Components of a USA Property Investment


Components of a USA Property Investment

Buying a property in the USA can be as simple as picking a property, wiring some funds, and then receiving title to the property, but creating a great investment requires a far more cautious and analytical approach, and that is exactly what American Properties does. From a high level view let’s consider the two opposite ends of the spectrum:

  • A great investment will produce consistent cash flow, appreciate in value, offer protection from risk, require as little of your time as possible, and ultimately it will make you a lot of money.
  • A poor investment will not provide the expected cash flow, not appreciate in value, be poorly protected from risk, and require a large amount of your time and, in the end, it could cause you to lose a significant amount of money and sanity.

In order to find the right property and structure your investment appropriately there are a number of steps and factors to be considered. Here we briefly explain these factors. For more detailed guidance and to better understand how we assist our members with each of these steps please follow the links to the American Properties Services page.

Property Sourcing and Due Diligence

Find a great property and conduct due diligence to confirm it’s a wise investment. Is it a great location? Is the property constructed well? What are the long term trends expected in this region?

Limited Liability Company (LLC) Setup

An LLC is a common type of business structure. It’s highly recommended that you purchase and hold any investment property inside of an LLC. It acts as barrier to legal risks that are ever so prevalent in “sue-happy” USA.

Obtain Employer Identification Number (EIN)

This is similar to an Australian Business Number (ABN). It’s mandatory that you obtain one associated with your LLC.

US Bank Account Setup

You will need a place to have your tenants rent delivered, pay fees and taxes from, etc. Getting this set up without a partner in the USA can be very challenging.

Financing/Mortgages

Using financing to purchase an investment property is an optional component of any investment.  If you decide that financing your purchase should be part of your investment strategy then you will need to secure that financing. Once again, without a partner in the USA this can be very difficult. American Properties can help eliminate financing difficulties.

Property Management

It is highly recommended that you DO NOT attempt to manage your own property from Australia – that is a simple recipe for disaster. A property manager handles the vast majority of the administration involved in a USA property investment, and they bring crucial local knowledge, tenant profiles and databases, city and state legal knowledge, and more. Partnering with a great property manager is crucial to the success of your investment.

Property Insurance

Property insurance provides a layer of protection that mitigates losses due to theft, fire, and storms. Without sufficient insurance you are exposed to long-term financial hardship should the worst happen. It’s important to find fairly priced coverage that is suited to the geographical location of your investment property.

Property Inspections

A property inspection by an independent and properly certified inspector should be a stipulation of any purchase contract.  A property inspector will provide a report on the physical condition of the house that can be used to negotiate a lower purchase price, or back out of a bad deal. Without a third-party inspection, you could end up learning about a particular property’s problems the hard way.

Legal Services

It’s highly recommended that you retain the services of a great lawyer who focuses on real estate. We advise our clients to have an independent lawyer review any investment property transaction, even if that transaction is facilitated by American Properties.

Accounting Services

Like a lawyer, it’s important to have a great accountant who focuses on real estate.  The US investment tax code is complicated, and without a great accountant you are likely to pay more than your fair share of taxes.

SMSF Setup (Self-Managed Super Fund)

It’s possible to purchase US investment properties with funds from your Super Fund. There are numerous companies providing services of this nature. Some are excellent and others are dismal. Caution is advised – contact American Properties to learn how we can help.

International Money Transfers

Sending large sums of money abroad can be expensive if you choose the wrong method. A few points of a percent can really add up when you are transferring tens or hundreds of thousands of dollars. There are reputable companies that specialize in providing this kind of service at low rates. American Properties can refer you to providers who can save you money on foreign exchange services.

Selling your Investment Property

Chances are that you will want to sell your investment property at some point. Always be prepared for this so that you can maximize your profits opportunistically.

EB-5 Investor Visa

If you have $500,000 or more to invest and want to live in the United States then this Visa is for you. Make a great return on your money and get a Green Card with a pathway to citizenship for you and your immediate family in the process. It’s the best-kept secret in US immigration law. The EB-5 Investor Visa allows you to leverage your investment in ways not quantifiable in financial terms.  American Properties can help arrange processing of an EB-5 Investor Visa on behalf of you and your family.


We take the hard work and risk out of investing in the USA.


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