When to hire a licenced contractor (and when not to)

July 11, 2022/in Archived, Uncategorized /by Lindsay Stewart

The possibilities for real estate investment in the U.S. are endless–it’s no wonder Australians and Kiwis are so attracted to it. The range of properties is staggering and so are the dirt-cheap prices.

When the time comes to upgrade or update your U.S. investment property, you might be tempted to go the safe route and hire a professional contractor. It is something we suggest for big property overhauls, renovations and extensions, but it’s not always necessary.

The amount of help you need comes down to how big your work project is. If it’s a small handyman job, a licensed contractor may be overkill, especially as your contractor may charge a lot more.

A licensed professional contractor will give you the highest quality and coordinate your U.S. team across a big job, but you can scale down and use a no-frills handyperson for smaller projects and get significant returns without lifting a finger.

If it’s a job that can be accomplished with just one person (compared to having to take on an entire team of tradies), you might just want to reconsider who you hire–your budget will thank you later.

What does a U.S. licensed contractor do?

General contractors in the U.S. oversee construction and the hands-on building across a worksite from beginning to end.

They are in charge of hiring, managing and overseeing a multitude of tradespeople and subcontractors called into work on various aspects of your worksite. This can include electricians, plumbers, plasters, carpenters and roofing specialists.

To do their job well, they’ll need planning and leadership experience as well as knowledge of building sites, quality control and communicating with suppliers.

There are big benefits to hiring a contractor, including:

A smooth and seamless workflow
Timely communications
Quality control
Access to a trusted and known labour force

General contractors also have to assess the feasibility of the project, approximate how long it will take and provide you with a budget that covers all the expenses.

Not all contractors have the skills needed to handle your job. Make sure you do your due diligence and background checks and cover the five contractor must-haves .

When should you hire a licensed contractor?

When faced with bigger jobs or renovations that require a number of different trade specialists, hiring a general contractor is your best bet.

A general contractor knows what makes a quality build and how to finish everything to perfection. Finding a good contractor comes with several benefits and helps you:

Avoid accidents and costly mistakes
Get the job done professionally
Maximise efficiency
Keep your project on time
Troubleshoot issues as they arise
Get the job done correctly the first time

When should you hire a handyperson?

Before looking into general contractors and tradespeople for your residential real estate investment property in the U.S., evaluate the amount of work that needs to be done.

Is this something a handyperson can take on themselves? Short-term projects that don’t require a lot of supervision, permits or time are perfect projects an odd-jobber can accomplish for you.

You need to consider the size and complexity of the project and see if it’s an undertaking that a one-person team can handle. Breaking down the entire project into smaller, more manageable tasks can help you evaluate whether or not these small steps are things that require an entire roster of subcontractors or one skilled tradesperson or handyperson.

Usual jobs that can be handled simply include:

Shelving
Painting
Laying carpets and ready-made flooring (floating floors, linoleum)
Window repairs and screens
Shutters
Doors
Ceiling fans
Repairs and maintenance

If these items fall under an odd-jobber’s listed expertise and skills you can omit hiring a contractor altogether. Just make sure you do the same due diligence with your background checks here with:

Checking relevant trade certificates and qualifications
Asking for referees
Looking over client testimonials
Asking for previous experience and work history

When it comes to power tools, ask them what they own already and what needs to be hired along the way. They should be able to tell you their needs quickly and accurately as well as provide an upfront estimate that includes all the items you discuss in your screening call.

Renovating or updating your investment property from Australia, or even interstate, certainly has its challenges. Having the right support and skilled workers you can trust will give you peace of mind to look after your U.S. residential real estate and keep it looking its best.

The choice of who to hire is a big one. Whether you choose a general contractor to oversee the project or a handyperson to add those finishing touches, it’s important to gauge their skills and assess their ability to handle the workload with reference checks.

Having a trusted property management team available locally can help keep an eye on things for you. Talk to your U.S. real estate agent or property manager about dropping in to check on work progress so you get much-needed eyes on the ground.

