FAQ

This is a short list of our most frequently asked questions. For more information, please call us at 302-565-8210 or write to us using the contact form. You can also reach us through WeChat by scanning the QR code below:

Wallace Zhou WeChat QR Code

I’m a Chinese citizen, can I buy properties in the USA?

Yes. The process of buying US properties is actually very simple, it’s exactly the same as a USA citizen. You don’t have to be a USA citizen, or hold a USA green card, or explain the purpose of your purchase.

Do I have to be physically in the USA to buy properties?

No. We can help you handle the closing paperwork through a licensed USA real estate attorney.

As a Chinese citizen, what documents or information do I need to provide when buying USA properties?

We will need your full name, phone number, current address, a copy of your valid Chinese passport, and a licensed USA real estate attorney can help you draft a Power of Attorney so someone you trust can sign on your behalf at closing.

As a Chinese citizen buying USA properties, do I have different property rights compared to a USA citizen?

There is no difference. You will still own a freehold tenure of the real estate with freedom to dispose of it at will, which means you will own the properties forever (you can pass on to your kids, and their next generations). The owner’s name will be publicly recorded in the local county courthouse and you will receive the original deed stating you as the owner.

How do I transfer the funds from China to USA? Who do I wire the money to?

Please wire the money to the licensed USA real estate attorney’s escrow account. The attorney will disburse the funds once closing takes place. It rarely happens, but if the attorney commits dishonest acts such as theft or embezzlement, Delaware Lawyer’s Fund for Client Protection will reimburse you the funds in the escrow account. The government website can be accessed here: http://courts.delaware.gov/lfcp/

How does a typical property look like?

50 to 200 square meters or 500 to 2000 square feet
3 bedrooms 1 bathroom
2 stories
Townhouse or Single Family House
15 years old or more
With front and backyard, and parking space

How much is the earnest money deposit required once I decide to buy?

Your deposit amount will be the same amount as the 100% of the purchase price, which will be transferred to a USA licensed real estate attorney escrow account. Technically, you will not have to pay our company any earnest money deposit because we trust that you will execute on your agreement.

After paying the earnest money deposit, how many days does it take for me to actually own the title of the property?

It typically takes about 2 weeks for the attorney to obtain any required information from you, run the title search, and prepare the closing paperwork.

Where would the closing be held at? How long does it usually take?

It would be held at a licensed US real estate attorney that has experience doing hundreds of property closing so far, if not thousands. It usually takes 15-30 minutes.

When will I get the property deed?

The original property deed will be mailed to us by the local USA government typically within 30 days. We can then mail it to you at the address of your choice.

Can I talk to your existing clients?

Sure! We do a lot of our business through referrals from our clients. All we ask is that you be respectful of their busy schedule when you talk to them.

After buying the property, who is going to manage it for me? How much do you charge?

We will manage the property in-house for you. We charge 10% of the rent. E.g. if the monthly rent is $1500, we charge $150 for managing the property for you, which includes but not limited to services like collecting rent, dealing with maintenance requests, handling billing matters and any government required paperwork.

What kind of tenants do you rent the properties to?

We rent our properties to tenants subsidized by local USA government which means you will receive guaranteed rental income every single month from the government! Even if that’s the case, we still perform very strict screening procedures before approving their rental application, to make sure that your real estate investment is fully protected!

Can I apply for a mortgage/loan on the properties I buy?

If your income derives from overseas (e.g. China), most USA bank will not approve your loan application because you are deemed as high risk. Talk to us and we can advise you on a case by case basis.

How much are the property tax, transfer tax, and insurance?

Property Tax Rate – 1%
Property Transfer Tax Rate – 3%
Property Insurance Rate – 0.7%-0.8%
Note that the rates above are overall estimates and could vary depending on market conditions and government policies.

How much personal income tax would I have to pay every year?

We are not licensed CPAs and therefore would not be able to advise you on personal income tax matters. However, see below for the estimated taxes for a property that rents for $1,325 per month. The total tax amount is only $190, when the total annual rent amount is $15,900.

Estimated Tax for Chinese Investors