Buying property in the USA
Discussion
Hello to all you across-the-pond'ers!
I'm currently looking at my options for getting out of the UK. I'm really keen on getting out to the states, having spent a fair old bit of time there.
Initially I'd like to buy a modest house in the 'burbs and look to spend a few months of the year there, and in a year or two look to shift over there full time. Sounds like an odd plan I know, but with what I'm paying in hotels and flights it wouldn't really be costing any more, and I'd have something to show for it. I'll also be looking to expand my business over to the states with the long term idea being splitting it in two with my business partner managing the UK operations and myself the US. as well as starting another business over there later this year or early next year.
Location I've already decided on (Ohio), but I'm struggling to find a concise and up to date overview of what's needed to buy a house over there.
I'm just wondering if someone would be able to give a brief overview (or link me to one) of the whole buying process, more specifically for people who aren't citizens. I doubt I'll be mortgaging as the property is dirt cheap in the area I want to live. So I'm guessing I'll need bank accounts and all that jazz for the bills, but it's the buying process and red tape I'm interested in. Do the formalities vary from state to state or is it something that's pretty much the same wherever you go?
I realise there's probably some very obvious links out there but google just keeps throwing up real estate agents and so on, and the government websites aren't
the easiest to navigate. I suppose I'm really just looking for an FAQ or 'newbies guide' so I can start to think about it a bit more seriously over the coming months and work out what needs to be done.
Any useful links would be appreciated!
Cheers!
I'm currently looking at my options for getting out of the UK. I'm really keen on getting out to the states, having spent a fair old bit of time there.
Initially I'd like to buy a modest house in the 'burbs and look to spend a few months of the year there, and in a year or two look to shift over there full time. Sounds like an odd plan I know, but with what I'm paying in hotels and flights it wouldn't really be costing any more, and I'd have something to show for it. I'll also be looking to expand my business over to the states with the long term idea being splitting it in two with my business partner managing the UK operations and myself the US. as well as starting another business over there later this year or early next year.
Location I've already decided on (Ohio), but I'm struggling to find a concise and up to date overview of what's needed to buy a house over there.
I'm just wondering if someone would be able to give a brief overview (or link me to one) of the whole buying process, more specifically for people who aren't citizens. I doubt I'll be mortgaging as the property is dirt cheap in the area I want to live. So I'm guessing I'll need bank accounts and all that jazz for the bills, but it's the buying process and red tape I'm interested in. Do the formalities vary from state to state or is it something that's pretty much the same wherever you go?
I realise there's probably some very obvious links out there but google just keeps throwing up real estate agents and so on, and the government websites aren't
the easiest to navigate. I suppose I'm really just looking for an FAQ or 'newbies guide' so I can start to think about it a bit more seriously over the coming months and work out what needs to be done.
Any useful links would be appreciated!
Cheers!
Edited by Stu R on Tuesday 23 March 14:53
There is nothing to stop you purchasing a residential or commercial property. If you are able to do this without need for a mortgage, so much the better - though you will have to demonstrate where the money came from (a paper-trail that shows it is not ill-gotten).
You don't need a realtor (estate agent) - but it may be helpful, as they can do all the donkey-work in finding property for you to view. Ordinarily the buyers realtor will come to some financial arrangement to split commission with the sellers realtor - who charges the seller for their services. Because of the hurting economy, many are selling "By Owner" - i.e. no parastitic realtors involved, so you need to understand and adjust for that particular dynamic.
Once you have found a property and agreed a price, you should employ the services of a general attorney, to ensure that everything is in order with the deed (no liens or other instruments that could bring entitlement to sell into question).
Once you are in the clear there, you need to appoint a title company, who actually manage the money transaction and transfer of the title deed to you. In order to get the financial aspect squared-away, it is useful (but not essential) to have a US bank account, because you are going to be depositing the funds in escrow prior to closing of the sale, so that the other parties can see you are good for the cash.
Once all the title searches are complete and you have had a thorough home inspection (again not obligatory if you are paying cash - but you would be clinically insane to omit an inspection - e.g. unseen termite damage can be significant and massively expensive to put right) you get a date for closing.
Sign all the papers - closing agent calls the bank to confirm transfer of deed, bank hands over the cash and you're golden.
I did what you are contemplating, albeit back in 2001 and in FL, rather than OH. The whole process took 11 days from saying, "I'll have it.", to being handed the keys.
You don't need to live here to buy the house - but you do need a visa to live here. Over-use of the visa waiver program will get you collared in the end, so if I were you, I would be simultaniously organising my L1A petition. Your UK company has a good degree of 'substance' right? I mean, it's not an internet-based, work-from-home, no US employees required, kind of organisation, is it?
You don't need a realtor (estate agent) - but it may be helpful, as they can do all the donkey-work in finding property for you to view. Ordinarily the buyers realtor will come to some financial arrangement to split commission with the sellers realtor - who charges the seller for their services. Because of the hurting economy, many are selling "By Owner" - i.e. no parastitic realtors involved, so you need to understand and adjust for that particular dynamic.
Once you have found a property and agreed a price, you should employ the services of a general attorney, to ensure that everything is in order with the deed (no liens or other instruments that could bring entitlement to sell into question).
Once you are in the clear there, you need to appoint a title company, who actually manage the money transaction and transfer of the title deed to you. In order to get the financial aspect squared-away, it is useful (but not essential) to have a US bank account, because you are going to be depositing the funds in escrow prior to closing of the sale, so that the other parties can see you are good for the cash.
