Forum Replies Created
- lawsjs wrote:No A/C in LA…
Although painting the entire outside of a 4u would probably add a bit. Emma is the Oracle on rehabs – she always thinks _I_ overpay, I think I am mean…Ac is essential in the south , my real estate partner would agree I over pay. There is a reason to madness though..I am not wanting to make every house a rental . I am wanting to owner finance some of these homes , that we own. True lease options for some of our clients homes( depends if a cash deal or loan). This is just my theory now . If I owner finance the homes ( cash deals only ) the payments would go up as no taxes and insurance( tenant now pays and raised the value of area with sales). I am truly acting as the bank. Setting it up for as many years as I want .We have been toying with this idea. I think this is the only way some renters who will want to buy again will be able to. Again toying with this idea and looking at 8 , 10 , 12 year terms for the buyers if not longer…
Just playing with an exit strategies for down the road…..
Alex
DHCP wrote:FYI my wife has paid all our bills online for years as.To be honest I can not recall the last time I stepped into a bank years….I only go to my mail box when it looks like it is loaded and stuff falling out. Every thing is done electronically …..
Alex
[/quote]America can send droid into Jupiter to witnessed astroid impact into the big plant, it can send man in the moon and send robots into Mar., therefore US can Electronicalise its Banking system if she chooses.
But, the layer of beurocratics that are the challenges that she needs to over come….simply its sheer market size.
[/quote]Alot wrong with America no doubt but I am happy to be an America and live in America. But don't get me started on what we need to change..My list is long and deep…but traveling out side the USA quite often.I find my self smiling when I am coming back though customs about to enter the USA usually in NY or LA ..knowing I am home ( yes back in the USA )
I hope you both get the Idea of where I am going with this.
Alex
DHCP wrote:jayhinrichs wrote:worldinvestor wrote:CheevesFinancial wrote:Exactly! It's psychological warfare. Keep in mind, these thiefs are not smart. They have the education of a 10 year old. All they know how to do is roll up at night, sneak and snatch. They have found ways around cages. However, cages are working in our area for some. I just chose a cheaper alternative which has worked very well so far.Alex: I know for sure we can't put our systems on the roof.. Raising it a few feet won't help..at least in my area. Then what's that look like? It looks weird. To you, who cares because the system is safe.. To future buyers, it may look a little off…only my opinion. I'm telling you…try these cameras!!
This should be for most deals.We let tenants know the appliances will be installed the same day they move in or could be up to 48 hrs for appliances. Water heaters and ac go in the same day….
Alex
In Australia some people use evap airconditioning, placed on roofs and come in various colours to match the roof and are strategically placed at the back of the house.
Where I live in Western Australia it is not uncommon to see these and I guess we don't give it a second thought as to whether they look ugly or not.http://www.aussieair.com.au/evaporative.shtml
WI
Most commercial properties will have them on the roof as well. I am sure they can be retrofitted to the roof. Not sure its worth it or not.
Depending on the area though we do not bring in anything that can be stolen until the tenant moves in it all happens in that one day. appliances condensers. hot water heater. etc etc.
And when a house is going to sit vacant for a while again depending on which area and market we will go pull the Unit store it then put it back in when tenant moves in, Kind of beat the theiving Bstds to the punch as it were.
Hi Jay,
You know WHAT? You gave me the answer to one of my concerns about the property that I'm about to get it rehab.
I have to buy the following brand new appliances and once the property is all rehabbed etc., I'll just tell the guys to install these appliances while the tenant is moving into the property otherwise, mine as well give my money away to those bastards thieves
Dishwasher
Fridge
Condenser
Hot Water HeaterYou're right, all these appliances can be installed in one given day.
Thanks mate.
DHCP wrote:Good home Alex. Do you have the finished video footage of this property? i'm interested how the rehab turned out for $15K…I'm sure it brought the inside after rehab looks almost brand new?Guys maybe I was not clear in my writing as I said I am not the smartest guy by any means….
