Please help - Overseas Investor planning to buy in Texas

[Raj Gott]

Hi Everyone,

This is my first post and if I am asking the same questions asked by others, kindly excuse and point me the right links.

This is a great area to gain a lot of knowledge.

I am from Australia and planning to buy an investment property in Texas but not sure where to start.

Below are the list of questions:

1. How to open US bank account staying in Australia and move funds to pay for all expenses?

2. Reading forums got this company - https://www.ofx.com/en-au/blog/buying-a-property-o... (Can we open an account and park the money to use for all the expenses in the USA and getting rental income once we purchase the property?)

3. Do I need to setup LLC first and then start looking for property

4. What type of LLC do we need to setup?

5. Once LLC is done, I want to buy and Hold a place where no Renovation is required, What is the source I need to use to find a property

6. Once we like the property, Can we hire a building inspector to get the property inspection report done with videos and photos to analyze the property condition?

7. What sought of documents we need to ask Real estate agents before signing any paperwork?

8. Any specific information need to pay attention for in the documents?

9. How many days do we need to specify in the agreement to close the deal?

10. Do we need to be physically available locally to close the deal?

11.How do we issue final cheque to Seller

12. Can we simply deposit the total funds required to complete the transaction to an attorney?

13.Once we close the deal what type of documents do we get and are they electronic copy's or paper?

14. any other steps i am missing?

sorry for asking all questions in one post

[Jordan Sinclair]

Originally posted by @Raj Gott:

Hi Everyone,

This is my first post and if I am asking the same questions asked by others, kindly excuse and point me the right links.

This is a great area to gain a lot of knowledge.

I am from Australia and planning to buy an investment property in Texas but not sure where to start.

Below are the list of questions:

1. How to open US bank account staying in Australia and move funds to pay for all expenses?

2. Reading forums got this company - https://www.ofx.com/en-au/blog/buying-a-property-o... (Can we open an account and park the money to use for all the expenses in the USA and getting rental income once we purchase the property?)

3. Do I need to setup LLC first and then start looking for property

4. What type of LLC do we need to setup?

5. Once LLC is done, I want to buy and Hold a place where no Renovation is required, What is the source I need to use to find a property

6. Once we like the property, Can we hire a building inspector to get the property inspection report done with videos and photos to analyze the property condition?

7. What sought of documents we need to ask Real estate agents before signing any paperwork?

8. Any specific information need to pay attention for in the documents?

9. How many days do we need to specify in the agreement to close the deal?

10. Do we need to be physically available locally to close the deal?

11.How do we issue final cheque to Seller

12. Can we simply deposit the total funds required to complete the transaction to an attorney?

13.Once we close the deal what type of documents do we get and are they electronic copy's or paper?

14. any other steps i am missing?

sorry for asking all questions in one post

This information is to be considered general advice and is based on my personal experience. Be sure to do further research before making a decision based on your personal circumstances.

1. Currently not possible due to the Patriot Act. I have heard of an option where a third party can assist you with the account opening but they will have authority on the account.

I personally visited the US to open the account. The process is very similar to Australia and the account is open in minutes after showing your passport and credit card for ID.

Use a FX service such as OFX or Transferwise. Then once you have rental income, use those funds to pay for expenses.

2. See above. If you are looking to buy a property soon, probably no need to park USD in an account.

3. I would research LLCs more to understand why you want one. I would be asking who will own the LLC? Will it be you personally or multiple people or an Aussie Pty Ltd or Trust? Determining who will own the LLC is first, then if you are going to buy a property in 2017 using an LLC, setup the LLC before the property purchase.

4. Depending who you ask. Many companies advertise the Wyoming or Nevada LLC option for various reasons. Ultimately you will need to register the LLC to conduct business in the state where the property is located. To streamline matters, many investors create a LLC in the state where they will invest.

5. A quality Turnkey real estate company is what you are seeking.

6. Yes you can but the Turnkey company should provide photos/videos and detailed information on the property.

7. Closing/settlement documents such as the HUD form, utility forms and contracts. It's all fairly standard.

8. Make sure the numbers are what were agreed to. Purchase price, property taxes (and if any back taxes) and closing costs.

9. It is mutually agreeable but instead of anywhere up to 90 days like in Australia, expect around 10 days.

10. If you are buying a Turnkey property, not normally no.

11. Transfer the funds to the Title Company who will take care of closing the deal. Title Companies are used in the US instead of Conveyancers/Lawyers.

12. See above.

13. It varies but you will likely receive a copy of the title deed electronically or by post.

14. Do more research. What is your investment strategy? Why are you investing in a particular state? Are you aware of the situation in the location you want to invest? Do you know if the property taxes are high or if the city/state is pro-landlord or pro-tenant?