How to find good contractors

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As you build your team for your property investment in the U.S.A., each member will have different specialisations and corresponding tasks in ensuring that your property is managed properly. In a team where everyone has a role to play, it’s important to hire someone who can be the glue in the group and ensure that everything is running smoothly.

 

A general contractor in the U.S.A works as the manager of a project, whether the property is a new build or is in need of construction or renovation. They are responsible for the overall coordination of the build and will ensure that the project comes together under their supervision.

 

A general contractor is generally a qualified tradesperson so they will have the most hands-on knowledge and experience about the project and how the property is coming together. They play a critical role in seeing the build through because they oversee the quality of work by all the hired subcontractors while providing all the services and equipment that your property needs.

 

Taking the time to find a good contractor is important because you need someone that you can work well with and has the qualifications and experience to see the project through.

What is a general contractor?

 

Contractors are usually hired contractually per project within a specific time frame. They are skilled tradespeople who are knowledgeable about different aspects of construction including:

 

  • Masonry
  • Carpentry
  • Framing
  • Plumbing

 

This allows a general contractor to understand all the construction work in the project and communicate effectively with different hired labourers in the crew. While they possess excellent construction skills, contractors are hired for their managerial skills. They will often recruit specialised labourers called subcontractors and oversee their work to ensure the success of the project.

 

A general contractor is responsible for the safety and wellbeing of everyone they hire. So if a subcontractor accidentally snaps a floorboard or shatters a window, for example, it still ultimately rests on the general contractor because they are his people. 

 

Like registered builders in Australia and New Zealand, general contractors are also responsible for the following:

 

  • Acquiring building permits (if needed)
  • Site maintenance
  • Subcontractor maintenance
  • Property security
  • Disposal and recycling of construction waste
  • Cash flow for any subcontractors or other specialists they may have hired
  • Accurate recordkeeping

 

Unlike trade specific contractors, general contractors will be able to oversee everyone and have an existing pool of subcontractors ready. If you have a project manager for the property, trade specific contractors (i.e. separate carpenters, plumbers, and electricians who don’t all work together or under the same contractor) might be the answer.

 

However, a group of trade specific contractors who don’t have an established relationship may not work well with each other or with the project manager, making it harder for you since you can’t be on the ground. A general contractor can save you this headache because they already have a set of qualified people they can work with. 

 

You may come across non-licensed candidates in your search for a good contractor so keep in mind that general contractors are required to have a license. Non-licensed contractors may be working to get their licenses (others, however, don’t ever plan to), but it’s safer to hire someone who is licensed so you can have the peace of mind that the job will be done. 

 

Hiring non-licensed contractors runs the risk of an unfinished build or a complete one done poorly. Whereas a licensed contractor, who needs to maintain their quality of work to avoid getting their license revoked, will be invested in completing the build to the best of their abilities.

 

Contractors have a huge responsibility on their hands—they’re your eyes and ears on the ground while the build is ongoing—so having one you trust in your investment team and one who gels with you well can make all the difference. 

How to find a good contractor

 

Finding a good contractor takes a lot of discernment and a good process of elimination in order to find someone who will work best with you.

 

There are two popular methods:

 

  1. Searching – This doesn’t mean you should stick to the first Google search result you see. By using search engines, online testimonials, and even company pages, you can learn which contractors are well-recommended, have a good work portfolio, and have past customers who can vouch for their ability. Sites like Bigger Pockets or Angie’s List are good places to start.
  2. Advertising – By posting an ad online, you can have contractors come to you instead of you looking for them. This might help you better sift through candidates as they will have an idea about the project already from your ad.

 

It can be overwhelming to wade through different options, so here are some tips that can help you narrow down your search:

 

  1. Rely on companies more than individuals – It’s much easier to transfer payments to companies rather than individuals and it can give you peace of mind knowing that it’s a more professional transaction. 
  2. Ensure there is insurance in place – There needs to be safety measures for your property and for your contractor and subcontractors in case of accidents during the build.
  3. Find people who are permit-savvy and accept payments in installments – Installments ensure that contractors will have the funds they need to purchase the necessary materials and equipment for the build while giving you time to save up for the next payment. 
  4. Contractors who take comprehensive photos and videos are usually reliable – Good documentation is important so that you know how things are progressing over time. You can see how the property develops and can make changes if needed before the construction is completed. 
  5. Referrals are important – The members on your investment team may already know some good contractors that you can all work well with. Your team are the experts in the field, so they may have contacts you can use. 