If you are interested in flipping a U.S. property for profit, take a look at our Fix and Flip Academy offer on our website. This online, self-paced course gives you all the information you need to get started.

For any further advice on buying a residential investment property in the U.S. or building your ground crew, give the Star Dynamic team a call.

5 contractor must-haves to make the best of your property investment

June 27, 2022/in Archived, Uncategorized /by Lindsay Stewart

The way your property looks and feels will make or break your sale–and those factors rest on your property investment team’s contractor. It’s important to hire a contractor you know will get the job done professionally and effectively.

Hiring a contractor to oversee your property renovation gives you direct access to an expert who can manage all the moving parts for efficient project completion including project coordination, consistent quality control and timely and accurate communications.

Without a contractor, you run the risk of shelling out more money than necessary in case of damages. Your property may not look as seamlessly finished, and handling the tradespeople may not be worth the time, effort and money if everything is disjointed and communication is poor. To make the best of your major property renovation and upgrade, you need a contractor.

You can’t just get any old contractor, however, you need to find a good contractor who works with your needs, responds quickly and is in sync with your communication style.

While it will take a little extra time to go over resumes and conduct background checks, you will have security around your renovation work knowing everything will be done on time to the highest possible quality. As well as reducing your stress, hiring a professional will maximise your chance of a great return on investment.

As an Australian investing in residential real estate in the U.S., it’s possible to see amazing profits, especially when you overcome the challenges of time zones and distance. The way to ensure this is through hiring a skilled property management team on the ground, starting with a contractor you trust to coordinate your project. Getting that right means you can rest easy and let the extra income roll in.

Why hiring a good contractor is important

Finding a good contractor is essential to keeping your property improvements consistent, on time and in line with the vision in your head. Your contractor will help keep your project on track by overseeing essential tasks such as:

Hiring qualified subcontractors
Coordinating with suppliers for materials
Addressing and relaying build status
Overseeing build quality and timeliness
Managing construction workers

As the most hands-on member of your team, they’ll have a direct impact on your property renovation timeframes, consistency and quality. The right contractor will also bring engaging energy to the project site which can change the pace and worker motivation for the better –from simple refurbishments right through to property overhauls.

The benefits of hiring a good contractor far outweigh the costs and will assist you by:

Saving time and money overall
Providing access to their trusted subcontractor network
Giving support and feedback to workers on site
Reducing and simplifying your workload

Five things a great contractor needs to demonstrate

The right contractor will oversee your project to ensure you have the best quality renovation possible and show that they have the ability to seamlessly handle every subcontractor and tradesperson working on your property. Here are five things that your contractor needs to demonstrate to be the most valuable part of your team.

1. A proper licence

The most important thing you need to secure is a copy of your contractor’s licence. A photocopy or photograph of the licence is enough to cross-check with online databases that store professional contractor information and ensure it’s legitimate.

Licence conditions vary from state to state so you will need to do your research on what is required for the state your property is located.

2. Insurance and property damage coverage

A professional contractor will have general liability insurance to protect against any kind of loss and mitigate risks.

As well as your property damage, there also needs to be protection against damage to worker property or personal injury to workers as well, especially in the U.S. where hospital costs run into the hundreds of thousands.

As well as protecting your investment and ensuring the wellbeing of workers, a contractor who has taken the time to secure general liability insurance is demonstrating their professionalism and how seriously they take their job.

3. Past experience, customers and social proof

Your research into who you hire will need to go deeper than just the testimonials they provide as part of their resume or website. No one is going to post a bad review of themselves. To get the social proof you can trust you need to cast a wider net. Google is a great example of a research resource as your candidates can’t manipulate the greater web.

Look for past client reviews, follow up on case studies to get more information and dig as deep as you can to see what they are really like to work with. If there is a negative review, give them the benefit of the doubt and ask them about it. Not only will this show you both sides of the story, it will also give you an idea of how they handle situations.

4. A legitimate network of subcontractors

An experienced, reliable general contractor should already have subcontractors in mind or people they’ve worked with in the past.

