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Hey All
Alex from Charlotte NC here in the USA . Been involved in Real estate for 15 years now. Currently spend most of my free time with my wife and our four dogs. Travel quite a bit meeting other like minded individuals who have an interest in real estate. Just got back from Singapore ,heading to Australia next ..Love discussing real estate and current trends for USA properties.
Guess if I had to list my favorite things to do in order , ju jit su ( submission fighting , kyacking , traveling..
Sincerely
Alex
CheevesFinancial wrote:I am both an agent and wholesaler. Come on down to Ft. Myers. I'll buy the first round of rum runners and I'll show you how good I am in this area
. I think you will have a different perspective other than your google earth or historic number details.Cheeves we spoke , last week. Lets shoot for a trip in middle of jan. For my partner and I both want to shoot down…skip the rum runners and bring on the crown royal…Sorry big boy drink , just kidding ….
I need to go see the 57 lots our cash lender from Hong Kong picked up..Super cheap I might add…
Lets try to touch base fri and set up some dates..
Thanks
Alex
Guys I do alot of posting for both Charlotte North Carolina and Atlanta Markets
If you want information on our teams there please email me privately //
Thanks
Alex
Hit me on my email .We are in Atlanta and have a good company we use there can refer you to for property management.. That's about average price for LLC, Our SC attorney is cheaper then out NC attorney.. Atlanta Attorney is about the same price as Charlotte NC…hope that helps.
Where in the UK are you located if you don't mind me asking…
Sincerely
AlexJay I am betting on my southern states for our gold mine. We are small time guys compared to most but we do want to own 100 in Atlanta and 100 in Charlotte in next 5 years. That,s homes in each area…free and clear or little to no debt…
Alex
jayhinrichs wrote:Alex,
the US stock market would not exist without sight unseen investing.
Up until recently I was telemarketing at least 5 times a week from some New York brokerage selling the lastes and greatest un registered security.
Huge amount of international fruad going around regarding energy and metal investments.
I just came back from Upper British columbia where these miners had a huge gold claim. It was laughable, If you know the term Gippo Logger that is what these guys were. Your money and my ideas and we will go far.
JLH
Jay my father worked on Wall street in Ny for over 30 years. So yes he discussed back in the day how many he would sit and cold call. It still amazes me that no one takes the time to check things out.If I am dropping 50k into a investment .Which might be small dollars to some one. I would at least take the time to check things out.'
Well got to get the grill fired up big college football day here ..
South Carolin Gamecocks playing Clemson tigers ……huge game for us
Alex
FEES
This is a business and people are going to be charged REGARDLESS. Yes, being in the USA and buying in bulk (not bulk list, but from real estate agents) so I pay the agents and then factor in rehabbing the properties so I pay my contractors too! Then we have the property management side as well (alot of fun let me add that in there) and the company who makes loans to international investor(s) and both charge as well. So, in today's real estate game if you have the cash to play well real estate is the way to go. If you have to use teams to get things done for you then you should expect to be charged. If buying through a local reseller who has been to the States expect to get charged from them also. Now leverage is another topic, but we will discuss that another time.
Sorry, to just jump right in, but I work my ass off to get my company where it is! I expect to be paid. If the deal makes sense at the end of the day, does it really matter what I or others get paid? If everyone on here has a better way or can find better deals by all means go and do it.
Here in the USA and everywhere else people assume they can just jump in the real estate game and do this all by themselves. I really hated the television program Flip this House. They are so full of it because they over promised and made people think it was that simple and everyone could do it. Well like all businesses there are companies that specialize in certain areas and markets. Can you do it by yourself? Sure you can, but that comes with a ton of work.
Side Note: If you purchased a property and did not view the properties or meet the team (in person) regardless if it was from a USA team or AU reseller ~then "shame on you for that." If you want sound and real advice please email me. I REALLY DO NOT MIND GIVING IT STRAIGHT TO YOU. FYI- we buy today for cash flow only (future appreciation and capital gains are speculative). We are hoping these properties come back. My crystal ball is broke! So I am sorry that I nor anyone else can guarantee how long this will last.
