Latest News

Clevelands Famous University Circle… So whats the attraction??

Home to world-renowned museums, prestigious universities, nationally recognised hospitals, eclectic restaurants, beautiful parks, lets look at some the things that University Circle in Cleveland is renowned for. University Circle is a popular haven for students, including those in post-graduate pursuits, enrolled at Case Western Reserve University or the Cleveland Institute of Art, and those in residency programs at University Hospitals, the Cleveland Clinic and the Louis Stokes Cleveland VA Medical Center. It is also a place where lovers of arts and culture can establish roots within walking distance of the world-renown Cleveland Orchestra, and the Cleveland Museum of Art. Here are some of the famous Schools, Universities & Museums University has to offer : Case Western Reserve University Ranking 37th in the country among national universities, Case Western Reserve University offers unlimited opportunities in the fields of art, science, engineering, health, law, management and humanities. Partnerships with world-class artistic, cultural, scientific and medical institutions ensure that education extends beyond the classroom, and faculty provides outstanding support and guidance for the success of students. Cleveland Institute of Art Cleveland Institute of Art is one of the nation’s leading accredited independent colleges of art and design. For more than 130 years, the college has been an educational cornerstone in Cleveland, Ohio, and produces graduates competitive as studio artists, designers, photographers, contemporary craftsmen, and educators. With approximately 550 students, CIA offers a personal educational experience with the benefits of a larger institution. Cleveland Institute of Music Since its founding in 1920, CIM has offered a world-class education to students from age 3 to 93. CIM is easily accessible to all music lovers – providing hundreds of concerts annually, most free of charge. CIM graduates play important musical roles in our world as composers producing meaningful new repertoire, as eminent instrumental and vocal soloists, as world-renowned chamber musicians and as members of premier orchestras around the globe. Cleveland School of the Arts Cleveland School of the Arts (CSA), a specialty arts school, is now a 9th– 12 arts High School in the Cleveland Metropolitan School District (CMSD). On a trajectory to be a nationally competitive arts High School, CSA strides to build arts education for long-term success. Established in 1981, CSA incorporates all aspects of the arts into its teaching approach. The school offers a joint-college preparatory academic and a pre-professional arts program in eight majors: Band, Creative Writing, Dance, Integrated Arts (and Fashion Design), Orchestra, Theater, Visual Art (Mixed Media), and Vocal Music. One hundred percent of graduating seniors apply to and are accepted into institutions of higher education. Cleveland Museum of Art The Cleveland Museum of Art is renowned for the quality and breadth of its collection, which includes almost 45,000 objects and spans 6,000 years of achievement in the arts. Having recently completed an ambitious, multi-phase renovation and expansion project across its campus, the museum is a significant international forum for exhibitions, scholarship, performing arts, and art education. It is one of the top comprehensive art museums in the nation and free of charge to all. Cleveland Museum of Natural History Beyond the Museum campus, Cleveland Museum of Natural History protects more than 6,400 acres through its Natural Areas program. Each preserve harbors at least one unique natural community, including hardwood forest, Lake Erie island, fossil dune ridge, marsh, swamp, and glacial wetland. Together, these areas represent the remarkable biological diversity that was once widespread throughout the region, and now serve as educational and scientific resources. Baseball Heritage Museum The Baseball Heritage Museum is located in the former ticket office at historic League Park, 6601 Lexington Road in Cleveland OH, the original home of Cleveland Baseball. Step into the Museum and step back into history. Everyone played at League Park. Cy Young pitched the opening game here in 1891. Babe Ruth hit his 500th home run here in 1929. Joe DiMaggio got his last hit in his 54 game hitting streak here in 1941 before it ended at Municipal Stadium the next day. Admission is free! Cleveland History Center The Cleveland History Center houses exhibits that tell the story of Northeast Ohio through items, documents, and artefacts from a variety of collections. Through the use of its vast and varied collections in the areas of family history, community history, entrepreneurship, and technological innovation, Cleveland History Center provides the public with a much-needed sense of place in today’s mobile society, and a base for learning about invention and ingenuity that can be transferred into modern economic expansion. University Circle is a growing neighbourhood with more offerings and amenities than ever before, with convenient public transportation options to get you anywhere you need to go, including downtown Cleveland and Cleveland Hopkins International Airport. In this expanding investment area for business and education, property is expected to maintain steady growth within the University Circle district. It certainly is a good time to invest while prices are still very low.

