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Alex SC
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@alex-sc
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Post Count: 585
February 15, 2012 - 10:02 pm
kylermrice wrote:
Wasn't talking about cash flow properties Jay. I invest in Florida for the type of houses you are talking about. The gem on the water that is 90K that was 500K back in the day. I can pick up about the same house here with the same potential as Atlanta. Wouldn't mind getting one in Mesa, AZ before all the for closers dry up there.
If it wasn't for my cash flow houses i wouldn't be able to buy my long term investment properties. The passive income they generate fuels all my buying power. Some use loans which is riskier to me than doing it this way with cash cow rentals.

Guys cash flow today and hope for a appreciation later. So diversify in any and all markets you buy in.
Alex
Alex SC
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@alex-sc
Join Date: 2011
Post Count: 585
February 15, 2012 - 9:42 pm
emma171 wrote:
Jay it is fantastic – I echo Jeremy's sentiments. I made a big decision that I will always focus on working with an individual versus selling properties…. I love the level of involvement that I can keep with each client and each of the properties – I am a thrill of the hunt and the rehab person…. My parter and one of our cash lenders are in it to win it.I like the one on one type relationship.Slower but not just trying to cash out on every one who comes knocking
finding the gem is the goal – plus my partner is a builder. It might be hard slog but I would rather every investor learns what earnest money deposits are, proof of funds, title transfer processes, title insurance, US property management nuances etc than get whacked with buying shell LLC's – shelf LLC's (please heavens – the latest recycled issue – buy a "seasoned" LLC for the purposes of obtaining financing) and get burnt. If people are entering a new market, they SHOULD be interested in these matters and should understand that even if they want "no involvement". Yes and No been working with a lawyer on setting up LLC shell up and selling as a business. Jay met the lawyer I am talking about. Then again I am a real estate and house guy so a bit over my head.
Danger Model The danger is the same any organization has – organizational growth and managing growth… and this is what I personally feel has happened. Probably starting with good intentions, Australian Facilitator (AF) sells a property with all good intentions – yields are great, everything goes brilliantly, AF sells lots more people properties – maybe they start out with a choice element…. and the first 5- 15 clients do get some great deals in great locations. All of a sudden, the person selling the properties has 30 people wanting a property – and slowly but slowly their "standards" slip… there just aren't 30 good properties on the market and they are too busy handling the front end…no longer have they even SEEN the properties – but wait, they are needing to sell (that is their model… just sell)…. so now they have to "partner" up with people they "trust"…. now they have no clue what those people are sourcing and if they even are…so they are sell quickly, make hay while the sun shines and then retire or join the seminar circuit…… Or disappear as one "famous" Melbourne company apparently has. This is fine, so long as the investor KNOWS what they are buying and knows how to take matters into their own hands at the end… Yes to many Australian and American companies alike are selling in so many markets. So they have inventory to cash in on. Not a big fan of this. That was main reason we pulled out of Atlanta. In Charlotte I have all the extra"s that I need to run a large company. Living here and knowing every one helps. So those are the intangibles that help my company. Now on the other hand some one like Jay being he was in the lending business.As he lent funds to me back in the day and we did not even know.At least I was in good standing with those loans. Jay has lent to many teams like myself. So his know how is superior to most who are just selling to make a quick buck.
. I mention it a million times when I talk about realistic nets – why doesn't anyone think the simple things like lawn mowing up to once a week will be a factor ($20 a pop) equals about a pool in Vegas is $100 a month (pools… aka vegetable patches), HOA's, gutters cleaning, composition shingle roofs, quarterly maintenance/check ups on a/c's, termite boosters…. not hard, not a no, just a consideration and needs factoring in…. Here is simple cost and example years ago I had a pressure washing company and I went out in spring and fall and charged $99 to $180 dollars per house to clean vinyl siding .Cutting grass my guy charges $45 bucks. Cheaper if I give him bulk. So many expenses that people are not seeing or believing. Ac we as a company make sure out investors get the units services twice a year. Add in the $99 fee but saves on long term replacing unit.
