Forum Replies Created
To clarify the supply question. I don't buy bulk -…I find great available properties that meet a persons needs and I therefore don't have to worry so much about a market "drying" up. The foreclosure market will dry up, the investments will not – as Jay, SC and the rest of us who have been here more years than we could count know…
Best dealls?? Those that fall out of escrow (ie the sale doesn't go through to completion)…my guess? At least 30% of all sales "fall out of escrow"…. In Atlanta, probably more…. if they fall out faster than the Agent has had the time to take it off the market they don't relist it – they just leave the old listing up so you don't get an MLS update….
MLS – for those who don't know is the Multiple Listing Service and every property has a unique identifying number and any new or changed status on a property and they are posted immediately to the MLS… so these are the "live" properties on the market (not those that were bought at auction and if a bank or asset manager thinks the property will do better on the open market, they will place a crazy high price at the trustee sale on the proeprty…. look to the Trustee reports and barely a 1/4 of properties are actually bought at auction – another topic but suffice to say the MLS captures them when a real estate agent is passed the file by the asset manager).- MLS numbers move sequentially – in the FMLS (one of two MLS systems used in Atlanta) we are currently looking at the newest properties being an MLS number of 432XXXX – so if you see an "updated" listing on your morning list of "new properties or changed status" that is 4297386 – you know that this property is a few months old… this has dropped out of escrow or didn't sell, the agent is probably sick to death of the blasted case and if you pounce, you can often low ball these….
BUT DON'T LOOK AT TODAYS LISTINGS….. if you use Listingbook, go to about page 13 of the over 400 pages of currently showing "active" properties and look at about the 429xxxx or even the 427xxxx the ones that slipped through the cracks… there are THOUSANDS of them – call around THOSE properties in the area you want, find the move in ready one and buy that!
Put it this way, overworked agents from the listing side start to look a little bad to their asset managers if they haven't shifted a property in this market in 90 days… they could lose the file if it happens too much. Where would that leave them? On the buyers side.. .eeeeek, that's a tough life! So, do them a favour, lowball and go from there!
Yes, the "todays" listings are a feeding frenzy…. ignore.. .I can guarantee you every single property that comes out "fresh" today has 43000 people bidding on them… oh, except that 30% of them will be back on the market within 3 weeks … who is bidding on them then? Not the bulk buyers.. they are too busy on today's feeding frenzy and overbidding to secure the property!
Modus Operandi? Bid, bid bid, secure the property, desperately hope you have a buyer lined up while it is in due diligence and if not, back out then citing any random reason….
THAT is the time to buy…. ditto on the Fannie Maes and Freddie Mac properties – they have a 15 – 30 day owner occupier time frame – set an alarm for the day it pops out of owner occupier – the bulk buyers don't have the patience for that.
Just "tricks" of the trade. As far as I am concerned, when I see 8 properties in a day that are move in ready, have a/c's in tact and I haven't had to drive more than 5 miles in any direction to find them, the market is WIDE open… doesn't mean they make my list but they are there.
A guy called Demetrius Mathis actually …. if you think Atlanta is drying up… dear heavens…there are 10 times the properties here than there ever were in Vegas…..Vegas is gone…in fact, Vegas was never like Atlanta – it has been “tight” since the day I walked into it by comparison to here…… there are still the rare ones pop up that I will nab but that is one in 3 weeks…luckily everyone is willing to wait for the right one rather than just “any” but still.
This is what I sent to my ENTIRE list of people that day… I think you will get the point… he has persisted to contact me – interestingly his website reads “people trust him so much and his amazing team that over 80% of his clients buy site unseen and are from oversees”… I am apparently not focusing on the right thing….. oh and he is willing to cut me in without marking up his property any more (so I really hope this doesn’t get deleted for spruiking)
As I am quoting him directly I will also state that should anyone be interested in pursuing an amazing deal like this, I will happily pass on his details… but quick, rush because there is a HUGE demand or something….
Dear All
I have received contact from a company selling properties in another state. I will repeat verbatim my response to him…. I will not elaborate. I will STRONGLY recommend that if you are looking elsewhere that you INSIST upon knowing what the company paid for the property and justify in your own head any mark-ups.QUOTE
DemetriusFantastic – thanks for the below..
Okay. I am about to send this verbatim out to my email list. I just want to make sure I get this absolutely accurate:
A house that was bought at auction for 24k on July 5 can be bought through you for $57k… Except that we have to rush because they move so quickly…. Probably this example property has been sold already…..although it has sat since July.
This is a property that you are asking $20,000 more for than any recent sale within a half mile.