This will give you legitimate shortcuts in finding and hiring a team that not only performs to the contractor’s standards but already knows how to work well together. This will reduce the likelihood of walkouts and reduce team standup times making your flip timeframe shorter.

Who your contractor selects will also show how well they know their job and the specifications involved for your type of renovation work.

5. Keeps accurate job files and bookwork

While trade work is hands-on and active, it also comes with paperwork, lots of it. There are subcontractor contracts, plans, permits, order forms, blueprints and easements that all need to be carefully filed and referred to multiple times throughout the project.

A contractor needs to be practised in keeping everything in writing and accessible. This is important when working with someone regardless of your location–but even more important when working interstate or internationally.

The contractor should be able to provide you with a high-level overview of their systems and communication methods which should predominantly be digital (as I doubt you want multiple calls throughout the night to answer one simple question). This will also give you an indication of how they run their business at large and their professional abilities in being organised and reliable during a hectic and complex building project.

At the end of the day, hiring someone interestate vs. overseas isn’t that different. You want to ensure you are hiring a trustworthy and professional contractor to oversee any property investment renovations.

The main takeaway from this is to ensure that you don’t solely rely on an interview. It’s important to carry out the required background checks to make sure they have the qualifications and work history to back up their resume.

Not only will these extra measures reduce the time and effort required for worksite check-ins, you also help create a better team on the ground who are responsive, quality-checked and working to schedule.

If you are interested in flipping a U.S. property for profit, take a look at our Fix and Flip Academy. This online, self-paced course gives you all the information you need to get started.

For any further advice on buying residential investment property in the U.S or building your ground crew, give the Star Dynamic team a call.

5 red flags to watch out for when dealing with a real estate agent

May 30, 2022/in Archived, Uncategorized /by Lindsay Stewart

Wouldn’t it be great if we knew in advance that a deal was dodgy? In hindsight it might be all too clear that you were walking into trouble, but if you are new to a situation, or pumped with emotion about something exciting – like a property purchase! – you might be walking blindly into a ready-made disaster.

In just about every situation there are early warning signs and red flags to look out for, especially when it comes to property buying. The issue is, it takes time and experience to learn what these red flags are, a learning curve that can be expensive and stressful.

Like anything, a knowledgeable and experienced team at your side, you can easily navigate your way through a worthwhile and high-quality residential property investment.

Real estate agents are an integral part of your property team. Hiring the right one requires research and effort in order to get the best of the best by your side. We’re not just in terms of skill, but also in terms of service and how well they communicate with you.

It’s important that when you do spot red flags you take them seriously. It’s the only way to weed out unreliable offers and make sure you find a trustworthy real estate agent that will look after your hard-earned Aussie dollars.

Our years of experience helping Australians enter the U.S. property market allows you to build a reliable U.S. property investment team and secure the best properties available across the U.S., all for far less than buying property in Australia.

Why investors may feel uneasy about real estate in the U.S.

Foreign investment ventures always have that extra level of uncertainty around them. Even though residential real estate in the U.S. is a lucrative opportunity, many investors hesitate because of the extra gap the distance and time zones make.

For those who step outside their comfort zone and take the U.S. plunge, the rewards are fantastic and most of the common myths around U.S. investments are quickly realised to be just that: myths.

Here are some common investor fears that most Australian investors find to be unfounded when purchasing U.S. residential properties:

Real estate is too risky – All investments come with certain risks, which is why you need to do your due diligence before committing to any investment – no matter where it is in the world. When it comes to real estate, it’s a well-trodden road with easy to follow steps. As long as you take the time to build a solid professional team on the ground to oversee your investment, it’s very possible to see fantastic returns.
Real estate agents are shady – The unfortunate truth is that there are shady people in every business–not just real estate. You need to exercise caution whenever you’re going into a new business venture, whatever it may be. Doing your research and chatting with a number of real estate agents before you commit will help you create a shortlist of high-quality and trustworthy professionals to assist you.
Real estate is a trap because you’re in for the long haul – There is an investment option for every investor. You might prefer the idea of a long-term investment, but equally possible are fast returns with property flips and fixes as well as a variety of lenders to match your needs too.