SHOULD I LOOK FOR GOOD R.O.I OR GROWTH

The age old question of Real Estate Investments. “ Should I be looking for growth or return on my property investments? “ This is a question that is on the lips of every new and seasoned investor. Global Investments Incorporated has been selling buy to let homes in the USA for 7 years now and has sold in many areas such as Up State NY, Cleveland Ohio, Toledo Ohio, Detroit Michigan, Baltimore in Maryland and are now looking to expand into more markets like Memphis, Kansas and Indiana in 2019. The Manchester based firm basically follows markets that can provide steady growth and good returns for their investors. We asked Sales Director Scott Neve what are his thoughts on this subject and what his investors are looking for and also what as a company they try to deliver to their clients. Scott was quoted in saying…. “ Most of the investors and clients we deal with come from all corners of the Globe and on a whole are looking for the same thing, a good net return on their investment. Of course if they see some growth at the same time then this is great which as long as they stay in it for the long term they should definitely see. As a company we try and follow markets and look for good priced houses that have high rental potential. These two factors provide our clients with a net return of anywhere between 15% and in some cases a 25% on their money. These markets of course can change. Look at Orlando 10 years ago as an example. You could buy a single family home for 50k USD that would rent for $1,000 a month. Giving a net ROI of around 20%. Today the same property will cost you 125k USD but the rent is the same giving a 10-11% ROI. This is the reason we don’t sell in Orlando as we can deliver higher returns in other States. But this is a prime example of what we try and deliver our clients. A solid investment property that will give them a excellent net ROI and in time very good Capital Growth… “ So we asked Scott in reality can Investors look for both a good ROI and also Growth. “ 100% but like I said earlier as long as they are in it for the long term. Listen, don’t get me wrong over short periods of time property markets can drop but in general if you take markets over a 10-20 year period you are almost 100% guaranteed to see growth. I mean if we all had a time machine and could go back 20 years what would we do?? We would all buy as much property as we could as we know over the 20 years property would be worth a lot more and in some case markets would have doubled or tripled in value. So my advice to anyone asking about ROI or Growth is that stick it out and growth is almost guaranteed and look for a good steady cash on cash return meaning that in most cases the property should pay for itself in 5-8 years depending on the net ROI.. “ Scott Neve – Sales Director – Global Investments Incorporated If you would like more information on the different types of investments offered by Global Investments Incorporated please email Scott or any of his team at [email protected]

