Work with a Precise representative to identify investment properties that meets both your cash-flow goals, and your long-term investment strategies.
Once you have made the decision to invest in US real estate click on the Properties tab to work towards identifying specific properties to purchase. A discussion and e-mail exchange with a Precise representative will take place when any final questions are necessary to make decisions on properties.
During property selection, a client new to the US market will contact a lawyer (solicitor) in the US and work towards establishing a corporate structure in the states. Typically a Limited Liability Company (LLC) is established to limit personal liability and to streamline banking services. Your attorney can explain more on this point. Your choice of attorney is entirely up to you, but Precise Associates can make a recommendation upon request. Your attorney can assist in the establishment of a US bank account tied to the LLC, and can recommend an accountant for tax purposes. Typically these services run no more than $500 for the LLC and bank account and the same to file an annual tax return.
Phase II: Property Identification, Purchase Agreement, & Earnest Money Deposit (EMD)
In order to reserve the properties you have chosen, you will sign a purchase agreement (PA) and wire an earnest money deposit of $5000 to the title company handling the sales transaction.
The purchase agreement is a formal agreement between the buyer and seller as to the terms of the sale, sale price, and timeline for settlement. The deposit is held by a third-party escrow agent called a “Title Company”. The Title Company is like a Conveyancer and acts as a third-party intermediary between the buyer and seller on any property transaction in the US. The EMD is sent directly to the title company and is held in their trust or escrow account until the time of purchase.
During the two weeks it typically takes to close, we will place insurance on your property, send completed photos of the renovation to you, and give the title company time to warrant and insure your deed against and liens, back taxes, or past title issues.
Phase III: Settlement Document Review, Final Funding and Disbursement
Both the buyer as well as the seller has their own responsibilities at the closing. For the buyer, it is to execute/sign their respective settlement documents and send the remaining settlement funds to the title company. For the seller, it is to also sign their respective settlement documents and convey a signed Warranty Deed, free of any title encumbrances, to the buyer. The title company acts as a closing agent and represents both sides at the “closing table”. Once the buyer and the seller furnish their requirements to the closing agent, the closing will “disburse” and the property is officially transferred. All of this happens via internet, e-mail, and phone.
Phase IV: Management
At closing and ownership, you will receive a welcome packet from the property management company selected. This packet will contain information regarding the scope of rent-collection and management services from your property manager. Your property manager will also provide you with a monthly statement that highlights transactions and key dates in the history of your investment. Precise will periodically updates you with possible exit strategies and new opportunities for investment.