Forum Replies Created
John how are you. Like wise the old tax man is coming. For sure after 3 years. So true.. Bottom line you can make and lose money in real estate. I am only 15 years in this business. I don't have the mortgage or bank back ground like others. I have purchased and rehabbed homes from $10k to $5m . Now not going to lie the higher priced rehab homes over $1m was worse then dealing with the $10k rehab project.
Don't get me wrong I buy both ends of the spectrum today for cash flow ( hoping for future appreciation). The 67 house package my partner and I have been working on now going on 3 years. Is in a 5 block radius. All located in a small area of Rock hill , SC..Just below Charlotte NC. Yes even as a head ache I see major profit for long term. And for the town of Rock hill, this area is a war zone but we don't have crime here to be honest. Charlotte yes Rock hill far and few. Still little quiet town . Heck my road if I see two cars go by , I think some thing big is going on. ( yes I am a laid back country boy from NY )
So likewise KC or any other market at the end of the day comes down to the team the investors choose to work with and can they handle the types of products they sell.
John your homes and you work ethics , have heard nothing but good things about you.( No I don't work with John or not affiliated in any way ) . The boys over at Peak ( Jp and Shane ) stay in constant touch with them. Actually conference call yesterday about partnering with some financing for other markets.
Well stay in touch and hope all is well
Alex
PS We still flip if the deal has tremendous up side..Besides once it gets in your blood it is hard to not buy , rehab and flip…Working on purchasing a lake house. Tax value $2.7 m came on market for $700k we offered $400k rehab $400k . Would wait unit spring to put on market at $1.8 looking for $1.4m So yes we still do the flips and no cash flow there on that house.LOL
Quick investment thoughts
Newer homes 3 bed 2 bath or larger = future appreciation ( speculation of course ) good cash flow less headaches
Older investment homes = Great cash flow , higher turn overs and more head aches. Not always….
I do deal with both types of these investment homes( for my own portfolio and our clients ) but would much rather buy what we call the prettier homes factoring in future appreciation with cash flow( no we don't offer 15 to 18 % returns there.) When we collect rents over $850 dollars per house. Seems the whole process is much easier, less head aches and less turn over. Not saying that the lower end homes are horrible. It does however come with higher risk , reward factor built in. Along with many sleepless nights.
The lower end I still play there but after dealing with newer nicer homes always hard to step back. Again not knocking any one for doing what they do. I am just agreeing with Jay, lower end homes bring more head aches. Sorry don't care what any says there. My partner and I own plenty of these lower end investments so I can relate what I have gone through.
again just my two cents
Alex
RichAd wrote:Can someone help us please ? My wife and I are really struggling, we still can't identify a location for USA PCF rental property. Any ideas which location is good ? We intend to buy in the next 4months.Some of the advice above is well noted.I would pick out a few markets in the USA…Then instead of worrying about buying. I would first worry about learning and flying to each market that you might be interested in.
There are plenty of people on these forums that will tell you each city is the best and why.
Save your self the long term headaches by doing a little bit of research, and ask questions….and please don't go with these super high returns some are promising….
Sincerely
AlexGood information working on a similar list for Charlotte North Carolina…
Alex
Nathan, I have no interest in Detroit, my city is Charlotte NC and surrounding areas. I stick to my own backyard. I was in Atlanta but now I am slowly pulling back and just focusing on Charlotte, NC, which it is great that you just focus on your own backyard. Smart way of investing, but it does help if you are buying and holding the properties for your own portfolio that you sell in the same areas (credibility is what we all work hard to establish) with the low prices in Detroit it is not a bad idea to scoop some of the properties that you are selling. Not looking to get any thing started. Just easier for a over seas or out of state investor to knows you also have walked and will walk in his path. This was our old strategy buying 12 homes a time (cash flow rentals) selling 10 and keeping 2. Building others real estate portfolio's along with ours.
I also have a PARTNER that owns 57 homes in Detroit, they are all section 8 and he is cash flowing quite well. So not just bashing your market. Just fyi he is a Foreign national.
Sincerely
AlexPS: At the end of the day, I ask my self would I own this property. Again just my two cents…
property_scout wrote:I love the section 8 program. If your house passes a section 8 inspection, you know you have bought well and the house is in good shape. They are very picky but if your house is rehabbed with certain paint and flooring specifications, vacancy costs can be minimized. Textured darker colour walls, darker tinted floorboards, dark carpet to name a few will help minimize that outlay once the tenant moves out. Makes sure the company you buy through understand that this is paramount to your bottom line. Here's a video on why the textured walls etc. You will be able to find other tips in this blog which will help you understand other aspects of real estate investing often neglected. http://www.americanrealestateinvestments.com/blogs/why-do-texture-walls-on-your-rentals/Property Scout
The only problem with that is section 8 seems to change from state to state and county to county. We use and love section 8.Our old practice was to raise every thing to section 8 standard. In the lower income areas we still do. Currently looking at a 204 unti section 8 in Atlanta. The project is a mess so not all section 8 can be trusted and counted on….
just my two cents
AlexRight now some of these areas that seem to work for both investors and lenders. Union,loganville , snellville , stone mountain, Lithonia in Atlanta . I just got back from 2 day trip there. Now for Foreign nationals there are some lending options all though not great. Does give the option to leverage your funds.