Your concerns for safety and certainty with your investment are valid, and it’s smart to tread carefully in new situations, to a degree. Remember that everyone starts somewhere. Residential real estate investment in the U.S. can feel new and foreign to you now, but if you’re open to it, broaden your perspective and think “abroader,” you will soon find your footing and trust your ground team to invest again, and again.

5 red flags that indicate a dodgy real estate agent

Inviting a real estate professional to join your property team requires preparation and time to get right. Once you find a real estate agent you can trust you can feel confident and continue to rely on their services for future investments as you build your international portfolio. Starting your initial real estate agent search you’ll need to be diligent and watch out for these five red flags.

1. They are difficult to contact

Not being able to reach your real estate agent can be frustrating, and it’s not just about common courtesy, it can damage your investment opportunities if it takes significantly longer to iron out details, especially as there’s a time difference to consider. It could even mean that you miss out on your dream property, simply because they didn’t bother to read your offer.

If your real estate agent is difficult to talk to or communicate with, it’s probably an indication of how they are going to respond in the future as well. Don’t wave it off thinking it’s not going to keep happening, no matter how impressed you are with their resume–listen to your gut and find someone new.

Consider the cost on you personally as well. Waiting for responses can be anxiety-inducing, especially if they make you call within their office hours, leaving you sitting at your computer or on hold at 2.00 am.

Red flags with consistently slow response times can indicate that the agent:

Doesn’t specialise in your purchasing field
Has no commitment to the market
Doesn’t work in their position full-time

Take this as a sign that they are not in a position to fully address your purchase and not that they are simply busy right now. Expect this to be an ongoing and significant issue that needs to be avoided.

2. They seem unmotivated

When someone is clearly not passionate about their job, it can be hard to trust them with your investment. In these cases, you are more like a dollar sign to them than a customer they can deliver quality customer service to.

If you can see they are being half-hearted about their answers and assistance early on, you can expect them not to put their energy and effort into finding or securing the property you really want down the track.

A passionate real estate agent is one that will secure your property investment to the best of their ability.

3. There’s a lack of transparency

Working with someone who doesn’t tell you everything becomes suspicious. If they seem to be holding back on providing information about their processes, work history or credentials, this is a big red flag of what’s to come.

It’s fair for you to question what else they’re hiding, as well as their legitimacy. There should never be gaps in information, especially when it comes to a property you are looking to buy. If they are not upfront and honest, they’re not going to offer the reassurance you need for your property purchase.

4. They seem overly pushy

No one likes a bully, so if you see signs of your real estate agent being overly pushy, take a step back. Remember that they are not just interacting with you, they are also interacting with the property vendors and your future homebuyers. That pushy attitude will push everyone away and hurt your buying power.

You can also expect them to put pressure on you to “buy now” without assisting you with options or negotiations.

While being aggressive in real estate used to be a solid tactic, it’s now outdated and out of favour, so don’t stand for it, especially if it crosses the line to bullying.

Someone patient and charismatic will be equally charming with everyone they meet, helping to grease wheels, make deals and sign a contract that has everyone smiling.

5. They are unprofessional

In every transaction, you have to remain professional–especially when dealing with something as delicate and important as residential real estate investment.

There are a few ways where lack of professionalism shows:

Passing the blame
Giving excuses
Failing to keep promises
Getting upset, defensive or emotional over small details
Poor communication and response times

It’s important to factor that real estate licensing is easy to come by in the U.S. A lot of people have it to access special reports and databases and don’t have any contacts or the ability to assist you with a property purchase. You need to be vigilant about who you hire even if they technically have the paperwork.

Any suspicious activity, i.e. they are working out of their home basement not a shopfront, needs to be considered as a serious red flag and an indication they might flake on you at any moment..

Being vigilant about who gets a spot on your team includes knowing who you should avoid at all costs. A little bit of research and time spent here ensures you have the best possible group of people representing you in terms of reaching your property and financial goals through your U.S. property investment.