Once all the title searches are complete and you have had a thorough home inspection (again not obligatory if you are paying cash - but you would be clinically insane to omit an inspection - e.g. unseen termite damage can be significant and massively expensive to put right) you get a date for closing.
Sign all the papers - closing agent calls the bank to confirm transfer of deed, bank hands over the cash and you're golden.
I did what you are contemplating, albeit back in 2001 and in FL, rather than OH. The whole process took 11 days from saying, "I'll have it.", to being handed the keys.
You don't need to live here to buy the house - but you do need a visa to live here. Over-use of the visa waiver program will get you collared in the end, so if I were you, I would be simultaniously organising my L1A petition. Your UK company has a good degree of 'substance' right? I mean, it's not an internet-based, work-from-home, no US employees required, kind of organisation, is it?
That's pretty much exactly what I was looking for Matt, thank's ever so much! I'm very impressed at how quick the turnaround can be!
My new company over here hasn't launched yet, but we'll be launching with several staff, and we're planning to do so with a greater number of staff in the US. The core of it is split 50/50 between internet based e-commerce and offline stuff (seminars, training, travel and expeditions etc) and we're hoping to buy out an existing company too. Regardless we still have premises, and before the end of the year a larger, permanent HQ offices with wharehousing etc. So it's not just a bedroom business.
I'm also looking to setup a company in an entirely unrelated field next year, which will be my US-only venture and will require a reasonable number of employees from the off.
Money wise there's no problem there, I'm more than self sufficient and can prove as much.
Thanks once more for all the great information, huge help!
My new company over here hasn't launched yet, but we'll be launching with several staff, and we're planning to do so with a greater number of staff in the US. The core of it is split 50/50 between internet based e-commerce and offline stuff (seminars, training, travel and expeditions etc) and we're hoping to buy out an existing company too. Regardless we still have premises, and before the end of the year a larger, permanent HQ offices with wharehousing etc. So it's not just a bedroom business.
I'm also looking to setup a company in an entirely unrelated field next year, which will be my US-only venture and will require a reasonable number of employees from the off.
Money wise there's no problem there, I'm more than self sufficient and can prove as much.
Thanks once more for all the great information, huge help!
You are very welcome Stu.
Making sure you get the cart behind the horse is important when doing what you intend. Forgive me if I'm stating the obvious, but a lot of people get it all bass ackwards when establishing new businesses in the US - particularly from the UK.
Aside from your property purchase, everything hangs on the type of visa you will be using. If permanent resident status is your aim, L1 (preferrably) or H1 should be your objective.
For L type visa's the UK business needs to have trading history and you need to have been a managerial epmloyee in UK for min 12 months, so this could have some influence on your timing. H1 is for specialist employees - and can be complex to orchestrate. Both are perceived to have immigrant intent though, so if living here long-term is the goal, that should be your target (unless you are really minted and can inject $1m plus into a local EB1 scheme and effectively buy yourself a green card).
Buying or establishing a US business (E2) is risky and has no PERM route - though Treaty Trader (E1) sometimes does offer opportunity to adjust status later - but the business has to be a US customer/partner of your UK operation and as with all E visa's, having enough dosh to live on personally is not enough - you have to expand and employ USC's rapidly, or you run into serious problems when it comes to renewals. Family (older children in particular) need to be factored into your visa route too.
I'm not trying to teach Grandma to suck eggs here, but establishing how you are going to legally get here needs to take priority over how you go about buying a property. There is a huge myth that owning property in the US somehow greases the skids for a visa. It doesn't. In fact it can complicate matters, rather than aid them.
Needless to say, I'm not an attorney, but I've lived through this - and would be more than happy to share thoughts/experience if that would be any help.
Good luck - and get moving! Prices have never been more affordable.
Making sure you get the cart behind the horse is important when doing what you intend. Forgive me if I'm stating the obvious, but a lot of people get it all bass ackwards when establishing new businesses in the US - particularly from the UK.
Aside from your property purchase, everything hangs on the type of visa you will be using. If permanent resident status is your aim, L1 (preferrably) or H1 should be your objective.
For L type visa's the UK business needs to have trading history and you need to have been a managerial epmloyee in UK for min 12 months, so this could have some influence on your timing. H1 is for specialist employees - and can be complex to orchestrate. Both are perceived to have immigrant intent though, so if living here long-term is the goal, that should be your target (unless you are really minted and can inject $1m plus into a local EB1 scheme and effectively buy yourself a green card).
Buying or establishing a US business (E2) is risky and has no PERM route - though Treaty Trader (E1) sometimes does offer opportunity to adjust status later - but the business has to be a US customer/partner of your UK operation and as with all E visa's, having enough dosh to live on personally is not enough - you have to expand and employ USC's rapidly, or you run into serious problems when it comes to renewals. Family (older children in particular) need to be factored into your visa route too.
I'm not trying to teach Grandma to suck eggs here, but establishing how you are going to legally get here needs to take priority over how you go about buying a property. There is a huge myth that owning property in the US somehow greases the skids for a visa. It doesn't. In fact it can complicate matters, rather than aid them.
Needless to say, I'm not an attorney, but I've lived through this - and would be more than happy to share thoughts/experience if that would be any help.
Good luck - and get moving! Prices have never been more affordable.
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