1. Where are they located ?

A Across USA, but we are focusing on specific prime areas (States) of return and relative investment safety
 
You can purchase property in one of three 'lanes', which also affects the price you pay and time to  earning a rental income :

    * Foreclosed in need of repairs/renovations and tenant
    * In need of repairs/renovations and or tenant (preforeclosure / private distressed sale)
    * Tenanted - ready to go (Turn-Key)

2. What is the total cost for my investment ?

A Prices will constantly change with factors such as market demand, type of property, location, exchange rates, legals, fees and refurbishment of a turn-key property with tenants, the following applies (guide only - confirmation upon application)

Detroit $25,000 - $99,000 ($US) | New York State $30,000 - $99,000 ($US) | Florida $50,000 >
 
3. Why are they so cheap ?

A Due to the sub prime issue, foreclosures (pre-foreclosures and a very depressed housing market for private sales) by banks have been rampant. Now with the US  ‘stimulus package’ making monies available to banks to offset their 'toxic' debts, they can now release the seized property and sell at rock bottom prices
 
4. Why don’t you offer the very low end (cheaper) stock, which is available and advertised  ?

A This has to be looked on as any property investment, that good yields and capital growth be achievable and the investment be protected and sustainable. The low end stock in the main cannot achieve the same yields and protection that the high-end can, and no doubt will need substantial repairs to make it tenant ready and safe.  Just as important, will be unable to deliver the capital growth once the market returns, which is where the real money (Returns) will be generated, this will also be true for using the power to 'leverage' in order to buy additional properties - it all depends on whether you favour rental return, or capital growth or perhaps a balance ?
 
5. Is my money safe, who owns the property and who will ensure that everything is taken care of and maintained ?

A Your money will buy you your investment property, wholly owned (100%) by you and you alone, without any previous debt or claim on the property (Warranty Deed) a property manager can be appointed should you wish to ensure the ongoing upkeep
 
6. How long does the process take ?

A Once you have chosen a property from the listings supplied, approximately 12 weeks (or less) to finalise and have the property (refurbishment if required) legally owned, debt free and tenanted
 
7. What costs are involved  ?

A Purchase of the property (inc any refurbishment) and fees between $25,000 - $99,000 (approx $US) or for a turn-key property
 
8. What are the ongoing costs and do I need to pay any more monies ?

A All turn-key costs are in the purchase price (as per property Prospectus) each year running costs (inc maintenance) will be around $6,000 ($US) however you will be generating a cash-flow of around $10,000 K+ per annum, therefore in a cash positive position – cash in bank.  All monies will be paid to you or your nominated entity!
 
9. When will it be tenanted, for how long, who checks the tenants and what safe guards do I have that the property will be cared for ?

A It will be tenanted from day one as a rule (huge demand - however it could be up to 60 days or more, in exceptional cases) tenants are screened and can be either privately located or from a pool of ‘section 8’s (in the USA these people are supported with payments of up to 100% of their rent - paid for by the State Government)

By targeting (in the main) the higher end property your screening process will also be identifying those that can afford and respect the property accordingly via references and history checks. 

If you were to have a ‘Section 8’ tenant you have up to 100% guaranteed rental income (paid directly to the owner/Property manager) and exposure to a possible loss of only 5% of monthly rent at any one time

However, it’s a must to have building insurance prior to completion of the purchase, to ensure your investment is adequately protected

To rent out your property, you also need an ITIN (Individual Tax Identification Number) for each person listed on the Title Deed – you can complete this yourself or have this completed professionally for you for approx $200 USD (individual)

It is also recommended at this time to have a USD online bank account in the US, for ease of payments and to lower costs and exchange rate risks – all you will need is a current passport and one other photo ID (driving licence etc)

10. Who will look after the property internally and externally and at what cost ?

A A property manager will be appointed at your request to ensure all the ongoing maintenance and checks are carried out with reports and pictures for your review, 10% of the annual rent is typically charged depending on the services requested

11. How much rent will I receive and what about a bank account etc ?

A Rent (approx) will be between $450-$2500+ ($US) per month and can be paid directly into your USD bank account, with 24/7 access by you, as noted above in question 9

