Frequently Asked Questions
Please note: while we endeavour to assist you at step of the way with your property transaction, we are not tax or financial advisors and strongly recommend you seek professional advice on all matters of your own personal and business tax and finance in connection with your property transaction. Information supplied is for educational purposes only, to provide investors with an overview of information about investing in USA property. We request you please not treat this information as advice and simply use it as a reference point from which to further conduct your own research. Thank you.
A.We do all the hard work for you. We have years of experience in the US market and have specialist partners in place in each of our locations. We know what to look for, what to watch out for and how to put together good, solid deals that perform as they are supposed to. You tell us the type of investment you want and we hand-pick the best matches for your personal needs.
A.Each of our locations offers different benefits and we have selected the best-performing types of property in each. All our properties offer good, steady income and come in at different price ranges to suit different budgets.
In Atlanta you can buy modern, single family houses in good, suburban neighbourhoods which typically come in between $90,000 to $150,000 (which is around 33% less than peak pricing and 25% less than rebuild cost) and offer yields of 7% to 9% net. Often Atlanta tenants have signed a future option to buy, so this location also offers a solid exit strategy.
In Buffalo you can buy fully-refurbished single and multi-family homes in select neighbourhoods. Prices here typically range from $40,000 to $60,000 and they offer high yields of 14% to 18% net. Buffalo is ideal if you want a low capital requirement and a high income.
In Florida we specialise in refurbished condo apartments and family houses, primarily in the Orlando area. These typically come in at between $75,000 to $110,000 for condos and $90,000 to $120,000 for houses (around 50% discount from peak values) and offer yields of 9% to 11% net. Florida is ideal if you want a solid investment to hold, with a future option of selling at the top of the market.
In Cleveland, Ohio, we specialise in refurbished, multi-family houses and single-family homes that are available in the area for between $40,000 to $60,000, with a 10%+ yield, making this a market primed for anyone interested in a “Cash Flow” investment.
In Atlanta you can buy modern, single family houses in good, suburban neighbourhoods which typically come in between $90,000 to $150,000 (which is around 33% less than peak pricing and 25% less than rebuild cost) and offer yields of 7% to 9% net. Often Atlanta tenants have signed a future option to buy, so this location also offers a solid exit strategy.
In Buffalo you can buy fully-refurbished single and multi-family homes in select neighbourhoods. Prices here typically range from $40,000 to $60,000 and they offer high yields of 14% to 18% net. Buffalo is ideal if you want a low capital requirement and a high income.
In Florida we specialise in refurbished condo apartments and family houses, primarily in the Orlando area. These typically come in at between $75,000 to $110,000 for condos and $90,000 to $120,000 for houses (around 50% discount from peak values) and offer yields of 9% to 11% net. Florida is ideal if you want a solid investment to hold, with a future option of selling at the top of the market.
In Cleveland, Ohio, we specialise in refurbished, multi-family houses and single-family homes that are available in the area for between $40,000 to $60,000, with a 10%+ yield, making this a market primed for anyone interested in a “Cash Flow” investment.
A.You do not have to visit the USA as all parts of the transaction can be done by email, post, web chat and/or telephone. You are, of course, welcome to visit and meet our partners and view properties and we can help you arrange this if you wish.
A.This is a very good question. It is true there have been some worrying reports about certain types of property and locations in the USA. Simply, we do not work in those locations and/or with those partners. We only offer quality, refurbished, performing property in tried and tested locations with tried and trusted partners. We have worked in the US market for years and know what and who to look out for and what and who to avoid.
A.The property we offer is typically repossessed and bought directly from the bank or foreclosure (repossession) agent/s. Many Americans lost their homes in the property crash and recession and are now looking for property to rent and to buy. This provides an itinerary of available housing stock at discount prices and also a ready-made rental market with future tenant purchase options.
A. We provide you with photos and/or videos of the property so you can see it is in good condition. In the case of an ongoing refurbishment, we will offer before and after images so you can see the work completed.
Our properties also come with home and maintenance warranties and are tenanted with carefully-screened and placed tenants who have signed leases and paid security deposits. You will receive all information pertaining to the warranties and tenancies, plus the security deposit/s will be transferred to your account/s upon completion.
Our properties also come with home and maintenance warranties and are tenanted with carefully-screened and placed tenants who have signed leases and paid security deposits. You will receive all information pertaining to the warranties and tenancies, plus the security deposit/s will be transferred to your account/s upon completion.
A.All properties are fully-managed for you by our specialist partner management teams in each location. Simply, you do not have to worry as everything is done for you.
A.It is best to have a USA bank account as your income will be paid in dollars and exchange transactions between the USA and UK are chargeable (circa £60 per transaction in the UK, charges and stipulations in other countries may vary).
The type of bank account you open will depend on a number of factors, including your existing bank account/s, your country of residence, your credit history and whether you wish to visit the US to open an account in person, as some banks require your presence as well as your ID. We can help you with this.