I personally have a rule of thumb to buy at least $15k cheaper in Atlanta and hope for $125 more in rent to equate widgets to a Vegas buy just because there are more "bits" to the properties in ATL and likely higher vacancy( Vacancy rate and exit strategy is one thing that worries me about Atlanta )
. I think we are starting to see people thinking about their longterm investment goals and strategies in the US market and understand that this is just the first step… but BOY OH BOY, what a step. I wasn't here for the late 80's unfortunately but for us for now,( I was but just a teenager ) this is OUR time. ( sure is today is the day to buy and hold so 10 to 15 years from Now WOW...
Even just freedom of information means someone in a foreign country can seriously consider things our parents barely could have dreamed of. Buying interstate in Australia was epic 10 years ago. Yep, I agree with the lifespan having been dramatically shortened with current legislation… I had thought when Vegas "popped" I would have at least 8 -12 months in another market at this stage and hopefully though that will be the case…. from then it will be playing all the different nuances to the US market. Jay, I just had a client ask me about you so this is all a collective step in the right direction LOL Yes Jay is getting well known , competition between him and me .All in good fun, he is way smarter but I got way more energy .He will understand that inside Joke .
Talk soon
Alex
Alex SC
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@alex-sc
Join Date: 2011
Post Count: 585
February 15, 2012 - 9:08 pm
jayhinrichs wrote:
Lawsys,
I think there have been some really good points of view brought up on this site since I first found it a year ago. and I see the OZ investor now considering Net returns that are a little more realistic than best case scenario… It took us a year however we just closed our first set of transactions 7 Notes ( properties) to a group of medical professionals in Perth… I really liked the way the transaction went together.
The accountant found us on the http://WWW... we then sent our Credentials package first off, which it still amaze's me the amount of uncredentialed companies out their doing this. Any way that was first make sure who they were doing business was licensed to do it.. Background checks on the principals… Need to make sure we are not Lebanese Terroist Bank Letters speaking to capacity and capability etc etc.
Then we went into the investments themselves we fully went over what true NET yeild was and is… And how EQUITY share works in the US… Once accountant had all those facts together he presented to his clients who then made buying decisions within a day. We have a very small marketing fee that we pay for referrals. it was offered to the accountant he refused and wanted us to credit the buyers which we did. Their main concern and the topic John kept coming back to is.. Ya we can buy a house thats rented now but we do not want to deal with it when the tenant moves in a year. and or have a vacant house, just do not want to deal with the Risk's associate with management. ( of course music to our ears as thats who we are and what we are about)
So bottom line. these Buyers spent some money on a Aussie professional to do their due diligence for them. found our product determined between risk and reward they would go with safe bet.. No up front fee was paid to look at inventory.. The inventory was hand picked for each investors needs… And there you have it . A very business like transaction without all the sale hyperbole' of invest with my company you can get 18% net and 40% gross and my property manager is the best etc etc.
Our next exciting news is that we are being considered as a exclusive agent for our product at one of the largest RE firms in NZ and AU they have over 350 offices. and have no presense in US… AGain they have been doing due diligence even have a front man over here in the states who is US based and is a RE broker….We came referred… So again NO LOAD to look at inventory then a fully managed investment with predicatable cash flow..
This is were our US business comes from IFC s Independant financial consultants that refer clients to us.. Again for predictable returns and safety. Most us investors unless they really like to work on the 3 T's tenants trash and toilets , are really resignating with what we are doing.
One of the big powerful US endowments has just stepped in… the Columbia Endowment just put 50mil out in Pheniox and are buying up to 400 SFR's 80% ltv 6% caps…..
So this buying opp we are seeing may not last as long as everyone originally thought, Up until now you had all us little guys doing a 100 a year etc…. We have put our package in to get the FNMA investor homes direct from FNMA.. So hopefully those will be coming our way as well..
JLH
Jay that is awesome so I expect some funds for some Charlotte holds.
