1) I am interested in one of the Properties on the can-i-invest website what next?
You can either "Call us" to discuss the Property on the number advertised (between 9:00 AM and 5:30 PM AEST) or "Email us" on the Contact Enquiry form during out of office hours. We are normally very good with response times and you could expect us to get back to you within the hour.
Our property consultant will be able to fill you in on the Property Information, Tenant information, Location details and also on the Buying & Closing process if you wish to proceed.
2) How are the Properties managed?
Your property will be managed by our most experienced Property managers who have joined Can I Invest solely to give you the smoothest experience as a Landlord.
The Property Management combined team will ensure:
A. Listing of Property for Rent
B. Tenant selection (very critical)
C. Tenant Move-in
D. Utility turn On
E. Rent Collection
F. Landlord Payment Disbursal
G. Maintenance issues (done at the lowest quote)
H. Sourcing 2nd hand appliances at 1/4th the price, if required by you.
I. Legal issues such as evictions (unfortunate, but is part of this game)
J. Tenant turnaround in the quickest time frames
You will have access to an online portal for all Owner statements. The crew on the ground problem solve and consult with us on a daily basis to ensure and to maintain Service Level standards acceptable to you as an Investor.
Our motto is to give the investors the best property in good locations, at the lowest price and to ensure peace of mind through stringent tenant selection which leads to a steady annual income flow...
3) Do you charge a facilitation fee?
No we do not charge a Facilitation Fee. Our mark-up is a standard $3000 per property and is included in the Property Price.
4) I am an Australian citizen, can I buy property in the USA?
Of course! Anyone with funds and an appetite for Good rental Yields can buy U.S properties. You may participate and have a slice in the Largest Economy of the World (and arguably the Greatest, if you share our passion on Free markets!). USA allows Free cash movements In and Out of the country, anytime without restrictions. Which is one of the Founding principles of this Modern economy. Free movement of Capital - No Restrictions.
5) Will you help us setup a LLC company structure in the USA?
Yes we can help you with the Setup of your Limited Liability Company (LLC) in the State in which you are buying. For instance when you are buying a Detroit property, we can help you setup a Michigan LLC. Alternatively you may also wish to Purchase the property on Individual names (like yourself, or with a spouse) and that is totally up to your own preference.
6) Do I need a Bank account in the US?
Opening a Bank account in the US is the old model. And there is a monthly servicing fees of at least US 30 dollars depending on the account and a minimum balance of USD 5000 which you have to maintain every month, for e.g. with Bank of America and/or Chase.
This is not worth doing especially if you are buying between 1 and 5 investment properties. Hence we recommend our client today that you can open a USD dollar account from your local bank in Australia Commonwealth bank. Or you can chose for your rent to be paid into you existing bank account, say if it is with ANZ bank, the monthly rental funds gets transferred for a single transfer fee into your ANZ account. Some investors even choose to get paid their rental funds every 2 months instead of 1. Our property managers will ensure that your preference is set to your account profile, and it can be amended anytime on request.
7) Are the Properties tenanted?
Yes, the properties come fully tenanted. All our properties are Turn Key basis.
The tenants are very carefully hand-picked. When I say very carefully we mean it VERY Carefully. We check Employment History, Past Landlord checks and Evictions History, Criminal records and everything eIse in between. No compromises on finding the Best Tenant in Town for you.
We want you the investor to have a Good experience with your Customer!
Btw some Property marketing firms boost ROIs by putting a poorly qualified tenant at above market rents knowing fully well that they will struggle to pay rent.
But that is just not our business model. As a matter of fact, our rents are always kept well 'Under market' as we prefer to select from a wide range of applicants. Sometimes Pensioners make you the best tenants they do not have parties, damage your property beyond normal wear and tear, they plan a budget to pay rent on time and will generally stay long term. We prefer these tenants as they always go for the Safe Neighborhood locations with the Lowest rents.
8) Do I get Title to my Property?
Yes, you get a Full Warranty Deed to your property. And this comes with a Title Insurance.
Can I Invest only Sells on Warranty Deed with Title insurance which is paid at closing by the Buyer. Title Insurance is only provided under Warranty Deeds and protects you as the Buyer from any possible past claims and ensures that you have Free and Clear ownership.
Beware of purchasing property under Quit Claim Deeds (QCD). These properties are MUCH cheaper and come with a Catch. A lot of Investor nightmare stories come from purchasing under this QCD agreement. Google it and you will understand why. QCD means the Seller quits 'his claim' on the property. But an unpaid roofing contractor who just worked on the property may still have a claim! Or a past unpaid Utility Bill. Or a claim by a grandson that the grandfather's Legal Will said XYZ.
Warranty Deed records you as the Legal Owner with Free and Clear Title.
Can I Invest LLC properties are ONLY conveyed via Warranty Deed transfers only and your Settlement Attorneys/Lawyers will double check and ensure this.
9) Do you provide with a Home warranty?
Yes, Can I Invest LLC will provide you with a Home warranty from a National Insurer like American Shield for your property for the first year. It costs approximately USD 500 per annum depending on the home. A home warranty is typically a one-year renewable service contract designed to protect your household budget from unexpected, costly repairs on home systems and appliances. Items covered under a Home warranty include:
Air Conditioning w/Ductwork
Plumbing incl. stoppages
Instant Hot/Cold Water Disp.
Built-in Microwave Ovens
Free-standing Ice Makers
Garage Door Openers
10) What is the difference from a Home warranty to Home Insurance?
Home insurance protects the structure of your home against risks such as damage from severe weather and theft, Fire damages, secondary damages resulting from some system and appliance failures, as well as protecting you personally from liability in the event that someone is accidentally injured on your property.
Home warranties protect many of the home systems and appliances that you rely on daily. When these systems and appliances inevitably fail over time due to normal wear and tear, a home warranty will pay to repair or replace them. You will pay a service fee each time you request service, which ranges from $50 - $100.
11) I am in for the Returns & Yields on a particular property. How do we proceed?
Great, we are there to help you with your choice. On confirmation, we shall email you with a Reservation form - simply fill up the form with Purchasing entity's name (either as an Individual or under an LLC) and submit it with a holding deposit of USD 1000 to reserve the Property. Proof of funds is required to accompany the reservation form along with ID proof.
This will take the property "Under Offer".
The Holding Deposit will be held and credited back to your portion of funds on the Settlement date which is usually 3 weeks from reservation date as your lawyers will begin to work on the Settlement paperwork.
12) Lastly, what is my Exit criteria?
As of date in 2018, the US market and Detroit in general is on an upswing and on a fairly strong rebound. The prices are climbing and Investor and Lending activity has picked up. This should be a sign to keep you invested for next 4-5 years at the very least. As an investor, once you get used to this Cash flow, you may very well not decide to Sell at all!
But as an optional service, if you want to secure your Principal, you may lock in a Buy back option for an extra $2500 on top of the Purchase price, at the time of Sale. This Buy back option gives you the choice to sell the Property back to Can I Invest LLC at the Purchase Price after 24 months and before the 36th month. The property should be in the similar condition at the Time of Sale minus normal wear and tear in this period.