The type of bank account you open will depend on a number of factors, including your existing bank account/s, your country of residence, your credit history and whether you wish to visit the US to open an account in person, as some banks require your presence as well as your ID. We can help you with this.
A.You do not need a USA company and can use your personal name and accounts. Most investors with just one property use a personal account, but it might be worth considering opening an LLC (US equivalent of a UK Ltd company) if you own a number of US investments and/or have a large number of assets. Typically, if you are investing in between one and four properties and have less than £1 million of assets, you probably won’t need an LLC. If you do, we can help you set this up.
A.The management team will pay your rental income into any bank account of your choice, anywhere in the world.
A.You pay your tax at source, in the US, according to US laws. You will not be double-taxed in the UK due to a Double Tax Treaty being in place to safeguard against this. Other countries will have different rules and regulations so it is best to conduct further research and take advice if you are not a UK citizen.
A.In the USA you pay tax on profits. This includes rental income and/or profit through sale. If you hold a property for more than 12 months (as opposed to a selling as a fast ‘flip’) any sale profit is defined as ‘long term gains’ and will be taxed at a lower rate, typically 5% to 15% lower than standard income tax. If you are planning to buy a new investment property with your sale profit, however, you can roll this over into the next property and defer the tax payable. Different locations may have different rules and regulations so we strongly advise you to conduct your own research and take professional advice as to your own personal circumstances.
A.USA tax returns are filed annually. Typically, a ‘tax year’ is a calendar year, so your return should be filed by the 15th of the sixth month after the end of the tax year. So for a tax year ending 31st December 2013, your last filing date would be 15th June 2015. This gives you around 18 months to complete and submit your first tax return.
A.Yes you can claim tax relief against a number of costs. These can include business travel to the US; an annual deduction for depreciation against income (typically the cost spread out of 27.5 years, thus a $110,000 property would allow you a deduction of $4,000 a year); advertising; cleaning and maintenance; insurance and legal fees; management fees; periodicals and subscriptions; repairs and utilities, etc. Again, we strongly recommend you take professional advice pertaining to your own personal situation on all tax issues.
A.The UK laws assume an LLC is a taxable entity in its own right. This means if you are an individual member of an LLC you will be taxed in the UK on the distribution of profits from the LLC and not taxed on the profits themselves. It is most tax-efficient, therefore, to keep the profits inside the company for your investment/s. If the shares in the LLC are at least 10% owned by a UK corporation then underlying tax relief will be given.
You can research more about tax via http://www.irs.gov/
You can research more about tax via http://www.irs.gov/
A.These are taxation numbers. An ITIN is an Individual Tax Identification Number (for personal accounts) and an EIN is an Employee Identification Number (for LLCs). You will need in order to make your annual tax returns and it will enable you to receive a higher rate of rental income from your property (by law, the management company must withhold a percentage of your income if you do not have a tax number). These tax numbers will be needed for a US bank account and can also help you build up credit in the USA. Again, we can help you set these up.
A.There are a number of exit strategies available if you wish to close your investment and sell your property. You can sell on the open market to a home-buyer. Our location partners will be able to refer you to local, trustworthy realtors (estate agents) to help you with this.
You can sell to your tenant. Some will be eligible for standard mortgages, but others who aren’t may still be able to get a government-subsidised FHA insured mortgage (similar to Help to Buy in the UK). You can also sell to your tenant on a lease option. This is an agreement whereby the tenant is given the option to buy the house for an agreed price after a specified period of time. This is popular in Atlanta with many tenants having signed a lease option agreement.
You can sell the property as a performing investment to another investor, ideally one with liquid assets who would be interested in a cash deal. This means you would be able to avoid commission fees and chains and simply sell the whole investment as opposed to just the property itself.
You may also be able to refinance by taking out a loan (e.g. a small mortgage) on your property. This, however, will depend on your individual circumstances and the rules and regulations of the banks within that particular State.
You can sell to your tenant. Some will be eligible for standard mortgages, but others who aren’t may still be able to get a government-subsidised FHA insured mortgage (similar to Help to Buy in the UK). You can also sell to your tenant on a lease option. This is an agreement whereby the tenant is given the option to buy the house for an agreed price after a specified period of time. This is popular in Atlanta with many tenants having signed a lease option agreement.
You can sell the property as a performing investment to another investor, ideally one with liquid assets who would be interested in a cash deal. This means you would be able to avoid commission fees and chains and simply sell the whole investment as opposed to just the property itself.
You may also be able to refinance by taking out a loan (e.g. a small mortgage) on your property. This, however, will depend on your individual circumstances and the rules and regulations of the banks within that particular State.
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Register with us today and receive a free USA property consultation with our MD. Find out which type/s of USA property will perform best for your own individual portfolio and investment needs; and receive priority, pre-launch notification when your personal hot picks come in.