Any advice re;USAcashfowproperties.com

Lady_E

My Mum has just called meas she is worried about one of her friends.Apparently she had a bit of a small windfall (£20k) and has somehow got wind of this company . The general idea is that you purchase a property in USA in a nice area , you become a landlord to low income tenants. She has been told that she could expect to get $600-$800 per month. Mums friend is resident over here, has been to USA many moons ago and could be considered quite vulnerable.

Anyone heard of this company? Are there similar elsewhere? Is it a scam?

Many thanks

Their website is https://www.usacashflowproperties.com

RayWolfe

Excellent idea!
Not.
Don't people read the papers anymore?

Lady_E

Thanks for that, but so that I can explain to Mum can you tell me why?

I am old school,in so far as if it looks to good to be true,then it is dodgy,but I would like to know where the con is. Is it a take the money and run scenario?

dunstonh

You may have heard that there is a credit crunch. Its pretty hard to miss on the news.

The transaction proposed to your mum is very high risk. Its higher risk than putting 100% of that £20k on the stockmarket at the higher end of the risk scale let alone the general stockmarket.

1 - she would have to borrow money to make up the difference in the £20k and the property price.
2 - she would have no way to manage the property when things go wrong (and low income families will create problems)
3 - she would be subject to US law and their compensation culture
4 - she would have tax issues here and there to deal with
5 - property prices in the US have been in freefall.
6 - she has no regulatory body or consumer protection when it goes wrong.
7 - she would potentially put her own current property at risk if it goes wrong and could lose everything.

Lady_E

Thanks for explaining - we knew it was too good to be true!

Mum now has to explain to her friend that it may be a bad idea . I think from what you have written she will have no need to exaggerate! I think a trip to her friendly IFA is in order.

Thanks