On the other hand, when bitching about fees here is everyone who has there hand in the cookie jar… When I buy a property and send to my LA or NY resellers we pay a flat fee of $2k per deal for them to bring in a new client. When I attended or conducted the radio shows in LA and San Francisco we paid $5k fee per property. They did not disclose this to there buyers. Like most deals the fees were rolled into the deal itself.(CHECK OUT ANY OF THE LARGE CALIFORNIA INVESTMENT COMPANIES THEY STILL CHARGE $5K A DEAL MOST OF THEM TO RESELL OUR DEALS). That is why I fly to California so much. I can meet with clients who have heard about us from other clients and we cut out those fees out.I am now doing this for the Australian and Asian markets. Sorry, you can't buy anything from us without coming to the States. I am very excited for my first trip to Australia in late Jan.
Oh yes this past month we purchased 36 homes so far and should hit 45 by end of next week. The homes are between Atlanta, GA and Charlotte, NC.
We raise private capital so yes, we also pay the private money his/her share of the deal. Yes, everyone is going to charge for there little part. The best way to cut this all out except for financing is to be direct with a legitimate team. On the other hand, I would want someone who I could go to on both sides if something went wrong. There are a few clients from this site that are choosing to fly over and meet with me and my team in Dec and Jan. I applaud them for taking the time to check things out themselves. If you want to invest in properties and your financial future. Get up and make a point to check things out. Don't do it because someone else said it was a good deal.<moderator: delete advertising>
Sincerely,
Alex
happy holidays and my wife said to shut computer and phone off for the day…had to chime in just a bit here answers in bold…
property_scout wrote:Lose money to hopefully make some money in the future – negative gear in Australia Make money to hopefully make more money in the future – positive gear in America Yet Aussies are still loading up on Australian property………. A lot of people, I either speak to on here or in person are just scared to take the leap of faith in the U.S. As they should be, there are loads of crappy deals be sold as great rentals here in the USA. This could be avoided if every single person who wants to invest in there financial future. Did there own due diligence and takes the time to go and view the properties. When we are speaking about financial futures, and some one tells me they don't have the time to go see the deals.( really ) Mistake number one . Well enough said thereThey look at the numbers, do the research, everything suggests US property investment would be a good investment, but that first leap of faith holds so many people back from proceeding. That same leap of faith keeps only 5% of the worlds population in the affluent category. Most people will point out why an investment can't work, rather than looking for how it can work while also minimizing their risk as much as they can . As in life we have alot of people who sit on the fence and never jump in the game.Real estate is not for every one. I choose the latter and love the excitement of real estate and know the long term financial future. That I am building for my family and future generations of my family.As well as the employees and there families our companies support. Real estate started for me as a challenge 15 years ago. For sure lots of ups and downs but man what a journey. Started out in a little town called Rock hill South Carolina 20 minute below Charlotte NC and just got back from a trip to Singapore ( clients who are buying in the USA ) . Still pretty awesome just thinking about it…
. What made me take the leap of faith was the following: My superannuation was humming along at a measely 10% return for the past 10 years My property in Australia had increased in value since 2002, but the negative gearing had eaten away most of those profits Aussie shares over the past ten years…….Meh! Thank god for dividends! I wasn't satisfied with the above as you can probably tell I was never going to build wealth this way………Just because it felt a little safer investing in the country I lived in didn't mean I was going to see the positive results. How naive could I be! It was a massive reality check for me and it was time to change my mindset I was looking for something that i knew would perform from day one, without worrying about the capital upside and the day to day turbulent volatility CASHFLOW!!!!!! When the retail and sub prime market fell apart in the states. We switched gears and realized real wealth is long term buy and hold ( CASH FLOW) Since then we have been aggressive buying and building our own portfolio. Yes I still get excited when I get a slam dunk deal and add it to my own real estate portfolio. Just FYI we are averaging buying between 20 – 50 properties a month .When properties are available in both our main markets. What the investors don't buy from us we just add those homes to our own company real estate portfolio. I have since ventured out and now I am trying to learn and tackle the next monster commercial deals. Small apartments just like single family homes we are venturing into a new area.Sure there is fear but the excitement of buying my first 20 – 40 – 60 or larger unit overwhelms any fear. Again it is getting out there and doing not just saying….
