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Investment USA |
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Exceptional Property Wealth Investment & The Window of Opportunity !
Prior to the downward residential price trend in the USA, money to purchase property was easily lent and in many cases negligently.
Since 2007, the USA residential property market has been in serious trouble compounded by the ‘sub prime’ issues, which saw property prices plummet and free fall, triggering the global financial crisis we now know and most of us felt around the world.
There is always a silver lining and opportunity – the USA current situation now presents a remarkable investment opportunity to generate both exceptional yields (rental return) and huge capital growth in a short space of time – Return On Investment (ROI).
Using a select criterion and identifying the ‘best option’ for a buy, hold and a build strategy to be able to gain exceptional yields around 21% (norm would be around 4 - 6 % ) and huge capital gains of 200-300 % within 5 years (norm would be around 20-50% in 7 – 10 years).
Due to the low entry point (purchase price) which enables the property to be bought outright, then have substantial equity with immediate access, immediately facilitates borrowing to secure the second (leveraging) and unlikely to need further funds. The positive nature of this investment (yields) allows a compounding (1 becomes 2 and 2 become 4) purchase strategy to be executed.
Why buy property ? why buy in the USA ? and why now ?
- Global Financial Crisis (GFC) created the fall of the USA property market
- Property has fallen below half its value in many cases since 2007/8
- Property purchase prices are well below the level to re-build in many cases
- Property undervalued in the USA
- With diligent research and the right strategy, the right properties can be found
- Huge demand for rental property (Government Rental Guarantees can be secured)
- Huge Gross rental return (24 - 35%)
- Exceptional Nett profit(10 - 25%)
- Fabulous capital growth opportunity
- USD (currency) depressed making purchase even more attractive
- Buy low, Sell high (rules of successful investment)
- Remember location is everything and so to, is a great Property Manager
Phases / Process (each property is different so approximates as follows)
- Locate Property from listings (APWS prospectus) or the Listings Page or one you have found
- APWS can also locate a desired type of property - as required (Search facility)
- Must have monies ready to purchase (you can use a SMSF) and proof of ability to pay monies as requested
- Place a Reservation/Holding fee - normally around $1 K (USD)
- Depending on the purchase type (Foreclosure Pre or Private sale or Mortgaged ) also dictates timeframe and sequence of events, including any repairs required
- House Inspection conducted (Review repairs and confirm acceptance)
- Fees Paid as listed as requested (set-up foreign exchange USD)
- Set up of tax and legal status (included in price as indicated)
- Escrow deposit for Mortgaged property (property supplied with part mortgage)
- Property insurance in place(before you close)
- Full & remaining monies sent to closing attorney (foreclosed property)
- Property settlement (closure) may also take place at this point, if purchased from foreclosure
- Repairs – if applicable completed at this stage
- Property Management assigned and introduced (key to get right and maintain good contact)
- Property settlement (as above) requested by closing attorney
- Buy as many as you can – while the opportunity lasts
Exit Strategy
- Sell to private buyer (time you choose)
- Sell to investor (time you choose)
- Sell via Land Contract / Seller’s Finance or raise a mortgage (optimum for you and buyer)
It is highly recommended to hold your investment for a minimum of 3 years and up to around 10 years. However, at present there are also buyers willing to enter into 5-10 year financing with you as the seller, as house loans are difficult to secure in the USA. This could facilitate a sale of your investment much sooner, but might well mean you get a 100% return on your investment, with interest for a fixed period of time (5-10 Years) receiving a substantial deposit and monthly repayments, until purchased outright - worth considering !
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