LOL good post…
Alex
Alex SC
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@alex-sc
Join Date: 2011
Post Count: 585
February 15, 2012 - 9:05 pm
lawsjs wrote:
Great Stuff Alex…Aussies out there looking, here is a legitimate US property guy who is genuinely doing the 'right' thing by himself and his purchasers. <moderator: delete advertising>. Anyone thinking of dipping their toe in the water with the US (and I think you cannot lose) should look no further than these guys who are honest, open and tell it like it is. I would also like to add that people who sell RE with RE licences in the US give you (even if you are a foreigner) a govt backed legal protection that any US citizen gets. It is very powerful if anything goes wrong. Not just anyone can sell US RE… I hope and pray that the time of the fly by night rip off Aussie fast buck merchant has gone. Use the experience of these guys if you are a new investor. I haven't bought through them but every instinct of mine says they are worth looking at very seriously. I could almost promise you that you would learn more from speaking to someone like Jay, Alex, Emma or kylermice for 20 minutes than spending $20k on a 'unique buying tour' of the US.
Lawsjs
Thank you for the kind words.I believe things should be simple, and doing the right thing. Word will spread , doing the wrong thing word will also spread. The world is smaller then we think. Social media is at our finger tips. Information is free and easy to attain.
Monday or Tues going to have a break down of the rehab video for all to see. At the end of the day, I love this business and what I do. So it will come out in the videos, and the work we do here.
Talk soon
Alex
PS you were correct about your sister..Good stuff..
Alex
Alex SC
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@alex-sc
Join Date: 2011
Post Count: 585
February 15, 2012 - 8:58 pm
kylermrice wrote:
@ Alex
Things are good here, this is my favorite time of the year to buy other than the tax sales in August. Nobody really buys till the spring here. Get most of my low income rental properties this time of year for cheap. Hope you are doing well in your neck of the woods
Whats up Buddy how are you. Cold here one day and sunny today.Crazy weather we are having in the South Carolina.
Alex
Alex SC
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@alex-sc
Join Date: 2011
Post Count: 585
February 15, 2012 - 8:56 pm
Alex SC wrote:
So much talk about how USA or Australian real estate groups are marking up the properties that we buy. So I can't speak for others, but I will speak for my company on how and why we do what we do. This is an example below:
I am going to list a property and what we purchased it for. This is without plans and exit strategies on this property.
I want everyone to realize what goes into buying, selling , marketing , and rehabbing the property.
What a lot of people are missing is everything that comes along with buying a property. If I were to buy and sell myself, sure the price comes down.We have aligned with partners in different countries, which opens the doors for for us to enter different markets. Those wholesalers need to be paid. One group without mentioning names both the owner and VP of operations have come here to visit us. That says a lot about an international team. Our future partner from Singapore will be in town next week 11th- 18th to workout partnership plans.
A lot of people are leaving out the cost of doing business for us as an investment company and a wholesale company. For example, I am set to fly to London and then possibly Perth and Adelaide in one trip. Again, for a company these things cost money to do, along with having a staff and keeping the lights on. For a larger investment team, there are costs associated with them being able top buy and sell multiple properties. We make our money by turning volume not just from one of our deals.

Here is the property that we are about to send out to our cash lenders in the USA and International clients. We just got the contract accepted to purchase for $32,100. Now for me closing cost and rehab is going to be roughly 10k .Then we over borrow about $2k for what I call operations cost. This house will rent for $750 to $800.
http://carolinaliquidator.vflyer.com/home/flyer/home/131965000

Now the part that most are not seeing is that this property can, firstly, be sold through our direct marketing program through existing clients. So very little cost to me, as I only owe my cash lender points ( % ) for days I borrow funds.
If it does not sell, then it is time for me to contact my international and national wholesalers. They also need to get paid since they are providing a service, as well as taking the time to build a business relationship with my company.
So now the purchase price would be about $59k . This covers my cost of paying my cash lender, paying a wholesaler if they sold the property, and paying myself.
I just want people to see all that is involved with a real estate deal. Yes, we do charge for our services and we do have partners who also charge for their services. I hope this shows how and why when a deal is purchased for $32,100, why the property is being sold for $59k. We are working with a few financing options with a few different sources for the international clients. I have not physically seen any of these properties close through international financing, so that is why this is based on a cash deal only. With international financing in place, this would also help the purchase price.
Hope this helps
Sincerely
Alex
skype Alex Franks 2002 Location Charlotte NC USA
Alex [email protected]
Look forward to feed back !
Again I am wanting to walk every one through the deal.