I am closing on this property today at 11 am, along with 4 others.Presold this property to a client.The rehab will start after they buy from us next week. After they close on this property. Just wanted to show the folks here what can be done and why…I see a similar house being sold for $83k. I know buyer purchased for $37 k and said rehab was 20k ( yes Lawsjs ) I agree that one was high for that property ) and is now selling for $83k .Again people will complain but that's his advantage being able to buy and do that. Now if I was to buy and rehab the property listed above the price would also shoot up. This is the point I am trying to show all how and why.
I would be borrowing capital for the job. Loan would be roughly $33,600,+ $15k for rehab + $1k for closing cost +1k for operation cost( yes we have to pay staff and keep lights on)so now I am in the deal for Roughly $51k ..( our private lender would fund)…So finished sales price would be $65k _ to $69k that is after rehab is finished ,and property rented. Depending on which cash lender we use( that would decide on how much interest I am paying him ).Again this is just me educating the buyer on why the price change …..Whole sale is just wholesale and flip. Turnkey is another animal ……
I will post some other deals before, and after videos for rehabs we have completed in Charlotte and Atlanta..( yes I like to brag on the job some of our rehab crews do) Also a good tool for others to go though and see what we are looking at and for …in our homes.
This house main concern and issue if you watch the video they destroyed so many walls to steal all the plumbing out of the walls, along with the Ac unit that walked off.
talk soon
Alex
DHCP wrote:Hello All,I've been in the IT industry for a decade and guess what's the industry standard for Networking, Systems, Database, Financial Applications etc., all are American products.
It is not so much the 9/11 that stop America from advancing its Banking Electronic system (mind you, The Banking Corporations that started the whole 2008 GFC because of their very complex derivative tools but that's another story), it is more of its market size, complexi rules and regulations and passing of legislation to embrace Electronic system.
If you standardise the US Banking Electronic system, how many Banks that need to comply? Could be Thousands or even Ten of 1000s. From an IT perspective, that is a collasal understaking.
You will need a lot of web page designers, web developers, IT securities engineers etc.., to implement such massive understaking. US has the infrascture but the greatest challenge probably to legislatise the Electronic Banking system (those people in the Congress) then making it law.
Here in Australia we only have 4 major Big banks and probably 80-90 per cent of the population banked with them, hence these 4 big banks monoolised the market…hence if they opted to go Electronic system, everyone else MUST follow….the little players don't have the options.
For our American colleagues, FYI, the following are done here Electronically (i.e., Direct Debit into/from your Bank Account)
Salary payment
Car payment
Mortgage payment
Chilcard payment
Tax rebate (option to receive cheques)
BPAY (electronic bill payment)
Phone Banking
Credit car payment
Bank To Bank transfer (Electroni Funds Transfer)
etc., etc., etc.,Note: There are still companies here that used cheques to pay their accounts, but majority of payments are done Electronically.
In summary, the size of the US Banking system and its complexity and passing of legistations are the GREATEST challenges of America to over come and that could take years before we see American goes Electronic system.
Thanks
FYI my wife has paid all our bills online for years as.To be honest I can not recall the last time I stepped into a bank years….I only go to my mail box when it looks like it is loaded and stuff falling out. Every thing is done electronically …..
Alex
My only comment would be make sure the people you are buying these homes from , no matter where they are offered. That they also invest in those areas that they are selling… at the same time look forward to some questions form the folks here on this message board.
I look forward to any questions about Atlanta and Charlotte NC ….
lawsjs wrote:I gutted and rebuilt a 4u for $15k – that seems very high.Lawsjs go through the video and look at the video in detail ……AFTER you finish then I would be happy to revisit this .AC , roof , and replace all stolen plumbing alone….ripped out and replace through out whole house. Close to $8k just on those 3 items..
And always figure about $2k in there for what if's
Alex
USpropertydirect wrote:Where to buy in the US is dependent on so many factors. The first thing we ask is "what do you want to achieve?" and work from there. There are so many market which is why we diversified our service locations to cater for different types of investors.True there are so many markets and different strategies to use when investing in the USA.Building a real estate portfolio can be done several ways..
