Profiting from Property in the USA
Background
The scene in the USA is currently an interesting one. There are many markets in the USA and like those here in New Zealand, these appear to have moved on from the impact of the Global Financial Crisis (GFC) – there are many areas that are ripe for profit. We have numerous contacts in the USA and through these parties, we are fairly certain we can locate some very good deals. Our contacts cover many areas relating to residential, commercial or industrial properties.
We have been investigating the USA market for some years as our involvement commenced pre the GFC. A lot of time and money has been invested in understanding what has gone on and the implications on property and especially how we might benefit from an involvement in their markets. In short, the impact has been dramatic and much of what you have read in newspapers or magazines as well as other media is probably true. It has always been understood that the USA is the land of opportunity – and we believe it very clearly remains so!
We see evidence daily of things that are happening. We read of the changes that their Federal Government has been forced into, we hear about banking and other financial matters, as well as phenomenal profits being generated by individuals – property millionaires are being created daily. The list does not appear to be exhaustive.
It is clear to us that the opportunities remain exceptional and there is currently a window of opportunity open to us even from this distance. It is possible to participate from the comfort of home here in New Zealand and that is what a number of NZ residents are doing. The internet has enabled us to keep up to speed with things and when we need information we access those with their feet “on the ground” over there, so it isn’t difficult for us to find out about such things. The internet is an integral part of our daily life!
Why invest in US Property?
Every day, information is being received about happenings in the USA and we are constantly reminded of the opportunities that exist. Email inboxes are filled with material from those that have been working with us, showing us what can be achieved and the profits that can be made. The GFC has created some incredible opportunities, ideas, etc and there are some very bright people that we discuss things with that can assist us in bringing information to parties here in New Zealand.
Types of Investment Property
USA Properties, a division of www.investorproperties.co.nz specialises in residential property as there is plenty of it (population is around 350 million). When it comes to high-yielding investable property in the USA, it is the same as here – just bigger and significantly very rewarding!!
We concentrate on Multi Family Homes (MFH) and to a lesser extent, Single Family Homes (SFH). Such properties are generally cheaper than here and the returns better in the case of rental properties. It is not uncommon to get anything from 12% through to 17% (and sometimes more) as the return on the investment. “Flipping” homes is another scenario and one we are especially keen to introduce you to if that “rocks your boat”.
We are currently not involved with any types of commercial or industrial property, although in saying that we have numerous contacts specialising in these areas – we have noted that numerous of our USA based investors have such properties and there is always “movement” with them in their overall investing.
Most of what we have done with MFH properties in the USA has involved those that are categorised as B or C properties (there is a grading system that will be explained elsewhere on this site) B or C properties are in good or very good areas and are tenanted by white or blue collar workers – we are unlikely to suggest you invest in D properties.
What Profits can be made?
Experience has taught us that there many ways to profit from USA property system and yes we can do that from New Zealand.
You want a return on the money and at the end of the experience, you should be able to show a positive result from the investment made.
The process of investing in the United States is fairly straight forward. You have to feel comfortable before you make your first investment, so there is never any pressure from our staff to buy. We will take as much time as you need to ensure that you fully understand your investment
We are able to purchase property for cents in the dollar and you can benefit from these transactions. In some cases, the time elapsing between buying and selling is very short (it can be hours or it might be a few days).
Is it possible for a New Zealand resident to purchase properties in the USA?
Absolutely! We have the skills, knowledge and support to work these through with you. What’s more, we will arrange the entire deal for you within our network.
What will USA Properties do in the deal?
USA Properties will for a fee, enter into a written agreement with you covering the deal. We encourage you to use your advisers so that you are comfortable with what we are doing. These may be specific to a deal, or they permit ongoing investment. Details of the agreement are available on request.
In effect USA Properties will undertake whatever is required involving the property to acquire it – your role will be simply to pay the agreed contribution in accordance with the agreement in either US or NZ dollars in accordance with our request and be available to receive information as it happens regarding the transaction. We work with legal professionals and numerous other property personnel in both the USA and NZ
Matters to consider
- Finance – we have access to a number of funders that can be involved in the deal;
- Tax – we use tax experts in all our transactions and these parties will generally work with your NZ tax advisor.
- Exchange Rate matters – these are covered by our arrangement.
- Asset Protection in the USA – we generally use LLC structures.
- Legal – our transactions are handled by closing agents in all cases.
- Other matters – please discuss
The Process
USA Properties will:
- Work with you to understand your needs;
- If we proceed to a purchase, we will set up a written legal agreement with you;
- Consider your preferences as to your needs;
- Locate the properties to be purchased;
- Locate a funding source in conjunction with you;
- Work through the Due Diligence process with you and your advisors where necessary;
- Negotiate with the vendor of the property;
- Close the deal;
- Ensure good property management matters have been considered (under the Due Diligence process) and negotiate and complete a deal with the Manager;
- Implement sound management systems for regular and ongoing reporting;
- Deal with you regarding all matters under our management arrangement; and
- All matters required to ensure a good sound investment has taken place.
Please note that ongoing services provided by USA Properties Division of Investor Properties will be the subject of a management agreement and a fee will be charged on an annual basis.
Your role in the process/future:
- This will be covered in a written agreement with us;
- You may be actively involved or passively involved – your choice
- You will be required to confirm and sign this Agreement for which you are encouraged to seek legal opinion regarding the document)
- Agree to and pay our Fees in accordance with this agreement.
- Receive all information from us and be available from time to time to be made aware of any decisions that may be required in connection with your investment
Other Fees or Charges
To participate in this business opportunity you will be required to meet costs specific to the property acquisition including those associated with establishing your business in the United States of America. For details of these costs and charges (go to) Legal and Accounting)
Other services may be provided on “as required basis”. If you require these, then we are happy to discuss the services together with our fees with you. We will not charge you for anything that has not been agreed in advance with you on.
How do I Join the USA Properties System?
When you are ready to join us, you will need to discuss matters relating to your interest with us.
Where is USA Properties located?
We are located in Tauranga, New Zealand and are residents here (most of the year)
For information relating to USA property click here
LEGAL NOTICE
This information is designed to provide accurate and authoritative information as required in regard to the subject matter covered. It is offered with the understanding that the presenter is not engaged in rendering legal, accounting or other professional services. All or any examples were given are for illustrative purposes alone and may not be achieved in any deal entered into. If legal or expert advice is required, the services of a competent professional should be sought.
