Forum Replies Created
- jayhinrichs wrote:http://www.sfgate.com/bayarea/article/Scourge-of-metal-pilfering-hits-parks-3692113.php
All the things that effect the upper mid west and east coast have finally come to roost in SF
this is just incredible really
Rock Hill SC only 55k people and we have 3 new metal shops here in town. I asked the police here locally to set up a system so anything they buy has to be run through the same computer system that the pawn shops use. In SC if some one pawns a item ( whole sale places in USA where people sell or get loans on items)I seen people walking down the road with shopping carts full of metal. Knowing they did not just find it. I am hoping all metal prices copper , Aluminum take a drastic price.
jayhinrichs wrote:If your trusting your investment to a 3rd party property manager then and your marketing company has no responsiblity to the properties long term running costs.then a physical inspection is warranted… Its really just rolling the dice on these low end properties.. You could get lucky you could have a nightmare.
I always felt appraisals are worth less but inspections spell out the true story.
Before and after inspections are the way to go.
my two cents
streamlineinvesting wrote:Thank you above for all your help and assitance. I talked to my property manager and she basically echoed what you have said above, that it is impossible to be able to obtain finance for a foreign investor.The only solution she suggested was to obtain a credit card with the bank account, and by doing so, build a credit rating over a year or so, and then eventually may be able to purchase a property in my personal name. This is not ideal as we would prefer the property to be in the name of our LLC, but that being said, we can always transfer it across to the LLC later.
Being able to get finance is still only a maybe, but she was suggesting that we would need a minimum loan of $200k, but this does not need to be spent all on one property, a couple of properties could be bought and we simply draw down on the finance we have been provided.
So it seems there could be a fairly long waiting period before we are able to obtain finance in the US, in the mean time we may look at obtaining finance in Australia to purchase in the US, however the highest interest rates will make this less appealing. Alternatively we may look at continuing our investings in Australia, or starting to invest in NZ.
Otherwise we can continue to just purchase properties outright with cash in the US and just save up enough in between purchases, would be a slow organically growing portfolio, but at least we would never have to worry about being in debt!
Financing is great but building real estate state portfolio one house at time is safe and sure way to succeed. I have been following your Blog .
Good stuff send some of your fellow Aussies the pictures of the renovations.I think this will help every one on why and what cost are here in the states .
jayhinrichs wrote:Joel,,,what do you mean something goes wrong with the property in one year….
All the proformas from the marketing companies show little to no maintenance reserves and or vacancies are you saying something could go wrong?
in real estate things will go wrong.
tenants do move out in the middle of the night
lower end rental more head aches
tenants will not pay rent
tenants will break things
mechanical things do break ( ac – water heaters – plumbing )
these are all things that will happen
being prepared is the key
CL1706 wrote:Hey guys – great topic. Further to your post Emma, I was recently in Atlanta on a property buying trip and thought I'd pop into Home Depot just to price white goods, kitchen cabinets etc and got chatting to a tradesman while in store. Long story short, he has been great in finding me some local guys who I have used to help out get my houses into tenantable condition, and I will continue to use them as an alternative to my Property Managers own people when back in Australia. Haven't seen Lowe's, but might be worth a look.Lowes LOWES LOWES LOL it is just they happen to be 2 minutes from my office. For us here in the states these are things we take for granted in the business. Some times I think the little details of going to Lowe's and Home depot are well worth a trip for international investors . Seeing the price for materials is a big help.
I love the side walk sales and always look for the discounted items for our homes. Sundays are good days about 5 pm to walk the back isles looking for deals. Now bare with me I am not the typer , or spelling and grammar is not as good as Jay and Emma ..
The other thing is yes I look for workers for our homes as well in the Isles of both stores . I look for the older guys with a few helpers. The guy picking the parts out is who I am looking for. Now years ago I did do my own work on the homes I purchased. This is great for any one who is here and has the time to do this. Such an education ,and then you know if some one is charging a fair price.
Nigel Kibel wrote:The fact is if you have money to spend be selective as to where you buy. There are plenty of better locations than DetroitHave to agree with both Jay and Nigel
jay you are right slums are slums no matter where they are.Was in Charlotte today looking at a house for $5k yes $5k ( located in Hidden valley ) Gang area, I counted 28 homes in area that are investor homes. Easy to spot by the amount of rehab done on each home. I stopped at a convenience store just up the road. Man you should have seen the looks I got.