Hiring a contractor

 

Putting together a good team is part of making your investment property a business, which helps you maximise profit and success. Running an investment property like a business helps you make the best of it as it keeps you on top of everything, which includes being discerning when it comes to who you’re bringing into the team. 

 

Following these steps can make your hiring process more efficient and help you find a contractor who works best for your investment:

 

  1. Research – Find candidates (whether through ads, searching, or referrals) who fit your style. Remember that it’s important that they work well with you. There may be good contractors, but not all of them will be good for you. They may have different work hours, communication style or even work standards from you. Find someone you think will be easy to work with.
  2. Go through resumes – Be meticulous when you look through a candidate’s credentials. Check if they have referrals you can call and verify the information with. This will ensure that you’ve got the very best on your team. 
  3. Conduct interviews – Face-to-face interviews are the best, but as a foreign investor, you won’t always have that option. If you can at least interview them through Zoom, Skype, or any kind of video conferencing system, that will suffice. Avoid tests or emails as communication is more than just words being said. 
  4. Welcome them to the team – By welcoming your contractor, you open up communication and camaraderie in the team, which can help everyone work better together. 

 

Good contractors will ensure that construction for your property is on track and that your property is in tip-top condition. They are an essential addition to your team and will help you make the best of your investment because of their construction skills and managerial skills, ensuring that you have someone you can trust on the ground. 

 

If you want to know more about finding good contractors, we have an exclusive training kit on this topic!  Click here to get yourself a free copy.

How to find a property manager you can trust

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As an Australian  or New Zealander, investing in property in the U.S. has so many benefits. But having to coordinate with renters when you’re not even in the same time zone can feel impossible. What if they have urgent concerns? Coordinating a solution for them might take days with time zone delays, or might mean you need to be on call 24/7. 

 

This is just one scenario that could easily be solved if you have a property manager you trust on the ground. A property manager will handle your property for you and take care of rentals on your behalf. Having someone on the ground in the States will make it easier for you and relieve you of the burden of having to oversee the property from a completely different continent. 

 

A trustworthy property manager will also keep you updated on the status of your property and be able to step in if there are rental prospects. On the flip side, if you employ someone who isn’t loyal or dedicated to the job, you run the risk of not knowing what’s going on with your property and being on the back foot when it comes to repairs, maintenance, and troubleshooting issues, potentially affecting your return on investment (ROI).

 

To know how trustworthy a property manager is you’ll need to go through a thorough screening process, reviewing references and past work in order to find someone who’s not only outstanding in their field, but also someone reliable. 

What does a property manager do?

 

When you’re unable to manage the property yourself (i.e. it’s far from your location, you work full time, or you live overseas), you’ll need to hire a property manager. They’ll oversee the daily operations and, if vacant, will hold onto the keys until a renter is ready to inspect. At this point they will screen potential tenants for you and help you decide which tenant will be a good fit and take care of the property as if it was their own.

 

Landlords who are available and in close proximity to the property can still find great benefit in hiring a property manager because it takes a lot of emotion out for the investor. A property manager is a trained professional who can handle communications calmly and knows how to find solutions to property problems because they’ve done it before. 

 

Even the best tenants may have complaints or need to bring something to your attention from time to time. It can be a great thing because it means you get to know about improvements that can be made. A property manager can look after these situations with faster turnarounds because they are close by, and can talk to the right agents to get the job completed, because they know the property and the industry so well.

 

Finding a good property manager means you can feel reassured by the fact that they have your best interest in mind and will apply their experience with overseeing your residential real estate investment. 

 

Property managers also supervise any maintenance or changes you need to make to the property. In case the property needs repairs or upgrades, they’ll be your eyes and ears on the ground to coordinate with workers and make sure everything is finished to the highest quality. While technology makes it possible for you to see what’s going on via calls, it’s better to have someone physically present in order to make quick decisions on your behalf.

 

Rent collection (AKA your passive income), also falls into the property manager’s hands. They will make sure that rent comes in promptly every month. They’ll communicate with you right away in case there are problems with rent and help you decide the best way to resolve any issues.

Why a good property manager is necessary when investing in residential real estate 

 

Property managers take care of everything property-related for you, which is necessary when you can’t jump on a plane and fly over to oversee a burst pipe. 

