Presentation
This presentation is the property of its rightful owner.
Sponsored Links
1 / 43

Presentation PowerPoint PPT Presentation


  • 66 Views
  • Uploaded on
  • Presentation posted in: General

Presentation. Purchasing US Property. Disclaimer. To date, we have purchased two properties (sfr’s) in the USA.

Download Presentation

Presentation

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


Presentation

Presentation

Purchasing US Property


Disclaimer

Disclaimer

  • To date, we have purchased two properties (sfr’s) in the USA.

  • We undertook extensive research prior to purchasing and are happy to share our sources with you however you do need to do your own due diligence especially verification from a variety of reliable and reputable sources.

  • We do not accept any responsibility or liability for the information contained in this presentation.

  • The research conducted was for our own investment purposes.


Presentation outline

Presentation Outline

  • Why the US

  • Due Diligence

  • Preliminary Research

  • Why Texas

  • GPD Texas Property Tour

  • Tips & Traps.


Why the us

Why the US?

  • In 2008, local banks would not lend to us as our DSR (Debt Servicing Ratio) was not satisfactory enough,

  • ie. asset rich, income poor

  • ??? Needed more cash flow

  • Attended the 2008 Brisbane Property Investment Expo to find out about “positive cash flow property”

  • Purchased several Margaret Lomas books on the subject.

  • Also noticed one of the stands promoting “buying positive cash flow property in the US”

  • Prices looked too good to be true!!


12300 brookglade cir houston

12300 Brookglade Cir., Houston

  • $74,000 USD3 Bed, 2.1 bath


Houston property searches

Houston Property Searches

  • Newspaper - Houston Chronicle

  • www.chron.com

  • Real Estate Agent Listings

  • www.har.com (Houston)

  • www.realtor.com

  • Property comparisons (values, location – cul de sac, easy access to main roads)

  • www.realquest.com


Preliminary research

Preliminary Research

  • Books – US related: Mortgage-Free For Life: Secrets Banks & Lenders Don’t Want You to Know! Richard Weathington & Beth M. Ley (BL Publications, USA) 2007

  • Getting the terminology right before doing internet search

  • Internet – which US states

  • Check out: www.fhfa.gov (federal housing)

  • Look for state HPI (housing price index) summary


Investing differences

Australia

LOC/Interest Only

25-30 years

Everything

All locations

Solicitors

Company + family trust

Rates

USA

P & I

15 years

Above $200K

Local area

Title Co’s

LLC (foreign nationals)

Municipal taxes

Investing Differences

  • Finance

  • Length

  • Brokers

  • Banks

  • Legals

  • Asset Structure

  • Taxes


Presentation

US Housing Price Index

  • Source: www.fhfa.gov


Presentation

  • Clear

  • Red

  • Source: www.cyberhomes.com


Why texas

Why Texas?

  • Employment

    • Oil

    • Medical research

    • Military

    • NASA

  • 2 of top 10 cities in US (Dallas & Houston)

  • 2nd largest state in US (population & land size)

  • Northern migration

  • Stable house prices


Our focus

Our Focus

  • Property Type:

    • sfr’s (single family residences)

  • Strategy:

    • Start off small, get foot in door

    • 1 positive cash flow property

  • Establish strategic relationships

    • Banks

    • Property managers

    • Title Companies

    • Agents, developers, builders


Asset protection

Asset Protection

  • US LLC

    • Foreign Nationals can set up LLC’s.

    • IRS taxes at local rates

    • Some US banks won’t lend to LLC’s for property

    • Able to set up LLC online

  • US bank accounts

    • Does require some local assistance

    • LLC is the applicant name

    • EIN is the ITIN.


Presentation

US LLC Formation - SmallBiz


Property broker

Property Broker

  • Finding a potential property easy part

  • Getting:

    • finance (reasonable interest rate & terms)

    • conveyancer (title company)

    • property manager (reputable)

  • thought could be much more difficult

  • Searched for an Australian based broker specialising in US property who could offer this:

  • Global Property Deals

    • Westan Johnson & Frank Stace.


Global property deals

Global Property Deals

  • Preliminary discussions satisfactory

  • US market knowledge

  • Open to questions

  • Conduct regular investor tours to the US

  • Long term relationship development.

  • www.globalpropertydeals.com


Dallas

Dallas

  • Tour start point

  • Meet fellow tour members/investors

  • Overview of tour


Sherman

Sherman

  • Presentations

    • Economic Development

    • Title Transfers

    • Property Management

    • Local Investments.


