Forum Replies Created
- emma171 wrote:Alex – you are missing the point – I am talking about the Aussies out there that AREN'T licensed agents who charge say $4k – $5k to source the property but THEN charge the additional first month's rent….. I know just picking a little bit. I don't ever sound as intelligent as you ,Jay , or your brother. LOL my humor..
SOOOOOOO – you just have to be aware – you buy the property + you repair the property (separate company) + you rent the property (separate company for many of these spruikers) = x cost + y cost + z cost…….
NOT a seamless and integrated process but 3 succinct companies who can equally blame each other for why your property wasn't repaired/rented/bought etc quickly enough…..Agree 100 % their …
Why not just find a real estate agent (NOT charging you 4-5k for the pleasure), then find a gen contractor and then find a property management company…..oh, and yes, ANY good real estate agent (GOOD, ask around if they deal with foreign investors), will SERIOUSLY have the contacts…. you will have to interview your agents though.
I am just making the point that if you are a spruiker and aren't legally able to do x + y + z, you are ONLY going to be able to separate it out but just remember if you are a buyer dealing with said spruiker then you ARE dealing with 3 entities… not exactly a single "buck stops here" scenario. This is going to become a major issue soon. With the amount of homes being sold to international investors.
There is no "win" – no "easy" – just be very very aware that the second you are reverting to your Oz based person as to why your property hasn't been repaired or rented, you ARE dealing with, in the most part, THREE companies…..
On the PLUS side – Alex, you and Jay have it somewhat nailed…….but that IS my point – I just WISH people who couldn't give a TOSS about the back end, would stop making it sound peaches and cream because, just as the Nealein mentioned, just as Richard had to realize and just as MANY understand, for any of us expats, they either haven't a flipping clue or are trying to sell you something and don't care…. so take your pick!
The reality is you need to learn this market… and Alex, if they do, the Jay/Alex theory on life will seem lovely (unless you have the property fetish/addiction)…….So true I am still learning Charlotte and I live here. So many changes in the market happening almost daily.Right now I am more heading to Jay's module where we are trying to keep things. Even here in Charlotte having more competition to buy homes.
Seems the buy and hold makes the most sense.
Are you in Atlanta now.I got to head down at months end we got one house left if you have some time to meet. We sold the other 5 actually closing them today. Be so happy to be out of that market so we can just focus on Charlotte
Moi!
emma171 wrote:LMAO….. aaah, yes, we have them all – only a mother could love (okay, being sexist….a father could love too)…..I will stick to my move in ready 15k no HOA townhomes that will rent for $700 a month in ATL…….heck, actually, was just extolling my old dry cabins (no water or electricity) in Alaska that rent for $500 a month to hippie Uni students….
Oh, sorry for the delay, I was just trying to learn the banjo so that I can come and sit on the porch…. gotta love our little project children.
LOVE IT!
Yes Atlanta that is why we jumping in that market .At the time was picking up town homes 22k rent ready. Got to love Atlanta just was to hard to be their and Charlotte .
Okay I think I might have you on this next deal. I 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. Then I had to convince my wife, for me to use my IRA and buy. These are the types of deals I just keep. At the end of the day maybe 16k total investment.Rental is $550 to $600 their I will go $475 get the city to help find some one for me.
. FYI, the reason people charge you to rent your property out is because they are dealing with 3rd party property managers. Not true there are alot of the major companies that just management properties. They charge you because it is there business and that's how they make a living. Look up albright property management in RH SC 2200 units and they own one rental house. So they are just a property management company. Not sure of the numbers you are helping manage or over see. I think Jay and other will back me up when you get over 100 properties I promise you will need more then one person to handle things. Most companies do not turn a profit unless they have 300 plus homes in the management side. Trust me charging 10 % of rent was not worth the time and effort I put into the homes.
To rent a property you must be a licensed agent. If your facilitator is NOT a licensed US real estate agent they would HAVE to outsource or be working very closely with an agency willing to wave that fee. Depends on the states SC for instance we had several of the staff who had their lic( not real estate agents lic but property management lic ( these are not the same ) to be able to rent properties. NC you must be a real estate broker ( which all agents in NC are brokers in Sc one has to work under a broker for 3 years to attain that status) Now if they had real estate lic they could do this in both states. I do warn all for any one who just jumps in and think property management is easy. Good luck , to understand a USA renter is just to damn hard.
