"I'd love to do it but I can't afford it." How many times have you heard that phrase when it comes to property investment? Dozens! But the simple truth is that financing your US property portfolio and generating those 25% cash flow yields is only a few simple steps away and within easy reach.
You would be forgiven for thinking that you have to run off to your nearest bank and get a loan to purchase a property in the USA. However, there are actually a considerable number of finance options open to you.
Equity finance is a commonly used method. In simplistic terms, this is the difference between the value of the property you own and any money you owe on it. Thus, if your house is valued at $100,000 and you have a $50,000 mortgage on it, your equity is $50,000. You then simply cash in your equity to use on other projects. While simple, it could be bad if the value of your home subsequently drops and leaves you with negative equity.
A wraparound mortgage is a little unconventional in that the current owner of the property essentially subcontracts their mortgage to you. This is referred to as 'seller financing'. Essentially, you pay the mortgage value to the seller, who then uses that money to pay off his own mortgage. It does have the advantage of cutting down on a lot of red tape and legal fees.
For braver souls there is hard money lending, where a private individual loans you the money. Normally this incurs high interest rates and tight deadlines, so it's not for the fainthearted!
House Buyers USA has been helping property investors secure financing for almost 10 years. As a result, we helped hundreds of people fulfil their dreams of building a property portfolio.
We have forged excellent relationships with banks across the US. As a result, we can secure financing to cover around 50% of the purchase price of your property. Through our strong network of connections and because we are based in the US we are also able to offer this amazing financing package to Australian investors.
The properties on our books thus have financing ready to let our investors cut out the red tape and financial barriers that often exist. In addition, we also have a network of trusted tax advisors and legal experts to provide our customers with a one-stop shop for their US investment needs, thereby greatly simplifying your purchase process.
Normally, this financing package is offered on properties in the $50,000 to $60,000 range. The high volume of properties we sell gives us considerable strength in the market. These benefits we also pass along to our customers through other advantages such as access to reliable contractors and good property managers.
Matt Dunne is the director of House Buyers USA, a company that has almost 10 years experience in helping people find great properties in the US. Not only can House Buyers USA assist you in finding good real estate opportunities, but Matt’s team can also arrange for financing, legal assistance, renovations, property managers and extensive research to ensure your purchases are safe and hassle free.
Sign up for the House Buyers USA newsletter to receive more details, as well as free SMSF e-book entitled Controlling Tomorrow Today.
The above information is supplied by House Buyers USA.
Disclaimer: while due care is taken, the viewpoints expressed by sponsors do not necessarily reflect the opinions of Your Investment Property.
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