I will pose it to my clients and let them decide. As they all use zillow, trulia, redfin and other such websites, if they do choose to pay you literally more than the house cost in commission (27k in repairs/commission for a house that cost 24k) and to pay 20,000 DOLLARS more than EVERY recent sale within 1/2 mile then that is up to them – I am more than happy for them to have choice in this market and will simply outline the services you offer.
With enormous thanks….
UNQUOTENormally I “rip” these to shreds but the only thing I couldn’t fault was the yield – which was a first…… “where next” is the question most of my clients and I discuss weekly! As I always say, you just never know “where” next…
I love Portland … I worked with the gods of urban planning from there… George Crandall and Don Arambula of Crandall Arambula. What a great city…
…don’t ever pay anyone an upfront fee!
No one can stop the unscrupulous but we can by give freedom of information and hoping they read it! The very nature of the "buy this property look how awesome it is" model is it rotates on SALES not back end. It just isnt, no matter what you think, the buy…
Flicked roughly the pages and someone said they have a broker, have a team, cut out the middle person etc… YAY YAY YAY… It just isn't that hard…TRULY…
Better yet… If you want to buy through a wholesaler go straight to the wholesaler of your choice… Cut out the dating agency who has less clue than you do from the few I have seen.
You don't need an introduction service to the US market. Redfin, Listingbook.com, Georgiamls.com, Trulia, they ALL will give you instant access to this market. EVERY agent will send you free daily listings.
Call ANY agent and interview them…. Ask them if they have reliable contractors who can renovate, ask them if they property manage… If they don't, call the next one… Save yourself a bucket load of money. Negotiate your property management fee upfront. Find a broker who holds the property management license as well. Pick up the phone and interview them. Many agents are starving at the moment. Say to the one you like, I will buy through you but I need a 3 year cut on the property management fees… I won't pay more than "x". Negotiate what it is to renew the lease (argue free), and to relet the property (again, argue free… Pushes them to find a GOOD tenant straight up). Make it contingent on your business going there. Be honest… They will be too because they are licensed and risk their livelihood here. They may not negotiate and you may be fine with that but you will hear their answers and decide for yourself. Real estate brokerages are licensed to the hilt here, they risk EVERYTHING if they mess with you. A random stranger in Oz??
Ask them to give you the names of 3 contractors and have them bid on your job.
ORRRRRRR, pick up the phone and talk to a legitimate wholesaler. They will give you property addresses, names for contractors and charge you ONE markup fee.
See post on. 120k USA thing re Section 8. Depends on State.
If you are paying a fee, please don't pay it to someone who isn't doing anything other than introducing you to a real estate agent or wholesaler.
Can’t open link but YAY with a snoopy leap if this will help my dude. Ha we are down on that one to lovely deeds… Just so so so unfair and tens of thousands of dollars down the drain!
What I don’t get is why people need a front man… Skip it and either go to the people who ARE wholesalers or buy from the open market…why would you use a “dating” service to introduce you to a wholesaler. When I used to sit the auctions in Vegas (aka weight loss regime as summer heat), everyone there was great… I don’t know a single one that if you had googled “wholesaler” you couldn’t have contacted directly to source you a property, clean it up and hook you up with a property manager. ALL while being 100% scrupulous.
It was in my “detroit” case that I realized how bad it can get.
Oh yay.,. Will forward and try to reopen. Thanks Jay. Thanks for posting too.
Lol, my brother definitely has strong opinions.. But he cares deeply on them!
Thanks for compliment.
Hey, I am in Atlanta today and windchill factor brings me almost to your level. I SWORE I wouldnt ever be anywhere cold again… In Alaska I would go 3 weeks where the temperature didn’t rise above -40… And I lived there 10 years… I have done my time in cold….
Just no snow… I think I mentioned it before,, I still cry if I see oil prices rise. I hate that I run the risk of frozen pipes here (INSULATE, INSULATE).. sigh..
That being said, never in this lifetime or the next do I believe we will have this opportunity again. I am way beyond it now but the thrill of owning a place outright? A house, that gives you over 12-14% nett return when you come from Oz where Jan Somers taught us all negative gearing????? AND the chance of cap growth?? I’ll take it! I live of passive income and travel when/where I want thanks to the advice my brother gave me many years ago.. Buy anything… Just research it but get in..l this is the time mini empires are built. A few clients have newborns.. WHAT a present is that.. Lol, your first Vegas pad… Who is the popular college kid in 20 years time?
Thus Atlanta and brrr and typing this in a restaurant surrounded by lovers … Just got a free drink for being the lonesome one!
LOVE IT… Ha
HAPPY VALENTINES DAY!
http://www.8newsnow.com/story/16902408/businesses-hopeful-for-profitable-2012
Yep, noticed…lol
Hotels can slash yield but over 85% occupancy year round? Who are my tenants? Takes the same number of staff whether you are getting $100 a night for a room or $18 a night – those staff are my tenants. If they can pass the background checks of a major casino???