It was time to start looking for an investment that produced good cash-flow and was a distressed market where the most people were fearful and bargains and high cash-flow were plenty. Warren Buffet is obviously most active in these markets….it is well documented! After doing my research, I filtered in to three main markets: Phoenix, KC and Atlanta,( Love Atlanta been to phoenix. No interest but good market nothing against it. Kansas city have some partners there that provide short term financing for foreign investors but again no interest in investing there.Some good teams in both markets. So I know all 3 markets but prefer the south east >>>>> for my investing areas.
I actually began to realize……………. ………..I now know more about these American markets than I do of the Aussie market When i invested in back in 2002 So I Started small. Wanted to build confidence first. The guys at the company I purchased through said to me, after I found the house I wanted to purchase, "we will give you your money back if after 3 months you decide this isn't the investment for you" It was an amazing leap of faith from a company that was so confident that I wouldnt look back after receiving my first three months of cash-flow. I am happy to say, the leap of faith I took, as well the company took with their money back guarantee back then, has now built myself a nice little portfolio that has produced more cash flow for me than any investment I have ever owned. I am still buying through this company today and have a great relationship with them So point is, if you are sitting on the fence, here's some advice from another Aussie who was scared to convert my first AUD into USD and commit: – Start small. 30k for example.
30k is low entry and wont get you much in the USA ( or will be in rougher areas) .Lower income properties tend to be more of the headache deals but on the other hand I still deal with those. We have some properties that we just sold priced between 40k to $50k range. So be-careful what you buy and please do not buy with out seeing the areas. Yes I am sorry for some who will get pissed by this next comment. NO a video and pictures do not work. I want you to actually fly to the area you are going to choose to work.That is a small part of taking the steps to changing and creating you financial future.
This is stamp duty in Australia for gods sake. You lose your stamp duty straight to the government anyway. It is dead money. You might as well put the 30k somewhere else and have it start working for you – You want to be in a market where the jobs are, and will be for some time. Without jobs, we won't have rental demand and the investment won't work. Wonder why Detroit returns are so high…….. – The higher the rental return you chase, the higher your risk will be. Detroit is a great example, one industry town, jobs are in decline, and this is similar to mining towns in QLD. Once the mines dry up (which shouldn't be for a while) property values will decline and there won't be any rental demand. JOBS JOBS JOBS are the key to your real estate investment!!!!!! Did I already say JOBS? Very true no work no job no renters = empty homes..No more needed to be said there.
– You can minimize this risk through choosing a market with diverse industries, minimum 5-10 big fortune 500 companies should be present, being close to good schools, highways, shopping malls, and general infrastructure, buying well with a company you trust and who has proven testimonials of people who have owned properry for more than 12 months, not just some salesman who doesn't own any property, and lastly, making sure your property manager has a diligent tenant process as well as day to day management service. MINIMISE YOUR RISK: Simplified below 1: Meet the team
2: Fly out and check out the team ( I make sure any one who comes to see us in Either Atlanta or Charlotte NC must do it monday _ friday.3: referrals ( find out who you are dealing with )
4: Real estate Goals in mind what you want to achieve…
5: Most important property Management …
Try and finance out your property as soon as you can so you have none of your own money in the deal. If you start with a 30k home, try and re-finance out as much as you can. My guys can do between 50-65% Loan to Value. So now after refinancing, you only have 10-15k of your own money still committed in the deal. Let your tenant pay off the remainder of this loan balance, and in Kansas City, with a good 18% return, your tenants should pay the remainder of this loan within 5 years. So what started out being a scary 30k investment in the US, Soon only became a 15k investment after the refinance. Then as my tenant continued to pay off the balance of my loan, I began to smile with content…………..
true leverage and paying off the property as soon as possible….
just my two cents
Alex
Hey Guys can some one update me on Stephen Mcclatchie..website is www.http://loansusa.com.au/ looking for feedback….
Also looking for some Australian companies ( referrals )that work with USA investment team . That actually take the time to come and check out the operation on the ground in the states. Not just selling deals with out any due diligence.
Hope this is not considered advertising ..
Sincerely
Alex
[email protected]Hey All I am amazed that any one would just hand over money with out physically meeting and inspecting these so called projects.