I will say this one more time.Notice I am not selling the markets I work in either.Sorry but every one here is saying what a great place is some market is .Which is then followed up by oh I work their or I have a team there…
These was a simple plan I put together for a radio show out of Sanfrancisco California for any and all investors 6 things they need to do….yes I updated this and added in reserves…
Six Factors for investing Internationally or Out of state … (simple version but always a good road map to come back to )
1: Meeting the team I would find out what every ones role are with in the team.Make sure they are set up to handle what they say
they can do.2: Get Referrals – simple there …not rocket science
3: Real estate goals -Having a real estate goal you want to achieve and exact plan you want to accomplish.
For example I am 38 years old I plan on owning 100 homes free and clear by the time I am 45 between two markets.4:Personally viewing the properties and the Team in action( yes I mean fly in) if you don't have time to fly in then in my eyes you
don't have time to invest (plain and simple)5: Property management ( this will make or break you investment) so choose wisely and understand 20 % returns not
really feasible. I can make things look great on paper also…6 : Reserve funds ( yes things will break and this does happen , tenants will actually do more damage then the deposit they
put down..Okay not the advanced macro economics of why or what area is the best to invest in .Just a simple Plan I make sure all our clients follow.Usually when some one has a problem.I go back to this simple list and can find out exactly what they did not have..and why and where the mistakes were made..
Alex
jayhinrichs wrote:kenneth wrote:Hi all, am 26, I want to invest about $11.7 / 13 million on great idea I would be please if anybody with great idea should share. Because am kind of thinking about how to offer online loan but dont know how.IN THE US YOU SHOULD DEVELOP THE FISRT LOJAC SYSTEM FOR AIRCONDIONTER UNITS WITH A MONITORING ROOM LIKE THE ALARM COMPANIES. THIS IS ONE THATS ON MY BACK BURNER. AND IF BROUGHT TO MARKET AS SILLY AS IT SOUNDS IT COULD GO VIRAL. CHARGE 50 BUCKS FOR THE LOJAC AND THEN SAY 5 BUCKS A MONTH TO MONITOR. THE UNIT GETS JACKED YOU GOT IT ON GPS TELL THE COPS THE CORDINATES THEN DROP SOME INCINDERARIES ON THE BASTDS AND TAKE CARE OF A FEW PROBLEMS WITH ONE FELL SWOOP
Love the idea but theft in the USA is such a problem now..Copper is going through the roof…in prices…
Alex
Shape wrote:kenneth wrote:Because am kind of thinking about how to offer online loan but dont know how.Sounds like you want to lend this money out as a private lender? Firstly you need a License and with your post i doubt you have enough exp for ASIC to give you a License , Secondly it's very risky- plenty of sharks out there… especially if YOUR giving money out. If you really want to head down the "lending" space- your best bet is to do it via a financial institution where they will lend it out on your behalf and pay you a monthly return – anything from 8-11% PA Regards Michael
No Lic in the USA as a private lender .Now if setting up a fund yes we do. Jay ( would be best to tell you exactly what is needed here for a fund . We raise private capital from basically two states here in the USA ,( California and New york).
Now a registered fund out of Hong Kong is also a cash lender and they have acquired necessary LIC being they are a fund.Since they lend in the USA and Australia Just my two cents
As for the sharks this tank as most are deep with them….
but I don't fear the sharks I have seen some Killer whales and they seem to stick together and watch out for each other…
GreaterKCHomes wrote:worldinvestor wrote:DHCP wrote:That is a good point, WI.It is common in Atlanta for the CAC to be stolen. The property that I'm about to settle, its CAC was also stolen.
I'm interested to hear the post of others about this also.
When you consider that each unit will cost you around $2600 and I believe somewhere Jay posted that within a 5 year timeframe I think it is around 80% chance of aircon unit being stolen.
I am keen to find out if you are sourcing your own properties in Atlanta, buying turn key or getting them rehabbed.