Don’t settle for less than a real estate agent who is professional, prompt, passionate and transparent with their business processes, costs and communications.

Our online, self-paced course, Fix and Flip Academy goes into greater depth on this topic, giving you all the information you need to start investing safely and confidently in the U.S.

To learn more about investment opportunities and costs or working with a property team in the U.S. give Star Dynamic a call.

What to look for and must-haves in a U.S. residential real estate agent

April 29, 2022/in Archived, Uncategorized /by Lindsay Stewart

You may be raring to go when it comes to investing in U.S. residential real estate, but just as you need to be discerning about which property you want to invest in, you also need to be selective about choosing a real estate agent you can trust.

The reality is not every real estate agent is going to be the one for you. You need to have criteria in place to determine your non-negotiables when selecting who you want to work with. Beyond just avoiding incompatibility, you need to make sure that your real estate agent is someone trustworthy, can actively pursue the properties you want and has your best interests in mind.

A legitimate, reliable real estate agent is a necessity if you want to make foreign real estate investment a lucrative way to earn passive income.

What does it mean to be a “legitimate” real estate agent?

The first thing you need to do when looking for a real estate agent for your investment property is a legitimate license. Real estate agents are defined as licensed professionals who connect buyers and sellers with each other for property sales transactions. You need to double-check the validity of their licenses first before getting into business with them.

If you deal with an unlicensed real estate agent, you run the risk of precarious deals without any kind of protection. And, even if the rates seem low for unlicensed real estate agents, you might end up paying more in the long run because they aren’t meeting your standards and you have to spend more trying to make up for their less-than-stellar service.

One crucial thing you need to remember is that every U.S property goes through the Multiple Listing Service (MLS), a reservoir of every on-market property that only legitimate real estate agents can access. Those who don’t have valid licenses can’t look at this database, so it’s best to only deal with agents who can legally review property listings.

But having access to the MLS database is not foolproof. Some people get their licenses just to access the MLS database but still don’t operate legitimately. Just because they have the papers doesn’t mean they have the means or intentions to help you.

Finding a real estate agent you can trust is crucial to your investment success, which is why you need to find someone professional with integrity and as invested in your real estate goals as you are.

8 things you need to look for in a real estate agent

Here are eight ways to identify a good real estate agent that puts you first, not themselves.

1. A license

Like we’ve mentioned, a license is the first thing you need to see to make sure a real estate agent has one. If a real estate agent tries to market themselves as legitimate but refuses to show their license, run for the (Hollywood) hills!

Secure a photo (or photocopy) of their license and double-check its validity. Luckily, some states allow you to verify licenses and real estate agent identities online, so make sure you do your research on that depending on where you are.

2. Past experience, customers and social proof

Double-check your prospective real estate agent’s social proof and testimonials beyond their own profiles or website as those could be manufactured.

It’s not uncommon for some companies to make up imaginary buyers to pressure others into buying in as well.

Pro tip: Search engines are a great resource to use to find out about agents, as online reviews on credible websites like Google can’t be manufactured or manipulated.

3. Active listening and problem-solving skills

Listening actively is different from just waiting your turn to respond and weigh in–and that’s an important quality in a real estate agent. Instead of just staying quiet to let you air out your concerns, they should be taking them in, being thoughtful and trying to address them as actively as possible.

Real estate agents have to think logically and tackle your issues, problems or concerns about a property analytically. Real estate is no walk in the park, so they need to be able to find solutions for you, especially if they’re on the more experienced side.

4. Familiarity with the area you want to invest in

The best real estate agent for you must be familiar with the local area, prices of similar properties around that area and what’s nearby that contributes to the price of your property (like parks, shopping centers and schools etc.).

A real estate agent that’s knowledgeable about the area is more trustworthy because you know they either did their research or are already intimately familiar with what’s around, making it easier to take their word on prices and standard of living in the area.

5. Understanding of real estate law

Intimate understanding of real estate law, taxes and property investment should be a requirement so that they can point out any legal issues that may come with properties you’re attracted to. Having this understanding helps them better weed out which properties are worth your time and effort.

