How to buy USA property and raise finance?

[Russell P]

I am considering buying property in the USA as I see it as a better investment than UK at the moment. Can anyone break down for me how taxes are paid as I am based in U.K. and also how is it best to raise finance as it seems difficult to raise in US without social security number.

[mogsie]

Hi Russell,

 

I have been property investing in the US (midwest Michigan and Ohio ) for a number of years. Cash flow in the mid west can be high. Re taxes - Property investors pay property taxes on each property ( usually twice a year ). You also pay Tax on your profits at the end of the year. I initially invested in my own name but have since setup LLC corporations in Both Ohio and Michigan and have a US accountant (CPA who does my accounts ). The initial thing is to get a US bank account setup and obtain a tax identification no (TIN). Setting up a US bank account can be challenging if you cannot go out to the US due to the patriot act, but I believe it is possible using a power of attorney. I wrote this blog for the property voice which may be of interest

http://www.thepropertyvoice.net/15-tips-for-property-investing-in-the-usa/ 

 

 ps getting finance on property purchases under $100k is very difficult - especially for foreign investors.