Cheers, WI
What we are doing in KC about this issue is as follows: We are constructing a 6 x 5 x 5 cinder block wall around the units. We are custom building a rebar door for entry by technicians and so forth. The door is 3/4 rebar, with 1/4" steel for the frame. We use a mobile welder to construct on the job site. Over the top of the cage if you will, we use 1/4" steel wire fencing material to make a top, so they can't simply climb over it. Additionally, we reinforce the cinder blocks that will be used to hold the door on, with concrete, we then set 6" lag bolts into the concrete to attach the door. Then we lock the door using an industrial size padlock. Keep in mind, you will need to check local ordinances for this construction, as we had to ensure that the emergency disconnect was outside the box, and no more than 6' off the ground, so that the fire department could get access to it. All we did was extend the power wires to outside the box, and install the emergency disconnect at about 5'. Total Costs: About $650-700 parts and labor. Have a great New Year! John
John awesome idea can you shoot me an picture via email
And good Morning
DHCP wrote:Alex SC wrote:if we can apply one technique we learn and it adds to our bottom line ( Great ) but you are correct this is not rocket science but simple rules must apply……... The rules, what I called the fundamental………..learn the fundamental first….fundamentals are old and in the books.
ideas are in the books….people who've gone before us already pave the way to success, again i use my KISS method, no need to reimvent the wheels just stick with the fundamental……………..I totally agree with you Alex…………if one idea can assist the bottom line is far more superior than doing the same thing and getting the same result without any room for improvement. This is also true in business as well as in personal development.
Good luck with your business meeting the guy from Adelaide.
Personal Development has a direct effect on my life and the ones in my close net work. Working daily to make sure we all strive to be do and be better in life..This real estate business is been here before me and after me.So following the roads already laid down just making sure they fit with today's real estate market….
Alex
jad wrote:Make sure you do back research into the story first. I know of a couple of people that were thrown to the wolves for something that was done by a completely seperate group… Burn the rubbish not the ones that are there to helpAgree 100 % finding out exactly both sides of the story is the key.Not just what one post. In this real estate business you see a lot of winners and losers.
Surprised by the lack of comments here so far….
Alex
GreaterKCHomes wrote:The Update is In!!!! As promised I will update all of you on the test property of paying all utilities… I will say that this even surprised me, and it is now official! We will be paying all utilities for those owners who have authorized us to make the change. To date, we are in the process of converting 22 of our properties to all utilities paid! Additionally, my partners and I will be converting one of our apartment buildings to all utilities paid. This building is 10 units, and we estimate picking up an additional $600 per month NET in rent! The conversions will cost around $3000, so in 5 months it will be paid for! We will take about a $1000 hit on the 1st month, as the notices to change rent carries a 30 day notice with it. We polled our tenants and they overwhelmingly approved a $200 per month rent increase. In fact over the next 18 months, we will be converting all of our properties to all utilities paid. Now the results….This test property delivered in a really big way, much better than I was projecting with the owner. The December gas bills came in, and it has been a pretty cold month, and I know the furnaces were doing some work. With the meter readings being nearly triple of what they were in November (in all fairness, November was a pretty mild month for us), the gas bill for December was just under $700. I took the same meter usage for December and applied it to November's bill (before the full conversion), and the gas bill for November would of been just under $875, or not quite 20% savings. Now the good stuff! We raised the rents in this building to $750 per month, all utilities paid. So now we are grossing $3000 per month in rents, with the light bill at approx. $400 per month, gas bill $700 per month and the water bill at $150 per month, that's a total of $1250 in utilities. He collects an additional $100-125 per month in laundry income, to bring his gross to $3125, less $270 per month in management fees, and $135 per month insurance, for a NET income of $1470! I did not calculate maintenance, only because for the 2 months I have been managing it, we have had no maintenance calls what so ever! We will have some maintenance as soon as the snow starts falling! His net for November, $1237.88, that's the check I cut for him on the 5th of November! What does this mean to him, in the very cold months when the gas bills will be high, he can expect an additional $150-200 per month in income, but when we turn to spring and summer, and the furnaces get shut off, he can expect an additional $700-800 per month in income! This just shows you that if you put together a plan and carefully think it through, you can succeed! This proves the power of relying on facts to conduct business, and not opinion's! I am in the process of completely changing "The Renovation" to include setting up the properties to be all utilities paid! I will never go as far as saying this is how we will do it from now on, but we strongly encourage every owner to look at this option. If it is done correctly you will actually make more money, if it is done incorrectly, you will lose 100s of dollars a month! Let me add this, I am still a huge fan of all electric everything, as the savings would be even greater. In this scenario the owner does not want to convert to all electric at this time, as the costs are a bit high for a 4 plex. To recap: We netted the owner nearly $200 per month in additional income, but probably more important, we have 100% eliminated the risk of utilities being shut off for non payment, and causing 1000s in repairs! That's managing! The other factor to keep in mind, tenants will be beating down your door if you tell them it's all utilities paid! I don't think there is a PM out there that would disagree with me on that. The number of calls I receive daily from tenants wanting to know if that property is all utilities paid, is staggering. One other thing to keep in mind, your NET NET will actually increase as well, because you are now paying utilities, which is a legitimate expense, therefore will reduce your "earned income" therefore your taxes go down! It's what is defined as WIN WIN!! I hope everyone has a awesome New Year!! JohnJohn interesting want to read thsi when I have a few more minutes then respond. Heading to the gym…to early to really think yet.. But interesting ..