Clevelands Most Famous

Cleveland’s 20th-century heritage as a major manufacturing centre has given the city a legacy of world-class arts and cultural institutions. Among these are the Cleveland Museum of Art, the Cleveland Orchestra and the Cleveland Botanical Garden. Cleveland’s heritage is still evident in the city’s many ethnic neighbourhoods with its variety of churches, food stores, and restaurants. This mixture gives Cleveland a depth of cultures not experienced in such younger cities as Atlanta, Tampa, and even Columbus. It is no wonder that Cleveland has established itself as a home for talented entertainers and celebrities in all art forms for many years. For a bit of fun Global Investments has complied ( In our personal view ) a list of who we feel are the top 10 famous people that were either born, grew up or had their careers heavily influenced in Cleveland Ohio. 10. Robert Patrick TV, Film actor born in 1958, spent his childhood in Bay Village of the West side of Cleveland. Hits include Walk The Line, the Last Action Hero, The X Files and most memorably Terminator 2, the one man you do not want running after you 😉 9. Alan Ruck. Actor that has appeared in many films such as Speed and Twister. was born on July 1, 1956 in Cleveland. He is part of the main cast of Fox’s “Exorcist” adaptation. By far my favourite, the classic Ferris Bueller’s Day Off. I do not think I will ever forgive him for what he did to that Ferrari 250GT California ! 8. Bill Cobs. Actor from Karamu House in the Fairfax neighbourhood on the east side of Cleveland ( the oldest African-American theatre in the United States ). His long list of films includes The Bodyguard, Demolition Man, The Colour of Money, Trading Places and New Jack City. A Legend 7. Tracy Chapman Singer, songwriter. born March 30, 1964 in Cleveland. Known for her hits “Fast Car” and “Give Me One Reason”. She is a multi-platinum and four-time Grammy Award winning artist. studied guitar and clarinet at the Cleveland Music School. A true natural talent. 6. Jerry Siegel and Joe Shuster Siegel’s family moved to the Jewish neighbourhood of Glenville in 1928. He attended Glenville High School in Cleveland at the age of 16, while at Glenville, he befriended Joe Shuster. Jerry and Joe went on to create the most successful super hero of all time, Superman. 5. Halle Berry Model, actress. Born Maria Halle Berry. Her name was legally changed to Halle Maria Berry at age five. Her parents selected her middle name from Halle’s Department Store which was then a local landmark in Cleveland. The only African American to win an Oscar for best actress. 4. Drew Carey Comedian, actor. Born and raised in the Old Brooklyn neighbourhood of Cleveland. Drew was the star of “The Drew Carey Show” (1995-2004), which was set in Cleveland. The Drew Carey Show not only provided comedic relief but had the whole country chanting “Cleveland Rocks! 3. Tom Hanks Actor, Producer, Writer, Director. Began acting career in Cleveland with (what was then) Great Lakes Shakespeare Festival, he was cast as Soldier #27 in a stage production of Hamlet. Hanks has gone on to became one of only two actors who won the Academy Award for Best Actor in consecutive years. 2. Bob Hope Actor, comedian. Born in London but grew up in Cleveland. One of the most popular comedians and actors of the 20th Century. In 1983, the Lorain-Carnegie bridge crossing the Cuyahoga River in Cleveland connecting downtown to the west side, was renamed in honour of Hope and his family. 1 Paul Newman Actor, director, screen legend, race-car driver, humanitarian. Paul Newman was born on January 26, 1925, in Cleveland. Graduating from Shaker Heights High School in 1943 At age 10, Newman performed at the Cleveland Play House in a production of Saint George and the Dragon, the rest is history. Newman came to be known as one of the finest actors of his time. Nominated nine times for Academy Awards, winning for “The Color of Money” as well as two honorary Oscars. Had major roles in more than 50 motion pictures, including “Cool Hand Luke,” “Exodus,” “Butch Cassidy and the Sundance Kid” and “The Sting.” Paul Newman tops Global Investments list of “ Most Famous “