 

With a property manager on your team, you’ll have someone to oversee your property, provide feedback, and help with decision making using local knowledge and resources. They have your best interest at heart and will follow through with your vision despite how far away you are. 

 

Having that proximity to the property makes it easier on both of you. In case anything unexpected happens, they can be there in a heartbeat. If a tenant needs something, your property manager is ready to deal with them personally and without having to call you in the middle of the night.

 

Enforcing policies for the tenant is crucial too because it keeps the property well-maintained. Property managers are important in this aspect because they can keep a close eye on tenants and get back to you if any policies are in violation or there is any behaviour you need to take further action on. On the flip side, they also take care of any requirements the tenants have, to ensure you are in compliance with policies as the landlord as well.

 

Due diligence on your property manager’s history is essential to avoid difficulties, or even financial troubles. While we pride ourselves on exceptional hiring and overseeing of property managers, from time to time a bad apple does pop up.

 

We’ve had instances in the past where bad property managers didn’t do their job. In one case, there was just no communication, we had to constantly chase them for monthly statements and rental payments. In that case, the tenant even vacated the property and no one was informed. 

 

On another occasion, a property manager consistently charged for repairs and call-outs to a number of properties when the properties were all fully renovated prior to tenants moving in. We couldn’t necessarily prove these were illegitimate expenses, but we chose to change managers anyway.

 

Finding a good property manager is important to avoid these situations and bring about the best possible environment for everyone involved with the property. They handle the most important aspects of the property so having an experienced and trustworthy manager will ease the pressure off yourself and increase the likelihood of success. 

How to find a good property manager

 

Potentially, the most difficult part of this process is not finding a property manager (there are hundreds available) but finding the right property manager for you. There are hundreds of people who may fit the description on paper but they won’t always be compatible with you or your preferred management style. You may not like how they screen tenants or how they oversee operations, so being selective is important at this stage.

 

Here are some steps you can take to find a good property manager: 

 

  • Find reputable property managers in the area 
  • Visit their other properties
  • Ask friends and family for referrals
  • Research online
  • Interview more than just one person for the job

 

Remember that we can help you with this process as we already have a wide network of property managers, real estate agents, and maintenance professionals we can tap into who have proven track records of work done with us previously.

 

Once you’ve shortlisted some people for the position, you need to know more about them and their management style, such as:

 

  • Their experience with handling residential properties
  • Their screening process for tenants
  • How they will go about contacting you (and how frequently)

 

Finding a property manager you can trust who can represent you at a local level and tend to your U.S. residential property is essential for maintaining your investment and your peace of mind. It can feel daunting to have to leave your property to someone else and hand them the keys but, if you find a reputable person for the job, you can rest easy knowing that it will be taken care of for you.

 

To get more in depth information on finding a good Property manager, we have a training guide on exactly this topic!  Click here to download a free copy.

How to find a real estate agent you can trust

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You’ve fully renovated your newly purchased investment property in the U.S and you’re gunning to sell for an outstanding profit or bring in some quality tenants – but the onslaught of marketing and fielding questions from interested parties is becoming a struggle.

 

Not only is the distance a problem, but the significant time zone differences between Australia and the U.S can affect the urgency of your communications and document signing. A potential buyer can only stay interested for so long before being lured by a more enticing property, leaving you at a disadvantage as an Aussie/NZ vendor. 

 

This is why you need to hire a real estate agent in the U.S.A to help take your residential investment property to the next level. 

 

Having a trustworthy real estate agent that potential buyers and tenants can contact and meet up with in person gives a property instant credibility as well as open communications for smoother transactions. A trustworthy real estate agent will also look after your marketing and advertising campaigns, putting in the work to engage interested parties and get the word out for you. 

 

If you hire an agent you don’t trust or one that has a poor reputation, you risk the selling process for your property, leading to bad sales and a poor return on investment. 

 

Investing in the U.S.A is more than just wiring the money over and waiting for profit, it’s about building a business around the investment and hiring the right people to get the job done, no matter how far away you are. 

What does a real estate agent do in the U.S.A?

 

A real estate agent is someone who is licensed to buy and sell properties, negotiate on your behalf, and list the property for you. Since they’re experts in their field they know where to publicise your property, how to market it, and determine its value for the best possible sale result.