I have found VERY few people get the big picture……. But those that do know darn well that we intend to be together as a group for the next 5 years. Again, find a licensed real estate agent… We start renting your property the day we close the darn thing because we can! ( the day you buy you should be parking a rental sign in the yard FYI any one who buys a property has the right to stick a sign in the yard . That being said, as I always offer… If you need something or a driveby, I am slap bang in the middle of Lithonia and Ellenwood (as everyone jokes "Emmawood") .. When not in Vegas ….and happy to help. Very sorry if above sounded like advertising.. I had tried to change but Jay beat me to the button! [/quote]
jayhinrichs wrote:a few forum readers have sent me some offerings from the UK companies pitching the buying of Hotel rooms in N. Dakota I reviewed the written material and have some comments 1. Not possible to buy one hotel room unless its been a legally recorded condo or Strata. 2. What they are offering is a 1/20th interest in a property, So you would have 20 tenants in common.. And 19 partners you would not know from all over the world probably.. anything goes wrong total mess to clean up. 3. Huge red flags when talking about no need for county oversight for water and sewer this is just not the way it works in the US. And then of course the sales pitch… IE We are only giving you these great deals because we are staying in as PM… This is a hotel investment I would only do this if you bought the whole thing NO partners…. And or close knit partnership and would not spend a dime unless you had a N. Dakota Land USE Attorney or engineer bless that the project is fully approved from the local county or city. there is more but I have to run to the airport off to Honolulu tonight Aloha JLHKevin tried to call you ..,we are both in the office call Kevin Cell number
jayhinrichs wrote:Javidan, I look at it just like the stock market. YOu had all the brokers making money as our market went to 15k… then as everyone panic sold it down to 6k the brokers made fee;s selling. Then the smart money jumped in at 6k and rode it back up to were its at now basically 12k… Brokers made it on all sides going up and down. There are plenty of funds that got wiped out Now they are retooling and buying back at the bottom is how I see it.. The question will become can they manage these stand alone assets in bulk… thats the question. JLHJay big funds and bulk purchases , we both know that buying , fixing , rehabbing ,renting takes solid teams . I think the big money funds even if they do buy. Will be setting them selves up for failure with out having all the pieces of the puzzle in place.
Steve
Kevin will be in town for your trip in. I hate I won't be here. Make sure Kevin takes you to the higher end homes. We are seeing the 4 bed room 3 bath homes . Priced here from $130k to $230k. No buying them under value is what we are looking to do. $60k less and rental income seems to be that 1 % a month.
Talk soon
worldinvestor wrote:Hi mattstanot really sure what you mean about your friend getting ripped off??Confusing statement as well
Should you be buying in US —- not unless you are an experienced investor in Australia, just my opinion.( Great advice) Do not buy over seas if you have not purchased at home ) Best to do things at home first then travel here to the states to try it ..Just increasing the risk factor for failure that much more but trying USA first. Not saying it can not be done. I love the international client but this statement makes alot of sense .
Also, if you are not buying multiple properties and treat it as a business, don't do it. Like the game of monopoly buying multiple homes.
At the moment with Aus$ falling back it just adds another layer of risk. Guess next few months we will be able to see how things are going .
Food for thought.
JLH[/quote]Jay I am at a total loss why Detroit and what t he draw is. Spoke with a UK group want to attend a seminar in Oct there. CL _ TWH module would be great to introduce.
The thing I am most amazed is how they are and all ask about Detroit , second was St Louis and 3rd Florida.
Well for any one who is wanting to meet and talk real estate , I will be in Malaysia from 11_ 17th _ Singapore 18-22 .
Funny thing I was set to go to speak about our homes and my system in Charlotte . Now I am going speaking mainly on the TWH module.
emma171 wrote:I think you will find it is all relative as to your experience and definition of "pro landlord". Atlanta sux no questions but Vegas…….aaaaaahhhhh, sigh… mmmm, I miss Vegas…. sad mobile homes are over 100k there…..lol..I suppose we should be happy that we will be raking it in on the upswing!South Carolina but far one of the easier states to evict , North Carolina not bad except for the part of storing evicted person possessions. Which I believe it to be 90 days after the fact.
emma171 wrote:lol…….a 10k house needing work?? Not move in ready???? Say it isn't so!Here is what a $10k house looks like in SC
http://www.zillow.com/homedetails/528-Walnut-St-Rock-Hill-SC-29730/2132567626_zpid/
Now I did pay $9900 for it. Have not closed , but borrowing from LA cash lender $32k . Rehab 15k _ 18k to do it correctly.