Long story short I would not invest their not feeling safe and I am not a little guy.
Nigel I am sure there are some good areas in Detroit but there is a reason very few and I mean very few USA investors buy their.
talk soon
jayhinrichs wrote:Alex now your talking Aussie language rentals by the week
… I think in OZ they do it by the week because they pick up 4 weeks of income that we lose here in the states renting properties by the month… Its brilliant really the weekly rate…
Weely rent in the US is synonomis with a boarding house type environment or a motel that has been tuned into weekly monthly rentals…. just have to really stay on collections not something that a out of area owner could possibly do well at.
Jay this 100 % the truth been there with him while he collects funds (rent). Now he is an old retired contractor for section 8 gov building in Washington DC.( Moved down to the Carolina's in the early 80 S ) He carries a 9 ml and has his son who stands about 6-5 280 pounds. Every Fri as he collects rent. Yes the weekly things work for him as a major company ( Bowater has season and monthly workers flying in . So he fills the places up pretty good.
worldinvestor wrote:Trust nobody……You need do your own homework and most importantly understand what you are researching.
Plenty of information on the forum to help you.
So true trust no one home work and research are the key to investing . This is a common sense approach to life. When I want some thing new for the house. Could be a computer , lawn mover I start my research. This is the same for investing , or building a business. My wife is been working on creating a second company ( triathlon store for Rock Hill SC ) The research she is been able to find and process is amazing . So again use this forum and the internet to you advantage.
Going to do a separate post for a simple approach to Real estate Investing
Nigel Kibel wrote:Yea its gone up in value with all the idiots that have invested there. Dont waste your money on this third rate city[/quote)
Nigel I am afraid this is happening in most USA markets .The investor demand is driving the prices up. Most are overpaying forcing even wholesale guys to raise the prices. Things changing fast here in the USA with alot of funds stepping in to buy properties. We are having fierce competition from one group. They are buying both in Atlanta and Charlotte NC.Hope all is well.
Let me know about your travel plans to the USA ..
jayhinrichs wrote:Alex my thoughts are the same as they always have been//The majority not all but the majority of the marketing companies selling off shore investments in SFR's are only in the business for one thing and that is to maximize thier profits period.
They do not take the clients interest first… If they did they would never market 3/4's of these ghetto properties that they market.
And or its a combination of the above and the fact that they just do not know any better and beleive that the tenant pool in these areas are going to pay as agreed… which we know is anything but reality.
Kevin took this client to the newer nicer homes in Charlotte. Nothing rented below $900 dollars,instead his focus and mind set is on lower end. Not sure why , really last two weeks have been crazy. We are seeing the need to have multiple properties in different price ranges. Then again this is been hard to pin point exactly what to invest more dollars into the last few months. We have played with numbers on different areas in our little 60 mile buying radius. Still not sure which direction to go into. Now for the fund I mentioned to you we are going to take both lower end _ along with higher end homes if the numbers make sense.
jayhinrichs wrote:many Memphis folks.Just make sure you buy in the right area I would not buy anything sub 60k in memphis pesonally
The big boys in Memphis you know who I am talking about say nothing but 2k square ft or bigger and homes priced $100k or less.
So we felt that was the way to go as well. Had the investors UK guy from London and he is sold on the 20% returns from Detroit and some Florida and Memphis areas.
Just not understanding the International buyer any more. Even the USA buyers rational is changing.
Your thoughts on this ?
Jay
I pulled similar article up while I was speaking in both Malaysia and Singapore .I wanted to show investors , even with Zillow_ Google earth – and all the internet advancements. This is why I wanted them to come to the USA and Check things out if they planned on buying.
kylermrice wrote:I was confused, I'm on the up and up, on what she meant now.Looked at one the other day for 1,500 dollars, lot fees killed any chance of cash flow.
near me I call them cash boxes. If I can buy single wides with the land for under $10k I take them all day long. Double wides willing to go to $20k if land is good area. Most can be purchased super cheap.I deal with older fellow out of Lancaster SC, cash lender for my company. He purchased the land and the single wides in late 80s. Still rents them out $125 week. Just looked at some numbers when I had coffee with him. He is taking in roughly 16k month. Been doing that for many years .
Not bad for single wide trailers. There is money if done right and you know what your are dealing with.