Austin

Austin

  • Night Stop-over

  • General Overview


San antonio

San Antonio

  • Presentations:

    • Foreclosures

    • Tax & Accounting Practices

    • Investment Structures

    • Investment Opportunities

  • City Tour.


Houston

Houston

  • Presentations:

    • Foreclosures

    • Investment Opportunities

  • GPD Projects Tour

  • US Bank Account Set-up.


Gpd property for sale

GPD Property For Sale

  • 120 Country View Circuit, Pottsboro

  • List Price: $114,000 USD


Due diligence

Due Diligence

  • Online property appraisals

  • www.realquest.com

  • www.eppraisal.com (*)

  • www.realestate.com

  • www.realestate.aol.com (*)

  • www.coldwellbanker.com

  • County tax office

  • www.viewshermanhomes.com


Presentation

Sherman Property Manager

  • Website: www.nor-texhomes.com


Property management sherman

Property Management - Sherman

  • 5-K Property Management

  • Full Service

    • Leasing Agent

    • Rental Manager

  • Fees

    • New Tenants: 45% of 1st month’s rent

    • Management Fee: 9.5% of monthly rental


Property taxes

Property Taxes

  • Property taxes will vary from locality to locality however they comprise a series of separate taxes:

    • City tax,

    • County tax,

    • School tax,

    • College tax,

    • Energy Service tax and

    • Hospital tax.

  • Usually this equates to about 3% of property’s rateable value.

  • Some areas also have Municipal (MUD) or Association taxes as well.


Presentation

Tax Assessments


Entity codes

Entity Codes

  • GRA (Grayson County)

  • JRC (Grayson College)

  • CSH (Sherman City)

  • SSH (Sherman School)


Weighing up the deal

Weighing Up The Deal!!

  • What’s involved in weighing up the Deal?

  • Down payment (deposit)20% (foreign nationals)

  • LLC setup$800 USD

  • Title Insurance$500 USD

  • Attorney/Title Office Fees$850 USD

  • Court Filing Fees$64 USD

  • Taxes3% of property value

  • Property Management9.5% of gross rent

  • Insurance1.3% of property value

  • Brokers Fee (GPD)$2,500 USD

  • Rental Income$700 USD per month.


1313 east lamar st sherman

1313 East Lamar St, Sherman

  • So how would it stack up? (first 12 months)

  • $56,500Sale Price (Final)

  • + $2,500GPD Fee

  • + $1,350Legals

  • + $1,306Taxes (County)

  • + $702Insurance (Hazard)

  • + $798Property Management

  • -----------------------------------------------

  • $63,156Total


1313 east lamar st sherman1

1313 East Lamar St, Sherman

  • $8,400 USDRent ($700 USD per month)

  • Gross return

  • This equates to: 13.3% ($8,400/$63,156 x 100%)

  • Net return

  • $4,872Loan repayment ($406 per month)

  • $3,528Net return

  • This equates to: 5.59% ($3,528/$63,156 x 100%)


Higher returns foreclosures

Higher Returns - Foreclosures

  • Website: www.myusaproperty.com.au


Us interest rates

US Interest Rates

  • Bank Finance (May 2009)

  • 30% (foreign nationals)

  • 6.75% fixed for 3 years adjusting to wsjp + 1% each 3 year period thereafter with an interest rate floor of 6.75%

  • Vendor Finance (April 2009)

  • 20% (foreign nationals)

  • 7% (wsjp + 3%) fixed for a 15 year term.


Us bank home loans

US Bank Home Loans

  • New Homes

  • Arrange with local banks in area only

  • Direct approach (internet search)

  • P&I (usual finance structure)

  • Line of Credit (HELOC) - home occupiers only

  • Existing Homes

  • Alternate Finance

    • Vendor finance quite popular.


Presentation

US Bank Home Loans


Funds transfers

Funds Transfers

  • Transferring funds (ie. deposits)

  • Use OzForex

  • www.ozforex.com.au

  • Division of Macquarie Bank

  • Appear to offer the best exchange rates and lowest fees.


Gpd usa investors tour

GPD USA Investors Tour

  • 2010 - (Sun Sept 19 - Sat Sept 25)

  • 5 Cities - Texas - 6 nights

  • Dallas, Sherman, Austin, San Antonio, Houston


Further information

Further Information

  • Go to:

  • http://www.paragon-marketing.org

  • To download:

    • Presentation powerpoint slides

    • Texas Economic Outlook

    • Sherman Overview

    • US LLC information.


Thank you

Thank You

Any Questions!


  • Login