View Full Version : Buying properties for investment
hurricanesarah
15-11-2004, 03:48
Still looking for a business I would want to run long term, without success. What's the chances of buying say several cheaper properties outside the florida area and having small mortgages attached and then setting up my own property management company assuming the turn over meets the criteria? Is this allowable as a transferrable property management company???
Running management on a few properties wouldn't give you anything like the income you'd need unfortunately.
hurricanesarah
15-11-2004, 04:15
Maybe not and I accept that but when I spoke to Lesley Sillito, a E2 Visa specialist, she said in order to be a viable property managment company they would look at an initial criteria of about 6-10 properties initially and I'm assuming she didn't mean to buy them either?
When you said 'several', I assumed that you meant run a property management company for these but you mean adding other peoples' properties too?
Lesley told me 10 contracts when I asked. Fairly hard to get people to commit to giving you management contracts when you arnt even in the country. I managed two plus my own two homes so gave up on it. It is a chicken and egg thing. So I ended up buying something else. If it is outside the Florida area, who will be renting out the houses and want you to run it?? Is there a short term rental market elsewhere to merit a management company? In an area where you can buy cheap properties??? There is a limit to the amount you can finance on loan or mortgage on an e2 application. You cant for example get 10 homes all on 80% mortgages. Remember you also have to show that the business would generate sufficient income to live on, about $60,000. There is little chance of you doing that on 10 of other peoples homes, even if you did everything yourself, 10 of your own on mortgage and you are way short unless you are an absolute whizz at high value bookings. The embassy will expect you to do the sums.
hurricanesarah
15-11-2004, 11:49
Not STR rental homes, I think the risk is too high, plus my own personal opinion is the market is getting quite saturated. I meant buy say 3 homes to rent out long term, then another, then another, and so on. Plus if I owned them, I wouldnt have to go on an E2 visa right? I could start a property management business from here, and transfer on an L1 visa as an existing business? I have no idea, I'm throwing ideas around.
I'm not sure what you had in mind to do as property management then for long term rental homes as this provides less to do (and therefore less income) than STR homes do. Just collecting rents and doing any maintenance required.
Long term rental homes also have less in rental potential than STR ones too. Because you are providing less in the way of services (no furniture, no pool or garden maintenance, no cleaning, etc) then the rental value potential is much less.
If you ran that sort of business from the UK (not sure you'd be able to do that though logistically?) then you'd have to have either a whole pile more of them or some other business to transfer to for an L1 as both the UK and US branches have to run simultaneously with no drop in UK income.
Sorry, I'm not meaning to be a damp squib but I don't quite see how this would work for you to get a visa as, unless you had an awful lot of these long term rental homes, then your income would be below that required for your visa (and to make a living).
The requirements for L1 are getting really really high. The chances of getting it with a Mickey Mouse company are gone. You need premises, employees ( several and not family members and they will want to see payroll) and to be generating sufficient sales in the UK. We were told two years ago that a two man service business with £100,000 turnover wouldnt hack it. I dont see you being able to generate anything like that sort of income from long term rentals or justify employees. Typically the management fee is 10% on long term rental as there is little to do, so on a $1500 per month rental, this would give you $150 per month per home. And as for getting other peoples long term rental property to manage, if you can do it by remote control from the UK, why cant they?
Sarah, I am all for throwing ideas around but people have been throwing ideas around for years in this one trying to buck the system and there is no real bucking it. You have to do what we all did and buy a business you dont really want and treat it ss the cost of getting a visa and then come here and network. Or buy a real business in the UK, trade it successfully for a year and then transfer.
chrizzy100
15-11-2004, 18:02
On one of the topic.......someone said they had an e-mail from the couple who were trying for a visa with only 3 homes ........and from what I saw the other day they got it....thing is I can't remember what topic.......if you could find it and get their e-mail and ask how they went about it...and what other irons they had in the fire to get their visa...... which I'm sure they must have ...because on other forums people with 6 homes can't get a visa.....
You would never get an E2 with three Chrizzy, I collected four and was told no way. Perhaps if they owned the three outright with no mortgage and good bookings.... but even so it is passive investment and the income doesnt constutute enough for a bona fide management company. They must have had something else besides. If they gave E2 to anyone with three homes, they would open the floodgates as practically anyone in the UK would be able to c0llect together three nowadays. It used to be 5 homes for a man co even eight years ago when I bought mine and it is getting harder not easier,
chrizzy100
15-11-2004, 19:08
<blockquote id="quote" class="ffs">quote:Originally posted by esprit
You would never get an E2 with three Chrizzy, I collected four and was told no way. Perhaps if they owned the three outright with no mortgage and good bookings.... but even so it is passive investment and the income doesnt constutute enough for a bona fide management company. They must have had something else besides. If they gave E2 to anyone with three homes, they would open the floodgates as practically anyone in the UK would be able to c0llect together three nowadays. It used to be 5 homes for a man co even eight years ago when I bought mine and it is getting harder not easier,
[/quote]
Well thats what I thought.....funny enough someone on a different forum said they were sitting next to a couple going for a visa with only 3 homes.....in London a few weeks ago.....it could be the same couple.....
My brother in laws live in girlfriends aunt has been renting in the USA for 25 years...... years ago mostly in the Orlando area.....she moved out of FL to States where you get more rental income......and she is making big money........but then she got her beach front homes when they were $800k......they are now worth millions.....
I do know someone here on L1 managing only their own three homes, but they have a big window company back in the UK and that is an entirely different ball game as ostensibly if you qualify fir L1 you can come here with nothing but a set up plan.