norm is 24k
allow 30% tax is 16.8k take the 6.8k away and you have 10k
and what have you done
taken out a few cards

or just pay the cards off one by one
just a few ideas to think over your next cup of coffee
and before you ask yes I do understand this and yes people are buying in the us with cards
and no this is not any form of advice

 

[Klimmy]

Hi grossreal, Will that be matter if the name on the card appeared to be different from the name on the title? Cheers, Kev

hi all
I have not posted for a while as been a bit busy
some one asked can you buy with a credit card and the answer is yes
not only yes but it does have its advantages as you can buy in a group with a group of cards
so say the property cost 50k and there is 5 people thats 10k from each on each card
now you don't need to go thru the problems of organising a bank account in the usa
yes you do have to have the structure in place to buy and and also the people on the ground to manage the assett but
by the use of cards with cirrus you can supply the card information to your legals in the us and they can do card transfers as they do if you are buying a pair of shoes.
now you may think well I don't wish to give my legals my card details
thats fine you ca get a single use card from most aust banks that allow you to pay into the card and use it over the net and the above can be done the same way.
now why use a card
credit cards in particular
couple of reasons

1. you don't have to be there you can buy via a legal team and invest that way very passive investment if done correctly
2. the cost of the interest on the card can be 17% interest rate but if you buy correct and the rent is at the right levels you can be upwards of 25% return after tax's and you have not had to go thru the banks can you buy this item
3.the cost of these funds is unsecured credit that is that the the card is its own debt and the property is debt free from an asset base so it can be used at a latter date to secure against
credit cards are a relatively easy form of credit and relatively easy to access
when you use this credit into a market that has a problem with gaining access to credit you have a very interesting mix
just a little idea of how to use not free credit but accessible credit that most people can access today
and if you think you can't invest
heres another idea one 4 k credit card buys a colour tv
10 x 4k credit cards buys a 4br house in vegas
the repayments on the 40k cards @ 17% is 6.8k the rental at 2k per month the norm is 24k
allow 30% tax is 16.8k take the 6.8k away and you have 10k
and what have you done
taken out a few cards

or just pay the cards off one by one
just a few ideas to think over your next cup of coffee
and before you ask yes I do understand this and yes people are buying in the us with cards
and no this is not any form of advice

 

[D.T.]

heres another idea one 4 k credit card buys a colour tv
10 x 4k credit cards buys a 4br house in vegas
the repayments on the 40k cards @ 17% is 6.8k the rental at 2k per month the norm is 24k
allow 30% tax is 16.8k take the 6.8k away and you have 10k
and what have you done
taken out a few cards

Except the 40k houses don't rent for 2k a month.

 

[grossreal]

hi kimmy
no as the card is investing the money on behalf of the entity on title
as long as the account and the title is the same when buying usa property is the
same
when investing the money from the investor does not need to be the same as title it only required that the title holder and the bank account is the same.
and
dtraeger2k
are you so sure about that
I would not be having a quess at that one
because the answer to you question or your statement is simply yes there is
so when you say they don't rent for 2k per month the answer is yes they do
no they don't in aust but yes they do in the good old USA
and thats not just a one off thats the norm
I can give you numbers of 10k with 500 per month income where the tennnant has been there for over 6 years same tennants and they are 10k each well over 40k for 2k per month.
but thats not for this thread

 

[Emma171]

A 40k property purchased renting for anywhere close to 2k??? I thought 47k and 1k gross wasn't bad! Huge kudos. Is that done and dusted at 40k and move in ready!?! So it's not in Vegas, Alaska or Florida that I am even vaguely aware of ... Or Detroit...(lol). Would love to research a newbie market on those figures...heck for 2k a month you could rent a 1/2 million $ mansion in Vegas!

Could we get address or at least suburb and state? I can look up taxes etc but if it is a condo, could we also get the approx HOA fees? Also approx repairs...?

Ooh, interest piqued now..... Thanks heaps in advance... Could be my new home

 

[grossreal]

hi emma
ohio
and don't wish to run the numbers on a free to air at this stage may well post the number later not decided at this stage

 

[redwing]

There's a recent video here by Garry SHILLING


Gary Shilling: House Prices Will Fall Another 10%-20% And Won't Bottom Until 2013

His thoughts on housing are this; there are too many properties; three years surplus worth according to him.

For the US Market (as a whole, before anyone jumps up and down) to stabilize, according to Gary we’re looking at another few years of excess inventory and a further drop in home prices.

With any cashflow investing in property I liked Steve McKNIGHTS Momentum Strategy and would think it applicable to the US Market, buying just one Investment Property in the US doesn't seem as 'safe', multiples for risk reduction I say

PS: Found this in the archives

Steve McKnight buy's 30 properties in the US

Buying in the US - By Quiggles

Both worth a read

 

[grossreal]

hi red
also you need to spread risk across more then one area
so its similar to buying 1 in syd 1 in melb 1 in perth 1 in bris and so it goes on
the idea is to spread risk.
and yes there is no golden rocket within 3 to 5 years
but that does not mean that the sales will be there for the next 3 to 5 years
the problem for investors is they try to hit the bottom of the market and if they used dollar averaging into the market they will find a happy medium to the bottom of the market.
now the bottom of the market is a very interesting position
because banks and funders sell down in a falling market no rocket science there
but they then hold as a market starts to turn
in our market westpac has done that with the pubs they are holding
and the us will do the same
so what you will see is a rapid drop in available reo stock thats is of quality as they hold as the market turns
now the 100 dollar question is when will that turn happen
and no one can guess that
so if you can't guess it then you need to have a strategy to invest that tries as best you can to capture the market that you want before it turns
again no brain storming there
as is the same here all markets are different
and even the taxes laws rules and even titles are different.
and people seem to be saying
well alot to me thats its just to difficult or a bit to scary
well yes it is but if you try to look at a dollar averaging system and spread risk for me thats the best way to look at it
and have a 10 year plan
a house that was bought in 2007 at 270k and is for sale today at 39k
if the house goes back up to 80k in 5 years thats 20% per annum growth not growth in the area
because people say yes but it was 270k area but it growth on your purchase price
now in 2007 some one well hell of alot of people wanted to buy at 270k unless this family were idiots(and all americans are not idiots thou some could debate that)
so if you look at holding for the long term and its part of your investment model then having information that it will not change in 5 or 10 years is not a bad thing in the long run.
this is not a walk in the park investing but if you wish to get the returns you need to do the work
people saying I will fly over and buy 1 house is for me a bit of a dream unless you wish to stay there 6 months of the year
but people that wish to invest in buying into multi groups of properties is a very different question