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Alex SC

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@alex-sc

Join Date: 2011

Post Count: 585

January 14, 2012 - 11:04 pm

Nigel Kibel wrote:

We keep quite a few deals. The guy I deal with owns nearly 30 properties which are similar deals to what we promote.

Nigel that is awesome. You are getting the best of both worlds. Solid investment game plan their.

Good for you. Hope you did not take that the wrong way. Most last statement was meant for all to read not directly at you or any one else…

Alex

Alex SC

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@alex-sc

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January 14, 2012 - 9:28 pm

Nigel Kibel wrote:

If you are going to invest in the United States make sure that the people you are dealing with are on the ground and not just dealing with a wholesale company. For instance I deal in Texas and work with someone on he ground who has been doing deals for at least 5 years. In other words before the GFC. That means that all the back end services such as property management and maintenance are covered. Plus we have these deals under contract they have been assessed and the titles checked. If you are going to do this over in the states ask for proof of what they are doing and importantly who they are dealing with.

Some good advice in their.I would however take it a step further .Now this is just my preference but do the resellers or teams,. actually own any properties in those areas. Now if they are just reselling with a team from the area. That to me ,we be just as bad . I would think if these markets are so good. We would be seeing them keeping some one sell deals. or trying to buy now them selves. For example ,we own properties in the same market we sell. The second market we are pulling out. This is basically a decision based on the underlying factors of real estate. We can travel there but we have to rely on a team.Sure good teams but at the end of the day. It is hard to find people that understand all aspects of real estate.

From buying , selling , rehabbing, cash lending, property management . So for me , when a team can do all those things in a certain market. That would make me feel a little better about investing in those areas. Though I would make sure to make a trip to the market I wanted to invest in .If coming to the states I would check out at least 3 markets if not more.Sure I am asking alot of you. Then again if this was my financial future I would ask more.

Sincerely

Alex

[email protected]

Alex SC

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@alex-sc

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January 14, 2012 - 5:25 pm

worldinvestor wrote:

jayhinrichs wrote:

Hey you guys stay out of my county

.plenty to go around , though picking them up at $38,000 may be a tough call in Henry County.

Cheers, WI

So true about Atlanta alot to go around ,that is why I feel strongly about the rental market prices are going to come down. The inventory for sale now is tremendous Now more of what we call shadow inventory that banks and government programs ( Fannie Mae, Freddie Mac and the Federal Housing) are about to release. Read the link below. Our company is actually looking at pulling out of Atlanta and concentrating more on North and South Carolina. Oh it does help that where my office is located right on the border of NC and SC. Not saying Atlanta is not good just think rents will be lower and longer time for recovery then most are saying or planning. If we take retail area and turn it 90 % rental area. There are alot of things that will negatively affect those areas long term. So if and when the retail market does come back. What appeal would a retail home located in a rental neighborhood for a buyer. Food for thought.

Good read below..
http://www.bankrate.com/financing/mortgages/government-to-unload-foreclosures/

Alex

[email protected]

Alex SC

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@alex-sc

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January 14, 2012 - 5:14 pm

Paullie wrote:

I too like Brent and interested in investing in the USA, have similar questions. Have a SMSF being set up now as well as personal cash to invest if the returns are genuine.

Any help getting started would be appreciated.

Guys this board is full of some good people that are investing in the USA from Australia, as well as some USA teams that deal with International clients.

I am Located in Charlotte NC . So I can give you information about Charlotte and Atlanta markets . I can answer questions, about other markets.This would be limited knowledge as I only invest in the two markets mentioned above. Look forward to answering some of those questions you would have.

Alex
[email protected]

Alex SC

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@alex-sc

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January 14, 2012 - 5:08 pm

krefter wrote:

Alex,
We could not get definite information. But rather than do nothing, we have gone ahead with the purchase of two houses in our SMSF LLC, but chose to own outright rather than the worry of loans in the SMSF. It means we own fewer houses, but less hassle. One in Florida, one in Memphis. Management is really good and we are watching rental money flow into US account. Now to start working with a US accountant to get the tax right. A lot of set up expenses tho, so to justify it – the figures have to be good and tax deductible and hope we can build up more houses. Will wait till we get the first tax return done first.