On Monday or Tues I will provide a video of the property.Showing the repairs that will be needed , and a complete walk through of this property.So every one can see what I am seeing. ( Just FYI Jay Hinrichs showed me some techniques to improve my rehab and working on the budgets of these jobs). This property is now closing Friday .Our California Lender ( Jay you know her Jenny K ) is doing this loan. Now at the same time we are borrowing $45k. So one can see exactly how the money was used. Now we already have a contract to sell this property from our LA client. Which I will also include a copy if some one wants to see a closing statement.
$55k is the purchase price and they are getting 20 % down loan (USA financing only )So now lets look at the total loan $45k paying 6 points on the funds. Interest to our cash lender $2700. $2k to our wholesaler. So we are at $49k after closing Roughly $5k profit. Skinny deal but quick.
Again doing the right thing can go far in this business. Not a killing but doing multiple deals like this can turn a tidy profit. Did have sales price for $59k. ( power of negotiation got me down to $55k )
Thanks all for either posting or responding on this thread.
Sincerely
Alex
Sorry my typing and grammar , skills are not up to Jay , Lawsjs and Emma LOL
Alex SC
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@alex-sc
Join Date: 2011
Post Count: 585
February 15, 2012 - 8:28 pm
mic84t wrote:
Hi , I am a 27 year old from sydney who has just purchased my first investment property in Kansas city. I am renovating the property ready for tenants as we speak and due to visit there in april. I have financed the property my self but am wanting to know if any one has had experience with borrowing for property. I would love to purchase another but finances are holding me back. I have a bank account with wells fargo but the llc i have created will not make money for a nother couple of months. Does any one have any suggestions or experience with similar hurdle? Thanks , look forward to hearing some ideas!
This is the million dollar question quite a few US and Australian teams working on this. I have not seen a loan get completed with financing yet.Answer might be different in next two weeks. From what my real estate partner and a few other guys on this site are working with.This is going to be hedge fund back product. Again I don't have the mortgage back ground as my partner does.
We are in the USA and worked with a group also in the USA that claimed they could do financing.   Again they just providing expensive ( super ) hard money loans. With little to no exit strategy. So keep this thread going and their should be some good replies .Since this is a product that is very intriguing to guys like me who run turnkey deals.
Talk soon
Alex
Alex SC
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@alex-sc
Join Date: 2011
Post Count: 585
February 15, 2012 - 8:02 pm
kingsr wrote:
I'm not sure why I cant recieve emails. I just tried to edit my profile with no success.
Anyway, my email is [email protected]
Cheers
Sent you an email.
Alex
Alex SC
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@alex-sc
Join Date: 2011
Post Count: 585
February 15, 2012 - 5:01 pm
KnoxOff wrote:
King
acommadation in the US is easy if your not to fussy
super 8 motel or americas best value
are along all the freeways and in every small town or city
they cost on average $50 US per night
they have free wifi most have a small fidge and microwave
they have a free light breakfast and coffee in the mornings between 6 and 9am
alot of the time you can park the car right outside the room
they are easy to find with a GPS
they are clean and most times checkout isnt till 11:00am
the trick is ask for late check out. 2 or 3 pm…
It helps…
Alex
Alex SC
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@alex-sc
Join Date: 2011
Post Count: 585
February 14, 2012 - 10:57 pm
Susanna Cooney wrote:
Hello, So I am currently trying to market a large development site in Adelaide, Australia. This is the first property I have worked with on this scale. I know that the way to go about marketing and selling a large development site over 10 million dollars, is very different to the other smaller development sites that I have sold. Has anybody worked with property of this scale before? What is the best way to find large investors? What is the best way to market and sell in general? I have also been wanting to reach out to other realtors to see if other agents want to collaborate within a sort of "open listing" frame. I would love some advise on a) if you think this is a good idea? and b) how to find realtors/ brokers who would have appropriate clients for this type of property and know how to handle it. Any advise will be greatly appreciated. Thank you!
Is this your project. Can you send me some details. I am working with a few large scale clients that are from Hong Kong.
Thanks
Alex
Ps you have my email..
Alex SC
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@alex-sc
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February 14, 2012 - 10:52 pm
booge wrote:
That Reno Kings Sydney show is pretty much word for word what happened in Melbourne. Even the "unscripted banter". Reminded me of an Amway type seminar i was dragged along to years ago, lot's of desperate people prepared to throw their money at someone who gives them a supposed way out of working 9 to 5. These Reno Kings guys are there to make money more than help anyone.
