A worthwhile read for US property Investors
Conclusion
The picture for housing is decidedly uncertain, and confirmation of the ten trends listed above will be needed to establish a clearer forecast.
In Part II: Key Insights for Those Buying Real Estate as an Income-Generating Investment, we inspect the specific factors that most frequently determine whether a real estate investment is successful or not.
Too often, when buying real estate for its income-generating potential, small investors make costly underestimatations or miscalculations that materially handicap the returns on their invested capital. In this type of sector, being forewarned is forearmed.
Source http://www.zerohedge.com/news/guest-post-housing-attractive-investment
The Freckle
Can anyone tell me anything good or bad about the company U.S Invest ? (U.S Property Investment company)I have been looking into property investing and am doing lots of Due Diligence. So far I could see myself using this company as they pretty much hold your hand throughout the process’s that as a newbie can be a little overwhelming. I am thinking that it would be better to use this option than to go into somewhat blindfolded. I pay a joining fee that is reabsorbed when I make my first purchase (this eliminates tyre kickers taking up a lot of their time I think)
They have the houses tenanted newly refurbished under good management and supply all the legal and accounting processes at rates which are at or below market value as they say these professionals get a lot of business from them. When you purchase the properties you pay a $3995 fee which includes all the renovations as they say they get the materials /labour at good rates because they buy the materials generically in bulk at a excellent rate. The houses also look like they are in line with other prices in the same area/market.The only other closing costs equate to around 2-3 % It seems good to me as I wouldn’t have to spend so much time figuring it all out for myself (although I would always strive to keep educating myself) It just seems like it would be less risky for me so my real question is why isn’t everyone using them?
Looking forward to your comments
Hmmm, why is that that most people don't use them?
i couldn't even find a property to look at on the site
Here is one of their examples they recently emailed me…
They don’t have the properties listed on their site you have access once you are a memberhttps://tmc91650.infusionsoft.com/app/attachment/18302/14836/fc1e23ab618aa4b3d17d4ee178772d7d
(hope this link works if not you can email me and I will forward an example on to you)
stevenandvikki wrote:Can anyone tell me anything good or bad about the company U.S Invest ? (U.S Property Investment company)I have been looking into property investing and am doing lots of Due Diligence. So far I could see myself using this company as they pretty much hold your hand throughout the process’s that as a newbie can be a little overwhelming. I am thinking that it would be better to use this option than to go into somewhat blindfolded. I pay a joining fee that is reabsorbed when I make my first purchase (this eliminates tyre kickers taking up a lot of their time I think)They have the houses tenanted newly refurbished under good management and supply all the legal and accounting processes at rates which are at or below market value as they say these professionals get a lot of business from them. When you purchase the properties you pay a $3995 fee which includes all the renovations as they say they get the materials /labour at good rates because they buy the materials generically in bulk at a excellent rate. The houses also look like they are in line with other prices in the same area/market.The only other closing costs equate to around 2-3 % It seems good to me as I wouldn’t have to spend so much time figuring it all out for myself (although I would always strive to keep educating myself) It just seems like it would be less risky for me so my real question is why isn’t everyone using them?
Looking forward to your comments
Do you normally hijack threads with OT posts. Strange behaviour for a newbie
The Freckle
lol, did your feelings get hurt Freckle? I would say that not knowing where to post would be normal newb behavior.
The Kyler
kylermrice wrote:lol, did your feelings get hurt Freckle? I would say that not knowing where to post would be normal newb behavior.The Kyler
Actually not that surprised really. I’ve seen several instances of new members simply jumping into threads and asking completely OT questions. Makes you wonder that if they can’t figure out how a simple forum works what hope have they of becoming competent investors. Me thinks not much at all.
The Freckle
Not to many people get as deep into what trouble the economy is here when they consider investing here . I can say as an American we are resilient and this doesn't go unnoticed. All i can do is continue to work on being a small business and taking up the slack of the "Big Gov" and work with community banks. Those deemed "To big to fail" is scary thought when they have a majority of the assets.
I can't speak for others but for myself it has been a great experience! I deal mostly in cash flow rentals and usually pay off my investments in a year or two. I also take the cash flow and purchase a couple of long term properties with capital growth potential. But the passive income from the cash flow will pay more than holding most properties and hoping for appreciation to be the big pay out. Have you invested in the market?
kylermrice wrote:Have you invested in the market?Only PM’s as a hedge against the coming storm. Down about $7k at the moment. Talk about timing!! But the potential is for a 10 fold gain over the next few years. We’ll see. I have other irons in the fire other than markets.
The Freckle
PM's?
kylermrice wrote:I deal mostly in cash flow rentals and usually pay off my investments in a year or twoWow. That sounds interesting…could you elaborate a bit / give an example?
Ziv Nakajima-Magen | Nippon Tradings International (NTI)
http://www.nippontradings.com
Email Me | Phone MeZiv Nakajima-Magen - Partner & Executive Manager, Asia-Pacific @ NTI - Japan Real-Estate Investment Property
kylermrice wrote:PM's?precious metals
Ah, gotcha. The price for gold has been run up here. I stick with houses, at the end of the day u need food and shelter. If it comes down to trade at least i can trade shelter for something in return. I really hope it doesn't get that bad
@ Steve and Vikki
In my opinion i wouldn't go with the one stop chop shop site, they are predatory as hell. In the end it is to good to be true and will not live up to the hype.
