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1. Your property can already come with loans (that are not in your name) at fixed interest rates between 3%-4%
2. Your property can get loans (again, not in your name) to the value of 40%-90% of the value of the property
3. The rent on the property covers all expenses (mortgage, management, insurance, rates, etc)
4. You don't need to have a credit score, nor have to prove income or asset wealth
5. Very low risk as you are not liable for the loan
6. This way of buying property is all legal and common practice in the USA.
7. This may sound too good to be true, so explore this site to find out why you too can do this.

" title="Here is a quick summary of the most important questions."}{/modal}

Your questions answered

Click {modal html="

1. We find the properties where the seller is willing to sell their property to you, while still keeping the original mortgage in place.
2. We negotiate with the seller the best deal for them and you.
3. The seller puts the property into a land trust.
4. The seller makes you (or your company) the beneficiary of the trust.
5. But the mortgage on the property stays in the seller's name, even though the title has been transferred to the trust.
6. You avoid triggering the DUE ON CLAUSE because of our special Land Trust documents.
7. Result: You own the property and all rights to the property but the loan still stays in the seller's name.
8. The property is rented out covering all expenses. You create wealth!" title="Summary of how it works"}here{/modal} to see a quick summary of how this process works

1: How do you get such great interest rates?

Local America banks don't give out loans for foreign investors. So foreign investors can only get loans from Private money lenders and that is higher than the normal bank rates. These rates are between 8%-12% and you still have to go through a very thorough and costly underwriting process of having to prove ...{modal html="Local America banks don't give out loans for foreign investors. So foreign investors can only get loans from Private money lenders and that is higher than the normal bank rates. These rates are between 8%-10% and you still have to go through a very thorough and costly underwriting process of having to prove credit scores or your proof of income.

It also means that you will have to put down a large deposit (around 50% of the value of the house). But with us, when you buy the property, instead of you having to apply for a new loan, you take over the existing loan the seller already has.

This means you are getting an interest rate that only the local Americans get, and it’s at a fixed rate. The house is yours, but the loan stays in the seller’s name." title="How do you get such great interest rates?" width ="60%" }read more{/modal}

2: Why would a seller agree to sell their house to you, but keep their name on the loan (and stay liable for it?)

A seller may have a house worth $100 000 and a mortgage on the house for $100 000. If they had to sell it on the open market, they would have to fix it up a bit, and then pay an agent 6% commission after the sale, plus...{modal html="A seller may have a house worth $100 000 and a mortgage on the house for $100 000. If they had to sell it on the open market, they would have to fix it up a bit, and then pay an agent 6% commission after the sale, plus some of the transfer and closing costs. If we just offer to take over the house and the loan, and the seller can just walk away, then they are actually thanking us!

• A seller may have house worth $100 000 and a mortgage on the house for $80 000. We offer them $10 000 cash (seller buy out) and we take over the house and their loan. Because we can close this deal and transfer the property in less than 3 days, this may really be useful to them if they need the money (or else to still get that $10 000 they would have to have the house on the market for a few months, then take away seller’s commission, and a whole lot of hassles and attorney’s fees.)
• They are also aware that If you as the buyer default and don’t pay the mortgage instalments, the property reverts back to the them, the seller, and then they get to benefit from all the repairs you might had made, or the new equity that has built of over the years. So they feel secure in knowing that even if you don’t keep your part of the bargain, they will still benefit." title="Why would a seller agree to sell their house to you, but keep their name on the loan (and stay liable for it?)" width ="60%" }read more{/modal}

3: You say there is little to no risk in these deals? Is my credit rating at risk?