Seminars take them for what they are worth.I do the real estate seminars in the USA . Speaking some times and setting up booths other times. Education is the key to being involved in any business or trade. So I like to go and see what other real estate investors are doing.Rule one ..Leave you credit card at home..Rule two … Do not sign your email or numbers any where they ask..Rule three …Let them know you will contact them if any interest..Rule 4 ..This is me being funny if first 15 minutes are boring usually so will the next 45 minutes.Leave early and head to the bar.Really though seminars are what they area hidden sales pitches..One of the radio shows I did here in the states prided them sales on no sales. They did not tell you that once you singed up for more information .They gave that information to the ones selling the properties..Again just my two cents
Alex SC
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@alex-sc
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Post Count: 585
February 14, 2012 - 2:08 pm
kingsr wrote:
Alex SC wrote:
kingsr wrote:
Can anyone refer me to wholesalers of properties in Atlanta and KC?
With out saying names ,read the post on this Forum great people in both Markets. I was in Atlanta but pulling out.I can PM you some names their if you would like.Great market just choosing not to buy their.
Talk soon
Alex
Thanks for your reply. Can you pm me why you are pulling out? And also pm me areas you would recommend? I'm a virgin here and just trying to educate myself before heading over there in a few months. Cheers
You are not accepting private messages but I am .I can reply to any questions you ask me in PM
Alex SC
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February 14, 2012 - 1:42 am
kingsr wrote:
What's the advantage of setting up an LLC? Can I not purchase mutiple houses as an individual?
protection ….better to have the LLC own the properties then you personal own them..
Alex
Alex SC
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@alex-sc
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February 14, 2012 - 12:29 am
stu82 wrote:
Hi everyone,
I have been reading up as much as possible on potentially buying into the US property market and i just wanted to ask a few questions of some of the experienced people here to see if i can get some insight into certain markets and some other issues i need some clarification on. I have already found a great wealth of info from this site already from a number of really good posters
Alright so i'll ask away
1) If you set up a LLC Structure can it be used for multiple properties or would you be able to have one LLC that holds a number of US properties?Yes an LLC can hold multiple properties
2) Im looking at either Atlanta, KC or Charlotte for my first investment property and would appreciate some insight from some of the people in the know about the cities themselves and which areas are the least risky when it comes to crime, vacancy and poverty?. Basically any help with weeding out the ghetto areas from the rest. Which Counties are best etc for crime, tax, poverty etc Each area will have good and bad areas, just make sure to investigate the exact area each house is located in. This forum is a good place to ask around.
3) I am looking at buying something for the long term with at least a 10 year view to buy and hold and collect the income. Any capital growth is great obviously but i want to buy somewhere with a good chance of having no issues finding a tenant. Of course near schools, shops and amenities is a big part but i would love some help from anyone who knows good areas that are sought after. Glad you said 10 years but what are you plans after 10 years.
4) How is the eventual foreign income treated here in Oz. Is it simply added to your assessable income on your tax return and any help with what is deductible etc would be really helpful. Sorry best for some Aussie investors to answer that one..
5) Any other tips that you learnt from your own experience .Take you time , dont rush in , have some realistic goals. Make plans to come to the USA. Find some local people around you ,who are currently investing in the USA( ask them questions ). Check out a few markets all the above sounded good. . There is alot of free information out on the internet .Take advantage of the free information ( this forum is a great starting place.)
Sincerely
Alex
Thanks Stu.
Alex SC
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@alex-sc
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Post Count: 585
February 14, 2012 - 12:17 am
speedy gonzales wrote:
lol….that's why insurance companies exist isn't it…..to find as many claims as possible NOT to pay !!
Thanks for the feedback Alex…..I can't comment at this stage cause I have never had to make a claim. It cost me nothing this last year but is coming up to renewal time so was thinking is it worth it since I would have to pay the next years premium myself. You watch…if I decide not to renew it….. the month after the dishwasher will give up life and I'll have to replace it !!
In your opinion I gather you feel they are all tainted with the same no pay attitude….seems like quite a few exist so was wondering if your experience was limited to just one company in particular or a few.