 

A real estate agent is the face that the buyer sees and interacts with and they will be the person who will see your sale through from beginning to end.

 

Home showings are a big part of the selling process. A good real estate agent will make sure that everything is in tip-top condition and give interested parties an informative walk through as they view your property. They’ll be able to frame the most attractive features of the home to gain attention from more buyers and get some competitive offers started.

 

Even though some people use the terms interchangeably, real estate agents differ from brokers or realtors. Brokers have acquired extra licensing through supplemental training that allows them to hire real estate agents. While they have many of the same duties as real estate agents they can operate independently, with added credibility. 

 

A realtor is a licensed member of the National Association of Realtors (NAR). A realtor can have any profession under the real estate umbrella, like being a salesperson, property manager, or even a real estate agent or broker, too. 

Why a real estate agent is necessary when investing in and selling residential real estate in the U.S.A 

 

When you’ve successfully refitted the property to your standards, it’s time to think about selling it. You’ve upped its value significantly with the work you’ve carried out but the difficulty is determining its price, as you may not be familiar with the area or prices of similar properties.

 

A real estate agent knows these things as it’s part of their skillset. Their hands-on knowledge, along with additional research allows them to accurately value a property and price it so that you can maximise your profit. Because they’re expert negotiators and salespeople, they can boost your property listing to make them stand out from those around it. 

 

They’re also in the best situation for home showings and to answer questions that potential buyers have. It’s just more convenient as they can make the quick drive over to the property and keep you in the loop.

 

Selling your property will be much easier with the help of a trustworthy real estate agent who has your best interest in mind. 

 

Once the sale is made, your real estate agent can then help you find a quality new property to invest in, prolonging your business relationship and increasing your cash flow. Because of their experience, market knowledge and property access, they can become a de-facto advisor you can rely on for your next residential property investment. 

How to find a good real estate agent in the U.S.A

 

While it may be tempting to hire any real estate agent listed online and get started quickly, you need to remember that the profit you earn from this property weighs heavily on how well your real estate agent performs. 

 

It’s worth putting extra effort into finding the right person for the job. They need to have proven credentials, experience, and skills to help maximise your return on investment.

 

Start by asking friends, family, or other associates for any real estate agents in the U.S that they recommend. Someone in the industry (or even already in your business team or network) may already have connections and can recommend a real estate agent they think has the skills to help you. 

 

Look for someone who has proven long term experience in the same local area as your property purchase or sale. The more they know about that particular neighbourhood and the history of the property, the better. They’ll have a clear reading of local property value, market trends and desired property features to make comparisons and price approximations for you, as well as be able to emphasise community benefits to those looking to buy. 

 

Once you’ve found a suitable agent or shortlisted a few people, do your research. It may be an extra step, but it’s crucial to help you single out the best choice. Find out what properties they’ve worked on, who they’ve worked with and how they operate. This will paint a better picture of how compatible they are for your investment needs. They may be a brilliant agent, but if they can’t work or communicate with you, you won’t find any value in their services. 

 

When you are satisfied with your research results you then need to hold an interview. Ask questions like:

 

  • How much experience do you have?
  • How familiar are you with the local market?
  • How many properties have you dealt with? 
  • What do you think an investor can do to improve the home and raise its price?

 

Following this process will help you to secure a trusted agent that has your interest in mind and will put their best into your property sale.

 

A good real estate agent can be difficult to find but it’s not impossible. The U.S.A is full of experienced agents who are keen to work with you. All you have to do is whittle down to the ones you’re most eager and most comfortable to work with. Save yourself the headache and stress and make sure it comes down to an agent you can trust.

If you are looking for an experienced and trustworthy real estate agent in the United States, we’ve got plenty in our network ready to help, download our training kit for free here.

How to invest in real estate (even without cash)

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Investing in residential property can come at a steep price. Having reserves of cash might be easy for millionaires but for most of us, it’s difficult to save for real estate and meet your daily expenses at the same time. This can also be true of foreign investment opportunities. As well as ready cash, there is the physical distance and red tape to navigate. People are “fear-frozen” about the idea of investing in property abroad because they believe there are too many challenges involved.

 

Many people who look to invest in U.S. property are ultimately too afraid to take the risk because they believe they don’t have the finances to do it and because it’s halfway across the world. 