Destination marketing 101 – have a brand a big one – so big that all you have to say is “What goes on in …….., stays in …….”.
Number one song in 2009 – “Waking up in Vegas” – number one movie – “The Hangover”… I like an industry supporting my tenants.
In October there were 564 properties avaialable in the whole of the Vegas market for rent that met my main criteria – under 80k, minimum 3br and 2 ba, younger than 1980
3 weeks ago there were 110.
Vegas population = 1.9 million, Atlanta 6 million give or take. In Atlanta adjust that younger than year to 1995 and in ONE COUNTY there are over 500 properties for sale. They aren’t being sucked up by home owners!
Walk into a city council meeting anywhere in the US – did you REALISE LOCAL government is responsible to pay for many essential services – fire, police, ambulance… scary. Watch council members struggle with local budgets and everyone fighting for their favourite cause and police chief arguing increased crime stats etc. SCARY.
In Vegas – heeeeelllllooooooooooo, alcohol, tobacco and gambling revenue. Stand on the “Strip” in Las Vegas and COUNT the police – the LAYERS of them – metro – on bikes and in cars, local, state… .ha, even visiting police on “exchanges”.
Strategic default is rife in Vegas but there hasn’t been a population decrease – what does that mean – people aren’t fleeing Vegas.. they are rotating.
Each to their own but I like concrete bunkers, no pests, no grass to mow, no gutters, I have had one theft of an a/c in the first week of someone occupying a property in my time there and I love NEVER paying taxes over $900 per annum until the market goes up and even then we have a tax cap for investors.
SO pro landlord.
“THAT’S what you get for waking up in Vegas”
Seriously though – pick anywhere, make it your own, do due diligence – I started in Vegas because I hate water, snow, termites, mold and variables I couldn’t control (like grass, heating oil, HOA’S etc)… I have under $700 per annum in general in maintenance. Period.
Not right, not wrong, just different. My different.
PS if you are scared of repair costs being too much… Try buying a house that doesn’t need any repairs! In Vegas there were only 110 SFR houses on the open market 3 weeks ago that met my main criteria…Namely younger than 1980 and 3br/2 BA minimum under 80k Back in October of 2011 there were 546. Those 110 will need work… Think 5k on average and purchase prices are increasing… In Vegas you WILL have to do Sheetrock repair, buy all new appliances and carpet the whole place, replace some broken windows, faucets will all need replacing so yes, 5k unfortunately but you have a brand new house almost for that etc. In Atlanta.. ?? There are literally over 500 available in one county..! Vegas population = 1.8 million, Atlanta almost 6 million… You do the maths. Find one that needs nothing do it, meets the schools shops and transport criteria and overbid on that by 5k if needs be!
Here is the thing… Many of these houses are move in ready..not all, but you are probably only needing 1 at a time or 2… Out of the thousands, it doesn’t take much to find that move in ready gem just for you! Add the ones that just need paint and carpet and you would never have to worry about spending more than ?? 5k in ABSOLUTE total on repairs… Quickest way of NOT being ripped off by a contractor…just food for thought…
SCHOOLS… I sent this out and thought it might helP
From urban planning the first thing I learnt was to state the obvious….People want to live close to schools, shops and transport – ideally walking distance within 1/2 mile in urban centres. Blank walls are bad, open spaces are good etc – we know that, but we often don’t put it into words. The ideal way of learning who your tenant will be is what I love to do – spend time shopping at the local store, having a coffee, having a chat etc. If you can’t do that?
A fascinating way is the study of a the local schools demographics. Often people overlook this. What is the composition of my neighbourhood? We can get lots of information from listingbook and zipdata, city data for Atlanta (Vegas isn’t really big enough to demonstrate this as easily). However, zips can be ENORMOUS in the States… But *but but….. if you look to your local schools you can see not only the composition of your precise neighbourhood but also whether it is experiencing a transition.
HOW
Take a random sample of the 3 elementary schools closest to your property (the listing should ALWAYS state which schools your property “lies in”) and a random sample of the 3 highschools closest to your property. What can you tell? *If you have 90% of your high schools demonstrating a majority of one race and 90% of your elementary schools demonstrating a different race, you are probably buying in a transitional neighbourhood – that is a 10 year difference in school ages. *Ditto with the scores – if 90% of the highschool scores are above the national average but 90% of your elementary kids are way below, you might be starting to see some “issues” creep into the area – or a majority of kids with English as a 2nd language starting to come in etc. Of course you might not either but it is a great clue.To demonstrate and without any implication that these are good schools, areas or even vaguely in target areas, I pulled just 4 random elementary schools. Interpret as you will but it is a great tool that I have used over the years to learn trends..