Sincerely
AlexDavid
I left you a message. I am in Charlotte North Carolina. You can reach me on Skype at Alex Franks 2002. Would like to talk. When you get a chance.
thanks
alex
HighIncomeProperty wrote:I tend to disagree with many of the foreign investors here, and I see land as an EXCELLENT play right now.
While it is entirely true that buying land TODAY won't make you "instant" fortunes, as reselling the property immediately for a profit most likely won't work, new construction is difficult (even though as Jay said, it can be done), and there's no income.However, if you look at the "path of growth" as mentioned above, there are some fantastic opportunities to acquire part of- or entire subdivisions, with all utilities already in place. It's really important to look at what is already there – you might be able to buy a parcel for a knock-down price (I'm talking paying like 5K for a parcel that was 100K+) but if there's no services to the lot, you're talking maybe 30-35K before you have a usable lot.
Many areas have seen land values plummet so low, that in my opinion, they can't go much further. If you look at the GOOD PARTS of Cape Coral, FL, just as an example, you'll see how far values have fallen. True, many lots in CC, Lehigh Acres, Ocala and God-knows-where don't have much of a value (and probably never really did…) as they're miles away from anything, but there are also so many good buys.
You can also look at buying as previous poster said – find a subdivision that is 60-70% built out with new homes, then move in and try to buy the remaining lots in the community. This sets you up very nicely for the future, where you can either:
a) Sell to a builder when the market picks up, or
b) Build new homes youself -more work, but more $$$ tooAlso, land doesn't come with tenants, maintenance, high carrying costs etc…
Highincome property sorry not sure of your name I am sure it is in one of your other post.
I tend to agree with some land purchases , maybe my company is a bit different . As we build real estate portfolio's for our clients. So doing that ,I think every one should diversify what they are holding in there real estate portfolio. We are now also looking at land as a future gold mine in some areas of the South , mainly Charlotte and surrounds areas.
I would always leave all options open when I am buying real estate as long as there is a future upside that wont cost me to much today..
Sincerely
Alex FranksStacey Surveying wrote:Hey Everyone, My fiance' and I are looking around for our first IP. Stumbled across this thread today and it does look like a good idea. We're looking for a positively geared property and you can't go past some of these places offering ~18-20% ROI. I'm looking at places around the 50k mark, looks like most agents want 20% deposit but how did you all go getting the other 80%? Would it be wiser to offer a ~30% deposit? Would these huge returns be accurate with the higher vacancy rates? Will be thoroughly researching this, and if it turns out to be a wise investment will be looking to buy early next year. Cheers, Ash StaceyHello Stacy be careful in the states when one offers these high returns.I am in the states and some of our deals for local, national, and foreign investors never reach those high returns . Now there are some that do give a high return but one must take into consideration the areas these properties are in . In the USA you will have a different spread of homes and different rates given buy every wholesaler or turn key operator.Hope this helps .
sincerely
Alex FranksHey All and Jay been away for a bit
Been traveling through California rough trip this time .Sandiego _ Santa Barbara .I am hoping to come meet with you ( Jay ) Say Nov 14th.I am In Canada NOV 12 ( Vancouver)For every one here I am not affiliated with Jay .How ever I am in the states my company is located in Charlotte NC and Atlanta .
I am quoting Jay Hinrichs here
Now the topics have gotten into lending and I am dead certain I know more about lending in the states than 99% of any of the contributors on this site. Lending your private funds in the US can be very rewarding or you can completely get taken, just like getting talked into buying those choice properties in Rochester or downtown Detroit or any other war zone in any other big city in the US. Yes he does I follow his post and I am wanting to set up his program in my base areas of Charlotte NC ..( wanted Atlanta but he is already there)
What happened in the US was the CRA rules the banks had to play by…. Its called Red Lining, IE they will not loan in certain areas. Well most of these areas tend to be minority, Black, Hispanic, etc…. Clinton really pushed for the CRA Community reinvestment… Banks had to make a certain amount of loans in these neighborhoods Knowing full well that they were going to take loss's…. ( Jay even clients in California of mine I have to remind them no on the war zones area's they keep telling me how cheap Detroit and Rochester NY are. )
Now on the lending it does work when you meet a company that does what it says.I have used private funds for the last 2 years.Had no choice in the USA hard money loans went dry for a bit. So my company switched gears. It is very possible for investors to lend to USA wholesale teams and make money. We use a few different clients from Honk Kong and Singapore.