Alex
emma171 wrote:This COULD be fabulous or not but will keep you posted… Let's say you have a plumbing issue and need 3 quotes because you are sick of hyper inflated prices? Home Depot hooks you up with the trades from their list. 90 % obviously I have my trusted dudes but what if you didn't??There is an app too. http://www.redbeacon.com/
For the people out there with the stories I have heard… PROGRAM CALLED RED BEACON
Have been reassured that all work is backed by the Home Depot promise and I have to say, if you are on the other side of the planet calling BS on a property manager, this may be a godsend. You call a 1800 number (or fill in your needs online) then the trades call you and you go from there.
I love it in theory. If I had a no show etc… Hmmm, must think of something to call them on.
Mmmmmm I love Home Depot….. Hooking tradesmen with me…..if I was in Oz…. Fab!
If I was here and short a guy? You will need to negotiate rates.
Remember 1) these are people who won't know foreign investor or rate that way (get a skype local number) – of course you still have to sound somewhat knowledgeable AND 2) some of my best trades I have met walking the aisles of home depot… If I see a guy who knows his stuff, is picking out the right thin set etc or is super helpful I absolutely chat.
Bottom line – if my gut was saying that I had received a specially hyperinflated quote for a job….. yep, I would call them.
Well I got to jump in and speak on LOWES behalf. Been away from the forum as I have been quite busy since I came back. We have 14 homes either in some form of purchase and or rehab. So I been at both lowes and home depot quite often last few weeks. Found tile for 57 each at lowes ( home depot 63 cents a tile) LOL Sorry Emma. Actually both home depot and Lowes are changing their stores. IF one notices and checks things out they are moving more into home decorating or renovations. They are also promoting the work to be completed by professionals. My little brother has been with Lowes for 14 years so that is why it is my favorite store. Home depot is just as good and prices are awesome.
If you go to lowes they are having in store demonstrations for all to see for lots of different repair jobs. This past week I have priced quite a bit of materials. What I am finding if you can find wholesale stores the prices are even better. We found a carpet company out of Georgia, kitchen outlet in Charlotte. Searching for window company. Ac units yes we can buy them cheaper but to be honest our AC guy expensive but that is how he makes his living. So willing to pay for that service .
Both places have had incredible sales for plants and bushes which not sure how it is done in Australia. Here in the USA most investors do not put money into landscaping. Which is given no return for dollars. For me it is all about looks so I don"t mind spending the extra few dollars to make things look nice.
well got to run more post to catch up on.
Emma next times lowes has a side walk sale I shoot some pictures so you can see how great of a store lowes is.
Talk soon
Jayman wrote:avest50 wrote:There are so many sites on the internet about purchasing U.S property. Some people say its a great opportunity and others say its a scam… Who can I trust?One of the many problems that unwary buyers get caught up in, is that there are so many US Property Supply Companies who are either trying to self promote on forums such as this and through other social media sites, as well as working together with many local agents selling their properties over here. I guess we might see some things different . I own an investment company here in the USA. Being I teach investors through seminars , radio shows , and answering questions on forums like these.( on how and why to invest ) So this is a valuable tool for some , while others might have a different agenda here. It also helps me keep my mind sharp on what I am doing. Actually we just landed a fund so working out details but from the look of it. We most likely will be pulling 75%of our new homes to the fund. This is common for most big USA resellers finding large funds to come in and hold. I personally know of 6 different states that these funds are now buying in.
One of the problems is that many are just in it for the quick money they can make from unwary foreign investors, and many are really agents themselves over there. Real estate is not for the faint of heart and should not be taken lightly. This is not a get rich scheme this is long term wealth one house at a time .
When a company is selling properties in a large number of States or even in cities in the same State, I don't care who they are, it's almost impossible to have expert local neighborhood knowledge, down to the Zip Codes and even the streets. I disagree in my market we buy in a 60 mile radius.On the SC side where my office is located I would be willing to put my money where my mouth is.As I drive you up each road i can tell you about most every single house in each area.We personally own homes on most streets that our clients own. Buying and selling in Multiple markets for me a concern to hard for one one to know everything in one market none the less multiple markets . They have to rely on multiple teams like myself.
I do know of one company that does actually buy every property they sell in different States and are very knowledgeable in the areas they sell in, but that is an exception rather than the rule. That is rare not saying it can not be done there are people on here like Jay who does multiple states. Now I do buy in other states for my self.I am buying in Florida ( Sarasota )not to sell just for my own portfolio.
