Further options for real estate acquisition and deals

One should be bold more often!

Here you will learn about approaches to earning money through real estate and how you can increase it:

1. The simplest way for you to make your money work for you is to buy property and then rent it out:
 

  • There is even an advantage if you do not pay the full purchase price, but rather only about 30% of the purchase price.  You then take out a loan in America for the remaining 70%.
     

  • You can also take out a loan in Germany for 30% of the purchase price.  With 100,000 EUR, for example, you could afford a 300,000 USD house.  If you have more money available, then invest in more properties.
     

  • Alternatively, you can take out the full purchase amount in Germany in advance (as a consumer loan or mortgage) and buy your home in America in cash.

    Tip: since you have a 14-day withdrawal period, you can arrange when the disbursement of funds into your account will be made with your bank advisor, then fly to America and go “house shopping”.
    In the event that you do not find a house, just pay back the money within the withdrawal period and you won’t have to worry about incurring any costs or fees. 

2. Once you are an American property owner, you can:
 

  • “Cash-out”, which means you borrow against your American property, since in the USA it is still unmortgaged, i.e. (“free and clear”).
     

  • In so doing, you receive about 70% of the current market value (according to the value (“appraisal”)).
     

  • Or refinance (“refi”), which means to either redeem an existing (US) loan and obtain better conditions and/or to have the already paid portion of the value of the property paid out as a loan (in this case as well you receive about 70% of the current market value).
     

  • Both options are recommendable in order to gradually build up a real estate portfolio.

3. For venturesome clients and those who want to grow more with their own properties in the US market, we recommend:
 

  • Wealth accumulation through multiple properties and renting out to American lessees, who pay off the (German and/or American) loan for your property.
     

  • Speculating or rather dealing with American properties and plots of land - without renting them:
     

    • “Flip”: you buy inexpensive real estate or inexpensive land with potential and then sell it in a short time with profit.  There are also lenders for this who, for short-term, will finance you without much bureaucracy (usually however, such lending rates are around 10-12%).

    • “Fix ‘n Flip”:  You buy properties that either you or craftsmen repair/ modernize/ remodel and then sell for profit.

4.  Many clients connect their real estate holdings with the settling of their estate, because inheriting real estate in America up to 2 million USD incurs no estate tax.  Moreover, constructing multiple properties, or rather establishing a trust for your estate is also possible.

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ABOUT PM ASSOCIATES

PM Associates Partnership

Am Schellberg 12

65812 Bad Soden am Taunus

Germany

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M&A Unlimited LLC
7750 Okeechobee Boulevard, Ste. 4

West Palm Beach, Florida 33411

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PM Associates in Germany

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E-mail: contact@pm.associates

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Tel:     +1-561-37 07 866

Fax:    +1-561-31 86 012

E-mail: contact@pm.associates

Certified Creative Real Estate Investor.