FMR $650 but less then 3 minutes from my office .
Move in ready no, cheap yes….
took you all a bit to wake up to this post…..and start either saying NO NO NO or yes good or bad..
LOL One on one is and will always be the best way. Knowing some one goals does help. Then again knowing what a company can offer and seeing if they can even be part of your real estate goals is another concept that seems so simple as well.
Peter
How are you? Lots of good talk here in the USA about Texas. Heck I never been their and I am telling clients to have a look.
And Emma was at home depot for the first time in long time ,nice tile 57 cents each. Great price we are buying 60 boxes. Nice for Kitchens, bathroom, entry way and hall ways. Cant beat that price 4 different patterns to choose from…Telling every one to load up and put them away for later if you can not use now. We also ordered 3 rolls of mid grade carpet, and linoleum out of Georgia $3k for all . Enough carpet for 4 homes, I will post name of the carpet place. If you or any one has storage space good deal as well. Lets all say LOWES Is better all way around …emma171 wrote:NO NO NO NO NO NO NOguys, SERIOUSLY? I love you guys… Don't do this to me….
every investor is different – we all have different needs, we all have different goals. I was with someone yesterday who asked me "why on earth would you go for yield????" I had to point out that I live totally off passive income, someone retiring might be too and thus our houses are in totally different areas and subdivisions (I view the Select thing as a pure hobby to help fellow fanatics at this point and as pocket money for things like the Masters etc and to find "like minds" for an addiction I have had since birth… ergo investment club… all for one, one for all..)… but that being the piont….. EVERYONE IS DIFFERENT…
Cattle herding has rarely led to anyone appreciating that Daisy at only 3 years of age and Mabel at 10 years of age were both going to the slaughterhouse…..
Love the last part but yes being herded as cattle is just not good. LOL
alanls wrote:Alex,The money was paid to the Foreign Property shop. They are attempting to get themselves struck off from companies
house but I objected to it due to legal proceedings.Alanls
Sorry been offline , I think between Jay and My self we can help hit me with PM and lets see what we can do for you.
Sincerely
mattsta wrote:I agree with everyone else who has posted. Be extremely cautious when purchasing on the internet. I would suggest finding and contacting a US real estate agency for its validity. Or if you have any friends in the US (or friends with friends in the US), you could get them to do this for you.
Be extremely careful in any business venture especially real estate. I would search out .
USA
real estate agents a few of themUSA turnkey companies ( who own properties in the areas they are selling )
Aussie investors who have purchased in the USA
Aussie and USA real estate groups and ask questions
Aussie resellers that actually own properties in the areas they are advertising …
information is the key and it is FREE .. So take advantage of that ..
alanls wrote:Propert4peanuts and The Foreign property ShopFor anybody contemplating purchasing an American property through http://www.property4peanuts.com
an The Foreign Property shop you should be aware of my experiences with the company's.
It should also be noted that they have applied to companies house to have
property4peanuts and 'The Foreign Property shop' struck off.
Investors should also be aware that they have created another company
called http://www.valueproperty.info to sell American property.I purchased a property in Atlanta from them late 2009 and made the final payment
in February 2010. They were contracted to refurbish the property and provide me
with a clean title. It is over sixteen months since I paid for the property and
I still do not have the title. The title records are in the public domain and are
easily verified. The alleged refurbishment took over a year, far longer than
anticipated. I have asked for proof that the refurbishment was done but none has
been provided. I had photographs taken recently and it is clear that some of the
work that was supposed to be done was not done. They allegedly found a tenant for
the property however the tenant only stayed for two months then moved out for no
apparent reason. The property was then empty and a vagrant moved in
and the property was damamaged, I have photos.
I am in an inteollerable position as I am unable to do anything with the property
as I am still not the legal owner. It remains damaged and unmanaged.
Not only have they taken my money but not delivered a clean title, local
taxes are due on the property which need to be paid, if they are not paid the property
can be seized by the council and sold at auction for a knock down price.I also purchased a property from them in Detroit. Although I have the title it
was not clean, taxes are owed for the year before I purchased it. The contract states
that outstanding taxes will be paid by the seller. I also have concerns over the
refurbishment, I have asked for proof that it was done but no documentation has
been provided. In fact there is no supporting documentation for either house
despite my numerous requests.This is a brief overview of the situation. I have masses of supporting evidence
and much of it is documents that are in the public domain and beyond dispute.To summarise, I have paid for a house but did not get the title. The property is damaged
but I am unable to do anything about it. There are outstanding taxes on both
properties, neither has clean title. Both properties are in breach of contract.
