1. Are there any liens or other debts on these properties? They may have but if they do any monies owed will be deducted at settlement.
2. Can I order a home inspection to make sure the property is in an acceptable standard? Yes, you have the right to have a licensed property inspector do a full home inspection to confirm that all renovation are up to an acceptable standard. We have certified licensed home inspectors for each city that we conduct business in.
3. Once I sign a contract and make a deposit how long does closing take? Closing time will be about 1 to 3 weeks from execution of contract. The title company orders a title search and once clear title is obtained they prepare the documents to be executed by buyer and seller.
4. Why are the properties being sold at such low prices? We buy properties in bulk at discount prices and use our tradesmen to rehab the properties based on volume pricing. Our focus is keeping expenses low for ourselves and subsequently for our clients.
5. I’ve heard that I need to apply for ITIN number or an LLC. What are these? An ITIN number is an ‘Individual Taxpayer Identification Number’ and is a nine digit number used by the IRS for investors who derive rent from their investment properties. It identifies those who do not have a social security number, which usually applies to non-American residents. Alternatively, you may prefer to apply for an LLC, which is more appropriate for investors who have either purchased several properties via self-funded means or from their SMSF.
6. Do I need to get home insurance? It is not mandatory to have homeowners’ insurance .
7. Do I need to open a bank account in the US? No, the management company is able to initiate international wire transfers if the client does not have a local bank account.
8. If my property increases in value upon selling it will I have to pay capital gains tax? Yes as with any property that is sold at a profit. However, the capital gains tax that is paid in the U.S. will be offset against any capital gains tax that is payable in your country. Please consult a tax specialist to verify this based on your country of residence.