Boom Town Baltimore – An Investors Dream

Global Investments Incorporated are the market leader in the USA Buy to Let market with almost 4,500 sales under their belt in the last 7 years. Cleveland Ohio is by far the companies best selling product at the moment with the Manchester based firm selling close to 50 houses a month in the city, mainly to overseas investors and some domestic. With sales in Detroit falling over the last 12 months the company has been looking for another product to replace the Motor City sales. In the past month they have just released their new Baltimore tenanted homes with two bed homes starting from as little as $49,900 with returns as high as 22%. Baltimore has been ear marked to be the number one USA investment city for 2019. It is currently rated as the number 1 grossing rental market and is therefore getting a lot of attention from the Overseas Investors. Baltimore offers investors a significant opportunity to get ahead of the game, not just because the metropolitan area is home to nearly three million people but because properties are well priced and rents are high. The top industries that boost the Baltimore real estate market are in the areas of healthcare, education, life sciences, and cybersecurity. These industries are predicted to boom in the next few years as millennials flood the job market. Before you make any real estate investment decision, you must know the NUMBERS so lets look at the NUMBERS in Baltimore. The average property price for a tenanted city property is only $50,000, the average rent for a city tenanted property is $1,000, therefore you average net return will be over 18%. Baltimore real estate investments are highly affordable. The median property price is well below the level in many other fast-growing markets such as San Diego, Los Angeles, and Miami. The Baltimore Sun even noted that it can be cheaper to buy than it is to rent in the Baltimore area, which is great news for Investors looking to invest. High opportunity and relatively low home prices make Baltimore one of the hottest Real Estate markets in the USA. According to the latest CoreLogic Case-Shiller report, Baltimore has been included in the top 10 major markets expected to see the biggest increases in home prices over the coming year. As a result, Baltimore rents have increased on a level equal to that of cities like San Diego, San Francisco and New York. In each of these cities, renters are allocating more than the suggested 30% of income to rent. According to leading USA property experts Baltimore real estate is having a Goldilocks moment, the market’s not too hot and not too cold—it’s just about right to have all of your porridge and eat it. We asked Managing Director John O’Donoghue why he feels Baltimore has the potential to surpass sales and replace Detroit as the companies second best selling product to Cleveland Ohio. John was quoted in saying. “ We feel that Baltimore is a different type of investment to Cleveland which we are doing so well with at the moment. The city offers red brick houses which some of our investors really like. The rents are high and CAP rates between 16% and 22% which are really attractive. I think the biggest selling point for me is the regeneration in the city and also the very short distance to Washington DC. There is a huge demand for rentals given that a lot of workers from the capital DC would commute to and from Baltimore as the rents in Baltimore would be more attractive. We have also teamed up with one of the best management companies and title companies in the city and have signed an exclusive agreement with two of the cities top suppliers of these turn key homes. We are very excited to what Baltimore can bring in the next 24 months and what it can offer for our investors. Tenanted Brick homes with high returns and 45 minuteS to DC for 50k USD, this is really an investors dream. “ John O’donoghue – Managing Director Global Investments Incorporated If you would like to learn more about what Global Investments Incorporated has to offer in Baltimore or any other of the cities they have inventory please email [email protected]

GREEN USA 2019

The USA is becoming a major player in Environmental Sciences with many conferences, seminars and workshops being held over 2019. Environmental Sustainability is at the forefront of new policies which is being implemented through many US cities at different levels. In February next year GreenBiz is being held in Phoenix Arizona, this is one of the largest events held anywhere in the world on Environmental Sustainability, 1,200 of the world’s brightest thinkers and most influential sustainability leaders will be present. The 3rd International Conference on Renewable Energy and Resources will be held in San Francisco on the 22nd of February. In April the Second City conference is been held in Chicago, which will focus on Rehabilitation, Modification, and Revitalisation of Chicago City and provide essential knowledge on the benefits of renewable energy, recreation, navigation, and habitat and environmental enhancement. Also in April we will see the Midwest Environmental Compliance Conference being held in Palm Springs California, this is one of the world’s largest meetings on the application of innovative technologies. These are just a few of the events scheduled across the US next year but it is not just events that are changing the way. The US Government are implementing policies and procedures such as the 2018-2019 Plan of Action for Environmental Cooperation Under the U.S.-Singapore Memorandum of Intent on Environmental Cooperation. The proposed 2019 budget for the United States Environmental Protection Agency stands at $6.146 billion to support the Agency’s new Strategic Plan and mission of protecting human health and the environment. The United States Environmental Protection Agency engages with state, local, and tribal partners to create and implement sensible regulations that also work to enhance economic growth. The city of Cleveland has developed a program called Sustainable Cleveland 2019. The initiative has gathered thousands of Clevelanders to build a collective vision for a sustainable future. The city’s vision “Cleveland will become a model of sustainability and become a leader in the emerging green economy over the next 10 years through the efforts of Sustainable Cleveland 2019” Their vision is strong “Cleveland will surprise, amaze, and inspire the world with its transformation to a bright green city on a blue lake. Determined people from every walk of life will work together to shape vibrant liveable communities, innovative businesses, and a flourishing natural environment that will result in health, wealth, creativity, and economic opportunities for all” Other cities across the US have similar programs in place, the City of Detroit have set up the Office of Sustainability. This office seeks to improve quality of life in Detroit by facilitating healthy, green, vibrant, accessible neighborhoods, homes, and businesses. This new office develops and implements policies and practices with City departments that embody the values of sustainability. It works to build partnerships with neighbourhoods, businesses, and philanthropic and non-governmental organisations to ensure the entire community is more equitable, economically strong, and environmentally sound. While there is still a long way to go President Bill Clinton and President George championed the environment through building LEED-certified presidential centers and libraries. Through their commitment to conservation and sustainability, President Bill Clinton and President George W. Bush have created healthy presidential spaces that engage communities from around the world. The USA like other countries around the world are looking to the future as citied by Author Richard Powell “Cities of the future should be a socially diverse environment where economic and social activities overlap and where communities are focused around neighbourhoods.