Within zips you often have completely different neighborhoods. The point isn’t WHAT the breakdown is, it is simply to demonstrate the point – as I pull example properties, I will provide the high school and elementary school data for you.
In Atlanta you are shopping for 3+ bedrooms in general – you NEED to know that this probably involves children!
The link….
http://nces.ed.gov/globallocator/ind…=0&CS=D5D6C0F4
This is the link I use for schools…. I use NCES versus Georgia scores and I’m not a big fan of parent voted sites (too easy to skew).
I’m not sure I ever figured out how to attach to the thread. Will play with that in a second… however this takes you straight to one area that I find interesting and can demonstrate a little – if you look at Lawrenceville and this is a random zip in Lawrenceville -ie 30043….. take a look at the elementary schools in here (might want to ignore the youth detention centre!), then take a look at the High School.
And then if you aren’t bored senseless.. THE ZIP IN THE BELOW LINK (30024) SUWANEE BORDERS THE ZIP ABOVE TO THE NORTH (30043)
Suwanee
http://nces.ed.gov/globallocator/ind…14&CS=3F3C6657Look at Collins High school by comparison to Lambert Highschool….
NOW – LOOK AT THE ZIP TO THE SOUTH OF 30043 which is 30046….
http://nces.ed.gov/globallocator/ind…=0&CS=8E0745DF
… specifically the elementary school…..Margaret Winn…. quick now back to Suwanee…see?
Read into it what you will and play as you will…
Sorry to “pick” on Lawrenceville but it is an interesting area with some demonstrable differences….
Obviously scores HIGHER than national average would be preferred and often lower than national averages could be attributable to transitional factors such as higher English Second Language students entering etc
Section 8 will depend on where you aree investing. I don’t touch Section 8 in Alaska or Georgia because the laws aren’t pro landlord enough. In NV? I can evict a tenant and rerent in Las Vegas 15 days… At a maximum cost of $200 and never even speak to the tenant as the constable will go and deal with it … Any eviction on their record and they lose their Section 8 voucher. In Alaska, you are going to spend 2 mnths in the court system and the tenant will in the interim be destroying your house… The cost is less than the tenant portion of the rent so you just let them sit out the lease! Remember that Section 8 tenants are mean tested so not all the rent is necessarily paid by the government…in fact not many are fully subsidized….. IF YOU WANT TO SEE WHAT SECTION 8 RENTS ARE in your area this is the best for comp rents… Go to http://www.gosection8.com and pretend to be a tenant renting in you ‘”zip”.,,,
Here is the thing with ANYWHERE…. If you buy walking distance from schools, shops and transport, you will have a tenant…..Prior.
HOW TO RENT A PROPERTY IN 2 WEEKS…ANYWHERE ON THE PLANET…. Quick BIG SECRET, HUSH,
Buy a property that is walking distance in one direction to a Super Walmar/Target or Trader Joes etc and in the other direction to a GREAT school…. Buy that property that is a nice single family house on a safe street just near there (check out the school rating,” google” drive the street.. What type of cars are there.. Do the yards look well kept? Right… BUY THERE…. Stick up a flyer on the front door, walk to the nearest public light post and put up a for rent right outside that Walmart and that school and it will rent. Period. Don’t be greedy, go for market ask or even slightly below and you will have a wonderful choice of tenant…
Walking distance to schools, shops and transport.. Ideally within 1/2 a mile and you will rent that property. Shoot, wow, commonsense… ALWAYS ask… Wuld I, if were of is socioeconomic demographic rent here
Get to know Trulia… Type in the address and see what rents are in the area, Redfin for what else is for sale… Zillow for how many have sold in the last 6 mons… Are you buying in a transition neighborhood?
EMAIL ANY REAL ESTATE AGENT IN THE US FOR A DAILY FREE LISTING AUTO EMAILED TO YOU OF AVAILABLE PROPERTIES IN THAT CITY….. It doesn’t matter if you know NOTHING about the city, just pick one of those properties… Any property that is for sale and type that address into Zillow, Trulia and Redfin.. Do remember that Zillow can be skewed as owners can change the numbers so ignore SOMEWHAT they sold for …. Just how many sold! Call e nearest property available for rent… Pretend to be a tenant and ask if they would accept $100 less than they are currently advertising and hey, guess what…. If they do… Maybe you DON’T want to buy there.
The information available to you FOR FREE in the States is incredible…. We don’t have it in Oz…think RP data on steroids…
In general, If rents are currently $1k in an area, project your revenue on $800 a month. Calculate in EVERYTHNG.. If Atlanta …Lawn mowing in summer, gutter clearing in autumn, taxes, insurance, closing costs, pressure washing if you have a vinyl siding, termites and pest control… You name it… THEN, if your numbers work out look at everything else you could be buying.