Alex
kenneth wrote:Hi all, am 26, I want to invest about $11.7 / 13 million on great idea I would be please if anybody with great idea should share. Because am kind of thinking about how to offer online loan but dont know how.Okay I will bite on this and hear you out…
First off expect to get flamed right away ..Second instead of posting dollar amount , go with your idea first …
Alex
lawsjs wrote:DHCP wrote:Usually, here the collection is done electronically (e.g., bank to bank payment)Sounds so simple doesn't it. In the US you are relying on two of the most backward archaic and simply dreadful systems it has been my misfortune to suffer under. US Post (anyone else's mail get sent to Austria like mine frequently does?) and the US banking system. For those that can't comprehend the backwardness, or isn't aware of the problem, online banking in the states means logging into your bank and typing in what you want to send and where. Sort of like in Oz. THEN it gets crazy. The bank actually prints out a cheque (and they don't spell it correctly!) and POSTS it to its recipient. It simply beggars belief they rely on so much paper! And the only way to explain the dominance of US couriers (UPS/FedEx/DHL) is by the poor service of USPS. 10 days it has taken for mail to go from one part of LA to another! FWIW most australians I know would not have written out a cheque for ten years – I threw out all my cheque books at least 5 years ago. I use a company to organise all my mortgages and liens. I tried to set up direct debits but they don't happen immediately when I buy new properties, and in any case they STILL require a POSTED CHEQUE. So I get the guy to call me (he is an idiot) if there is any problem. Because of his grasp of the works of international finance and the vagaries of the USPS he called me the day I was about to incur an 8% late fee. At least he called me and didn't post it, but anyway. I get this guy on the phone and ask him how to get him the money. He needs a cheque. Why can't I just TT him the money? No-one has ever done done it that way! WTF??? Well, simple mate, I am in Australia and I can't just post you a cheque, and NO fedex won't work either – we are quite a distance from your house… Forget it, Ill pay that mortgage from here right now – what are your acc details? No-one had EVER done that before, he didn't believe it could be done. So I ask him what most people do – he said post cheques. I THEN find out that this guys whole job is to collect cheques from the Post Office and take them to the bank to 'bank', and most are from supposed 'online banking'. All 900 customers per month, some (like me) with multiple mortgages and loans for each individual property. He is one of a team and that is his allocation. Unbelievable, absolutely unbelievable. I live in hope that one day in the US you will be able to use the net for banking and not just downloading porn.
You did leave out internet gambling not just porn.If you going to insult us at least get it correct…Since 9_ 11 we live in a different world
Alex
DHCP wrote:worldinvestor wrote:I am keen to find out if you are sourcing your own properties in Atlanta, buying turn key or getting them rehabbed.
Cheers, WI
I have a feeling that you're going to ask me about this.
I used a buyer's agent here…they gave me access to their foot workers on the ground of Atlanta (e.g., Realtor, Building Inspector, Pest Control inspector, Attorney…the whole nine yard). I bought some properties before so i'm not new to the process of buying real estate investment.
Maybe I'll get my property manager to put a sign up "Beware of Dog"…..
Cages are worthless they just have to snip a lock and bamn unit is gone.Jay has a good idea and we are looking at implementing this in trouble areas. Lifting the ac and putting it on roof or at least off the ground a few ft.