But if dealing with companies that are located in the same areas that they also sell in, are professional investors themselves in the same areas they sell properties to investors, and have the expertise in the local neighborhoods, and have been established for a number of years in that location, then you will at least be purchasing with experts who know the business and also know the areas. Very true statement there is a reason some of us are still here buying , selling after the crash.
It takes years to establish themselves as a wholesale supply company, ( called 'Asset Teams' locally ) and years to establish their connections and sources with realtors, the local county offices, tradespeople, etc, to get the very best sources of properties and have everything set up properly, all so you don't have to. The new individual buyer just can't compete. True no one can step in some one"s back yard and find the deals and have the network set up.
So if looking to find a reputable and transparent company to buy from, then when talking to any agent over here, you should also find out a bit about the company / companies the agents are representing. always ask questions.
Hope this helps you sort out the good from the bad to buy through or from.
Jeff
Some good advice and been almost two weeks since I been here so will be doing a lot of follow up post tonight.
talk soon
zmagen wrote:The short answer is "yes". As to the exact nature of the Singapore strata system and it's implications, I'd suggest contacting some local professionals, as my knowledge is extremely superficial. I don't live there and have never bought (nor do I think I will in the foreseeable future)Been away from the forum 12 days over seas in Singapore then Malaysia got home and off to New york. Back in Charlotte now , what I can say about Singapore is the food is incredible . The people I dealt with very nice and look forward to my next trip back their.
Talk soon
Alex
Texas Cash Cow Investments Australia wrote:Alex,Thought you might be interested in this link….
http://blogs.wsj.com/developments/2012/06/12/builder-branches-out-sets-course-for-charlotte/
Peter how are you? just landing in Malaysia well landed and got to hotel about 1 am. Here for 4 days then 3 days in Singapore .
Thanks again.
Alex
zmagen wrote:Alex SC wrote:…just picked up a 2 bd 1 bath cute little home for $13,500 from the walk around
outside about 6 30 last night) that's the part I love hunting down houses…There ya have it, ladies and gents, and this is exactly why these local teams and middle men ARE a good idea (when they're the good kind, that is, you still need to DD), no matter where you buy and how far away you are.
The best opportunities can only be found, sourced and profitably managed by the "boots on the ground" guys – but they're there for anyone to invest in, no matter where in the world those investors may be, if they get those guys on their team.
Zig leaving Monday for Malaysia then Singapore. The local Rock Hill SC market my office sits in the middle of the area. Now Charlotte NC , the best thing for my real estate partner and I is to drive around looking for homes. This is the one part of the Job, that I think Emma and I will agree 100 % is the most Fun. Now people Like Jay and others ( bigger companies ) they don't do the drive and look at things any more( they have teams like me to do this). . To be honest this is the part of the business I love the most .
Guess if I was panning for gold this is similar to what we do. Looking some times 50 to 60 houses a week. To me this really is the part that some love and some hate. To be in this business, it is a must to be out looking for homes not just relying on agents to send over listing.
At the end of the day my best deals have been found by beating the pavement not sitting behind a desk. The best part of this only requirements are a pair of shorts, tank top , note pad , good solid flash light , ( I don't even put on shoes for my trips through homes )
Simple is Simple
mattnz wrote:It is all going to come down to credit availability. When you see Americans able to purchase easily again as the banks loosen the purse strings, then property prices can take off again, especially with the low long term rates available. Hopefully financing also opens up for international investors at the same time, so we can ride the wave up. Until credit unfreezes, prices can't move.This is just for Charlotte NC but we sold 3 properties locally to investors who received financing .Currently two LA investors getting loans but process very slow for clients not located in Charlotte. Not sure why this is taking longer. These are the first loans my company has done for USA investors in a couple years. So things are changing for all of us. The USA investor is slowly moving towards the higher priced properties , less returns but future appreciation being taken into consideration.
The smart investors have all positioned themselves in well in phase 1. Phoenix, florida and parts of Atlanta are beginning to dry up. The amazing deals are getting harder to come by. As long as Aussies realise they have probably missed the extreme value buys, and are prepared to take a small hit on yield, it will be ok for maybe another 12-18 months [/quote]
Agree with that pretty much 100 % the next phase is mostly funds now coming in and buying up large tracts of homes.
We spoke with a group out of LA Today that are aligning them selves in Florida, Charlotte, Dallas. Looking for teams to find the buy and hold funds.
Seeing alot more of the large guys coming out now.
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