Our STARR Methodology is Your Key to Investing in the U.S. Residential Property Market

You’ve read some information online and decided that investing in the U.S. residential property market makes sense. The trouble is that you are just not sure how to go about getting started. You want to invest, but it can be hard to know what a good investment is and how to ensure you are doing the right thing with your hard-earned money. That’s why treating your investment as a business is an intelligent decision. A company, even a sole trader, will have a team working with them: accountants, experts in marketing, and financial gurus. A good businessperson knows when to ask for help and knows when to trust an expert in the field. A sound methodology is key to running a successful business because it covers the how-to, giving you steps to follow to make your business successful. Similarly, the STARR methodology gives you all the correct measures to ensure your investment in U.S. property makes money.

STARR stands for Strategy, Team, Acquisition, Renovate and Realisation. When you have all these things in place, your investment in U.S. property will be a success, and you will realise the profits. While there is a risk in any investment, a sensible investor minimises the risks using a sound and tested methodology when investing in something for the first time. Why make mistakes you could avoid by downloading and using the STARR methodology to help you with your investment?

Without taking the right advice or using a sound methodology to choose the right investment property for your portfolio, you could make an expensive mistake, buying a property that won’t provide the turnover or profits you expected. Avoid making the usual rooky mistakes by taking advice from the experts at Star Dynamic. You can read more from Star Dynamic about investing in U.S. property here: https://www.stardynamic.com.au/how-to-invest-in-u-s-property/.

What is STARR, and why is it effective?

Let’s take each of the components of the STARR methodology and see why it works.

Strategy

No intelligent person invests their money without a strategy. This strategy will examine what you want to achieve and consider the best ways to acquire your financial goals. Investing in U.S. property makes sense because it is cheaper to buy property there than Australian property. Consider whether you invest for a rental income or will turn the property over quickly after making some renovations so that you achieve a fast profit. Planning your strategy here will ensure you buy the right property.

Team 

As mentioned above, even sole traders will have a team of experts working with them to achieve their business goals. Using the STARR methodology ensures you have the best team of experts in U.S. property investing behind you, giving you the guidance and advice you need. The team will take you through the steps a foreign investor needs to have sorted and provide advice on available properties that suit your strategy.

Acquisition

At this stage in the methodology, you acquire your investment property. The STARR methodology ensures you tick all the boxes when acquiring your property and will make the process as easy as possible, especially when you are unlikely to inspect the property you buy in person.

Renovate/ Rehab

At this point, you get in the local tradespeople to help you to renovate, update, or rehabilitate your property ready for rental or resale. Sometimes quite a simple investment in renovation can make a massive difference to a resale price. For example, spending $5000 on updating a kitchen or bathroom could add $20,000 to the property value, giving you higher profits if you sell and more rental income if you want a positive cash flow.

Realisation

Here you sell the property to realise the profits from your investment. The STARR methodology lets you know when it is the best time to sell and how to bring your financial goals to fruition.

The STARR methodology is effective because it offers an organised, focused vision, helping you to zone in on your financial goals and to get the team working to achieve them with you. STARR provides indicators so you know what success looks like, and you’ll know you are going in the right direction. It also outlines the threats and opportunities, giving you a chance to reduce risks and increase your profits.

Ways You Can Implement the STARR Methodology

1. Get in touch with experts in the U.S. Real estate agents and experts in the U.S. will be a valuable part of your investment team, as they are the ones who have a clear understanding of what is happening with the local property market. The input from U.S. experts will be helpful, even if you need to adjust some things as an Australian or Kiwi investor.

2. Consult with local investors who have successfully invested in the U.S. property market

An easy way to learn how to do anything is to talk to those who have already been successful. Finding investors to chat with could mean linking up on social media, such as Facebook groups. You can also connect with experts in the industry who work with clients like yourself to grow their finances through U.S. property investments. From people who have already invested in the U.S. property market, you can learn how to do the same successfully.

3. Hire a property coach

A property coach who works between the two markets will be in the best position to help you to understand the differences between the U.S. and the Australian or New Zealand property market. Your property coach can give you comprehensive advice and will be able to carry out some of the complex tasks you can face as a foreign investor. Like Star Dynamic, a property coach will have the right system, a strategy they know works, and experience in the field to help you realise your investment potential in the U.S. residential property market.

Investing in property in the U.S. makes sense because it is easier to buy into the property market there, and you can realise your financial goals sooner by renovating and flipping a property. You do need to know what you are doing or use a comprehensive methodology that works to avoid buying a dud property or losing your hard-earned investment money.

If you are ready to take that first step and learn about all the ins and outs of investing in the U.S. as an Aussie or Kiwi, have a look at our Fix and Flip Academy here.