The projects are scrutinized completely on both ends first . Then we video tape the project and send rehab list and break down of expected profit( if it does not sell in 90 day time period we pay 1 % of total loan monthly) I can give more details if some one wants to see our program( not advertising offering advice ) . ( Very easy to communicate with over seas or foreign investors with Skype programs) heading to Singapore Nov 18 – 22 to meet with our newest investor…
just my two cents Alex
Glad I did not see Charlotte North Carolina on there . We are in Atlanta buying also with every other investors group in the USA. The amount of properties we are able to pick up is growing.So I hope to be there for the next 5 years in that market. So really not overly concerned with a report like that.
Alex
Stu that is a great point about the last 5 years .If a company is still going it says a lot.
Good Point
Alex
Jay
I give you that one. Turn Key ….LOLSorry but thanks for catching that( did just leave the gym ) .
I appreciate your opinion ,being you have many more years in this business them me. I prefer people that give it to me straight then basically give me a line of bull…So thank you for that . That being said, that makes me alot younger then you…Just kidding
Well next question .
How do you feel about Florida , we are close to setting up shop there. I already purchased and sold a few house through the house calls show( Jay Mcbee ). That was few years back. Focusing on the North Port , Sarasota areas.
Entry point for our purchases their , and back end sales of Turn Key Deals .The numbers are about the same as the Atlanta , and Charlotte Market. The rent I feel will be lower then the other two markets.
I am working on setting up a property management company first there. My oldest brother is a 15 year vet on the Police force.The rehab crew I am running there are all cops so that helps ( very little theft)
Look forward to your opinion
Alex
MyMoneyFinance wrote:Hi All,A client came to me about obtaining finance in the US to purchase a property in Texas (The merits of which are a little are still doubtful to me).
They are setting up a LLC to own the property, in Texas.
As a newbie in this space, can you suggest any 'Bank or Broker' in either Australia or US that could look assist me at putting such a deal together?
Thank you
Yes I can help with some information .
Alex
jayhinrichs wrote:jane, depending on where you are in Texas the property tax's can be much higher than almost anywhere else in the country and by much higher I mean 2 to 3 times other areas with same purchase prices and rents. . Like any of the investments you will have proponants of one area and others who like something else for other reasons. The discussion we ( US based investors) have been having about a market like Texas as compared to others is this. Texas properties as a whole did not crash like most of the other hot beds of investing today say like Atlanta. However depening on the value of what you buy you will always have the builders there that can and do build new product in the low 100's that will compete with standing inventory. And especially a home that has been a rental for any number of years. So with average prices much higher in Texas and rents pretty much uniform accross the country is it better to invest in a market that has properties that were selling 05 for 175k that can be bought for 75k with the hopes a small move to 100 to 110k will give you a nice equity return. Or is it better to go to Texas where the market has not moved per se' and the only hope of equity gain is to make new Highs in the value of the real estate as oppossed to other areas where profits will come with just a bounce back to a % of the highs. I have one client who invested with us that had 30 houses in Texas and sold them all his comment was the vacancies and tax's just ate him up. I will be in Dallas tomorrow,,,,, JLHJay I have to agree 100 % we are buying in Atlanta and Charlotte with the average sales price on back end for turkey under $85k.The potential for equity is again totally speculative. We are hoping to find the values to go back up in a reasonable time frame. Just not sure how long that time frame is.You been doing this alot longer then us.What do you feel is a fair time for the markets to pick back up. I am looking at 10 years. Whats your take and why do you think that?
Was not knocking being an Agent . Maybe I forgot to mention my 3 agents we use in Atlanta are great for us..My Local agent works part time in our office ( free space )she is the most valuable tool for us. Our lawyers are on top of the game. I just see these fees are going to be the next hurdle with buying and selling…
And hard money yes bit expensive for us. Raising private Capital and partnering is working well for us. Hard money could be a option.
Look forward to speaking on weds…
Alex
HOA fees suck and can ruin cash flow..Condo's versus singe family is no brainer ….
Alex
[. Howver I am aware that the capital gains will not be as good as the likes of Florida or somewhere else.[/quote]
Yes finding the right team is most important. Let me know if your father if he is in the USA still .Would like to fly to Charlotte and see our operation and our team.Along with the houses we hold and sell.
I would not mind paying for his flight out from Ft worth to Charlotte to come check us out.
I am currently in the process of setting up my property management company in Florida .This should take a few weeks.We will be up in running by DEC.
Sincerely
Alex
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