Simple guide to purchase a USA rental property
-
Upload
colin-murphy -
Category
Real Estate
-
view
83 -
download
0
Transcript of Simple guide to purchase a USA rental property
Torcana´s Simple Guide to Purchasing a US Rental Property
How <tle companies can protect your investment
Working out your closing costs
AAer closing: insurance, management and u<li<es
What your tax obliga<ons are (in plain English)
The purchase process for a typical single family home
How Torcana can help you purchase rental proper<es
Topics of discussion – Addressing issues sellers don´t normally talk about
Next Steps
Usually 12 pages, can be signed electronically or scanned & emailed
Note closing date, inspec<on date, deposit amount and added clauses
A deposit sent to the selected <tle agent – never send direct to seller
Use refund/inspec<on period to order official independent 4 point inspec<on
Addi<onal docs sent prior to closing. Note carefully any waivers.
Once property has been selected, a purchase agreement drawn up
Review HUD carefully and turn docs by email and by regular post
Purchase Process for Single family home
Pay balance of purchase price plus closing costs
Complete searches and insure you against lien defects
Closing Costs
Total costs usually fall within 1 – 1.5% of the purchase price
Made up of closing fees, search fees, <tle insurance & transfer taxes
Always read the seYlement HUD statements before signing off
Independent licensed firms who ensure clean <tle transfer
Title Companies
Hold buyers funds in escrow and disburse with everything in place
Sample HUD Statement
First thing you need is adequate insurance & liability coverage (vacant & landlord)
I could (and probably will) dedicate an en<re podcast to property management
U<li<es – get your property manager to turn them on and put them in tenants name as soon as they move in.
This is your money – don´t take a break aAer you´ve bought the property!
What to do aAer closing?
Second thing is a property manager – the most important person in your team aAer you purchase.
Every owner of a USA property (no maYer where they live) must submit tax returns detailing income and expenditure. Lots of deduc<ons available. Florida has no state income tax, but you s<ll have to pay the federal one.
Property taxes (on the building) can be paid online. Search (County Name) tax collector and set up an account. E.g. Pasco County tax collector.
2015 property taxes due published by October 2015 and must be paid by March 2016
Capital gains tax generally 15-‐20%. May be higher if sold within 1 year. You need to confirm with a qualified professional.
Don´t be scared about taxes! Just figure out what you have to do.
What taxes does a landlord have to pay?
Easiest way is to get a qualified US accountant to file them for you ($300 -‐ $500 per year)
Income taxes on rent, property taxes on dwelling, capital gains on resale
Torcana has been helping people build rental porholios since Jan 2009
We have long standing rela<ons with reputable property managers, insurance agents, inspectors, contractors, <tle agents and accountants
We place a strong emphasis on aAer sales and enjoy high levels of repeat business and client referrals
Specialise in purchasing, renova<ng and reselling quality single family homes in Tampa Florida
Purchase prices $75,000 -‐ $100,000 with expected net rental returns of 8-‐5 – 9.5%.
How can we help you purchase rental property?
Please email me at [email protected] and if you´d like to learn more.
Next Steps
Telephone: +1 321 806 1195 / +44 207 193 4024 / +353 1 4434 466 / torcana-‐colin (skype)
This is a very compe<<ve market and we have a limited supply of proper<es to sell
Further Informa<on: info.torcana.com (blog) & www.torcana.com (main website)
This document contains general informa<on rela<ng to the purchase of property and its contents should not be construed as legal or other professional advice. This is not an investment offering. While all reasonable care has been taken in the compila<on and publica<on of this informa<on, Torcana & it´s subsidiaries make no representa<ons or warran<es, whether expressed or implied, as to its accuracy or completeness and the content is provided for informa<on purposes only. Torcana does not oblige any buyer to use exis<ng property management services and recognizes their right to rent his or her property independently. Furthermore, Torcana and its subsidiaries shall not be liable, directly or indirectly, to the user or any other third party for any damage resul<ng from the use of the informa<on contained or implied in this document. Buyers should always seek appropriate legal, tax & financial advice from suitably qualified professionals before taking, or refraining from taking, any ac<on.