All Forum Posts by: Gaynor Pendleton

Thanks for the response.  Does that mean I cannot sell in less than 4 years without a quiet title action? 

When I purchased a block of land I was given a Special Warranty Deed at settlement. Am currently in the process of selling. When a search was conducted by the settlement agency, it was shown as being sold as a tax Deed and the buyer has requested a "Suit for quiet title" as they say this is the only way to attain a clear title. Is this correct? Any help advise on this would be appreciated and how I obtain this, and approximate cost. Thanks.

Hi Sarah

Welcome to BP, as an Australian who already owns properties in the US, has a bank account etc as a Non resident you can not get a SSN. Once you lodge your first Tax return and get a ITIN number this is what you will use in place of the SSN. If there is more than one person in the LLC then it will require a Employer Identification Number (EIN) which is requested at the time of creation of the LLC.

As a Foriegn Investor the best option is to find a company in the US who will manage and look after your LLC's, this is normally a Law Firm as all LLC must have a local Registered Agent or process agent who can accept legal service, should your LLC become involved in a lawsuit. There are heaps to choose from most charge a monthly fee for this service.

Step 1: Organise a LLC - this is equivalent to a Business Registration here. You will need this to be able to open a bank account. The cost to register ranges from anywhere from $100 to $600 depending on how you do it and which state the LLC is in, then there is a yearly fee to keep the LLC operating this is different in each state eg: Utah is $15 and allows out of state business.

Check out this link it gives the basic requirements of forming a LLC in the US.

http://www.wikihow.com/Form-a-Limited-Liability-Co...)-in-the-USA

Whilst it is best to have the LLC in the state in which you want to own the property it is not essential so long as the state in which the LLC is registered and the state in which you are buying the property allows you to do"out of state business". for example my first LLC was in Utah whilst my properties were purchased in Florida and Detroit.

I will send you an email with some additional info.

Happy investing.

Thanks Jason for looking into this, I will check it out with Insurance company. 

The damage is a combination of vandalism -( holes in the wall, bath fittings ripped out, stain on the carpet, refrigerator having to be replaced) and lack of response by the PM the property was vacanted without any inspection being carried out and the pile of rubbish and food which was left behind casued a build up of mould & maggots, which could have been avoided if the PM were doing there job!

thanks for the reply, my insurance was due for renewal,  and we recently had tenants who caused around $3,000 damage to the place, and 7 months with no rent due to this, so thought I would check out what was avaialbe.  Not living in the US we have to depend on our PM to do the right thing which they clearly did not, yep have now changed PM's.  

Looking for advice regarding landlord insurance which would cover:

Rent default up to $5,000, plus associated legal costs up to $5,000

Cover for loss of rent up to 12 months while your property's being repaired as a result of an incident  

Theft and attempted theft by tenants

Malicious damage or vandalism by tenants

I can get this cover for my investment properties in Australia, but cannot seem to find similar cover in the US. they all seem to give the same answer:

"Vandalism and malicious mischief is a covered peril; However, it is excluded when it’s your tenant(s) that damage the property. Which also excludes the loss of rent coverage".

thanks for any advice.

Hi i am a fellow Aussie who is currently investing in the US and also have obtained finance in the US.   It seems near impossible when you first start out, But don't give up it is worth it.  

Do you need a LLC? - i would say this really depends on your financial situation and the tax benefits you are looking for, and how many properties you have. When we commenced our biggest concern was protecting our assets here in Australia I did not want to take the chance of loosing everything we had worked so hard for here so started with a LLC - which cost $550, all states are different so it will depend on where you are interested in buying property as to where the LLC is set up and you must have an agent in that state there are companies that do this or it could be the property manager. The state has to have a local person to contact if required, and any mail addressed to the LLC will also go to this address which then needs to be sent on to you.

Do you require a US bank account - Yes - you don't want to have to pay fees for transferring money all the time, once you have a few rental properties generating income, and bills to be paid it soon adds up and all your profits will disappear. Opening a bank account is not as easy as it once was but still can be done, the big banks such as Bank of America, Wells Fargo etc will want you to open an account in the LLC or C-Corp (business account) and a personal account (in your name) which will require a monthly balance to avoid fees just like here! the Personal account is to start a credit rating in the US. Another option is looking at the smaller banks in the state you are interested in buying they are easier to deal with for example: Enterprise Bank & Trust in Kansas. It can be done on line but if possible it is best to take a trip over there and check things out, face to face is always best.

Getting finance in the US is possible but the rates will be around 6 - 7% and until you have a few properties and a credit rating in the US you will be asked to put down a high deposit, my first was at 50% down, you will also need to work with a broker to achieve this.   

It really comes down to your current situation and do you have the financial backing to get started, do you require the income now or are you planning for the future.  

Always happy to chat have learnt a lot since starting, and still learning it is so different to here. 

Cheers 

Gaynor 

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

Kansas and Florida.  

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.

Hello all, I am a non US resident, come from the land down under 'Australia' and have been dabbling in real estate in the US for the last 18 months. Such a fantastic opportunity to gain financial independence, although it is not easy when you do not live in the USA. such as not really knowing the local markets and where to buy will consider all areas! Would love to increase B&H's, but have been finding it difficult to secure finance in the US at a good rate, due to not being a resident and having to put 60 - 65% down any ideas of where to start would be appreciated. thanks in advance Gaynor.