The Importance of good property management for overseas investors

After selling 4000 plus homes in the US we believe that the on the ground property management and support you receive is as important as the property you buy. At Global Investments incorporated we strive to partner with the best most efficient management companies in each city we sell properties in. When we open in any new region, CEO Mike Moodie personally travels and meets a number of management companies to decide on which one would provide the best hands on service for our investors. Before we agree to pass our investors over to the management companies all the correct due diligence is carried out, including speaking with current clients of the specific management companies and finding out about their experiences. A good property manager in the US would normally take 10% of the gross rent each month for their services. The services that they provide should be as follows. 1. Rent Collection – The most important job. Collection of rent is vital and needs to be done in a professional manor. Our management companies ensure that they have a good relationship with both the tenant and the landlord and will collect the rent on a given date every month and will then deposit or wire the funds to whichever account our investors choose. 2. Maintenance – As a landlord you would be responsible for maintenance issues on the property should they arise. The property management company should handle all of the tenants needs and requests 24/7 on your behalf. This should also include getting you the very best quote for any works that are needed. 3. Book keeping – Your property manager should provide a book keeping service ensuring that this is as hands off as possible for you and ensuring that you are following and recording any incidents with the property and also documenting any tenant requests and issues. 4. Tenant placement – Another major factor in property management. Our property managers will ensure that all tenants are correctly screened and all checks are done before making a placement, including credit, criminal and previous landlord checks. 5. Defaulting Tenants – When you hire a property manager they should not only be responsible for collecting the rent but also dealing with the legal procedures in the instance a tenant defaults. Sometimes this may mean negotiating directly with the tenants in person in the case that they are maybe only a month behind, or other times may mean filing legal processes in order to remove them from the property. When choosing a property management company of course you should do your own research and home work. Once all of the above is in place and your property manager has been appointed then as an investor all should be pretty plain sailing and if for what ever reason issues do arise your property manager is there to handle them in the most effective and professional manor. “ You can buy the best located property with the best tenants in place but if the property is managed badly this can tun into a bad investment which is one of the reasons we make sure that we only work with the very best on the ground management companies with decades of experience in their given fields. “ Mike Moodie – CEO Global Investments Incorporated.

ARKON OHIO A SLAM DUNK FOR INVESTORS

As property investment surges in Cleveland investors are now looking slightly further a field to try and get more value for their dollars, their attention is falling on Arkron. Akron has not always been on the investors radar but it is now becoming a hidden gem for the savvy investor, why you may ask ? Akron, Ohio is about 30 miles south of Cleveland City and is the fifth-largest city in the U.S. state of Ohio where you can pick up a tenanted three bed property for under $30,000. Not only are the property prices low but the rent amounts are on par with neighbouring Cleveland, low prices and high rents equates to healthy returns. Akron is a city undergoing expansion, tire companies, real estate developers and government agencies have announced more than $1 billion in investments in Akron. There is a city-wide plan to spur residential growth which was developed after analyzing Akron housing and researching programs in Cleveland, Columbus and Pittsburgh. NBA star LeBron James and his foundation have opened a new school in his hometown of Akron and Mayor Dan Horrigan released the City’s plan for spending “Issue 4” funds in 2018. The budget outlines a plan for more than $13 Million in increased investment in police and fire protection and roadway improvements in Akron. Akron is also home to many large corporations who are centred around high-tech research and development, which include WGC-Bridgestone Invitational, Stan Hywet Hall and Gardens, Akron City Hospital and the Goodyear Polymer Center. Home values have gone up 3.1% over the past year and the median household income is $505 higher than the median Ohio household income. Arkon was seen as a city grappling with its population decline and waiting on new investment to come along to re-ignite the property market. But this stagnant view has lead way to opportunity for investors, low competition between Buyers means more availability and lower prices as compared to the bustling Cleveland market. That is why Akron is a great place to invest, it offers low barriers and capital investment needs for those looking to maximize their investment potential. We have the best rental properties in Arkon, our existing Cleveland Suppliers also have offices in Akron so both cities work hand in hand, they have the experience and know how in this exciting market place. If you would like more information on our Akron or Cleveland properties please contact Mike or any of the Global team, please email [email protected]

