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CALL: +27 (0) 21 948 2130

Email: connector@ipsinvest.com

Introduction

Welcome to the USA Focus opportunity

According to our GPS system (Which you can access by downloading this book), the USA is currently the safest place to be protecting your money that shows great returns as well.

 

The way we see it:

Over the long term, the Rand/USD has gone from R3,65 on 1 January 1996 to R10,64 as of 21 July 2014.  It peaked at nearly R13 / USD at the end of 2002.  That’s a loss of 233% over 16 years in Global Buying Power as South Africans earning Rands. OR to put it another way, you’re getting poorer on average 6% p/a on a global scale no matter what you do.

 

TYPICAL PROPERTIES

THESE PROPERTIES ARE CURRENTLY AVAILABLE

CREDIBILITY

THE WAY WE SEE IT

Over the long term, the Rand/USD has gone from R3,65 on 1 January 1996 to R10,64 as of 21 July 2014.  It peaked at nearly R13 / USD at the end of 2002.  That’s a loss of 233% over 16 years in Global Buying Power as South Africans earning Rands. OR to put it another way, you’re getting poorer on average 6% p/a on a global scale no matter what you do.

If we expand that and predict forward 16 years, we can expect the Rand to move along the same trend and lose another 233%, taking it to R19,98 / USD. (This is only looking at the trend from the last 16 years and weighing up the probability of it changing, which is low, but we all know currencies can do whatever they want)

How do we minimise the risks of investing in the USA?

 

Find quality partners in the USA that we can trust – accountants, realtors, wholesalers, home inspection companies, refurbishment companies, management agencies etc.  That is what we have done in order to lower our risk of investing in the USA, and it’s what we offer anyone who wants to leverage off the network we have created and tested WITH OUR OWN MONEY.  We’ve invested ourself, tested them ourself and been over to visit the partners to see their operations with our own eyes. We have called previous clients of theirs, checked their backgrounds and worked with them for many years now.

Risk as little as possible – buy a low-price-point property to start with and then test the partners on how they perform on that one. You can always buy more later.

Ask questions – there are no stupid questions. We will share ALL our knowledge with you, and if we don’t have the answer, we’ll find out and present it to you.

 

How to set yourself up to invest in property in the USA

 

Setup Phase

The bear minimum required to buy a property in the USA, accept rental income and be legal in both the USA and South Africa, you would need to do the following:

1. Open a USD bank account to trade in.

2. Find a Certified Public Accountant who knows how to deal with foreigners.

3. Get personally registered for tax with the IRS in the USA.

4. Transfer your capital to the account.

5. Take out personal liability insurance.

6. Source a quality property.

7. Buy the property.

8. Source a rental management agency.

9. Source a tenant.

10. Be able to get paid rental income into your USD account.

This would be what you would need to do to buy a property in your personal name.  The risks are slightly higher than holding it in a Limited Liability Company, but the costs are much lower to get started and to do tax returns at the end of the year.

 

The main benefits of buying in the LLC:

 

• Limits your individual risk.

• Can reduce tax liability dramatically through splitting income to members, loan accounts, expenses and depreciation.

• Creates a credit-record for an entity in the USA for you – this means you could stand a chance of applying for finance at a later stage and either repatriate a portion of the capital outlay or re-invest it.

The main deterrents for buying in the LLC:

• Cost to set up (once off)

• Cost of book keeping (monthly)

• Cost of tax returns (yearly)

• Cost to maintain registration of LLC with the state (yearly)

You can buy in your personal name to start and, once comfortable with the process and the results, transfer to an LLC at a later stage if you decide to buy more property.

 

Other costs you need to be aware of:

• Depending on the source of the property,we will notify you up front if we have an agreement with them to split their commission on the back end for our services or if you would need to pay us a sourcing fee up front if there is no commission arrangement.

• Your accounting and book-keeping fees.

• General property maintenance (sometimes, depending on the source of the property, we get a 1 year warranty on the refurbishment of the property)

• Bank charges

 

 

CONTACT

Submit your details on our form and we will contact you back

Cape Town - Head Office

Address : 2nd Floor, Tygervalley Chambers One, 27 Willie van Schoor Dr.

 

Tygervalley, Bellville.

 

Phone : +27 (0) 21 910 0402

 

Email : connector@ipsinvest.com

JHB - Office

Address : 1st Floor, The Office Guru, 4 Karen Street, Off Peter Place

 

(opp. St Stithian's main entrance), Bryanston, JHB

 

Phone : +27 (0) 11 463 0588

 

Email : connector@ipsinvest.com

Centurion -  Office

Address : 1 Larch Nook, Centurion.

 

Phone : +27 (0) 12 742 0100

 

Email : connector@ipsinvest.com

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