The people behind the companies are still trading but trying to close the old
companies and start new ones. I doubt if I am the only victim of these companies.
These companies need to be exposed in the public interest.Hit me with private message I think you got something here to go after who did you send the funds to.
If this was not done through a title company , or Lawyers escrow account.
Talk soon
jayhinrichs wrote:Mihovi,
Guranteed returns are selling a security anything guranteed is such in the US… just ask any attorney,, very cut and dry.
a bunch of the guys in the states have already been shut down from that practice… there is no gurantee unless you do a full blown securities offering have it underwritten by an investment bank and register it in the states you are offering the investment.
the reason being and Alex and others Cheeves as well have brought this up what is the gurantee worth…. How strong are the Gurantors??? who may have sold numerous properties,, what is there financial strength if the properties go pear shaped.
What this does in my mind is induce's again a Nieve Foriegner into investing into a very Risky rental market… If you have great homes in good markets guarantees are not necessary.
JLH
Most of the USA Groups the have rental Guarantees are the same ones who raise the price $20k over. Then have 2 years worth of rents. So again when it looks and smells to good to be true.
mihovi wrote:Jay,
What Michael Osbourne referred to was about Guaranteed Returns, which of course involve as the main source of income the RENT. Of course it is ILLEGAL to guarantee rent ! When you deal with somebody who doesn't know about the legal aspect of guaranteed securities you should RUN !!! JAY, please can you find a link to the legal law article which refers to this matter; it should be clear once for all for everybody in this forum the importance of this aspect. If somebody misunderstands it or doesn't know the importance of it he/she can be sent immediately to this link.I was thinking also that you, Alex, Emma 171, WI, eventually I and the other serious investors frequenting this forum to start putting together something like a step-by-step course for the OZ and other overseas guys willing to invest in the US, so they can avoid at least unfortunate experiences like those ones which happened to Richard (AKA Gavin). The information overload is huge and for a newbie will be a nightmare to dissect the correct info from all the posts. We can eventually particularize with respect to certain areas/cities. What do you think and what are the opinions of the others? Are you up to the challenge?
Cheeves ( Scott )already spoke about this. The would be a great solution if we could all work it out.
emma171 wrote:and for all of us Stateside it is lovely to hear reality……..there are others and it is absolutely true… This is a business and you do need to treat it as such….My personal goal was to teach everyone what I knew to avoid them being ripped off…
Emma was not really a goal but good Business practice for my company. I spoke quite often in California that last few years. Jay would be familiar with the different groups as he was the lender for all of us. They stopped inviting me to speak . After I would do a 15 minute speech on everything that can and will go wrong in real estate. This was not just to help from being ripped off but also the little things to look out for. When dealing with contractors, property management . BASICALLY ALL THE STUFF NO ONE WANTS TO SPEAK ABOUT.. Again, back then it was an absolute case of the only options out there were short timers who would be in the market for a few years until too tired and then just disappearing ( WE saw it as education time because the loans for investors where only to and for new buyers who owned less then 4 homes. The long term investors ( seasoned one who owned 10 plus homes suddenly no loans available) so had to refocus and change our thought process …. Good way of wording it ..l business.. Agreed Jay, and WI, thank you from me for sharing as well. PS… My method was simply to only take on a few clients…… That way 4 am-ers limited to when I want them… Aaaah but I was also single until March…..!
LiamT wrote:I am also interested in these tours. Can anyone give me a price estimate? Does it depend on the market area?instead of tours why don't you search out a few markets. Ask some of the fellow Aussies to give you a heads up of good and bad areas. Then make a trip out of it to check out a few markets here in the USA . Research is the key ,the trip is good to meet teams and see homes. To be honest how much can one learn in 2 days _ 3 days .
mattnz wrote:Thanks Alex, Dallas and Atlanta.Hey Matt
Now every one here knows I am in Charlotte but man I love both those other markets. I was in Atlanta but to hard to be in multiple markets.
Dallas I recommend alot of international clients go take a peek at that market . I hear nothing but good things .