A good real estate agent knows how to operate within the boundaries of the law, especially in the U.S, which may not always be the same as Australian and New Zealand laws.

6. Negotiation skills

A big part of real estate is negotiation. Your agent should be able to talk to other buyers and property owners and be charismatic enough to negotiate a price that works for both parties and is fair to you.

Being able to negotiate shows that they’re aware of appropriate pricing and that they’re willing to deal with a property owner on your behalf.

7. Integrity

A real estate agent should operate with integrity–as all professionals should–but real estate agents deal with something as crucial as property investments that contribute to diversifying your portfolio and providing you with passive income.

You’re spending a lot of money, time and energy on your property ventures, so a real estate agent should have your best interests at heart. All their actions and decisions should be executed in good faith.

8. Connection

Having a genuine connection with an agent is important. While it’s a business relationship, you should still trust your gut and need to know that you should feel completely at ease with how you interact with them. If you feel they do want what’s best for you and you don’t have any anxiety around your relationship, it may be a sign they’re the real estate agent for you.

Jump on a call with them to feel them out with questions on how they operate, what motivates them and what they’re like.

Finding a good agent is important because real estate agents are an irreplaceable part of your team. Property is a great long-term investment, and anything worth doing in the long run is worth doing right with the best possible team you can put together.

We go in-depth on this topic in our Fix and Flip Academy which is an online, self-paced course that will give you all the information you need to start investing in the U.S.

If you want to learn more about what you need to look for in a real estate agent, give us a call.

Renovating Multi-Family Properties

March 30, 2022/in Archived, Uncategorized /by Lindsay Stewart

Is buying and renovating the average home a little boring? Consider diversifying your investment portfolio (and simultaneously earn a sizable profit) through buying and renovating a multi-family property.

When we say ‘multi-family home,’ we’re talking about apartment blocks, duplexes and triplexes. Because of their scale, multi-family properties are significantly more work compared to a single-family home with significantly more revenue potential. All the extra time and care can translate to stronger cash flows through multiple streams of income. Let’s face it, having three paying tenants on one property means incredible, predictable, passive income without having to lift a finger for years to come.

Compared to Australia’s infamously heavy stamp duties, real estate in the U.S. comes with little to no stamp duty. This makes property investments in the U.S. more attractive to foreigners and more promising when it comes to a solid return on investment.

Multi-family properties are a lot of work but there are some great bargains on the market ready to be snatched up. If you are prepared to do the renovation work to take a three-star residence to a five-star one, it can result in significant returns while balancing your investments over more diverse assets to decrease your risk of capital loss as an investor. If this is something you need a bit of help with, then Star Dynamic can support you. Just reach out to us via email to chat about your options.

What is a multi-family property?

A multi-family property is one large building, divided into multiple individual homes, often with a private front entrance and full amenities. It’s not uncommon for each residence to be identical in layout, or to have mirroring layouts. Be careful with what you look for because anything beyond four is categorised as a commercial property, which operates differently in terms of city zoning and financing.

Multi-family properties are a popular choice for renters because they’re more affordable than single-family properties. As a bonus, they’re usually closer to commercial areas and transportation hubs, making the market highly competitive. Properties in bustling areas mean higher rental yield and investment capital growth and multi-family choices are especially profitable.

There are several types of multi-family properties to choose from:

Unit or apartment blocks
Duplexes (two individual family zones)
Triplexes (three individual family zones)
Quad or fourplex (four individual family zones)
Apartments

Not all multi-family properties require renovation, you can also buy and lease as is, however, finding a property that is a little run down significantly reduces your buying costs. Doing the renovation work to bring the property up-to-date costs less than you think and you can simply hire a team in the U.S. to take care of it for you. For example, Star Dynamic has a contractor team in the U.S. that carry out all of our renovations which we provide exclusive access to for our clients. That way you get a much higher rental income and have a desirable and valuable property that will attract (and keep) high-quality tenants.