Successful property investing is increasing income, decreasing expenses and managing the risk. With these deals you are taking over the mortgage loan, but the liability and loan stays in the seller’s name. So if you default on the loan payments, it doesn’t impact your credit score, and no-one comes after you or your assets. In these cases, the only risk is...{modal html="Successful property investing is increasing income, decreasing expenses and managing the risk. With these deals you are taking over the mortgage loan, but the liability and loan stays in the seller’s name. So if you default on the loan payments, it doesn’t impact your credit score, and no-one comes after you or your assets. In these cases, the only risk is any equity you may have or may have built up as the property will revert back to the seller.

If you ever find yourself in this situation, then it will be just as easy to sell on the property (while still keeping the original seller’s loan in place), and the new investor just pays you for the equity amount you had. 

The other risk associated with ‘Subject-to’ loans is the triggering of the DUE ON clause. But look to see how we resolved that one in the specific question on it below." width = "60%" title="3: You say there is little to no risk in these deals? How is that?"}read more.{/modal}

4: How will this model be impacted by property cycles (and the crash like the one in 2008)

The crash of 2008 impacted the sales homeownership more than the rental market. You can see a graph {modal url="https://fred.stlouisfed.org/graph/?g=Ssj"}here {/modal} showing that the rental index actually increased during the crash. People still need a place to live so when…{modal html="The crash of 2008 impacted the sales homeownership more than the rental market. You can see the graph showing that the rental index actually increased during the crash. People still need a place to live so when they could no longer afford to own their home in 2008, they sold their houses and moved into rental homes.

And now there is an increasing trend in the USA to move away from home ownership, it means there is more and more demand for rental homes (which is where you come in to meet that demand) Look at this article on The rise of renting in the USA to see why this is happening. " width = "60%" title="How will this model be impacted by property cycles"}read more.{/modal}

5: Are all the deals the same or can I choose ones with that have greater cash flow or greater loan to value?

As you will be taking over the buyer’s loan, the terms of that loan are already set. But if we know what you are looking for, then we can find the deals that match those criteria. For example you may…{modal html="As you will be taking over the buyer’s loan, the terms of that loan are already set. But if we know what you are looking for, then we can find the deals that match those criteria. For example you may want to focus more in increasing your portfolio while not needing cash flow for anything else than covering the expenses. So you would prefer to get as much leverage as possible and would probably go for a loan of between '80%-95%' of the value of the house.

Then the rent will cover all expenses with a little positive cash flow at the end of the month. But maybe you are wanting to put more cash in up front, and get more positive cash flow every month. So you would be looking for deals where the mortgage is about '40%-70%' (so the monthly expenses are less), leaving you with more cash each month.

We would check with you which model is best suited for your desired goals and then find you that property." width = "60%" title="Are all the deals the same or can I choose ones with that have greater cash flow or greater loan to value?"}read more.{/modal}

6: Can I buy more than one house like this?

Yes, yes and yes! Because you are taking over an existing mortgage, your credit score or proof of income is not necessary. But remember that as property investors we look to manage our risk and exposure. In deciding how many houses you wish to buy, we advise…{modal html="Yes, yes and yes! Because you are taking over an existing mortgage, your credit score or proof of income is not necessary. But remember that as property investors we look to manage our risk and exposure.

In deciding how many houses you wish to buy, we advise taking into account a reserve fund and this we discuss with each investor. We also suggest that an investor has at least three houses to spread out the costs of bookkeeping and tax form submissions (read more about that on the topic of ongoing costs). " width = "60%" title="Can I buy more than one house like this?"}read more.{/modal}

7: Why invest in USA property rather than anywhere else?

The USA has the stability of a first world country, and the dollar currency is a worldwide influence. On top of that, the ratio of rent to home value is much higher there than in most other countries, making the rental returns really great. And the legal system can…{modal html="The USA has the stability of a first world country, and the dollar currency is a worldwide influence. On top of that, the ratio of rent to home value is much higher there than in most other countries, making the rental returns really great.

And the legal system can play to our favour as we only invest in the states that are landlord friendly (ie getting non-paying renters out quickly). Also we love the tax benefits of being a real estate investor there. You can depreciate the actual house as an expense, and can carry over the capital gains to your nest purchase as well!