SIGN UP FOR LISTING BOOK IN ATLANTA … Gosh I love that… Historical sales (accurate), market comps you can click on, demographics, maps .. Love love love…..best free tool out there.
THis is commonsense…. Use it… And have a blast… Shopping in the most incredibly fun way…
Good point on seer rating. In Vegas you go cheap on faucets ironically to avoid the hard water…plastic lasts longer… Go figure. Metal is just eaten. I avoid humidity like the plague and thus avoid mould issues like the plague… No snow, moisture, damp, termites, gutters, lawns, no bushes, no foliage, no pools…. I am all for risk aversion and um pretty much no headaches….Still love concrete bunkers in the middle of the desert….. Oh and no crime…. Have had one theft in 2.5 years there….give me hot and dry…..mmmmmm yummmmmm……
Concur on headache…. Ouch.
Have to step in a bit here….. I completely concur with making sure you know your bottom line costs … but you also have to be VERY wary on where/what you are buying…..and as John says, please adjust for your market ie:
A house under 5 years old in Atlanta is likely to still be under builders warranty for systems, it will be over 2000 sq ft and have at LEAST 2 x 4 tonne or 5 tonne HVAC units… In Vegas, you are hiring a crane to roof mount your compressor…. so caveat caveat….
Rewiring on a young house? … get it certified…. on an old house… HECK YES… but just get an electrical inspection… might save repulling lines unnecessarily.. .
Okay – have to say a 2 ton unit won’t cut it for anything over even about 1000sq ft SFR (Rough ROUGH rule of thumb I was once quoted was to think 1 ton per 500 sq ft per ton but in Vegas err up a tad – adjust for construction, ceiling height and insulation). Mind you KC doesn’t hit 120 degrees!.. Also I am sure you are quoting ground mounted not roof mounted – or are you quoting swamp coolers..? (roof mounts you have to hire a crane) and yes, for a 4 ton you should be around $2400 – $2900 universally. But not sure how much crane hire costs in KC but Vegas you are EATING it on hire!
Then again, sewer lines to repair for a main break shouldn’t be more than $900 with manual labour and licensed plumber with 3′ trench x 4′ deep dug for 10′ back from junction and 3/4 inch standard main water line. Someone charges a lot for digging in KC!
A whole house to paint up to 1700 sq ft 2 tone (semi gloss white trim/neutral walls in eggshell) is only 1k for a single storey including paint. for a 2 storey contingent on sq footage you are looking at no more than $1300 – same price, interior or exterior….
Carpet laying? Flat fee of $350 a house – whole house then choose your carpet per sq ft…. Home Depot and Lowe’s both do whole house install for $79 or $99 for carpet but the ultimate on this is that they will then go and charge 49 cents a sq ft for underlay when you can get it for $50 a bag….. so you learn that one pretty quickly. Tiling – I wouldn’t pay more than $1.10 for labour a sq ft etc.
KC….You are being ripped off on your faucet repairs ; ) …. lol…. $24.86 for the faucet and $15 max to install…
Issues will vary on state on permitting for water heaters but that is where the expense is in NV…. you have to pull a permit and you will eat it on that… we also do 50 gallons. Not sure what your regs are on earthquake straps either in KC.
Your houses must be tiny or units in KC??
I think I can safely say that the big thing is to get receipts, if project management ISN’T included in facilitation, please ask for it to be itemized as a separate amount.
Also find out what the call out fees are ongoing from your property manager and all the misc other things.
Ask HOW MANY UNITS IS YOUR PROPERTY MANAGER MANAGING…. ????
BIG QUESTION.. In Australia they tend to charge 7% of gross and we expect a lot of our managers there…. 7% of probably about $600 a week… not $1000 a month… you do the maths as to how overworked and underpaid your property manager is in the States…… and how many units they would need to manage to make even 30k a year. Scary business model.
IN CONCLUSION – CAVEAT EMPTOR AND GET QUOTES –
It is tough because while John gets it, I get it, and you can read it – ultimately you are in “X” city with your own babies and are going to have to just do your darndest and ask for multiple quotes if you happen to be anywhere other than sitting on our door steps.
We only do property management through the brokerage for our personal clients and it is a fixed cost forever so we aren’t overworked etc but then again, after me I also paid for my Director of Ops specifically to go through the joys of r/e and pm schools and have a lovely broker who got it and “gets it” from the Australian concept because it IS such a biggie. As a US investor for as long as I have been this was always the big gasp and why I self managed all my own properties before… so taking this on and heading down this path was knowing full well that this had to be sorted up front……. the game is to have ONE tenant stay with you for as long as possible…. that isn’t the norm for property managers who have lost track of who even live in half their properties…..