12. When could I sell (exit strategy) and take the cash ?

A You could sell at anytime, but the main attraction is the capital growth and this should be realised within the first 5 years – the best strategy is to buy as many properties as you can comfortably afford, whilst the prices are so attractive and rental return so high, then ‘hold’ for 5-10 years

We could also look to offer 'sellers' finance, which is an agreement between a buyer and seller locking in an agreed purchase price - ask for further details

13. Would APWS apply it's 'turn-key' service, to a property that I bought and then look after it accordingly ?

A  Yes APWS is very willing to ensure your property is set-up and managed correctly, applying the business process and will charge the normal fee, as set out in each prospectus

14. How long do I have to make an investment ?

A Right now (approx) will be the best time to invest and keep investing through leveraging, this will generate ultimately the most significant returns

15. How much support will I get now and in the future from APWS ?

A APWS will be side by side, now and well into the future to assist and ensure you are not only comfortable with an investment, but adding the right property(s) to your wealth portfolio

16. What about income, capital gains tax (CGT) and getting my money out of USA – when I sell ?

A Capital Gains are charged at 15% after costs deducted – we can have a tax advisor help you through this, currently there are no restrictions on moving your money out of the USA.

There is a 'double' tax treaty in place between USA and Australia - which means you only pay tax on income and / or CGT earned only once, that is then a ‘credit’ and submitted within your Australian tax return, for that year. In the USA income and CGT is known as ‘withholding tax’

It is always advisable to have or speak with a professional tax accountant who specialises with overseas personal revenue (USA) CGT generation and the tax implications (we have such experts should you choose to use their services see question 19)

Please Note : under new US compliance issues released earlier this year 2010, Foreign Account Tax Compliance Act (FATCA) if you are an American Resident you must ensure full compliance or risk yourself and those within an investment with you having a 30% withholding tax penalty applied to your revenue generated

17. Is it possible to borrow money from the USA, to finance the purchase of the property or additional properties in the future ?

A Yes, and at very competitive rates (5%) with a 70% loan to value ratio, but there are restrictions of, should this be of interest

Also right now it is possible to purchase selected (small number) properties with a mortgage attached and only $30 K (USD) down - the mortgage would be serviced (paid) from your nett rent and you would still have money in your pocket

18. Can I use a Self Managed Superannuation Fund (SMSF) to buy USA investment property ?

To fully ensure compliance and suitability to your purchase strategy, speak with your trusted financial planner or, APWS can provide an independent professional to help you

19. Do you have a financial example for me to look over ?

A Yes, please see menu selection : Financial Example or click here

19. How do I make an investment and buy one or more of these properties ?

A Should you wish to build great capital growth and receive exceptional rental return over a very short period, then click here leave your details for APWS to contact you and discuss this exceptional opportunity further

20. Can I see an example of the investment properties ?

A Yes you can, please visit the USA Project Examples Page, this will give you a great insight as to the quality of property offered and the investment opportunity that currently exists

                              Process  (completion within 4 -12 weeks approximately)

Note: the information provided throughout this entire page(s) is not intended to constitute financial or investment advice. Appropriate professional advice should be obtained by any person, prior to acting on any of the information contained herein 

E&OE

Step 1 You pay $1000 USD 'holding' fee normally (non refundable as it will cover a Full Inspection and Administration charges) this removes the property from the market whilst paperwork is being prepared - if a private sale. Full purchase price will be between $25,000-$99,000 (approx $ USD) for a full turn-key property, unless specified otherwise - you must have proof of ID (valid passport) and proof that monies are available to close (settle) the purchase

Step 2  You have full transparency of the administration process and will contacted directly to ensure all is proceeding as per your requirements. Monies will be required at various stages of which you will be notified well in advance – but note the whole process will take no longer than 12 weeks (in the norm) and may only take a few weeks in some cases - you will be supported throughout this process and long after your purchase

Step 3 Confirm your purchase requirements and within an 8 week period (approx) all legal, administrative  and refurbishment work (as required) should be completed and the property ready for purchase

Step 4 Final payment less monies already paid, to complete the property purchase and you take full legal ownership - wholly owned by you or your chosen legal entity

Step 5 Buy as many now as you can, whilst the opportunity remains

Should you wish to build great capital growth and receive exceptional rental return and high nett return (profit) over a very short period then click here and leave your details for APWS to contact you and discuss this exceptional opportunity further