Hi has anyone tried these kind of deals overseas?
http://c03cdp4apldj6odpf7ujt9s2wm.hop.clickbank.net/?tid=GT57THB4
If you have enough money to fix up a foreclosed home, it might be a great deal. Before buying just make sure what damage has been done to a house and how much it will take to fix it. If it is plenty of cash, try to lower the price.
I have a lot of investors who have or are purchasing these types of homes. Many of them generally miss out because someone else sees the opportunity but ends up overpaying for the property. So you need to be very careful that you don't overpay because you are distracted by the 'potential to make money'.
Regards
Shahin
TheFinanceShop | Elite Property Finance
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Interesting. The Canucks are the single largest investor group in the US RE market.
The more and more I see of the these foreign RE markets the more I think punters should start learning the 'speculators' mindset as opposed to the 'investor' mindset. The global financial landscape is becoming more fluid by the month and I suspect those that have traditionally approached these opportunities as long term investors will over time loose their lunch on these deals.
My gut tells me that those playing foreign RE markets with long term strategies will eventually get done like a dogs dinner.
When trying to buy directly from the MLS, many are what's called HUD homes, that are listed with selected realtors, if looking at placing bids on them, they will give preference to someone wanting to be a home buyer for themselves, before they look at an investor.
And that can lead to multiple offers on the property being made, and quite often the selling price end up being higher than the listed price.
Buying from over here in Oz, you should ideally have someone on the ground over there to place bids for you and know how the system really works.
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You can get lost very quickly in placing offers on what seems to be a great buy, but can often be a total disaster in the making if you don't have someone on the ground to check the property out before making your ofers.
As good as some of these deals look, if you are trying to buy foreclosures directly from outside the US, you can really end up chasing your tail. Even if you succeed in putting in a bid, often you will still miss out because multiple vendors are spruiking the place to different prospects. Dealing through a wholesaler can be better, although you need to make sure they have exclusive rights to sell the property or own it themselves to avoid the above situation. <moderator: delete advertising>
anyone can buy property in the US. That is the easy part. The hard part is aligning yourself with a trust worthy entity or individual who can manage the renovation, rental advertising, property management. Instead of looking for the needle in the haystack that might be a great deal, there are so many other factors that are crucial to making that 1 in a million property steal even worth the money you paid for it.
Pretty tough to do from afar
Exactly Jay, very tough to do from afar if you don't have a competent management/agent in place on the ground who has your best interests at heart. Hard to find and you can really only rely on testimonials of people who have done it from afar before and how they did it and who they used.
Like the old Warren Buffet quote:
"It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price"
Same goes with real estate.
You could get an absolute steal on the MLS… but if you don't have the expertise or someone else on the ground to manage it and ensure the asset performs, what is the point of looking for that needle in a hay stack?
Why not pay a little extra for the on ground support & expertise. Long term the absolute steal could turn into a massive headache.
Joel, The foreclsoure business is ultra competitive in most premier markets in the US… There are many funds out there backing US companies from large hedge funds to small boutique funds that have maybe 5 to 100 million. If your working in areas that US buyers in the know avoid then you can compete with small dollars IE 50k to 1mil…. These markets would include Metro Detroit ( Wayne Co) Soutside of Chicago over towards Indiana ( crap there is all kinds of homes you can buy there at tax auctions for 1 to 5k.. Never be worth anything but you can buy them Fort Wayne Indiana etc etc… The Up state New York towns and many other 3rd and 4th tier Mid west markets…………. The worm has turned in the following markets ATL,,, PHX, CA both N. and S. VEGAS…and Florida is heating up in specific markets… And Texas markets are tight as well thats why a lot of the guys on this site that used to be in Texas are now touting FLA./// Best way for some arm chair AU investor to buy foreclosures would be to invest with one of the funds that speciliazes in this business… Do EXTREME due diligence on the Managers and( "leave the driving to them" old US expression anyone remember it? Hedge funds though the minimum investment is 1 million us dollars.
I agree it is a very competitive market however there are good deals out there. However the secret is that you must have a team on the ground doing the work.
Under no circumstances should you sign up to one of the many sites offering bank owned homes and try and buy they without having someone check them out. If you do you are taking a massive risk.
Always have someone on the ground who will inspect the property and then organize a building inspection to make sure the property is in sound condition. Have your bank account set up along with your LLC before you do anything. Also deal with a property management company that knows what they are doing and have a good title company to make sure the title is clean. If you do these things then you just might buy well. If not you would be better to play the lotteries.
Nigel Kibel | Property Know How
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Nigel is right, you have to have boots on the ground or you are wasting time & resources. Combining your funds with groups active in specific markets is the way to go. Atlanta has been what we call a "high& best" offer city for awhile now. The REO listing agents play that game even if yours is the only offer. Not long ago I went after a 25k listing in stone mountain. It needed $25k in repairs but worked for my shared housing program. It had over 35 offers and sold for about $58k. That's typical of what's going on with MLS or FMLS listings today. You'll have better luck with wholesalers provided you do your due diligence!
We buy directly from the banks in Orlando. However any property is fully assessed and inspected before we buy.
Nigel Kibel | Property Know How
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