@ Zmagen
This the type of investment I am talking about. I don't crunch numbers that a lot of other people get crazy on cause they are trying to squeeze that ROI to make themselves really get that precise return. This what i have my younger protege do as a simple formula that helps him. I'm shooting for the high risk to reward scenario, The C class neighborhood, Da Hood, The Ghetto. I always get razzed for posting these type of investments, but it makes cold hard cash! I expect nothing more from these houses and don't like selling them other than they are a good source of capital for me to keep getting more.
Here is a of scenario and how i try to stick to my formula, as i have refined my strategy to make it easier to pay off what i begin putting into the property. Man, that last sentence really made me feel like i was one of those late night real estate gurus that lures in the novice investor. Like a moth to the flame, lol.
http://www.zillow.com/homedetails/4241-Brooklyn-Ave-Kansas-City-MO-64130/2341215_zpid/
I call this the investor that didn't know what they were doing. Be it they spent to much on rehab, couldn't get good property management, there is all sorts of things that can kill the novice in these scenario's. If i was buying at the moment i would snatch this one up.
Can i pay off for what i put into it in less than five years? Just doing quick numbers in my head i would say two years, even better
Was listed on the MLS 10/27/11 and they are now asking 14,500, so would say u could offer them 10,000 and they would take it. 4 bedroom 2 bath would rent it for $675.00 a month, cheaper than the competition and makes it more appealing to the tenant than other choices that would be 750.00. Rougher area and turn around can be tough sometimes and we will go with it paying out at 8 months. If i don't people will say i'm not being realistic for this type of investment. I do around an average of 10 months, that's were the experience of the market and doing in house property management helps me put more money in my pocket. Rehab lets say is 3,000, they did most of the rehab it looks like from the pictures already. Was nice of them to replace the plumping with pex, that's what i always replace all the plumbing lines with. It's freezes all the line does is swell.
So your in it for 13,000
insurance general cost is $200.00 a year and insured for $35,000, get heck of a deal when u have multiple houses and cars on your insurance planTaxes $337.00, sorry Texas your high taxes kill my hopes for cash flow.
$675.00 X 8 months $5400.00 in cash flow
minus
taxes and insurance $537.00
$4863.00
2 years $9726.00
3 years $14,589.00My numbers i would use, some times better and some times worse, but my average spread across my portfolio.
$675.00 X 10 months $6750.00
minus taxes and insurance
$6213.00
2 years $12,426,
Close to that two year mark i was shooting for
3 years $18,638.00Wow, this is a deal i would really jump on if i could get each house at 9,000 instead of 14,072.
I read through it after i posted and saw some mistakes i made in grammar and sentences not making since, sorry in advance, lol.
Interesting projection, thank you.
So you reckon 8 months a year payout for a reasonably maintained house in any US ghetto is a sure thing? Wonder where all the horror stories about ghetto ghost towns and lost investment funds come from…? Where would you say people go wrong?Ziv Nakajima-Magen | Nippon Tradings International (NTI)
http://www.nippontradings.com
Email Me | Phone MeZiv Nakajima-Magen - Partner & Executive Manager, Asia-Pacific @ NTI - Japan Real-Estate Investment Property
Freckle wrote:kylermrice wrote:Have you invested in the market?Only PM's as a hedge against the coming storm. Down about $7k at the moment. Talk about timing!! But the potential is for a 10 fold gain over the next few years. We'll see. I have other irons in the fire other than markets. The Freckle
Freckle….. it sounds like your a Mike Maloney fan ?
KnoxOff wrote:Freckle….. it sounds like your a Mike Maloney fan ?Not really. I monitor a diverse range of commentators along with him but he’s actually the least read on my list.
I invest in silver through a pure play silver mining company in Qld “Alcyone” and a few $$$ in a silver ETF. I’m down about $7k at the mo’ Boy have I learnt some lessons about how manipulated PM markets are. When heads roll I want front row seats.
It won’t matter if I loose or make money from silver. It’s a hedge against the likely crash. If things keep rolling on I’ll make good bucks investing in myself through business. If the crunch comes then silver should buffer me against the worst of it.
I need 2 years to clean up and get out. I’m hoping things will last that long but I can’t say I’m confident.
If things get really bad I’m heading back to NZ, buying some gold panning and camping gear then bush for a while. I know of places where I could get 1/2 to 1oz per week. Gold will be well north of $2k if things get that bad. The only potential downside to that is I might end up shoulder to shoulder with other like minded individuals.
The Freckle
Freckle
i don't know about Maloney's predictions on the pog or silver
but i do like his idea of valuing property by how many ounces of gold it takes to buy or
how many barrels of oil or tons of grain rather than just using a manipulated currency valuekeiser is a bit over the top
i prefer faber's commentary on WORLD marketsIn Australia Dale Gilham is good , he says the crash is inevitable ………. no biggy , just get it over with
Back to NZ prospecting, you should make a TV show , man i love that Alaska gold rush show
yeh i know its men's soap opera , but i still love it .
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