US Atlanta, GA - USA Property Investing

Would it be possible for someone stateside with some $US parked to wrap some mortgages from Australian buyers? Get your finance at 3%, wrap it up to ~4.5%; still an attractive option for an Australian with a high yield return and a favourable dollar.

Could be a good opportunity for an astute businessperson if it were possible

 

Karina just sourced a townhouse (3 bedder) in Atlanta $39,950 with around 12-13% gross yield. It will need a renovation, approximately $8000 and it is a foreclosure property. The yield will be much higher once we bring the money back home.

Seems there are still some cheapies around.

MTR

 

MTR -Not in Decatur I hope?

Cheers Ivan

 

Nope

 

Both NZ and the USA are still good for opportunities. In NZ for example, the South Island is better than the North, because of access to the Lakes and Ski Fields etc. Around Lake Wanaka and Queenstown, there are some bargains to be had, but tread carefully and do your homework.

The USA is still good, if you know where to look. Around Army Bases are your best bet, if you want good IP's. The other thing to take into consideration is "when to buy and at what price", Aus vs US $$ etc. The company I deal with over there also does foreclosures.

I was like @MTR, I got in when the iron was boiling hot, we hit Arizona and bought (foreclosure) 25,000 acres for USD$30,000. Purchase was over 3 x lots, 12,000 / 10,000 / 3000. This was bare land, absolutely no services, nothing, but it was zoned commercial. Worked out to around $1.20 an acre. Now it's worth on paper about $1670 an acre.

In Detroit, some of the casino owners from Vegas, were buying up blocks as the car factories closed down and people moved out. (By a block, I mean 8 x streets that way and 10 x streets that way). Gives a whole new meaning to the word ghost-town..

 

I've dealt with these guy's for awhile. Feel free to ask them a question on any property and where the best areas are to buy at the moment. They will almost always, have something somewhere to suit all budgets.

http://www.landcentral.com/

 

Hi MTR,
I am really new to USA market, I am still in the process of building up the team such as account, property attorney, mortgage broker, property management.
Therefore, can I please ask which accountant you are using to get advice from which entity to hold property, tax deduction and planing, inheritance strategies?
And can you please reckon me some good attorney and mortgage broker with "can-do" mindset please?
Thank you so much in advance
Nhi

 

@MTR did you actually go to USA during your inital acquisitions?

 

Yes, went there twice, met up with @Karina first time who was buying in USA Atlanta at the time and then she started her own BA and went over again to view some of the purchases.

Most of my purchases have been sight unseen, just settled on my latest this week.

When I buy I view the video, we have costings of the rehab/renovation and then we look at the cash flow summary. The 20%+ yields have gone now, if I knew what I know now I would have purchased more at the time.


MTR

 

Can I suggest you start off reading posts on somersoft forum by Karina and myself and some others, do a search.
There is extensive information on structures etc. very important to get this right for tax purposes, asset protection.

Karina has recently sourced finance but its not at the same rate as a US citizen

Some people have sourced finance at lower rate with conventional bank in US but this only valid for 1 property (considered holiday home) and you will need to show all you financials, jumping hoops.

If buying in US for cash flow you need to buy more than one because the costs involved in setting up structures etc it just wont make any sense.

BTW, got your pm will get back to you soon.

MTR

 

Just closed on my first financed deal in Atlanta. 20 townhomes for 1 million, financed at 60% LVR, 7.25% interest fixed for 30 years with no prepayment penalty after 5 years.
Rent on the 20 townhomes is $13,500 US a month.

Rent on 13 - 14 townhomes should cover most of the expenses , principal, interest , taxes , insurance , lawn maintenance etc. The remaining townhomes should easily pay for maintenance and cover any vacancy leaving a nice cashflow each year.

I used 4 of my existing atlanta properties to fund the 40% down payment so 100% borrowed funds on this deal.

As part of the deal I had all new roofs and guttering put in as well as all external paint work done (although they are predominatly brick structures) . This takes care of external maintenance. 1/2 the townhomes have had internal renovations the other half have not. Will renovate as they become vacant. Probably spend about 6k each on the unrenovated one's but will do them gradually in between tenancies.

Loan is available as a cash out or purchase but they will not finance unrenovated foreclosures so anyone considering needs to buy and renovate before financing. No personal guarantee required on the loan, purely an asset lend based on the properties cashflow with No financials, credit score required. Minimum loan amount is 45k

 

Congratulations
US is looking very interesting at the moment, I would like to leverage as well. See what happens ??

MTR

 

Lithonia Home

Just finished the renovation for my latest deal, and rented in 1 week.
The link above shows the extent of the reno. cost around $8000

This is my first townhouse as they have not had the same CG as houses and therefore I can still achieve higher cash flow.

Purchase price - $40,000
Renovation/buying costs - $14,500
Total - $54,500

Rent $895 per month

Expenses - property management (8%)
county tax - $1000
insurance - $800

Gross rental yield - 19.0%
Net rental yield - 15.0%

I have left out maintenance, I would just add $500 pa.

If you convert US rental income to Au$ you can tack on at least 30% rental income, dependent on the Au$ rate on the day.

MTR

 

I like the numbers.

 

@MTR may I know how you found this townhouse? Through a BA? The yield is attractive. I have read some of the setup to be able to buy in US. Is this in Georgia?

 

Karina, select American homes, she is a forum member and BA for properties in Atlanta. There are plenty of posts on SS on this, may want to read these

By set up cost, I think around $1000 to set up LLC (limited liability company).

MTR

 

Hi MTR
This looks really interesting, can i PM you on this.

 

Hi @MTR are those figures in USD or AUD?

Thanks.

 

Purchase of property is always US$

Rent is also US$.
However if bringing money home to Au$ you could tack on as much as 40% to US rental income, dependent on currency rate on day.

If the Au$ hits 65 then it will be closer to 50%.

This site is a wealth of information on all US markets, join up its free, have fun
biggerpockets - Google Search.

MTR

 

Re-reading this thread. Why Atlanta? Has @Karina looked at other areas?