You need to find people you can trust to manage and not worry too much about the really bad stories. Do enough research, and if possible, a trip overseas is essential to be sure about what you are doing.
Good luck and enjoy the ride. It's better than looking at interest in SMSF bank statements and doing nothing.
Krefter

Some great advice .I would put at the top of my list a trip over to meet the team and see the homes.

just my two cents….

Alex
[email protected]

Alex SC

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@alex-sc

Join Date: 2011

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January 14, 2012 - 4:21 pm

WA2012 wrote:

Hi All
My Partner and I have been looking at where to put super funds. We live in Perth and have only recently started looking at the US housing market as an option. Would be interested to hear from anyone on this and like others would like to catch up with locals from Perth who have had experience in the market and can point us in the right direction.
Thanks
Alex

Send me an Email to [email protected]. I would like to send you a email from a another investor in Perth that is investing in the USA.

Thanks
Alex

Alex SC

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@alex-sc

Join Date: 2011

Post Count: 585

January 14, 2012 - 4:20 pm

sapphire101 wrote:

I send out for free, over 500 useful website links for investing in the USA via The BlockBlog.com if you are interested.

Ian
http://www.theblockblog.com
Free Property Investment Info Tools & Resources For Investors with A Sense of Humour.

Ian

I follow your blog and I am here in the USA. I do think some of the links you hand out are quite useful. I asked 3 of my staff members to print out your list. To see which sites we use and any good ones we don't. The only thing I would also add in there. Might have missed it in your information if you did send that.

Is to make sure your clients are not only using these sites. Not all this information is accurate so it is very important to at least make a trip to the market you plan on investing in.

Good info that you are sending out. I have been following your blog recently.

Thanks

Alex
[email protected]

Alex SC

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@alex-sc

Join Date: 2011

Post Count: 585

January 12, 2012 - 10:54 pm

ed01 wrote:

Hi Alex, My brother and I are looking to invest in the US property market, probably later this year, in the meantime I am researching everything I can. My question to you is, do you identify property for an investor, or does that fall solely on the investor? Thanks, Ed

Ed it really depends some investors buy investment properties for cash flow. Some of our clients come to us to build a real estate portfolio. Which then we put together a package based on their financial goals.

Thanks for the question..

Alex

Alex SC

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@alex-sc

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January 6, 2012 - 4:54 pm

Yes I own a company and from the USA. Yet would like to be part of a group like this.I will be coming to Sydney in next few weeks. networking not spruiking is the key for any business.

Alex

Alex SC

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January 6, 2012 - 4:42 pm

lawsjs wrote:

So it seems very strange (read impossible) to have someone who lived in DC be incredulous about plumbing being ripped out and then to mention whitegoods being stolen in Aus…. DC hi cap property means you should be able to mix it Dirty Harry style with the homies:) Alex: Your double negatives make little sense to me. Can you elaborate? Im not sure if you think hi cap can be 'awkward' or if you are saying you disagree and think I'm a fool… I don't care either way so you won't upset me but I understand the Aus property market extremely well, yet am heavily weighted on the US side (and have been for more than a decade) so have a reasonable view of my bit of the US. I have been able to assist in a very small way (again over a number of years) aussies who have been royally (presidentially?

) ripped off so I get a little feedback from around the traps. I am also the first to say that I find the US very difficult to deal with – the cultural differences are great and as far as language goes, often extreme. I work out of an office with a bunch of guys in LA who help me out with this stuff -This time they were confused too! My point was simply this: Hi cap stuff makes me nervous. Especially when quoted by aussies who by their posts have little to no experience in the market. It is very easy to quote numbers but very hard to put them into practice long term. Especially from across the globe – and that IS something I have far more experience in than anyone else I have met or heard of so far… And I spent a decade searching for someone to help me – so I would like to be wrong:) One example is my particular taxation issues have been tabled in Canberra – at my expense – because I am apparently highly unique. I am astounded that is the case and sincerely wished it werent so.