There are multiple strategies you can implement to get the most from your investment performance. Here are the three strategies I’ve seen to be especially effective during my time working with U.S.A real estate investments:

Buy and hold – Purchasing a fully renovated property that has at least an 80% occupancy rate will yield consistent profit. Buying and holding is a long-term investment strategy that requires less maintenance because the property is ready to go and already leased. It may cost a pretty penny, but it’s a great way to earn quickly without any downtime on fixes.

Buy, fix and hold – Properties that need some work come cheaper but require more time and effort to fix, especially to bring them to a high standard and really make them shine. That work will pay off with reliable repairs that will last for years, competitive tenants and higher rental yields, allowing you to quickly recoup your costs.

Fix and flip – If handling tenants and owning property doesn’t interest you, you can fix and flip. In this case, you find a solid property that’s a little older and undervalued, buy it and organize to have it refitted. Once the renovations are completed you put the property back on the market for a much higher price. You see returns within a few months and can access short-term loans with better lending flexibility.

Single-family vs. multi-family properties

Owning multi-family investment properties and single-family homes differ in more ways than just in terms of scale. They have their differences in price, management styles and even exit strategies. Both have their pluses, but the benefits of multi-family properties are hard to ignore.

Single-family properties are typically cheaper to buy and also to maintain. They also have higher appreciation with time due to strong market demand with both investors and home buyers keen to buy.

If you’re looking for bigger cash flow, then multi-family properties are your best bet. A single-family property will only produce one month’s rent, whereas a multiple-family block will be earning double, triple or even quadruple that amount. One vacancy in your multi-family property is also not as pressing since your other tenants will provide income to cover any losses until the vacancy is filled.

While we always recommend property managers for international real estate, hiring a property manager and a team for more complex investments like multifamily properties becomes essential. It’s a business venture so you need to treat it like a business in order to grow your profits and see increased results. The best way to do this is through hiring a capable and trustworthy team who can help with your business strategies, on-ground communications and keep all the pieces (labour, maintenance, tenant screenings) aligned and running smoothly. This was essential for Star Dynamic to grow throughout the U.S. and also be able to provide holistic support to our clients looking to do the same. We also found that building a trustworthy team was a make or break situation so a great amount of time has been put into building that in the U.S.

The small added cost means peace of mind and fast response times when it comes to managing the property and tenants.

Why are multi-family properties a profitable option?

There are plenty of reasons to invest in a multi-family property. There are not as many out there compared to single-family dwellings so snappy investors tend to snatch them up quickly, and for good reason.

Leases on multi-family properties are easy to fill due to an increased demand for workforce housing in the U.S. Single-family properties are too expensive for those who make up the bulk of the workforce to rent, especially if they are single, or single parents. Apartments and units in a duplex or triplex are much more affordable and fit their needs well.

Millennials are a big part of the workforce now with many looking for affordable housing while they save to buy their own home. The transient nature of workforce housing, like apartments, is appealing because many are not looking to settle down, they are exploring career opportunities and different lifestyle choices.

As an added bonus the commercial environment and great infrastructure usually surrounding typical multi-family properties help increase demand and attract high-quality tenants. This means you can charge higher rents and look to capitalise on short term lease agreements with frequent rent increases.

When it comes to investors who have purchased residential multi-family properties in the U.S. through us, they have seen a 20-22% return on investment annually, which is a huge payout compared to the price of their initial purchase

Multi-family properties require a little more attention, management and maintenance given their scale, but as long as you stick to a strategy that works for you and get the help of professionals and communicate what you want effectively, you’ll see a strong return.

While we highly recommend a multi-family investment in the U.S., we don’t expect you to be able to handle it yourself. Unlike flipping homes in Australia where you can roll up your sleeves and get your hands dirty, the distance of an international investment makes it better to employ a professional team that knows the residential codes and can complete your masterpiece for you. You also need to look into a trusted property management team that can handle enquiries, screen tenants and communicate over the time zones.

If you are interested in learning more about investing in multi-family properties in the U.S., we have an exclusive training guide. This guide gives you the details on buying strategies and property types to help you make a solid purchasing decision.

Download our free guide now.