USA Tenanted Property FAQ's
Frequently Asked Questions
1. Where are they located ?
A. Across USA, but we are focusing on specific prime areas of return and relative investment safety. You can purchase one of three types of property, which also affects the price you pay
:
Foreclosed in need of repairs/renovations and tenant In need of repairs/renovations and or tenant, Tenanted - ready to go (Turn-Key)
2. What is the cost to invest and the total costs for my investment ?
A. Prices will constantly change with factors such as market demand, type of property, location, exchange rates, legals, commission and refurbishment of a turn-key property with tenants, the following applies (guide only - confirmation upon application)
Detroit $20,000 - $49,000 ($US) | New York State $30,000 - $50,000 ($US) | Florida $50,000 >
3. Why are they so cheap ?
A. Due to the sub prime issue foreclosures by banks have been rampant, now with the US ‘stimulus package’ making monies available to banks, which can now release the seized property and sell at rock bottom prices
4. Why don’t you offer the low end (cheaper) stock, which is available and advertised ?
A. This has to be looked on as any property investment, that good yields and capital growth be achievable and the investment be protected and sustainable. The low end stock in the main can not achieve the same yields and protection that the high-end can. More importantly, deliver the capital growth once the market returns, which is where the real money will be generated, this will also be true for using the power toleverage in order to buy additional properties
5. Is my money safe, who owns the property and who will ensure that everything is taken care of and maintained ?
A. Your money will buy you your investment property, wholly owned (100%) by you and you alone, without any debt on the property, a property manager can be appointed should you wish to ensure the ongoing upkeep
6. How long does the process take ?
A. Once you have chosen a property from the listings supplied, approximately 8 weeks (or less) to finalise and have the property (refurbishment if required) legally owned, debt free and tenanted
7. What costs are involved ?
A. Purchase of the property (inc any refurbishment) legals, commission between $20,000 - $50,000 (approx $US) or greater for a turn-key property
8. What are the ongoing costs and do I need to pay any more monies ?
A. All turn-key costs are in the purchase price, each year running costs (inc maintenance) will be around $6,000 ($US) however you will be generating a cash-flow of around $10,000 K+ per annum, therefore in a cash positive position – cash in bank. All monies will be paid into your account, set up for you and with 24/7 access only by you
9. When will it be tenanted, for how long, who checks the tenants and what safe guards do I have that the property will be cared for ?
A. It will be tenanted from day one as a rule, tenants are screened and can be either privately located or from a pool of ‘section 8’s (in the USA these people are supported with payments of 95% of their rent paid for by the Government)
By targeting the higher end property your screening process will also be identifying those that can afford and respect the property accordingly via references and previous history checks. Rental houses are insured in the US by the tenant and so any damaged caused would be a claim through their policy as required, inspections would pick this up and you would be notified accordingly
If you were to have a ‘Section 8’ tenant you have a 95% guaranteed income (paid directly to the owner/Property manager) and exposure to a possible loss of only 5% of monthly rent at any one time
However, it is strongly advised to have building insurance prior to completion of the purchase, to ensure your investment is adequately protected
To rent out your property, you also need an ITIN (Individual Tax Identification Number) for each person listed on the Title deed – you can complete this yourself or have this completed professional for you for approx $200 USD
It is also recommended at this time to have a USD online bank account in the US, for ease of payments and to lower costs and exchange rate risks – all you will need is a current passport and one other photo ID (driving licence etc)
10. Who will look after the property internally and externally and at what cost ?
A. A property manager will be appointed at your request to ensure all the ongoing maintenanceand checks are carried out with reports and pictures for your review, between 5 & 10% of the annual rent is typically charged depending on the services requested
11. How much rent will I receive and what about a bank account etc ?
A. Rent will be between $450-$1200 ($US) per month and paid directly into your USD bank account, with 24/7 access by you as noted above in question 9
12. When could I sell and take the cash ?
A. You could sell at anytime, but the main attraction is the capital growth and this should be realised within the first 5 years – the best strategy would be to buy at least two from the first purchase and hopefully multiples after that, whilst the prices are so attractive
13. How long do I have to make an investment ?
A. Right now and for the next 18 months will be the best time to invest and keep investing through leveraging, this will generate ultimately the most significant returns
14. How much support will I get now and in the future ?
A. OPC will be side by side, now and well into the future to assist and ensure you are not only comfortable with an investment, but adding the right property to your wealth portfolio
15. What about capital gains and getting my money out of USA – when I sell ?
A. Capital Gains are charged at 15% after costs deducted etc – we can have a tax advisor help you through this, currently there are no restrictions on moving your money out of the USA. It is always advisable to have or speak with a professional tax accountant who specialises with overseas personal revenue generation and the tax implications
16. How do I make an investment and buy one or more of these properties ?
A. Should you wish to build great capital growth and receive exceptional rental return over a very short period, then click here leave your details for APWS to contact you and discuss this exceptional opportunity further
17. Is it possible to borrow money from the USA, to finance the purchase of the property or additional properties in the future ?
A. Yes, and at very competitive rates (5%) with a 70% loan to value ratio, but there are restrictions of which I would be happy to chat through with you, should this be of interest
18. Can I see an example of the investment properties ?
A. Yes you can, by scrolling to the bottom of this page and click on the PDF file shown, this will give you a great insight as to the quality of properties offered and the investment opportunity that currently exists
The Process
Step 1 You pay up to $3000 'holding' fee and or Notary - this removes the property from the market whilst paperwork is being prepared. Full purchase price will be between $20,000-$75,000 (approx $ USD) for a full turn-key property
Step 2 You have full transparency of the administration process and will contacted directly to ensure all is proceeding as per your requirements. Monies will be required at various stages of which you will be notified well in advance – but note the whole process will take no longer than 8 weeks (approx) and may only take a few in some cases - you will be supported throughout this process and long after your purchase
Step 3 Confirm your purchase requirements and within an 8 week period, all legal, administrative and refurbishment work (as required) should be completed and the property ready for purchase
Step 4 Final payment less monies already paid, to complete the property purchase and take full legal ownership
Step 5 Buy as many now as you can, whilst the opportunity remains
Important Notice
The information provided throughout this entire page(s) is not intended to constitute financial or investment advice. Appropriate professional advice should be obtained by any person, prior to acting on any of the information contained herein. E&OE.
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