Companies helping Australians into the US market - any good?

Question

Hello

I’ve started to look into investing in US property, but am wary given how many other Australians have reported being burned.  Thanks to BP I think I understand the process well enough, but I'd rather not do it on my own.  I don't plan to do any kind of renovation - my strategy would be buy and hold only.

I’ve come across a few sites/services (most claiming to be Australian) who offer services for Australians getting into the US market.  I don't know if I'm allowed to name them here, but a Google Australia search of “invest in US property” brings up several such companies.

As far as I can tell, what they're offering is referrals to local accountants, lawyers, insurers, turnkey providers, estate agents, banks, financiers etc.  Or else they just tell you the process and "help" you with it. Some have some of their own properties for sale, others have "example" properties and say they can "source" others.  Most don't say what their fees are, but the couple that do are around US$1-2K.  Presumably they also get commissions from referrals.

I like the idea of a one-stop shop and/or advice, but given other people's bad experiences I'm not sure if these services are any good or not.

Has anyone had any experience of these kinds of companies? Are they any good?  Are there any to avoid? Are they worth the money?

Thanks!

Jay Hinrichs · Answer

you have good reason to be cautious  many many Aussies got burned by full blown spruiekers  either aussie based or US based.

I wrote and an e book specifically for Aussies on what to look out for when you want to buy in the US... there is no recommendations on companies but I cover all the things you need to educated yourself on. plue Engelo is a friend of mine if you can put up with him he is a good source LOL

Engelo Rumora · Answer

Thanks for the mention Brandon,

Lisa,

I'd be on super high alert when investing with any company selling turnkey properties that isn't actually established on the ground.

I lost hundreds of thousands when I first bought from Australia through one of these sharks.

There are still too many around selling S#&@ properties, in S#&@ areas for way more than than they are worth. Then they pass you on to a property manager that nickel and dimes you before you have enough of it and sell out at a huge loss 2 years later.

They fix, tenant and re-sell it again to another unsuspecting out of state or country investor.

It's called the revolving door scheme.

Please be VERY CAREFUL

I wish you much success

Brandon L. · Answer

@Lisa P. @Engelo Rumora  would be a good person to speak with. He is also from your country and is most likely familiar with the struggles you are going through. Hope that helps :)

Gaynor Pendleton · Answer

Have finance in the US, for our recent purchases, started with our own cash.

Kansas and Florida.

David Traeger · Answer

Heya,

I'm from Western Australia too, currently living in Adelaide.

Have several properties around Australia and am a property manager too so know what you mean about having a few head aches occasionally.

Do you use any finance for your American purchases?

Which cities / states have you bought in?

Gaynor Pendleton · Answer

Hi Lisa

I am a ‘Sandgroper’ – still living in West Aussie, and have been buying property in the US since 2014, sure there have been hurdles to cross and a lot of research/education on the topic, but my recommendation is go for it! We have never regretted it, a fantastic opportunity. We use to have investment properties in Australia which caused more headaches than any of the US ones now we only have US properties. Love it so much we are heading over there next year for 12 months, looking at purchasing a few more properties, looking forward to being able to hopefully rehab one or two.  Let me know if you want to connect.

Good luck in your adventure.

Jay Hinrichs · Answer

@Lisa P.  my pleasure... some of the profiteering I saw go on a few years back was nothing short of criminal in my mind..  I mean some of the US and Aussie Spruikers were selling burnt out houses and telling the buyers they were rehabbed... etc etc.

Lisa P. · Answer

Thanks all for your replies and advice - I found them really helpful.

@Jay Hinrichs, I downloaded your e-book and found it to be a great summary of what to look for and what to avoid, so thank you for providing such a useful resource.

Based on what everyone has said, I can see I need to do a lot of research before I dive in!

Ali Boone · Answer

Hey Lisa! A few years ago I worked specifically with the companies you are talking about (not the specific names, but the type of company) in various countries. They were basically liaisons between us (access to the US properties) and their buyers (you). There were definitely a lot of buyers that got burned, but it wasn't just because of the model of how everyone was working...it was all dependent on who they were working with. Turnkeys were a newer concept when all of this got started and a lot of people got burned because the people behind the turnkeys got cocky and couldn't run a business to save their lives and ended up screwing over people. Internationals were particularly victim to it because they rarely, if ever, had a chance to see their properties. But all of that was with specific companies and certainly not all of them. Of all the international investors I worked with, I only know of one that really got burned (happened to be an Aussie). Although he was working with a horrible turnkey seller, he also chose not to do due diligence very well on the property. We all encouraged him to leave the deal and he bought it anyways.

All of the past drama aside, there are plenty of ways to do it with perfectly good companies. There is never a guarantee with anything of course, but plenty of them are better than others. I don't work specifically with international companies anymore (but I do still have all the resources) but I still work mostly with turnkeys. There are still lots of international buyers too, just not always through the one-stop shops.

Engelo Rumora · Answer

haha

Its actually vice versa mate,

I don't put up with many so we tell them to shove off :)

Lisa,

Definitely download Jay's E-Book as its a wealth of knowledge.

Thanks

Companies helping Australians into the US market - any good?

Most Popular Reply