Bottom line I am a proud American. I leave will leave it at that. Ignorance is ignorance and can"t change that. If some one buys in a war zone.There is a reason most Americans won't touch those areas. So we see them being sold to investors who just look at cap rate and cash on cash return. Unfortunately you are correct that is happening .At the same time people should treat investing more serious. Taking the time to check things out. I visited several other markets in the USA last year. Again just for my own personal information. This is some thing that all should do but unfortunately people say they are to busy.

Just a side note I was born and raised in long Island New york .Great time growing up as a kid .My father was vice president of Paine Webbber ( one on every floor) we would go into the city as kids with him. I would run around the city checking out the seaport , china town , down town Manhattan . Never had a problem sure there are bad area's every where.That is why it is so important to check out the area you want to invest. Not listen to every knuckle head that gives his opinion.

lawsjs it is good for you to help your fellow aussie at the same time. I am and always will be a proud USA citizen and feel the need to stick up for my country. That not saying we agree with every thing that is happening here .

just my two cents…

Alex Franks

Alex SC

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@alex-sc

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Post Count: 585

January 5, 2012 - 5:42 pm

lawsjs wrote:

jayhinrichs wrote:

Buying OZ company that is ASIC approved Like buying shell Corp in us

Jay – fantastic you are going that route. I believe technically what you are doing is buying an AU company. ALL Au companies are considered compliant (therefore ASIC approved) until they do something wrong. From my discussions with them over some of the more (shall we say) 'aggressive' AU/US RE operators out there, it is pretty hard to fall foul of them. US securities laws seem far easier to breech.

World Investor – To qualify for the nomenclature I would experience the US and hi cap properties first hand over a few years at least. Without wishing in anyway to appear rude, you seem to have only a vague grasp of US realities. In general I find it very funny when people compare AU criminals to US criminals… On a scale of 1 to 10,000, our criminals would be a 1 and any enterprising US criminal would be 10,000+. I know a Police Officer in LAPD. If they are in a pursuit and hit the South Gate border before they get the guy, they just turn around – if they keep going they WILL be shot at by people from their houses, as well as the bad guys they are chasing. Bloods and Crips hate each other, but they both hate the police. How many Australian police cars have bullet holes in them?

Hermosa Beach and Manhattan Beach in LA are ultra premium suburbs, where Baywatch was set and $10m houses are not unusual – even in todays market. Less than 15 minutes drive away on the coast side of PCH (Pacific Coast Highway) the property manager occasionally (as in more than a couple of times) got shot collecting rent, a supposedly 'good' area, nothing like a high crime area. The 'inland' area of PCH is the 'wild west' (or east I guess, to be geographically accurate:) )

I know for US readers that is saying 'suck eggs' but Australians just do not understand how bad things can be in the US. Stealing white goods from a building site in the 'lesser' areas of the US probably wouldn't even count as crime – unless there is a body count involved the paperwork wouldn't be worth it:)

You are right I strongly disagree, but my words would be much stronger then go suck eggs. Guess you will have to meet me and then get a better understanding..Again strongly disagree , but being born and raised in America. Guess I would know it way better then some one who owns some property here in the states and has come over a a few months here and there yearly.

Alex

Alex SC

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@alex-sc

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January 2, 2012 - 4:14 pm

GreaterKCHomes wrote:

CheevesFinancial wrote:

I had to stop reading once you said you can get a central 2 ton AC system for $600 – $800. I do my own rehab work thru my general contractors license. I have a straight source with AC vendors as all contractors do. I have never heard of a central AC system (2 tons nonetheless) for $800… Goodman, RHEEM, which many believe are generic brands of TRANE, albeit great brands run $2,200 for a 2 ton system.

Now if you are just talking about an AC condenser (fan unit that sits outside), a 2 ton still costs about $800 in the box…NOT including labor…NOT including freion charge (7-9 pounds).

