Don’t blame me for being sceptical but,
Are the USA positive cashflow properties real or a myth ?
If they are real why is the rental return so high in comparsion to the purchase price?
Any information about investing in the US market would be or great help!!!
Thanks Josh [specool]
JBuggy
Hi Josh
Returns are good. I have just come back from running a real estate group in the Unitedv States in San Antonio in Texas. It is important that you do your homework very carefully.
I suggest you work out your structures, preapproval of finance.Only look at the net returns. Although returns can be very good in Texas their is a 3% property tax. That means that if you own $300,000 worth of property you will ber paying around $9,000 in Tax. Thats a big chunk of your return. Properties will rent well up to $1200 per month buy they become far more difficult after that amount.
I am also lookingh for people interested in buying large quantities of property together. Pm me or email to [email protected]
Nigel Kibel
http://www.propertyknowhow.com.au
check out my new web siteAustralian and New Zealand The United States Property Researcher and education
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Hi Josh,
The best research you can do for yourself is to jump on a plane and go and see it for yourself.
The returns are only as good as the people you are dealing with. I know people making great returns and also know of situations were people have been burnt in the very same market.
So dont take it lighly, make no mistake about it, its very different and you really need to pick your areas.
Understand the demographics or work with someone who is an expert in that market. And that goes for any market where you are buying outside your back yard.
Stick to areas where the rents on a single family home (just as a guide) are no more than $850 a month in rent. You will find if you buy right they will also cashflow for you.
Be aware (which is very difficult if you havent been there) that there are no go zones that you would want to stay well clear of like down town and dont get sucked in purly on cashflow alone because it could be in a very bad neighbourhood where you could experience more problems than anything else.
Its essential in my opinion that you develop a good working relationship with people on the ground who are in the market who put there own money into properties in the market as well.
You would be amazed how many opinions you get on things but when you actually ask people so how many properties have you got etc, so many havent even done anything. The best education is getting in there and doing it. Only then do you really grasp what is going on and where you learn from your mistakes.
Also be aware of your markets and have an objective in place as to what you want to achieve. I say this because the are high yielding areas such as Bufallo etc in WNY however very slow capital growthso just be aware.
Lastly start small, get your feet wet and see what you think. But if you can definately invest the time in going there to have a look at it.
Good luck with your research.
chad
Providing Turnkey Real Estate Investments In The USA.
We also provide Owner Finance in a new emerging market.E-mail:[email protected]
web: http://www.gr8realestateinvestments.comON SKYPE AT: chaddylansimons
Heh Chad
Did you get my email ?
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
New 100% Shared Equity scheme coming soon – Email us for details.Richard Taylor | Australia's leading private lender
Josh,
I’m new to this forum, but being from the US, would have to strongly agree with Nigel and Chad. I came on here to see what the international market was like and to begin learning on a global scale, but have a pretty good feel for the US and think you’ll easily find good cash flow deals in numerous places around the country.
The biggest factor for you and any investor is the people representing you, whether realtors/birddogs, appraisers, mortgage brokers, etc. You have to have a good team here, just as I’m sure you must have where you live as well.
I don’t feel as though I’ve earned any credibility on this forum and so I don’t have any intentions of selling my own services, but would highly suggest you look into areas like Indianapolis, Indiana, where I live, and Cincinnati, Ohio. There are plenty of good properties in good areas where the cash flow can be pretty amazing with great prices.
I also agree with Nigel in that you should definitely put together your financing now and find out what you’re capable of handling.
Good luck!
Derek Guyer
http://www.landchasers.comHi Bug,
I am living here at present – have been in L.A for 18 months, but have not done any investing while I’ve been here.As a result, my knowledge of the finer aspects of the systems here is bugger-all, but I can tell you, as has Nigel, Derek and Chad, that there are many areas with pos cashflow, but you need to research your areas very, very carefully. For example; Buffalo – good returns and cheap properties, but little c.g, dwindling population, rising unemployment and crime and at present is clogged in snow.
There are sooo many micro markets in this country that you can’t simply look at the r/e market with a blanket approach.
The biggest hidden cost that I can see is the property tax – absolute joke. But the way it is done here is that normal home-owners get a tax concession on their PPoR mortgage, then pay prop tax, whereas in Aus we get no tax concession on our PPoR mortgage, but then don’t pay prop tax either – swings and roundabouts.