CLEVELAND INVESTMENT PROPERTY MARKET IS ON FIRE

Global Investments Incorporated are coming into their 8th year of business in 2019. The Manchester based firm have been selling investment properties in the US to overseas buyers for the past 7 years and have sold in excess of 4,500 homes in this short period. This time last year CEO Mike Moodie predicted that the Cleveland market would challenge Detroit in terms of sales and enquiries in 2018 and it looks like his prediction has come to fruition with Cleveland surpassing Detroit by producing more than double in both sales and general enquiries and is now officially the companies best selling product. We asked Mike what his thoughts are on the change, why the Cleveland market is on fire and why there is such a high demand for these types of turn key homes in the city. Mike commented. “ This time last year we were seeing a rise in the prices in the Detroit market and also a decline in the number of properties available at the prices that our investors wanted. As a company we always have to be on the lookout for the next big thing and like to be the first to venture into these new markets giving our investors the best opportunities and at the right time. At this time we had heard a-lot of positive things coming out of Cleveland so we started working with a number of suppliers and management companies in the area. Well the rest is kind of history and right now we are selling more homes in Cleveland than any other overseas company. As we get properties listed they are literally selling within hours. It is already becoming increasingly difficult for me to find the properties and my days are literally spent on the phone with my brokers hunting down the best deals for our investors. Making sure we have homes in the right locations and then negotiating with the Sellers and driving the price down to deliver great priced homes in excellent locations to our buyers with the highest possible returns. “ See below just 5 reasons why so many investors are getting involved in the Cleveland property boom: PNC Financial Services Group will move 500 employees to downtown Cleveland by the end of the year. The move was first announced by regional president Paul Clark at a Downtown Cleveland Alliance event on Sept. 26, as reported by Cleveland.com. PNC Centre will be full for the first time in years. PNC Bank is the third-largest bank in Northeast Ohio and the fourth-largest bank in the state by deposit market share. It’s also among commercial banks that raised prime lending rates to 5.25% in reaction to the Federal Reserve’s latest interest rate hike on Sept. 26. Cleveland and Akron metros beat Midwest averages in some key areas Cleveland and Akron are defying some stereotypes and doing pretty well — and better than their Midwestern peers, in some respects.Those are among the findings of the Brookings Metropolitan Policy Program’s Oct. 18 report, “The State of the Heartland: Fact Book 2018,” which looked at data across 26 socioeconomic indicators in 19 states to gauge and rank the current condition and trajectory of cities and states. The geography in the report runs from Minnesota in the north to Georgia in the south, and east to west from Ohio to Nebraska. Cleveland and Akron are both cities with their own data sets within the report — and the data’s encouraging, Brookings says. Both cities scored above regional and national averages in terms of important indicators, including their poverty rates, median income levels, and the percentage of local residents between 20 and 64 with jobs — the employment rate, as opposed to an unemployment rate. The region also is less expensive than the coasts, while still having strong entrepreneurial environments around major universities like those in Akron and Cleveland, Muro said. That’s likely to cause money from the coasts to seek a home in Midwest investments, he added — something that local entrepreneurs say they’re already beginning to see in terms of where their capital comes from. There’s been evidence of that in Cleveland as of late, with money from the East Coast making substantial investments in downtown real estate, most recently with the purchase of the 1111 Superior Building by New York City investors. Another downtown Cleveland skyscraper is sold Following a formula rarely executed successfully in downtown Cleveland, Skokie Ill.-based American Landmark Properties bought, remodeled, boosted occupancy and sold the 1111 Superior office building in the Nine Twelve District. The building’s new owner is Baruch Superior LLC, an affiliate of Zamir Equities of New York City, which on Oct. 10 assumed a long-term lease that controls the building from an affiliate of American Landmark called 1111 Superior, according to Cuyahoga County land records. Control of the building, which is named after its street address, hinges on a lease because it was constructed on a site leased from the Catholic Diocese of Cleveland that adjoins church offices and St. John Cathedral. A spokesman for Zamir Equities who declined to be identified by name said the purchase is the company’s first in the Midwest. Most of its properties are in New York City and New Jersey. The company had a portfolio of 1.4 million square feet, consisting of six office buildings and a shopping center in Cedar Hill, Texas, before buying 1111 Superior, according to the firm’s website. Ohio Moves up 24 Spots in Forbes Annual Ranking of Best States for Business In its annual ranking of Best States for Business, Forbes placed Ohio at #14 on its list, a jump of more than 20 spots from 2016. Forbes cited Ohio’s low business costs and improved economy. In addition, Forbes ranked Ohio #2 in its quality of life metric thanks to the state’s low cost of living, short commutes and a plethora of top-rate colleges and cultural and recreational opportunities. Centrally located between New York City, Chicago and Toronto, Ohio affords quick market access