Roll up the sleeves, Get quotes, ask questions, use the figures provided here as a rough, ROUGH yard stick of costs….. BUT IF YOU WANT ACCURATE COSTS…..
Call 3 contractors. Log onto Home Depot – EVERY item is on there…. Look at your receipts……..
… and thank god for forums where you CAN ask questions.
Thanks for the post John – you have a hard job and a very very under appreciated one.
PS Christmas presents are always nice for your tenants….
NO IDEA WHERE IT WAS AS THIS WAS FORWARDED TO ME BUT SOMEONE MENTIONED ABOUT GAS…. Why I love Vegas so much.. I don’t have to pay for any utilities! In Alaska, I had to pay for heating oil. As mentioned, i would cry every year and pay at LEAST 5k a month for heating for my tenants who all loved to leave windows open and crank the heat.. but if you didn’t pay for it… your pipes freeze…if it snows and your tenant leaves a garage door open, you can be screwed… if it is in Vegas, they come home from work and shut the door. Taxes and Insurance. Happy to pay …. nothing more…I LOVE DESERT LANDSCAPING! I will not pay for another heating bill as long as I live. I would do inspections and shut all their windows. I would replace anti skid steps each year, put arctic melt everywhere, rewinterize, replace pipe insulation, melting, freezing, snow removal (even if it is MEANT to be tenant’s responsibility)… it is -38 degrees today in Fairbanks….. positively balmy for this time of the year. I would dread break up….. I hate mowing lawns….lol….
The problem is that when you start talking to Australians you have to understand the concept of grown adults who have never, not once written a check/cheque because they just no longer exist.
I drive in my car, walk into bank, wait in a line/queue 45 minutes, fill in a deposit slip that had to be printed, I deposit a check that had to be printed somewhere from a 3rd party bank. The teller earning $15 an hour takes that check and you need to endorse it with a pen that had to be bought (interestingly you don’t write NOT NEGOTIABLE… So in theory endorsable to anyone) on the check/cheque. She then submits this check, you wait 24-48 hours for the elves to clear it…and confirm using all those numbers at the bottom of the manual check which identify BAnk and Routing number (BSB/Branch) that the 3rd party has the funds and then you have cleared money. THOSE NUMBERS ARE A FLIPPING ELECTRONIC transfer….. That check isn’t mailed anywhre.. At the end of the line, ultimately those numbers mean the same here as in Oz…
In Oz,
I log on online, enter the account/ BSB numbers that used to be on the bottom of the checks that I have to buy in the US and for free the money is transferred.I normally err on “not right, not wrong just different” but the problem begins when you take uninitiated from Oz, with zero clue, they think that they can transfer money in and out of accounts via the Internet from the comfort of home only to realize…..OOOOOPS, I have 10k in the US and short of xe.com and a beloved bank manager, I literally can’t touch those funds…. BUT THEY ARE MINE… What the?? You earn funds in the US but without a power of attorney, unless you have pre signed a million wire transfer forms, the chances are, you can not physically do anything with any amount over 2k unless you are literally here in the States sitting in front of them,….Some exceptions etc.
It makes it very very different and while you adjust quickly, I can honestly say that it causes no end of difficulties…and $30 wire fee, and $30 wire fee and kerching…
And bill pay in the US COSTS..,, and it means your bank physically cuts a check themselves, physically shoves it in an envelope to be physically mailed each day to another bank that then reads all the little numbers off the bottom of the cheque and ultimately does an electronic transfer of the funds ??.
Yes, here in the US we all know our local branch manager….and I must say I like it.. Very 1950’s etc. In Oz, I entered a branch literally once in 5 years…Here, I know their family, they deal with my problems… You have a personal banker, get sweets… In Oz??? I would be lucky to know where a branch is other than for an ATM!
HAPPY NEW YEAR… Although we here stateside have 24 hours to go…
My next reincarnation is to open a bank….
I am breaking a promise I made to Karina by writing this so I will simply say this and go. I have a different method – I never purchased through anyone else when I started so didn’t have anything to “model” myself after. I came on here to support Karina by simply differentiating. I am delighted and proud to see anyone with properties that weren’t ripped off and are proud of their buys. YAY!