These home warranty companies to me it is just a sham. My real estate partner used to offer this service through the different companies years ago to his clients. Let me get back and see the names of the companies he used .Success rate of zero for him. With multiple companies.
So I would shy away from them
Alex
Alex SC
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February 13, 2012 - 11:48 pm
speedy gonzales wrote:
Hi All,
Just wanted to get some feedback (mainly from our USA based forumites) on what people think about Home Warranty Insurance. Any catches and is it worth it ? A premium for a top of the range policy costs $420-00 and could be handy if any appliances break down on me. So far no issues but I hear that tenants can be hard on the appliances like dishwashers, sink garbage disposal systems etc. On one of my places the seller paid for the first years premium and I can renew at my expense after that.
I don't trust them have had many clients not be able to get them to pay.So I stopped using them years ago..
Alex
Alex SC
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@alex-sc
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February 13, 2012 - 12:59 pm
kingsr wrote:
Can anyone refer me to wholesalers of properties in Atlanta and KC?
With out saying names ,read the post on this Forum great people in both Markets. I was in Atlanta but pulling out.I can PM you some names their if you would like.Great market just choosing not to buy their.
Talk soon
Alex
Alex SC
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@alex-sc
Join Date: 2011
Post Count: 585
February 13, 2012 - 12:58 pm
emma171 wrote:
A guy called Demetrius Mathis actually …. if you think Atlanta is drying up… dear heavens…there are 10 times the properties here than there ever were in Vegas…..Vegas is gone…in fact, Vegas was never like Atlanta – it has been "tight" since the day I walked into it by comparison to here…… there are still the rare ones pop up that I will nab but that is one in 3 weeks…luckily everyone is willing to wait for the right one rather than just "any" but still. This is what I sent to my ENTIRE list of people that day… I think you will get the point… he has persisted to contact me – interestingly his website reads "people trust him so much and his amazing team that over 80% of his clients buy site unseen and are from oversees"… I am apparently not focusing on the right thing….. oh and he is willing to cut me in without marking up his property any more (so I really hope this doesn't get deleted for spruiking) As I am quoting him directly I will also state that should anyone be interested in pursuing an amazing deal like this, I will happily pass on his details… but quick, rush because there is a HUGE demand or something…. Dear All I have received contact from a company selling properties in another state. I will repeat verbatim my response to him…. I will not elaborate. I will STRONGLY recommend that if you are looking elsewhere that you INSIST upon knowing what the company paid for the property and justify in your own head any mark-ups. QUOTE Demetrius Fantastic – thanks for the below.. Okay. I am about to send this verbatim out to my email list. I just want to make sure I get this absolutely accurate: A house that was bought at auction for 24k on July 5 can be bought through you for $57k… Except that we have to rush because they move so quickly…. Probably this example property has been sold already…..although it has sat since July. This is a property that you are asking $20,000 more for than any recent sale within a half mile. I will pose it to my clients and let them decide. As they all use zillow, trulia, redfin and other such websites, if they do choose to pay you literally more than the house cost in commission (27k in repairs/commission for a house that cost 24k) and to pay 20,000 DOLLARS more than EVERY recent sale within 1/2 mile then that is up to them – I am more than happy for them to have choice in this market and will simply outline the services you offer. With enormous thanks…. UNQUOTE Normally I "rip" these to shreds but the only thing I couldn't fault was the yield – which was a first…… "where next" is the question most of my clients and I discuss weekly! As I always say, you just never know "where" next…
LOL it is such a small world. Funny how are this guys name is coming up. LOL
As for Atlanta not leaving because it is a bad market. To much competition for me so properties being bid up to high for my liking. Charlotte is my back yard,So yes was getting greedy by being in Atlanta. To be honest if you know and understand real estate.You can be in any of the USA markets and set up shop. For me being in Charlotte , where I call home .Just makes more sense. Let me know if you are close some time. Charlotte is 38 minute flight from Atlanta. Come up and see us.
Cold , so cold again today.Cant wait for april. Talk soon
Alex
Alex SC
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February 13, 2012 - 12:53 pm
jayhinrichs wrote:
Peter, glad to respond and appologize for my getting out of control…. I had a few martini's ( one olive grey goose) and my wife slipped me my half of ambien a little too early.. so the combo kind of gets me going and sometimes its not pretty.