 

But the reality is that there are different methods to invest without cash, even in the U.S.A. Overcoming that fear-frozen state will open your eyes to the various means you can try. Lending, joint ventures, and making land contracts with the owner of the property are just some of the methods that you can consider to avoid having to empty your bank account. 

 

Savvy investors utilise these opportunities and often rarely ever use their own cash to invest. 

Why the U.S.A residential property market?

 

The U.S.A residential property market is white-hot right now, causing foreign investors to flock to these untapped properties. Record low interest rates, increased activity, and the reassurance that the market is unlikely to crash any time soon (unlike the 2006 housing bubble) is luring more people to learn how to invest and create another stream of income.

 

Your chances of landing a great residential property at a low price is higher than ever. Properties in Australia and New Zealand can sell at ridiculously high prices, but the U.S is a different story. A down payment in Australia can be the entire property’s price (or even more) in the U.S.A with a staggering range of properties to choose from across all states.

 

Banks and lenders have learned from the mistakes of the past and have rigid practices in place to ensure the malpractices that crippled the economy in the past will never occur again, giving investors peace of mind.

 

Since the Covid-19 pandemic hit, people have become more active in seeking out homes in less populated areas to escape COVID hotspots. Working remotely also had people purchasing homes in quieter locations in order to better focus. This caused a spike in the market that investors abroad are now taking advantage of. 

 

The exchange rate between Australian and New Zealand dollars with the American dollar has recently improved, potentially making your investment even more powerful.

5 ways to get funding in the U.S.A market 

There’s no need to empty your pockets in order to make financial investments in the U.S.A. market. You can get savvy about using other people’s money. If you’re looking for ways to invest in real estate, these five methods are all feasible and often used by more seasoned investors.

1. Option to buy

 

Option to buy is a funding strategy that allows you to have the right to purchase the residential property without technically owning it. It means that if you find a property you want to invest in, you can buy an ‘option to buy’ contract that allows you to be the only person the property is sold to. That gives you breathing space to do some hard research on the property’s current and future value as well as get funds together for payment within that buying period. 

 

Because you have a legal contract you can even sell the house to another party for a higher price if you like. It’s a no-obligation, risk-free strategy that gives you full control over a property without putting down a lot of money.

 

While this sounds like an investor’s dream come true, it comes with a deadline, you won’t have exclusive rights to purchase the residential property forever. There will be an agreed time period for the buyer to make the required payments.

 

Typically an agreement period will range from 30 to 90 days, however, there are instances where it has taken months or even years for the seller to gather enough resources to buy the property. It all comes down to the terms of the individual agreement.

2. Private equity

 

Private equity (also known as hard money lending) is financed through private lenders outside of traditional lending institutions like banks. Private equity is the quickest way to get funding and secure ownership over a residential property, which makes it a favourable choice.

 

Keep in mind that loan terms are short compared to banks and traditional lenders. While most standard loans last five to 10 years, hard money lending can be completed in timeframes as short as six to 15 months. 

 

There are also private equity mortgages that can be an exception to the shorter timeframe. It spans anywhere from five years to 30 years, depending on the agreement. Private equity just generally has higher rates than conventional funding. 

 

Private equity is more lenient and loose with its terms as you’re not dealing with the rigid guidelines of banks or big lending institutions. In a matter of days you can receive the money for your investment, carry out renovations and make quick fixes to flip the residential property for a higher price. House flippers are a fan of this type of lending as it’s fast and easy. 

3. Joint ventures

 

Entering into a partnership with another investor (be it family, friends, or a willing third party) can be a great way to make a big investment and keep your personal finances stable. Even if your funds are low, your partner in this venture will contribute, making it easier to land the property.

 

The danger of this funding strategy is that not everyone involved in the joint venture will be on the same page. For this strategy to work, all parties need to be clear on what direction you want to be taking. Steer clear of joint ventures with strangers and discuss the outcomes well ahead of time. As always when money is split, there can often be arguments about who gets what. It’s essential you have good communication and completely trust everyone invested with you.

Joint ventures require every party to be satisfied with the agreement and how they’re working together to avoid a falling out. Make sure you cover yourself with the right documents so everything can be traced back to written agreements. 

 

Pooling resources is a great way to keep from overspending and secure the residential property you jointly want. At the end of the day, everyone is responsible for the property and the profit they receive from it. 