Again it is simple amazing that investors are willing to dish out money for these super high returns promised…with out checking and rechecking the groups they are dealing with.
What ever happened to due diligence . I am sorry to hear for any one who lost there money. For one don't let it stand. Again if you ever give any one a dollar or buy any product do a little research. Take the time to go see the investment. Go meet the team.
It bothers me every time some one says I don't have the time to go and do that. Well If you are going to invest in your financial you need to make the time.
just my two cents
Alex
First generation never heard it put it that way.( interesting ). Building a real estate power team is most important aspect of investing any where. Regardless of how we put it.
When you have cash , and power to buy ….Deals will come from every where. So having your power team in place to handle the deals. From rehab , to property management , to lawyers , real estate agents , wholesalers , to handy man. Make sure to have all the parts covered. Other wise you are already asking for head aches and problems.
For all investments teams in the USA or other countries building a trust factor for all clients is the key. Some times words just and won't cut it . Execution , and performance is the way to truly measure the true value of a real estate investment team. Some times the words you get what you pay for is so true in life.
Cheeves again just my two cents
love Florida my self my oldest brother is a 14 year vet of the Sarosato Police force and lives in North Port. I have invested there but don't sell those deals to our clients( don"t have a solid team in place that can handle volume). I did send you an email response on your website.
Sincerely
Alex FranksJay
Wow did not realize but you know me. Very aggressive, if there is some thing that has potential. I did send you a private message well off to my meeting. 130 in the afternoon here. Lost track of time in the USA.
Talk soon
Alex
Jay actually two guys flying into meet me from Malaysia.
My good friend is contractor in Afghanistan. Great guy signed 2 year contract to train the police and soldiers there.He is buying a class a trailer park in Spartanburg SC… I am doing the lending for him to cover the down payment. Very secure loan. Property consist of 80 trailers they pay lot rent .Most are retires ,including his father that lives with in the park.
If I knew there was a market for class a trailer parks , you know me I would add that into my radar…
Alex
Good story about mobile homes..I have a cash lender from Lancaster South Carolina . Client is 81 years old. He owns a few blocks of land( basically 3 street ) ,with old trailers from early 80S. Most rent to monthly workers the plant flies in. So good deal for him there. I went with him on a Friday to pick up his rent from weekly renters .Decided to go for the adventure. He sat at a table with loaded gun in lap , his son who stood about 6 ft 4 .I am a big guy but his son made me look small.His son also had a gun,. They laughed with me, as they said this is every Friday how they collect rent on the trailers. Yes good cash but man what a way to live …So need less to say I skip anything with wheels on it that some one can run off with in the night..
How was your trip to LA, I leave Singapore weds then heading to LA for seminar in Anaheim , and some meeting .
talk soon
Alex
Hey Jay let me get back to the states but this is a very healthy topic. I am struggling with what clients are wanting. Homes that I would pass on.They are jumping on. Homes that make great sense for future appreciation. Are sitting and not moving .
So will follow up when I return back to the states. I am doing another trip soon to both Australia , Singapore. So hoping alot of over seas investors chime in on this discussion.
Sincerely
AlexWell we looked at section 8 204 unit in Atlanta , think our client passes we so did we.Taking on a large head ache just don't have the stomach for it. Yes I like section 8 for cash flow on single family homes .Not sure if I am ready to tackle a big 204 unit head. Bank foreclosure. So looks like another investor lost on it already.
Good luck John with large properties we are just getting into the commercial side of things. Slowly I might add.