My investors choose the properties, they decide the price and while I choose the price for my personal buys, each person I have met has a different market, a different choice and even, ultimately a different city preference. Atlanta houses are “gone with the wind” cute and larger widget for widget, Vegas properties are the ugly stepchild by comparison but dry and LAX hasn’t even dropped off to the same ilk but if you want to swing vendor finance deals and play with the big boys on multi million dollar structured deals – go for it. Each have pros and cons.
foreclosed market:
$50 in either direction with these buys are a percentage yield difference. One late fee is a plus in your direction, one extra repair is a negative. In ATL you can bid up to 15k below list and stand a chance. Just lowball….. or not if you love the property BUT KNOW YOUR VARIABLES… CG is crystal ball, so know your rent, know your local sales and know your repair costs. Even though they are lower in purchase price for instance, I don’t traditionally go for HOA properties on the main because it has a variable I can’t control and because of the issues with ongoing maintenance and fines … did I mention I hate any variable I can’t control (oil for heat is my passion – ever cried when the price of oil went up… I have!).Don’t buy crap
I haven’t recommended more than 2 properties to buy in Vegas in the past 3 weeks. That may change but it just how it is. If it won’t rent, don’t buy it. There will be a glut in houses and there will be a decrease in rents… you can’t have 50% of a city (exaggeration) owned by foreign investors without. Don’t buy condos – you are instantly slammed down in rent by the replicate property trashing their yield. I calculated I can be cash positive at $184 a month rent…… I will ALWAYS have a tenant in my house at that price…. (if you get the point)Different
I set it up so that I could replicate the model I put in place in LAS anywhere…. get to know one system and we will be able to move where ever the opportunity goes…. (have system, will travel?). It isn’t quick, it isn’t easy and it is understanding this market has a long way to go and we have years of phases to come across.Caveat Emptor
For what it is worth I am helping someone who bought “cheap” and bought from someone who buys “bulk” to try and get their money back or even secure their property so I personally don’t believe that those equate to “great” but again, this is my personal opinion. What I do is beyond labour intensive so thank you for guessing. We do go in, we do set up our own team etc.I will simply say that you need to do your own research. Know zillow – compare properties (I love http://www.listingbook.com for ATL – LOVE it….. check out EVERY recent sales comps etc!), congrats on FABULOUS buys, fantastic tenants etc.
Google is your friend – google drive, google search for inspectors etc…
Just do research. If you have any questions, I will always try to help – whether you are a client or not, time permitting. This IS easy, you COULD do it yourself (call 3 real estate agents, call 3 contractors, call 3 property managers), it isn’t that hard – but if you don’t, then just research, research, research.
I figured my fee based on how much it would take you to do this yourself and it was about a month of expenses including airfare.
Best of luck to all –
Emma
DD is done upon acceptance of the property – you have anywhere between 72 hours and 10 days upon exchange of contracts to do your inspections. I have found that to save money, you can use an inspector that is both a termite inspector and a home inspector.
A “tiny” issue can be dealt with – but just remember – termites love the dark – if there are visible signs of termite issues on the exterior…..there are many colonies per acre in certain areas.
Yes, if bad enough you would back out – absolutely, 100% and instantly ( I am always more cautious in ATL of those properties that have fallen out of escrow)…. ironically in place like florida people will buy the the cinderblock houses but not realize that the roof joists may be wood and the only thing holding up the property is the webbing itself! If you are buying a HUD home (for those with EIN’s already and a US address) – you may get a HUD report attached…
Ditto in any warm, wet environment… also mould will be definitely a greater issue. The biggest danger is down the line if a tenant doesn’t report a water leak immediately (humid and enclosed = serious concerns) so make sure on your quarterly inspections they check the water meter isn’t still running at shut off.
Check for water sealant issues that will come up on a home inspection….
It doesn’t make this a “no”, just a be very very aware… also ALWAYS make sure that in any rain environment you have proper gradient away from the house – and no foliage – especially up against the house and heavens forbid growing up on the inside of the siding or against any wood.
Emma
DHCP wrote:Guys, the property that was posted here looks pretty good. I know being a warm climate in Georgia, when you did your DD (due dilligence), some of the properties you've encountered in the past might have some issue with termites for instance? Did you proceed closing the sales even if you have some tiny issue with the property. I heard that termites is common in Georgia because it is a wooded place whereby termites love to breed.Karina forwarded this to me and I feel compelled to respond (also just read the myriad of other names).
Greetings – I don't post on forums and have only attended one other forum (I got thrown out of a Dymphna Boholt seminar… long story) and only then to help people with general questions that eventually grew to be a business (putting my oft "what not to do" knowledge of 12 years investing in the States to work – NO COLD/SNOW/ICE). The decision to enter into business I must say was in no small means because of some of the queries Karina and other "US non residents" looking to invest or just starting to invest in the US had. It was that simple. I chose a name I had used for 10 years and was proud of it.
Here we are 2 years later and I feel like an old "adviser" and am simply delighted that everyone really has managed from this to achieve their goals.
