USA Positive Cashflow Properties

[reece]

Hello all,
I recently saw an ad in a property magazine about investing in the US. The returns claimed are 14%+ net, some as high as 27%. Is this too good to be true?
The bloke who runs the company is in Sydney, his name is John Roberts. Has anyone heard of him? The website is www.usapostivecashflowproperties.com
If anyone has had any dealings with this company and can provide more info, I'd greatly appreciate it.
Cheers

 

[moises]

Hello Reece,

Yes it is true on paper. However you have to remember that you are not in the US tax system. Also banks will only lend you around 70% which means that you will have to fund around 30% with either cash or a line of credit. If you buy really cheap properties such as in Buffalo you will be lucky to get finance at all. Once you buy a property you will also find that property taxes are a lot higher than Australia. So a great return can be pulled back dramatically. Property management can also be difficult. I am heading over the United States tomorrow to establish a property management division for a company their. We will also be buying foreclosures and apartment complexes. Many of these services will be established for American investors however there are still great opportunities for Australians. It is simply a matter of understanding the rules.

Regards