Shall I form an LLC for my Real Estate Investment ?

Over the last decade, Limited Liability companies ( LLC’s ) have become one of the most preferred forms of business entities through which to hold title to investment real estate properties. LLCs did not come into existence in the United States until 1977 when the State of Wyoming enacted special legislation to accommodate the needs of oil companies, now all 50 states have enacted legislation creating some form of the LLC structure. The insulation from personal risk exposure for real estate investors provided by LLCs, coupled with the relative ease of administration and potential tax benefits, make ownership of investment property through an LLC a very desirable option in most instances. What are the main 3 reasons to Form an LLC ? The main reason and as the name suggests is to Limit your personal liability. An LLC lowers the owners risk from any hypothetical lawsuit, the LLC provides an insulation to the owner as only assets owned by the LLC are exposed to any hypothetical lawsuit. This corporate structure ensure the members of the company are not personally liable for the company’s debts or liabilities. However the business owner could be held responsible for corporate debts in certain situations especially if you personally guarantee any business loans, credit cards, or other extensions of credit to your LLC. In all states, having an LLC will protect owners from personal liability for any wrongdoing committed by the co-owners or employees of an LLC during the course of business. 2. Pass-Through Taxation for Single & Multimember LLCs Under the default tax classification rules, the IRS classifies a real estate holding company with one owner as they would a sole proprietorship, namely as a “disregarded entity.” As a result, income and capital gains from the LLC pass through directly to the owner, who would only have to pay taxes as an individual, while still enjoying the protections offered by the LLC liability shield. Since there is no separate LLC tax, the owner can avoid double taxation on both the rental income generated by the property and the appreciation in value of the property upon disposition. Moreover, the owner of a single-member LLC can deduct mortgage interest similar to a sole proprietor based on current IRS rules. Real estate holding companies that have several owners are known as “multimember” LLCs and are generally taxed by the IRS like partnerships, meaning that the LLC files an “informational” tax return, but does not actually pay taxes itself. Multimember LLCs also enjoy the benefits of pass-through taxation as the LLC passes its profits and losses through to its members, who report their portion of the LLC’s business income or losses on either a Schedule C, K or Form 1065 with their individual income tax returns. This means that both single member and multimember LLCs offer the benefits of pass-through taxation of profits and losses and limited liability and personal protection for the owners. Obviously every buyers circumstances are relatively different and Global Investments do not provide tax, legal or accounting advice, you should always seek professional advice. If you wish to learn more regarding tax obligations then Global Investments can introduce you to professionals in the US that can offer this advice free of charge. 3. LLCs Can Make Business Life Easier When delegating management responsibilities, LLCs enjoy much greater flexibility than either a corporation or partnership. While corporations are statutorily required to have officers and directors, the LLC can be easily managed by its owners or third-party managers. In the many states that impose increased fees based on the authorized number of shares, LLCs may pay lower state registration and maintenance fees than corporations. Owners of LLCs can take advantage of the tremendous flexibility in the distribution of profits, as determined by the LLC’s operating agreement. Cash flow distributions do not have to be pro rata according to ownership like an S corporation, which gives the owners the ability to financially reward the effort of select members through appropriate distributions of available cash flow. Unlike an S corporation, foreign ownership and investment in U.S. real estate is possible through an LLC. LLC owners can also easily transfer their ownership in real estate holdings by proactively gifting the company’s membership interests to their heirs each year. Over time, it is entirely possible to effectively pass ownership of real estate owned by an LLC to loved ones without ever having to formally execute and record a new deed. By opening a LLC will enable you to open a US bank account. Your management company can then transfer your rental income into your US bank account which helps you save on transfer fee’s and limits exposure to exchange rate fluctuations. What are the disadvantages of having an LLC ? Insurance Ask an insurance company and they may recommend you save the cost of setting up an LLC by just increasing your liability insurance on your policy. After you close on a property Global Investments ensure we put you in touch with the best insurance companies for your needs and make sure you have the correct cover to give you peace of mind. 2. Obtaining Finance for your property purchase Almost all lenders will not let you borrow in the name of the LLC. Instead, they want someone personally liable. This may require you to buy the property entirely in cash, or you can try to deed the property to the LLC after purchasing in your own name. Generally speaking Global Investments only deal with cash buyers, our properties are priced in such a way that they sell to buyers ready to move fast. 3. The cost of setting top and running an LLC Obviously setting up an LLC is not free of charge and you would require a good CPA to organise this on your behalf to ensure things are done correctly. Global Investments will help you with this also. We have reputable fully qualified staff on the ground that will take carte of your needs for a