There is not an AC technician in the world that would do a 2 ton for $600-$800.

Wait wait…sorry I just re-read your post…you said the total amount is $1,300 to $1,500 for install of all-inclusive 2 ton system. Still that is only about 60% of realistic pricing….what is the SEER rating. We are required to use 14 SEER. Keep in mind, property managers charge an average of 20% on top of invoice.

SOrry, I might have jumped the gun..I'm hungover from NYE last night!

, I would imagine the cost difference is probably associated with location. I have heard A/C condensers on the west coast can be as much as triple what we pay for them here, I have never confirmed that other than speaking with my clients who live there. I just purchased a 2 Ton A/C unit last week for one of our properties, and the invoice amount was $650, give or take. I have not cofirmed this to be 100% accurate, but I know the Feds have established a minimum SEER rating on new A/C units, and I believe that to be 13 SEER. I will confirm this with my HVAC tech, but I seem to remember him telling me that. No problems at all, I am still recovering from NYE, excellent prime rib dinner and open bar…OUCH!

Hope everyone has a profitable 2012! John

Wow here is my area just put a new unit top of the line 10 year warranty on my own personal house. Which is a 3 bed room 2 bath .No not a typical USA castle , just conformable cost me $4500 but did not paying for 10 year warranty. Most homes it cost me $2800 to tops $4100. Sure expensive but worth paying for long term and warranty on Ac units in the south. I also don't mind paying for the top guys. NO Handy men or cheap guys when it comes to Ac units…

John , And Cheeves..This is opportunity for us to all meet.John I know I am calling you tues about 3 pm . Cheeves working on my trip down that way. I am seeing us all create our own network , Along with Jay.

Setting up a network where international clients can find and work with individuals with in our own net work. Where every thing check outs and every one is one the same page…I always felt that no one should step foot in some one else s back yard. To be an expert they should be buy and sell from there own yard. I am already meeting with a two top teams from Memphis, and possible Indianapolis. Food for thought..

No hang over here was in bed by 930 that night..woke up to see the ball drop then a few calls, and emails then back to bed..

Lets speak tues all of us..

alex
[email protected]

email for best time and number that we maybe we can all just conference call…

Alex SC

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@alex-sc

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January 1, 2012 - 3:39 am

kylermrice wrote:

Hello all I was under the impression that this was a forum for over seas investments. What is the regard on opportunities in the united states?

Everything here is and seems to be about USA ..Not sure what the other post are here for..Was actually just browsing them my self

Alex

Alex SC

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@alex-sc

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January 1, 2012 - 12:27 am

brendogs wrote:

Hi there, I am really itching to purchase the US Property Power Pack as I am slowly gaining interest in the US property market. Yet I am not exactly convinced about spending the $900 odd to see if the leap of faith will be for me or not, I'd rather sample the kit before I purchase it. If anyone has a copy that they have gone over and don't require any more or don't mind lending it to me for a few weeks, or maybe "renting" for a smaller price. I'd really really appreciate it! If anyone is happy to help please let me know pm or respond to the thread. Kind Regards Brendon

Save the $900 dollars go the Over seas forum ask away.Google USA investment markets.

Ask questions then if you don't find you answers by all means spend the $900 dollars

sincerely
Alex Franks

Alex SC

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@alex-sc

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December 31, 2011 - 3:00 pm

jbelmore wrote:

Dear Alex and Jay, I think you're on the right track in looking for good loans for overseas investors in US. It influenced my decision in the end as with 50% LTV I got 2 for one and once the loan is paid I'll have double the cashflow. With a good loan an investor would be more interested in higher quality lower yield US properties and you might sell more of them. regards David

David

Trust me we are not foolish .We see a great opportunity here as well. Our main cash lender is out of Hong Kong. So working with them and a few others to create some thing. I just don't see this loan working as a 3 year balloon.Think 5 years is going to be more realistic.

Stay in touch via email and I will keep you updated with any progress..