Cheers,
Marc.
[email protected]“we get sent lemons; it’s up to us to make lemonade”
Hey guys,
hope yr all well?!!Yes the on paper returns are there in the states for sure but you definately need good connections to work with over there.
Also make sure you factor in vacancy rates and re-rental fees if you are considering the multi unit blocks in the lower socio economic areas.It does eat into yr returns for sure.
welcome too Derek to this aussie based forum.we will appreciate yr input on yr areas of expertise in the states for sure!!
(love yr website man!)Also marc,are u doing acting in LA? just curious!
regards
luke“Don’t let yr character be impacted by yr surroundings, instead make yr character impact yr surroundings”
– Rachel Scott(17 yr old killed in columbine shooting 1999)http://rachelschallenge.com/Luke Taylor | Hope Property Investing
http://hopepropertyinvesting.com
Email MeProperty Support,Strategist and Buyers Agent
“Also marc, are u doing acting in LA? just curious!”
No, WorldChanger – just acting the fool!
Actually, we are here for my wife to follow her dream of traveling as a nurse. She is doing a 2.5 year travel nurse contract, we have been in L.A for the first 18 months; one year to go! We are heading to the East Coast in June for the last 10 or so months of the contract. Florida probably.
I am semi-retired these days (I am a professional golf teacher by trade) and while we are here in the USA I am basically retired and being a house -dad for our 5 year old son. Life’s tough.
However, I haven’t been totally slack; I have written a golf instruction book (shameless plug!) which should be on the shelves around the middle of the year.
It is called “WHY DO I SLICE?” and is very different to any other instructional book on the market – it is in the form of a novel and has 2 main characters. It’s a lot of fun to read.
Maybe I can start up a golf tips thread on the forum for the golfers amongst us? Not strictly property, but I’m happy to do it if the MODS don’t mind.
Cheers,
Marc.
[email protected]“we get sent lemons; it’s up to us to make lemonade”
Hi Guys my 1st post on this site
As a UK expat I’ve lived in NE US for a decade and seen a few property surges in the NY+CT area. Just starting my property venture here and seems the key is a lot of research and good relationships to locate the gems from the garbage – but getting your feet wet is the best educator.
Close friend of mine sold up from NY and bought a commercial property in Oakland, CA 3-4 years ago and has done very well but his cashflow is getting squeezed by lenders though his capital appreciation has been stellar. His summary is that the business here is fragmented, poorly administered for the most part and has opportunity if you are prepared to dedicate the necessary due diligence and contact building. Fwiw he is now more interested in the securitisation side going forward though I’m not totally convinced given the brewing crisis in repackaged sub-prime loans in CA.
Anyway I’m living in Connecticut so if anyone has ideas of income properties at the low end of the scale in my state feel free to chip into my research pile.
cheers.
c.
Hello
I’m new to this forum (posting, not reading) and have just moved to the US with my husband, so we’re excited about investing in such a great positive cashflow market.
We have the benefit of a social security number and a US address, which may help us obtain finance, however we have no credit score yet, which is a really important part of borrowing here. We’re wondering if anyone has any recommendations for a mortgage broker than can help us borrow over here.
We’re looking at multi family properties (apartment buildings) and planning to get creative with deposits, using owner financing wherever possible, as much of our money is tied up in our Oz property.
We’re already learning a lot, but at the point where we need to build our team and establish our financial situation, so would very much appreciate if anyone has good contacts over here who knows about foreigners financing local deals.
Many thanks!
Glowkat
Hey Kat!
Welcome !
You have a great headstart on most of us investing in the states,
in that u have the ss number! It wont take long at all to build up a score but you probably wont even need to to get started.Defiantely get a few different quotes on the loans you are after
with a few different people, and speak to Ben Carmona aswell as he will look after u for sure.
http://www.bencarmona.com
He is very aggressive and thorough.regads
Luke“Don’t let yr character be impacted by yr surroundings, instead make yr character impact yr surroundings”
– Rachel Scott(17 yr old killed in columbine shooting 1999)http://rachelschallenge.com/Luke Taylor | Hope Property Investing
http://hopepropertyinvesting.com
Email MeProperty Support,Strategist and Buyers Agent
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