JACKSONVILLE AN INVESTORS DREAM

Jacksonville Florida is now seen as the number one investment city in Florida, some real estate analysts say it is the best investment city in the whole of the USA. Jacksonville is the largest city in America in land mass terms and the population growth since 2000 has been 24.1%, which is higher than Miami and Tampa. The population has grown at twice the average national rate, as has the number of jobs. Most new jobs have been in business services and healthcare and therefore tenants have a high income level but there is a low inventory of rental property, the low home price to rent ratio is very favourable to single-family rentals. Jacksonville has the ability to give investors long-term returns, the low level of inventory and the immense popularity in growth leads the way for good future appreciation, the job market is set to increase by 42% in the next ten years. Since the beginning of 2017, Downtown Jacksonville has seen more than $3.5 billion in completed, under construction and proposed development projects, such as the Barnet and Laura Street Trio. Jacksonville beach has also been a hive of development, there has been a major rebuilding of the infrastructure including new parking, new parks, new beach access, a new pier, and demolition of outdated properties. There are also new restaurants, boutiques and nightclubs with many major hotel chains taking foot, the new luxurious high rise Jacksonville Beach condos are now in very high demand. Even-though you have a tropical climate, white sandy beaches and huge development, Jacksonville still offers a low cots of living as compared to other Florida cities. The cost of living isn’t just lower than the U.S. national average, it’s lower than Florida average as a whole. This coupled with the fact that the rate of building homes and property has dependably been low over the years has created a supply vacuum which means the future looks bright for investors. Jacksonville ticks the investor checklist: Affordability, Economic Growth, Population Growth, Desirability, Supply and Demand. Jacksonville real estate is a great investment opportunity and not just because we say it, many property experts, and organizations have ranked Jacksonville as a top investment city in the USA. “One of Nation’s Largest Home Builders Betting Big on Jacksonville” “Jacksonville Economy Surges in Latest Ranking” Global Investments have just signed up an exclusive agreement with the leading supplier of turn key homes in Jacksonville with prices starting from as little as $59,900 and net returns as high as 13%. With excellent on the ground management in place. If you would like more information about investing in this exciting city please contact any of the team at Global at [email protected]