Alex
GreaterKCHomes wrote:I get a call from one of my tenants at 3:17am on Christmas morning, so of course I'm thinking the absolute worst here. She tells me that someone tried to break in by kicking the front door in. So of course I ask her if everyone is alright, and her response was "We are fine, he's not". She tells me that she heard someone at the door, and grabbed a baseball bat, and met him coming through the door. She tells me there is significant blood on the wall and carpet. So of course I ask her does she need me to wake up my maintenance man and get the door secured, she says no it will be fine until later on that morning. As it turns out, this guy was not trying to break in to steal things, he had been out partying and simply went to the wrong house. He lives about 3 doors down, and could not figure out why his key was not working. He was not arrested, as the police confirmed his story and he to say the least, was very embarrassed by the whole scenario. He is paying for all the repairs and carpet cleaning, which I am grateful that I don't have to take him to court. He actually is a pretty nice guy, I went over and talked to him, and he must of apologized about 20 times. I got a pretty good laugh out of this, which I needed after nearly having a heart attack with a 3AM call…. JohnJohn 24 hr answering service with a phone that goes directly to our take home cell phone. Helps those 3 am calls. No worries I got a call a while back.Yes all tenants get my number( for emergency purposes ( I am braver then most) .Tenant was drunk in her living room, Texting me . She could not find her keys , and could not lock her door. Yes she was in her house and could not find her keys because she left them in the door. Me being a fool decided to go and help her out and find the keys.
So yes all in all always good laughs in this business but also alot of stress with management
Lets Chat today want to ask a question about the peak guys
Thanks
AlexDHCP wrote:I thought Donald Trump rank inside the 10 top among the wealthiest of Americans…..his fortune is only .058 per cent of Gate's wealth….funny you often hear more from Trump. I guess Gate is a quiet achiever.
Gate has planned to give 90% of his wealth to charities….reminds of me Carnegie.
Trump is a media hound where Bill Gates by all means is a computer geek. Best t shirt I ever read.Young kid had a shirt that said yes I am a computer geek. So be nice because one day I will be your boss …
Great t shirt….
Alex
usainvestor wrote:ubrowndog wrote:Apologies if this has already been posted – had a look and couldn't locate anything. I have just purchased a property in the US (Atlanta) under an LLC. The property management company has itemised the following fees:Monthly fee: $50.00 Looks like they are charging you 10% management fee
Tenant sign on fee: $500.00 Again 1 months rent for finding tenant
Renewal fee: $250.00 2 weeks rent for signing the same tenant to a renewal??????
Recovery of late payments: 50%I was thinking this was a bit steep but after having a look at other property management fees for the Atlanta area, it seems reasonable. The property management company was recommended to me so I thought I'd post a blog to get some input from more experienced investors. This is my first attempt at investing overseas. Appreciate advice.
I have looked at the various fees from many different managing agents and I just find it incredible that the fees are so high, In particular the renewal fee for the sitting tenant – just ridiculous.
There are a myriad of other fees that they will charge you which seem to be anything at all to do with you property – apart from keep it on their listing.
What on earth do they provide for their 10% commission????
Getting away from the fees they want to charge the other aspects of the Leasing/management agreement that I despise are the set term instead of simply an agreement until such time that they fail to provide the services required. In Australia at most the RE's try for a 90 day agreement and are lucky to get 30 days. What's even worse with the Term clause is the wording which will automatically renew the term and further the term will be extended based the tenants term of the lease.
The other dozy is the clasue that selling to the tenant (tenants family, tenants friend or anybody that is in some way remotely connected with the tenant) will incur a Re commission and furthermore that this clause will survive the term of the management agreement.
It might be a business but at some point you need to give value for money!!!!
Regards
In real estate management is the key to a solid investment. So you get what you pay for. In the USA most investors know a good management company is worth there weight in gold. So I don't mind charging one bit. At the end of 2012 I expect to have over 350 houses being managed in house. With a staff of 6 full time people and 2 part time which include several handy men.So I don't mind charging for a solid service..
All properties in NC and SC we manage in House…
Alex
Although painting the entire outside of a 4u would probably add a bit. Emma is the Oracle on rehabs – she always thinks _I_ overpay, I think I am mean…
