U.S. Property Made Easy

Steve Bland

Property Investment Manager

SANDOR LLC

Why Invest in Property?• Tangible asset that investors

can understand• Housing cycles can be used

to investor advantage• Leverage – use other people’s money• Range of strategies to suit goals• Long term returns higher than inflation• Capital growth with low risk on right properties • Positively geared properties possible • Multiple investments can be affordable

Australian Property Market

Positives

• Great Australian Dream• Stable government and legal system• Certainty of title transfer • Easy access to legal and financial experts• Large range of market data available• Economy well placed for 21st Century growth

economies

Australian Property Market

Negatives

• Strong growth in recent years • Low gross rental yields (3% – 6%)• % of household income to service average

home loan at all time high• Relatively high and increasing interest rates• Unable to lock in fixed rates for > 5 years• Prepayment penalties on fixed rate loans• Negative gearing is not a sustainable

investment strategy

Offshore Property Investment Risks

• Title certainty • Enforceability of legal rights• Estate planning & inheritance laws• Government stability and consistency• Gratuities• Citizenship requirements• Ease of electronic communication• Foreign language translation• Exchange rate volatility

Offshore Property

Investment Opportunities

• Higher rental yields available• Lower entry costs available• More favourable tax laws• Diversification of asset holdings• Favourable taxation of foreign profits or

losses

Investment Strategy

• Set and regularly re-evaluate goals• Use other people’s money• Balance capital growth and rental returns

- Buy a profit on purchase- Buy in the path of progress- Positive cash flow

“Path of Progress” Drivers

• Increasing population• Vibrant & growing economy• Low unemployment• Development plans include infrastructure

such as schools, shops & medical centres• Low vacancy rate on rentals• Climbing rental returns• Buy at the bottom after sharp price declines

Why US Property?

• High rental yields (> 9%)• Good exchange rate• Stable government• Low purchase prices in many states • Low interest rates fixed for the long term• English is the first language • Laws heavily biased towards landlords• Surety of title, inheritance laws, taxation of

profits & capital gains

Why US property (cont)?• Similarities in culture, laws, federal government

• Similarities in economic and property cycles

• Similarities in building codes, styles & developments

• Favourable corporate and trust structures

• Reliable communication and banking systems

• Access to experts

• Easy access to published property & economic data

Why Texas?

“Sunshine State” in its growth phase

Why Texas (cont)?• Proximity to Mexico

- emerging market

- cheap labour source

• Increasing number of businesses and families relocating to Texas

• Generous state government incentives to diversify economic base

• Cheaper for northern companies to relocate rather than re-equip and renovate dated factories

• Many economic benefits have flowed from being the home state of the previous US President

Why San Antonio?• Low entry price

• Meets investment criteria- capital growth- rental returns

• Favourable weather- no hurricanes- no tornadoes- no earthquakes- no snow

Why San Antonio?Low entry price: (MLS – www.recenter.tamu.edu)

• $150,200 2010 Median

• $183,080 2010 Average

• $111,700 1997 Average

Why San Antonio (cont)?

“Path of Progress” growth

Why San Antonio (cont)?• Growing, diverse economy: 8th largest US city• Strong employment: 7.2% unemployment

Sept 2010 v’s National Average of 9.6%• Established Defence bases with growing staff

and student populations• Booming Healthcare sector – employs 17% of

SA’s workforce • Huge concentration of biomedical research &

development worth $19 Billion annually• Major manufacturing companies including

Toyota and Boeing have relocated there

Why San Antonio (cont)?• Planned transport corridors and estates• Predictable development patterns• Popular tourist destination: 20m visitors p.a.• Major convention centre > 440,000 sq feet

exhibition halls

• Beautiful historicfamily oriented city

Why San Antonio (cont)?Rental returns examples:Address Purchase Rent/ Gross

Price month Yield

Alamonte Oaks $161,490 $1295 9.6%

Creek Bow $157,100 $1275 9.7%

Mainland Woods $149,900 $1150 9.2%

Thomas Ridge $148,000 $1250 10.1%

Whitegate $159,500 $1250 9.4%

Wood Bayou $167,900 $1250 9.3%

Parkland Oaks $156,500 $1195 9.2%

Rockrimmon $158,000 $1295 9.8%

Sarasota Woods $161,250 $1250 9.3%

Choosing a property• Proximity to infrastructure• Maximise square footage within price range• Concentrate on FHA & 2nd homes• Maximise market appeal - medium size homes - master planned communities - newer homes - single storey (easier resale & rental) - aesthetic appeal• Ease of maintenance

Do it yourself or use an expert?

Initial Transaction

• U.S. Property and Loan

Market information

• Property Search

• Offer submission and agreement

• Loan search and application

• Contract Closing

• Preferred Providers

• Post Settlement Services

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Ongoing Support• Emergency contact and liaison with

property manager• Explanatory information and advice on

correspondence received• Annual review of property performance• Notification of further property investment

opportunities• General property market updates for the

U.S. region of your property• Assistance and advice if / when the

property is sold

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About Steve Bland, Property Investment Manager1969: Born and raised in Brisbane, Australia. Family still lives at Tarragindi. Educated at local private Schools. Favourite sports included Trampolining and Diving. Won State, National and International titles. Failed school sport due to a lack of interest in cricket.

1983: First business venture at 13 was to re-organise trampolining club performances to improve fundraising success and therefore participate in more competitions.

1986: To avoid a real job - commenced a Bachelor of Education in Physical Education at QUT. During and post university, combined coaching, teaching, entertainment and travel.

1988: 1st professional show at age 17 - Aquacade High Dive Show at Expo 88. Continued acrobatic performances with the comedy group SPLAT.

1989: Continued full time High Diving in various shows throughout Asia and Australia.

1994: 1st property investment in Sunnybank QLD. 5 properties by 2000, 10 by 2001 and 30+ by 2007. Portfolio includes US & Australian residential and commercial.

1997: Joined Cirque Du Soleil, Las Vegas in the show ‘O’ at the Bellagio.

2000: Began assisting friends and colleagues with their US property transactions. Investigated and established trust and corporate structures for property holdings.

2003: Became a licensed US loan officer / mortgage broker to extend services provided to a growing number of referrals and repeat clients.

By 2008: Have completed over 500 property transactions as Property Consultant / Mortgage Broker / Property Manager for purchase / sale / renovation or lease for hundreds of home owners and investors, who have predominately been “non-resident aliens” or “non-permanent immigrant workers”.

2010: Joined Century 21 Consolidated as a Real Estate Licensee so as to directly source good quality, discounted properties for a growing market of local and Australian investors.

Steve’s focus is as a Buyer’s Agent, assisting people to realise their life goals through financial independence. He also looks forward to living on the beach and continuing in entertainment till his body falls apart.

For more Information on U.S. Property Made Easy

Contact Steve Bland

Phone Australia: 0412-395-274Phone USA: 702-433-6868Email: SteveBland@cox.net