<moderator: I have removed references to individuals that may become inflammatory>
Its the bandit signs you see " I buy houses any price any condition" they are looking for the owner losing the house and may only need 5 to 20k to bring the loan current. Investor steps in buys the house either keeps the owner that was living there the tenant or moves another in. Well There are 2 things wrong with this scheme.. I makes the contract to buy voidable and an illegal practice, the other gives the lender the right to alienate the title.
So example:
US local guy scourse the NOD's   or sends post cards and gets responces' Shows up to the house and promises to pay all the back payments and take over the house, and hopefully give the poor shmuch a few bucks so the can move on..They then flip this to a new owner making their customary flip type fees. The new owner or their LLC takes Title SUBJECT TOO the exisiting financing and it could have a great 4 to 6% fully amortized loan.. ( speedy was talking about one of those today)…
so here is the issue to help people with forclosure problems you need to be a licensed foreclosure work out specialeliest. And in most states thats an attorney,, CPA,,Real Estate Broker, Mortgage Banker, who has taken special course. Those that just show up as future owners are clearly not allowed to give advice or buy these homes under these default conditons… There are also formulas that run with these types of transactions if the house is subsequently sold the old owner is entitiled to 85% of what ever profit was made. So you can see a company like ours that would qualify as a forelcosure consultant would have a fiduciary to get the hightest price possible for the poor seller loosing their home and or try real hard to get them a loan mod so they can stay….
<moderator: delete>
The alienation clause is simple the deed of trust has the right to be called all due and payable if you transfer title, unless its spouse or family planning type stuff…. Schemers try to get around these by naming their LLC in the name of last owner. So to the bank it looks like owner just moved the asset to their personall LLC…However a check at the state and the owners of the LLC are not the old owner and this scheme gets busted.
So this is called Equity skimming and the fed does not like it any more… It is a model I used extensively until the laws changed. And prior to the laws changing because this is how I amassed more than 20 million dollars worth of real estate. one of the people that I bought the home from Sue me and turned me into the Attorney Genereal in state of WA… We ended up giving the house back ( wife never told the hubby they were having financial trouble and hubby was in Iraq) so it was a no brainer to give them the house back and it was only 10k cash down deal we did not even ask for our money back we used it as a donation to help a US military family.
So the conversation went on I got more pastinate blah blah blah…
Bottom line is if there are folks out there promoting this scheme its not legal on two fronts. the skimming laws and alienation.
NOW if you just pay cash then all is write with the world no law against that willing buyer willing seller. RE brokers though need to be careful and make sure they are doing the best for their seller as they can… A RE broker who shows a pattern of representing the selling and buying side and selling houses far under market can and will loose their license upon complaints.
Any way if you have more specifics you can shoot them to me off line and I can make a pretty educated guess.
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Jay again this is why I love the concept of partnering with you. The vast know how that I just don't have.Never entered the creative financing path. Just buy cash and sell cash has been my model
Talk soon
Alex
Alex SC
Participant
@alex-sc
Join Date: 2011
Post Count: 585
February 13, 2012 - 12:50 pm
Texas Cash Cow Investments Australia wrote:
The problem I see Jay is that the scope of any FBI investigations won't involve any Australian companies ripping off Australians. I can tell you a dozen or so companies here that operate as the middle man to US wholesalers….they are just adding on whatever margin they want in addition to the wholesalers and then charging money on top of that for "set up or establishment or membership fee's"….call it what you want.
Our regulator ASIC is a toothless tiger on these issues and often act way too late to be of any use to consumers.
On another matter….Jay there was a forum posting in the last couple of weeks that got a bit heated between you and a few others…..did this get removed from the forum ?? I have a person I met that used a certain person to set up trusts to assume mortgages and has lost his investment…..would have cost many many thousands to defend the case…..this was sort of where you were heading in your posts but now I can't find it
That post was pulled down think it was getting pretty heated as I was there jumping in as well.Jay made some valid points but I think things were getting personal on a few levels.
Please PM me and Jay and let us know more. Time for people to know who these guys are ripping people off. Social media is a great tool as any one can find out any thing.
Talk soon
Alex
PS you got PM