Alex
[email protected]

Alex SC

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@alex-sc

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December 31, 2011 - 2:52 pm

emma171 wrote:

The problem is that when you start talking to Australians you have to understand the concept of grown adults who have never, not once written a check/cheque because they just no longer exist. I drive in my car, walk into bank, wait in a line/queue 45 minutes, fill in a deposit slip that had to be printed, I deposit a check that had to be printed somewhere from a 3rd party bank. The teller earning $15 an hour takes that check and you need to endorse it with a pen that had to be bought (interestingly you don't write NOT NEGOTIABLE… So in theory endorsable to anyone) on the check/cheque. She then submits this check, you wait 24-48 hours for the elves to clear it…and confirm using all those numbers at the bottom of the manual check which identify BAnk and Routing number (BSB/Branch) that the 3rd party has the funds and then you have cleared money. THOSE NUMBERS ARE A FLIPPING ELECTRONIC transfer….. That check isn't mailed anywhre.. At the end of the line, ultimately those numbers mean the same here as in Oz… In Oz, I log on online, enter the account/ BSB numbers that used to be on the bottom of the checks that I have to buy in the US and for free the money is transferred. I normally err on "not right, not wrong just different" but the problem begins when you take uninitiated from Oz, with zero clue, they think that they can transfer money in and out of accounts via the Internet from the comfort of home only to realize…..OOOOOPS, I have 10k in the US and short of xe.com and a beloved bank manager, I literally can't touch those funds…. BUT THEY ARE MINE… What the?? You earn funds in the US but without a power of attorney, unless you have pre signed a million wire transfer forms, the chances are, you can not physically do anything with any amount over 2k unless you are literally here in the States sitting in front of them,….Some exceptions etc. It makes it very very different and while you adjust quickly, I can honestly say that it causes no end of difficulties…and $30 wire fee, and $30 wire fee and kerching… And bill pay in the US COSTS..,, and it means your bank physically cuts a check themselves, physically shoves it in an envelope to be physically mailed each day to another bank that then reads all the little numbers off the bottom of the cheque and ultimately does an electronic transfer of the funds ??. Yes, here in the US we all know our local branch manager….and I must say I like it.. Very 1950's etc. In Oz, I entered a branch literally once in 5 years…Here, I know their family, they deal with my problems… You have a personal banker, get sweets… In Oz??? I would be lucky to know where a branch is other than for an ATM! HAPPY NEW YEAR… Although we here stateside have 24 hours to go… My next reincarnation is to open a bank….

Some how it all works out in the end ..Sure likes and dislikes but heck that is life…

Just my two cents..

Oh I do take my favorite banker to a foot ball game ( USA foot ball ) LOL sorry I know bit a difference their.Every time the Washington Redskins come to town.So no I don't go tot he bank but keep Mr. Banker high on my list of people.To always email , call or touch base with….

Alex SC

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@alex-sc

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December 30, 2011 - 6:50 pm

Alright I promised a finished property with before and after. Only thing left out is the $1k cost we pay our guys to video.We pay them to oversee the contracts and before and after videos. One of my guys is a full time police officer which never helps. Our other guy is full time for our company ( our runner in Atlanta run for this run for that..) awesome guys to have on the team….

Well here you go ( lawsjs ) yes contractor we over paid at $6500 ( just kidding but from purchase to rent ready in 6 days)