4. Borrowing against current properties

 

While not all of them do, some lenders may be open to lend against overseas properties. Usually, you need to borrow the funds in the country/ies where the property is, then use those funds to purchase the property in the country of choice. 

 

For example, if you have a property in Australia, you can get a line of credit loan and take those funds to buy a U.S. property. This is the common approach when it comes to using your current properties already.

 

But if you have the chance to loan against property/ies, you use your home or a secondary property as collateral. Instead of using money or credit, you use the difference between the total value of your property/ies and the loanable amount. 

 

This funding strategy can be a little more personal because a seller might look into your credit score and financial history in order to determine whether or not you’re a good candidate for their property, however, it’s a great way to invest without having to dole out cash.

 

Interest rates worldwide are generally lower, so borrowing against current property/ies can be a great way to rekindle an investor’s interest in their investments and see what equity they’ve built up. 

 

Of course, this method has its own drawbacks. If you borrow the money against your current properties and fail to make repayment schedules, your property/ies can potentially be put at risk. 

5. Land contract

 

Land contracts require you to make an agreement with the property owner where you pay an agreed-upon percentage upfront and then pay the remaining balance with an interest component.

 

The period of time this takes can be negotiated depending on how much time you need to do renovations and re-sell the property. When you sell it, you can pay the owner the rest of what you owe. 

 

This strategy can be a complex one. In a seller’s market, a seller has the flexibility to choose the most favourable buyer for their property. Buyers who can make payments in full might be the preferred choice. In spite of this, it’s still a viable option.

 

Investing in real estate doesn’t have to drain your pockets and leave you high and dry. There are plenty of options you can choose from that will have you spending just a bit of cash or even none at all. By being diligent, careful, and mindful of your repayment ability, timeframes and agreements with others, you can invest in real estate in the U.S.A and get a premium choice of properties at an affordable price to start bringing in additional income. 

 

If you want more information on how to invest in the U.S. market and what options are available, check out this video Masterclass I recorded recently.

Customer story: “Significant returns—without having to lift a finger”

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A lot of people who want to get into investing tend to hesitate when faced with the opportunity to do so abroad, but investing in the U.S.A as an Australian is definitely a great option, even if it can seem daunting. Investment in itself can already feel like a game of chance, even more so when you can’t see the property in person.

 

Plenty of Australians don’t consider investing in the U.S.A property market because it’s so foreign and they think that a property that far away will cost them more time, money, and energy. But what they don’t know is that plenty of foreign investors find the U.S.A property market immensely rewarding (especially right now) and a great place to get significant returns. While the investment process will be different, our team at Star Dynamic can make investment easy and fruitful for anyone willing to try.

 

Pharmacist David Tran seized the opportunity to invest in U.S.A residential property through the recommendation of a friend who already experienced the benefits and ease of using Star Dynamic for their own investment. David had revenue to invest and had already tried his hand at investing locally so he thought to look beyond Australian borders and wanted to try something new. 

 

“If you want different returns, you’ve got to look somewhere different,” said David. “It’s low risk, with potentially even greater reward. So it is daunting because it is in the U.S.A and you’re not just going to fly over there… But at the end of the day, it’s all about the numbers to me.”

 

Many Australians, like David, have taken the chance and found success in the U.S.A residential real estate market. Today we’re sharing David’s story of how he leveraged international property investment to build the future he wants for himself and his family. 

Investing in the ‘great Australian dream’ first

 

When it comes to residential property investment, most people look to their local community or neighbouring areas first, and it makes sense to have that extra control, to be close by and hands-on with the purchase and have the ability to check-in and keep an eye on things. 

 

David felt the same initially and took on a number of different Australian-based investments to get different returns from local real estate, buying and flipping properties, but he came to realise that the local market was small and it was becoming harder to secure property investments. 

 

“It’s all about finding the deals. If you invest locally, your market is going to be very small, especially where I’m from where our population is a lot smaller,” David explained. 

 

He came to the conclusion that there were better opportunities elsewhere. It wasn’t as if the numbers were dismal, but he acknowledged that, in comparison to what he could be getting, his effort, money, and time could be rewarded when invested elsewhere. 

 

“The numbers worked but they weren’t that great compared (to the U.S.A). It’s effort and reward at the end of the day,” said David.

 

This led him to investigate how he could potentially flip properties and have higher passive income. “When COVID-19 hit and everything was locked down, I started googling and talked to my mates a bit more to figure it out. I’m at that stage where I’m in my late 30s, I figured that I’ve got to start doing something a bit different.”

