Like Tree5Likes

Usa investment agents in HK

Closed Thread
Page 1 of 2 1 2 LastLast
  1. #1

    Usa investment agents in HK

    Can someone recommend an investment agent in hk that helps foreigners invest into USA? Looking at the USA property market since HK prices are sky high!

    Thanks


  2. #2

    Join Date
    Nov 2017
    Posts
    431

    What are you looking for specifically? Commercial or residential?


  3. #3

    Join Date
    Feb 2011
    Location
    Hong Kong
    Posts
    6,317

    For residential, just go on Zillow and have a look. There are investment agents in HK, but my guess is that they buy cheap property with a tenant then sell it to you promising 5-7% returns. Yet in reality the returns can be much higher in the states. I think these investment agents buy a property then sell for you at 300-400% profit. Then charge an ongoing management fee of the low return rental.

    JAherbert likes this.

  4. #4

    Join Date
    Apr 2003
    Location
    Hong Kong
    Posts
    3,988
    Quote Originally Posted by MandM!:
    For residential, just go on Zillow and have a look. There are investment agents in HK, but my guess is that they buy cheap property with a tenant then sell it to you promising 5-7% returns. Yet in reality the returns can be much higher in the states. I think these investment agents buy a property then sell for you at 300-400% profit. Then charge an ongoing management fee of the low return rental.
    yup like this :
    https://www.factwire.org/investigati...in-us/?lang=en
    biffski likes this.

  5. #5

    Join Date
    Nov 2017
    Posts
    431

    Wouldn't suggest any agents, especially those that sell package deals.

    If you are a qualified investor (1MM USD net worth or 200k+ inidividual income/300k joint income) the easiest would be through websites like crowdstreet.com etc. Even then you need to be picky and be knowledgeable enough to pick out the details and numbers.

    Investing without a group you will need to line up your financing, US bank account, find a reliable local agent and management company among other things. This isn't even going into picking the right area and property.

    Not for the faint of heart. I do a mix a both, however more towards the first now as it is lower hassle as a remote investor.

    Last edited by aceofangel; 09-07-2019 at 11:48 AM.

  6. #6
    Quote Originally Posted by aceofangel:
    What are you looking for specifically? Commercial or residential?
    I'm looking at residential. Not really considered Commercial. What are the differences? Is it better to invest in Commercial instead?

    In HK i invest alittle into residential, but want to diversfy elsewhere. I would be paying upfront so no financing required in USA. I heard it makes things alot easier.

    Which area in USA is a good location to consider? East/West Coast or .... ? Remember my budget is a small HKD1.5M only.

  7. #7

    Join Date
    Feb 2011
    Location
    Hong Kong
    Posts
    6,317

    What do you plan to do with the houses?

    The problem in the US you can't buy and hold a house like you could in HK. In the US you have winters, have to heat the home otherwise your water pipes freeze and burst. You have ongoing utilities, security issues, high property taxes, insurance, etc.

    Many neighborhoods try to make rules against vacant homes but increasing taxes and requiring applications, then you get publicly posted on a "here's a list of homes to rob".

    Rentals also have applications, fees and inspections annually depending upon the area you buy. Short term rentals are regulated in some areas and insurance may not cover damages. Also for me, most of my utility companies block overseas IPs so I have to use a VPN just to pay bills, the auto pay system always breaks. Just the other day the gas was turned off due to a leak in the area requiring an in person inspection to turn back on. People won't go in your home to do repairs if you didn't send someone to open the door for them.

    There is a lot more to consider than the above. It's a hassle.

    You can buy homes in bad condition for free, there are lots of land online you can make an application to buy for free or US $100-250 usually per plot. The problem is the annual taxes and I believe you need to maintain the grass otherwise you get fined.

    You can buy east or west coast at all price points. The question is what do you want to do and where do you know someone who can help you with the process.

    shri, biffski and ultraman17 like this.

  8. #8

    Join Date
    Feb 2011
    Location
    Hong Kong
    Posts
    6,317

    Commercial property requires a lot more capital as it is more land usually. So I wouldn't think much about it especially without any experience in the US market.

    Buying a home is easy. Use a title company to complete the transaction. Done. But I ran into mistakes and later the title company steps in and pays up. Paperwork not done correctly. Put the wrong name on the house. Etc. It's very cowboy. Save your papers and check everyone's work is better.

    You can sign the documents via email which is what I do. And wire the money to the title company. Closing can be very quick. Usually I set the process at one month.

    First two weeks for inspection of the property and try to bargain further discounts then give 10-14 days for title to do their work. If you hurry them up they are more prone to make mistakes and it's further hassle later for you.

    In theory everything could be done faster. I think cash buyers usually do 2 weeks but I like to add time in as I use the inspection report as a further bargaining chip.

    Process:
    See homes
    Make offer contingent on inspection (don't have to but I do)
    Inspection
    Dissatisfaction inspection notice to seller (renegotiate price)
    Closing

    You can make a deposit with initial offer or after satisfactory inspection. I usually mark it as deposit upon satisfactory inspection to save me writing a check.


  9. #9

    Thanks for the practical info. I was planning to rent it out and pay a 'management fee' to a real estate agent/property mgt company. Does that work too?

    The prices in USA seems relatively cheaper than HK and Australia where i'm from, the UK seems to incur alot of additional taxes, that's the reason for looking into USA.

    Maybe its not a good option if i'm not so familiar with the country!?

    Quote Originally Posted by MandM!:
    What do you plan to do with the houses?

    The problem in the US you can't buy and hold a house like you could in HK. In the US you have winters, have to heat the home otherwise your water pipes freeze and burst. You have ongoing utilities, security issues, high property taxes, insurance, etc.

    Many neighborhoods try to make rules against vacant homes but increasing taxes and requiring applications, then you get publicly posted on a "here's a list of homes to rob".

    Rentals also have applications, fees and inspections annually depending upon the area you buy. Short term rentals are regulated in some areas and insurance may not cover damages. Also for me, most of my utility companies block overseas IPs so I have to use a VPN just to pay bills, the auto pay system always breaks. Just the other day the gas was turned off due to a leak in the area requiring an in person inspection to turn back on. People won't go in your home to do repairs if you didn't send someone to open the door for them.

    There is a lot more to consider than the above. It's a hassle.

    You can buy homes in bad condition for free, there are lots of land online you can make an application to buy for free or US $100-250 usually per plot. The problem is the annual taxes and I believe you need to maintain the grass otherwise you get fined.

    You can buy east or west coast at all price points. The question is what do you want to do and where do you know someone who can help you with the process.

  10. #10
    Quote Originally Posted by ultraman17:
    I'm looking at residential.
    I would be paying upfront so no financing required in USA. I heard it makes things alot easier.

    Which area in USA is a good location to consider? East/West Coast or .... ? Remember my budget is a small HKD1.5M only.
    Your budget doesn't allow for "good rental market" in places where people wants to be at, and you are literally banking on people who are irresponsible and want to rent instead of buying. But fortunately, there's plenty of those people in the US of A.

Closed Thread
Page 1 of 2 1 2 LastLast