Hope all is well
Alex
lawsjs wrote:I have heard Steve has 'unusual' ways of dealing with property management. Similar things are done in Australia and although I have personal issues with the hows and whys if you can make it work then great. After all, I suppose that even though it is a bit of a captive market no one is 'really' forcing particular tenants to rent from you, so I guess I would wrestle with my conscience and probably convince myself it is OK too! There is no doubt his methods improve an area/property but be very aware that Steve's approach is probably as far from rocking up to an agent and asking them to manage some property as you could possibly get. Like my (eventual and hard won) approach to US property management it requires very close ties to people who you trust to make anything work. I would suggest that unless you are very lucky, buying a property in anything other than a very prime area and 'hoping' you have a great managing agent is going to cause a lot of headaches. My guess is a lot of people will simply walk away from the 'investment' (as no doubt the previous local purchasers did) and be happy to pay the price to stop the nightmares continuing. Assuming of course, you get to sleep with the phone/emails constantly waking you up:) The US guys posting on this site might seem like killjoys, but each of them firstly _really_ understands the culture and secondly has very good reasons for saying what they do. It is extremely generous of them to post answers to newbies over and over again, especially when they are clearly good enough at what they do to make money on their own!! Property management is the key – and it is very hard to maintain all the relationships in good shape.lawsjs
You are correct property management is the key. I am actually in Singapore china for a few days meeting some clients who want to own some US properties. So main thing is meeting them , then secondly taking a tour of the markets and checking out our system. ( management ) in the USA. I think one point that is missing from previous discussions .You can have the best system in the world but you are still dealing with tenants. They don't always follow the rules and that is part of the real estate head aches. Minimizing those headaches is the key on our part as a management company..
Alex
Ps Lawsjs if I do have some grammar errors bare with me long flight and stopped in japan for a day…
engelo10 wrote:jeff2investUSA wrote:speedy gonzales wrote:Hi Jeff, By all means you are entitled to your opinion on upstate NY…….problem is that as soon as you mention the area you immediately think of Buffalo, Rochester etc. This area saw an influx of Aussie investors a few years back and everybody lost money. The gross returns promised realised into negative net returns and further loss upon sale due to continual frustration. I take your point on board that it is possible sometimes if you have the right team. Also a good point that usually you find the salespeople themselves have never invested their own funds so how could you expect to trust them with yours Where exactly do you recommend in upstate NY out of curiousity ?Hi Speedy Gonzales, Now I know that you are gonna think I am crazy, I am investing in Rochester, the reason being is that I have partnered with some local investors there who have the runs on the board, I agree and they do as well re bad deals done a few years ago by real estate sharks, who took money out of investors, however I have a partner in Denver, very experienced real estate advisor who has a good report on Rochester, no boom or bust steady, good returns, tenanted properties, well run property managment system in place. I would have no problem reccomending Rochester despite it's bad rap. You will never get a huge capital gain on purchasing a property for 50K-60K, but a positive cash flow, I am getting that. The problem with the sunshine states is that a number of years ago speculators came in and purchased properties causing the prices to rise, thats why you see in Florida some houses were $180K a few years ago now selling for $60K, will these properties EVER get back to those prices….don't think so. because they were never worth $180K to start with. Jeff
Hi Jeff,
I have recently bought my 1st in Rochester and so far its been good. The team on the ground is fantastic. A good mate of mine has over 60 properties there and has been investing in Rochester for the past 9 years. No capital growth but his properties are always tenanted and very well managed. I think the you can make money anywere as long as you have a good mastermind team around you.
EngeloSo true , with the right team in place is every thing in real estate ( and property management is huge part) . There are plenty of cheaper markets like Rochester NY that in the USA. Where properties are ridiculous cheap. I am , Charlotte North Carolina( still like pretty houses) though. My investment team was just offered blocks of homes in Buffalo NY. We passed to many potential head aches. Again there are loads of markets for these lower end deals ,but they do come the head aches. With the right team they can minimize head aches. There will be higher turn over of tenants,Loss rental income , more repairs.
Again building ,and structuring real estate portfolio , can be done so many different ways.I would choose a bit of everything (again just a personal preference) I can go into more detail another time. Although I am not a big fan of lower end rental homes. There still money there to be made there. We own and manage quite a few of them our selves
These are just more variables to be prepared for. So you don't wake up one day realizing you are paying more out of pocket then what the property is actually producing .
Again just my two cents….
Alex
Jay actually met with David in my office the other day. Soon as I saw Charlotte posting here. Was not used to hearing any one else speak about Charlotte. Brought David down and showed him around, met some of our staff , and showed our system , and what we are up to in Charlotte. Explained what we feel is the market price that foreign investors are buying and why.
In Miami the $300k and higher priced real estate .Then the tax rule might apply other wise not seeing it at all with investment deals in the USA…
Alex
. I think you will have a different perspective other than your google earth or historic number details.