This all creates more wealth for you!" width = "60%" title="Why invest in USA property rather than anywhere else?"}read more.{/modal}

8: How do you assess if the property and deal is good? What is the due diligence process the team goes through?

Each property is very carefully inspected, both legally from a safe title perspective, and from a material perspective (the building). This includes checklists that cover flooring, roofing, heating, plumbing, cooling, and painting. The team also looks at…{modal html="Each property is very carefully inspected, both legally from a safe title perspective, and from a material perspective (the building). This includes checklists that cover flooring, roofing, heating, plumbing, cooling, and painting. The team also looks at the ‘attraction’ of the property as a rental property in terms of distance to good schools, shops and other centres.

We also take into account the ratio of homeowners to renters in the area as this also influences the upkeep of the neighbourhood.  And the best thing is we make all of this data available to you so you can follow the due diligence process and be informed yourself, opposed to just hoping and trusting the team.

We feel YOU need to be the judge of whether the deal is good or not, and not just take our word for it. " width = "60%" title="How do you assess if the property and deal is good? What is the due diligence process the team goes through?"}read more.{/modal}

9: You mention managing risk and having a reserve fund. What is this?

Greed is what makes investors poor. We advise that all investors have 7 months mortgage payments for each property set aside. This is just in case of the odd tenant vacancy, and might be used for a sudden repair you need to make after a storm for example. And remember…{modal html="Greed is what makes investors poor. We advise that all investors have 7 months mortgage payments for each property set aside. This is just in case of the odd tenant vacancy, and might be used for a sudden repair you need to make after a storm for example.

And remember that at an interest rate of 4% this ‘fund’ is not a lot of money to set aside but if in place will support you in managing any unforeseen situation." width = "60%" title="You mention managing risk and having a reserve fund. What is this?"}read more.{/modal}

10: Some people say a property is only as good as the team that managers the property?

The people who said that is us. We know that the property managers are key to the property making you rich, or not. That is why we only chose the agents that have a National footing opposed to being some mom and pop agency down the road. We check that…{modal html="The people who said that is us. We know that the property managers are key to the property making you rich, or not. That is why we only chose the agents that have a National footing opposed to being some mom and pop agency down the road.

We check that their systems and procedures are tight and on the ball. And for them to have multiple branches all over the country means they have got this right.

But more importantly for you perhaps is that these are the same companies we use for our own investment portfolios. " width = "60%" title="Some people say a property is only as good as the team that managers the property?"}read more.{/modal}

11: How does the investor sell these properties or exit when they need to?

These deals are just like any other property deal in that you can chose how, and when, you want to sell. You could sell it to the person renting the property; you could sell it on the open market, or you could sell it to another investor. You could even offer…{modal html="These deals are just like any other property deal in that you can chose how, and when, you want to sell. You could sell it to the person renting the property; you could sell it on the open market, or you could sell it to another investor.

You could even offer that the new investor take over the original seller’s loan (just like you did when you bought), and then they buy out your equity in the property.

The great thing about these deals is that if you need to get out quickly, it can be done quick and easy." width = "60%" title="How does the investor sell these properties or exit when they need to?"}read more.{/modal}

12: You mention ongoing annual costs? What are these?

Good decisions come from having all the right information. When I first bought my properties in the USA, no one outlined the annual book keeping costs, nor the tax submission costs, nor the LLC renewal fees etc. And although these fees are applicable to everyone, I was just not aware of them.

It is our promise to you that we show… {modal html="Good decisions come from having all the right information. When I first bought my properties in the USA, no one outlined the annual book keeping costs, nor the tax submission costs, nor the LLC renewal fees etc. And although these fees are applicable to everyone, I was just not aware of them.

It is our promise to you that we show you everything we feel you need to know, especially those things that we learnt the hard way. We believe good investing is not just about the property deal itself, but also needs to include all the others elements that come into play. 