Why David thought “abroad” for his next property investment 

 

At 38 years old and with two young kids, David wanted to put himself into different scenarios that brought about greater returns, luckily he was “okay with being uncomfortable” in terms of investing. After hearing about Star Dynamic and our CEO Lindsay, he decided to take the leap and gave us a call. 

 

“I looked at the U.S.A market before randomly but not seriously. But if I was going to do it seriously, I wanted to engage with somebody who knew what they’re doing. So when I had a quick phone call with Lindsay, the feeling I got was he was a quite honest person to deal with so that gave me the confidence to try it out,” said David. 

 

The U.S.A market, being much bigger, had more potential in David’s eyes. Because the U.S.A market has little to no stamp duty, longer-term mortgage rates, and fewer market restrictions, it easily became a priority choice even amidst good local property options. 

 

The potential returns were just greater compared to local numbers, especially when you can buy a house in the U.S.A for the same price as a deposit on an Australian property, making it low risk because the money down is so little compared to Australian investments. 

 

While you can profit from both (as David has), the U.S.A has brought about higher cash flow for many investors because of the stronger rental yields. That’s not to say that it’s perfect and easy, you still have to do your due diligence and research the area and its properties and then make the required renovations, but it’s definitely worth the effort you put in, especially since it’s a foreign market.

 

And the numbers can’t be argued, there really are more properties in the U.S.A compared to Australia. David knew that if he were to invest and flip again, he would look to the U.S.A.

 

“I probably wouldn’t look too much into residential real estate in Australia again, to be honest. Just because there are only so many properties here that you can invest in whereas in the U.S.A there’s just so many properties and opportunities.”

A done for you service to suit a time-poor investor 

 

This still doesn’t eliminate the fact that a foreign market may bring foreign practices or paperwork, some that you might not have the expertise or time to learn about and execute. 

 

But, just as we’ve helped our customers in the past, we helped David with our “done for you” service where we take care of everything from start to finish, making it the perfect add-on for anyone who’s got a lot on their plate but still wants to reap the benefits of a good investment. 

 

“I decided to sign up to the Done For You service where the Star Dynamic team manages it all for you. It took me a couple of months to get the property. Lindsay finds the deal, presents it to you, you look at the numbers and see if you’re fine with it, and then you go with it,” said David. “It’s a bit nerve-wracking in the sense that you’re literally just handing over money, you don’t know if it’ll work or if you’ll ever see this money again, but it came down to that honesty, that trust, and how genuine I found him so I thought that I’d give it a go.”

 

As a business owner and father, David didn’t have the time to check in with a team in the U.S.A or look through properties on his own, so he left it in our hands to take care of his investment and put the money into a good property.

 

“I’ve got two young kids, I’m quite time-poor, so for me it was that I had a bit of spare cash and I wanted to see what sort of a return I could get out of that,” said David.

 

Like with all investments, we approached David’s using the STARR method (strategy, team, acquisition, renovation, realisation). By implementing a good plan and hiring a team on the ground in the U.S.A, we acquire the property, renovate it to our client’s liking, and then our client is rewarded with their hard-earned profit after they sell or rent out the property. 

 

After buying a home in Detroit we found for $50,000 and flipping it (renovations added up to be just under $20,000), David sold it for $119,000. 

 

“The process is actually quite easy, considering. It’s a lot of paperwork but when you look at your potential returns and what you’ve actually got to do, I mean, where else are you going to get those returns in that short timeframe? It may not always be the case, but the potential returns, without having to lift too much of a finger, are pretty good,” said David. 

 

David speaks highly of working with Lindsay and found him to be a very honest and genuine person. David said that he was “easy to get a hold of” whether it was through emails or phone calls and that Lindsay eased any and all of his worries about investing abroad, so much so that if money comes through again, he said he would “definitely give it another go”.

 

Investing abroad isn’t as scary as many think it is. David’s property investment success can be replicated by anyone looking at investing in U.S.A residential property, so long as they have the help and support from a reliable and skilled team who know what they are doing in a foreign market. For people like David, and all our other clients at Star Dynamic Property Investment, investing in the U.S.A was low risk and resulted in significant returns. 

 

If you want to find a bigger market with bigger returns and have someone else do the hard work, give us a call.