Property Report(Atlanta)
MLS #
Property Adress	4251 Cary Dr. Snellville GA
MLS Link	http://www.zillow.com/homedetails/4251-Cary-Dr-Snellville-GA-30039/14697241_zpid/
Vidoe Complete	http://www.youtube.com/watch?v=9NoPwikTtfA
Video before	http://www.youtube.com/watch?v=Q1RO7OX5Xlc&feature=youtu.be
List Price	32,000.00
Offered Price	32,000.00
Accepted Price	$32,000.00
Closing Cost	$1,000.00
Rehab Amount	$6,500.00
Holding Cost to CL	$1,000.00
Inspection Report	$500.00
Points ot lender	$3,850.00
Sales Price to Investor	$53,000.00
Total Beds	3
Total Baths	2
Year Built	1987
Rent Amount	$950.00
Taxes (monthly)	$154.50
Insurance (monthly)	$45.00
Property Management	$80.00
Net Cash Flow	$670.50
Cash on Cash (based on 10 months)	14%
Rehab included
• Paint interior walls and ceilings, minor sheet rock repairs, clean or replace wall plates as needed, no paint in bathrooms with wall paper • Prime Dark trim with oil base kilz 1,700sqft x $0.25sqft = $425.00 • Blinds (10) 30"-32" • New air filters, smoke and carbon • 2 ceiling fans • 11 Dome Lights • 2 shower heads • 2 Shower rods • 3 door knobs • 32” interior Door 6 panel (slab only) • 18” interior Door 6 panel (slab only) • 2- 5’ bi-fold interior Doors 6 panel • 12’ wire closet shelf • Tear out 5×4’ closet in bonus room Exterior • Pressure wash exterior • Clean Gutters • Rake Back Yard Flooring ac unit

For got to add this was purchased by our USA investor from California that was here two weeks ago for the fly and buy tours.Which we host monthly.For clients who want to come in and check out the operation .

Alex
[email protected]

Alex SC

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@alex-sc

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December 30, 2011 - 4:08 pm

jayhinrichs wrote:

Alex good post and good rationalization for 2 different products.

You may want to add on going maintenance to acheive a more realistic snap shot of % return…..

We know there is maintenance even if others say there is not or grossly under state it.

the other factor the audience should know if the person buying this is responsible for the rehab and if anything gets pilffered during the rehab process.

whereas if Alex rehabbed this and was providing turn key any loss during constrution he would have to cover…

so there is time risk and opportunity in the mark up from Wholesale to Turn Key,

ON another note, I had a good meeting with a bank here in portland that is looking at providing us a facility for foriegn nationals.

50% LTV loans 10 years 7 or 8%… I told him last night if we could put this product out we could do Not only millions in business but BILLIONS keep you posted. on this one.

I am also working with FP's in OZ on buying an ASIC approved company in Austrialia to be co owned by the OZ FP companies and my mortgage company here in the states. The intial loan product would be for wholesalers acquisitions and would be very very competitive to what your holding cost are today,

And we might be able to do a A and D then it rolls to a ten year fully AM….

The OZ FP's are planning a trip to my Portland office end of Jan. I have passed the first round of due diligence ( background check criminal public records finanical capacity my bank references etc) with them, Very cautious lot those OZ FP's..

This OZ fund will be a great alternative also for OZ investors higher than bank rate returns with the safety of know that there investing with a ASIC approved fund and company.. could be a good deversification for owing the asset as well as regular dependable returns.

JLH

Look forward to you trip here.Have a happy New year and I will be picking you up from the airport..
Love the sound of possible funding options …We have 3 possible leads I will share with you when you get here ..

Alex

Alex SC

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@alex-sc

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December 30, 2011 - 4:06 pm

jayhinrichs wrote:

My questions is:

Do you have a real estate license to sell real estate in the US?

If they are actually buying and closing on the houses the can do what ever. It would be nice to find out what lic is needed for the service they are providing .Which basically they are acting as real estate agent ( with out a lic ). Be interesting on the answers we get and the research you can find on this ( Jay )

just my two cents

Alex
Alex

Alex SC

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December 30, 2011 - 1:49 pm

jayhinrichs wrote:

I love to go to my bank I am old school.

I talk to my banker, the gals at the front desk, they are really an extension of my office they will mail things for me fed ex if I need.

I am talking a small commercial bank, I would never bank with the big boys they fee you to death. And in addition I do not have a debit card. I charge everything to get my frequent flyer miles or pay cash. I will not pay debit fee's.

Hence a great relationship with said bank and I get fairly substantial credit lines from them when others would say no in this environment especially for real estate deals.

Alright I should have added in there I have not paid a bill in the last 13 years my wife handles all our funds. We raise capital to buy and sell all our real estate deals. So guess old school and new school but it all works out…

Alex

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