Please see here for the set up and ongoing cost lists." width = "60%" title=" You mention ongoing annual costs? What are these?"}read more.{/modal}

13: How do I take advantage of the Double Taxation treaties between the USA and my country?

These legal and technical details are best checked with your own tax advisors from your own country. But most countries have a double tax treaty with the USA whereby you DO NOT have to pay double tax in both countries. Here is a {modal url="https://www.irs.gov/businesses/international-businesses/united-states-income-tax-treaties-a-to-z"}list of the countries{/modal} with Tax treaties with the USA, and here is the information between {modal url="http://www.sars.gov.za/Media/MediaReleases/Pages/9-June-2014---United-States-and-South-Africa-Sign-an-Intergovernmental-Agreement-to-Share-Tax-Information.aspx" width ="75%" }South Africa and the USA.{/modal}

14: This all looks great but where do you as the provider of these deals make money?

In a traditional purchase and sale of a house the commissions to the brokers and agents gets added on top of the cost of the house. In our case, we work extra hard to make sure we can work all of our marketing and business costs to fall within the value of the house so you don’t pay anything more than you should. That means we have to really find the right deal, negotiate really hard on your behalf, and then make sure you don’t pay a cent more.

15: Why is there a waiting list for investors to buy?

We see ourselves as the facilitators of the transaction opposed to ‘selling’ you a property. If we bought the property first, then we would have to hold it, mark it up and then sell it onto you. We first want to know what kind of deal you are looking for…{modal html="We see ourselves as the facilitators of the transaction opposed to ‘selling’ you a property. If we bought the property first, then we would have to hold it, mark it up and then sell it onto you.

We first want to know what kind of deal you are looking for, and then when we find them then we can present the details for you to assess.  Because these deals are usually closed within a few days, everything from the investor’s side needs to be ready.

If you feel this is not for you then we show it to the next investor in line. And the great thing of these set ups is if you suddenly get buyer’s remorse and want out, then we can easily just re-sell it onto another investor within a matter of days. " width = "60%" title=" Why is there a waiting list for investors to buy?"}read more.{/modal}

16: Why do you suggest we buy the properties in an LLC (Limited Liability Company)?

It is generally agreed that a Limited Liability Company is the safest legal structure for you as a real estate investor. It limits the risk and liability to that entity so you are personally protected. To set up the company is very quick, easy and cost effective. See here for more on the set up process.

17: Do I need to go to the USA to set this up?

No you don’t, but we suggest you do. Funnily enough we can get your LLC (limited Liability Company) set up and your IRS tax numbers all sorted really easily from afar. But to set up a bank account in the USA requires you to present yourself in person. Although we can set up a bank account for your LLC through a representative, it means…{modal html="No you don’t, but we suggest you do. Funnily enough we can get your LLC (limited Liability Company) set up and your IRS tax numbers all sorted really easily from afar.

But to set up a bank account in the USA requires you to present yourself in person. Although we can set up a bank account for your LLC through a representative, it means that when you need to do certain transaction you will have to go through your representative.

Although this may seem inconvenient in the short run, these kinds of trips can be expensed off against rental income. " width = "60%" title="Do I need to go to the USA to set this up?"}read more.{/modal}

18: What do I need to do and have to get ready and set up?

Once we have answered all your questions and you feel you would like to get going on your portfolio, you will complete a reservation form that will detail what you are looking for (ie the cash deposit, LTV, number of houses etc). We will go through this with you…{modal html="Once we have answered all your questions and you feel you would like to get going on your portfolio, you will complete a reservation form that will detail what you are looking for (ie the cash deposit, LTV, number of houses etc).

We will go through this with you to ensure this is the best route for you to achieve your goal. We would then get started on setting up the structures and finer details. See the section on Getting you started." width = "60%" title="What do I need to do and have to get ready and set up?"}read more.{/modal}