That being said, as we are all in Atlanta (for completely different reasons, I am also in Vegas and started there this crash – widget for widget Vegas is tighter on good properties for now, ATL still has legs and though the ATL numbers look "better" than LV,they NEED to simply because in my years in the US, the on going repairs in a dry city are nothing compared to ANY 'wet' city (termites, lawns, hail, wind, composition shingles, mould etc) I have previously invested in and crystal balls are all I have for cg. Billions of dollars worth of aircraft are stored in the deserts around Vegas, because the desert preserves like no other. Didn't hurt 3000yo Egyptian mummies either – those guys LOVE their deserts!): So, yes, I concur it can all seem confusing even to my brother who REALLY didn't think we were different. This is missing the point…….EVERYONE……The key here is identifying YOUR investment goals and realizing them – stick to them and understand that you WILL face all the usual issues of being a landlord where ever you invest – mitigating risk is all you can do but <moderator: delete language> make sure someone who genuinely cares is there for you – today, tomorrow and in 10 years time.
I just feel that I need to say that Karina and I offer very different services and while we did look at trying to collaborate, I firmly support and have always supported that she will NOT rip you off. I work with a long term model that I carry in any of 3 states, definitely isn't as "instant gratification" and means that people buy directly off the open market (welcome to RSI and amazon jungle killing). It is based on your own investment strategy and takes you to a tenanted property for one fee so people choose their own property to buy, what price to bid on it in consultation etc versus the "source and secure" LLC method that Karina uses.
It was therefore very difficult to merge the two notions and gets further complicated that my fee includes project management and tenanting – I don't outsource (even just being US resident but Oz citizen definitely gives me advantages) – ie I am on site for all the repairs and thus refuse to pay project management when it is included – we buy every item needed ourselves (ever heard the scam of 5 toilet seats bought for one project then returned for credit??? A toilet seat costs $5.74 for heavens sake and as we probably all know takes less than 30 minutes to install at $15 an hour!.. I am further blessed to have an Australian Award winning Master Builder's Association Project Manager of the year on board to keep standards as well) – but the one fee takes people through to a tenanted property etc and the one brokerage keeps property management at 7% forever with no renewal or reletting fees….I suppose we are a "club" for the future versus anything else and I can't deviate… versus one fee to buy plus one fee to rent plus one fee to repair as well as the bills themselves….it is just the way I started and thus a model that works for me. I spent 10 years to some extent learning how not to get ripped off in the US on repairs ever since the day a plumber tried to charge me $180 to diagnose a leaky toilet (!!) and I replaced the whole thing (including subfloor) for only $80!)… and so call me a control freak! Unless you get 2 brand new a/c units and a new roof it is crazy to pay over 10k for repairs. – A/C's are 2.4k (4 tonners/ground mounted) but if an all in one toilet costs $69 and it takes 1 hour to remove the old one and install a new? I haven’t yet, even with 2 a/c units installed, complete inside and exterior paint, total flooring and all plumbing replaced presented a bill over 12k… An ENTIRE new roof admittedly would be an additional 5k but Vegas has mostly tiled versus composite shingle roofs so this is more an Atlanta thing that I have faced – ditto with vinyl siding issues (which I have a long term hatred off given my 10 years "enjoyment" of it in my Alaska properties.. and still hate humidity and termites etc in the tropics!)
Not right, not wrong, just different and a lot stems from my personal belief that repairs and tenanting are as equally difficult to avoid being ripped off (quality repairs, eyeball the tenant etc). When I took this on it was consciously because ultimately the only thing you are saying by putting your hand up is "I will be there for you today, tomorrow and in 10 years time" because that is what this is about – we are, for want of a better word, one big investment club going bravely forward into a brand new real estate game – we ARE writing the books here – our parents couldn't have comprehended what we are doing (buying on the otherside of the planet???)- but we are giving 110% and that is the only way to do it.
We are going to all be entering the next phase together – as I say, we are in the worlds best "investment club" – so much so that some of my clients have as many properties as I do now over here – and bid against me on my own quotes for repairs…(dear GOD it isn't hard -a door knob costs $8.74 for heavens sake (Defiant)… a 30" door costs only $28 – just add labour!) – thus we will all be sitting at my beloved planning commission meetings to rezone, and develop and add second stories together and ……we literally don't even know what the opportunities will be but I can't wait for us all to get there together…
Ha, I love shopping at Home Depot too much! This is addictive beyond addictive, I LOVE what I get to wake up and do every day and I don't blame anyone on the planet for finding the same passion.
"Select" is an indication of "not bulk" and hand picked.
Best of luck to all…… I mean it… It is a HUGE market and I am just delighted there are other people out there NOT ripping you off. I think "Select" sets us apart. I think I speak for both Karina and I when I say that we would scream if someone tried using "select" and WERE ripping people off – so the other renditions DO scare me … grrr…. imitation may be flattery but if they aren't for good???
Forget the "how" we get there. Just don't get ripped off enroute.
Let's talk again in 10 years time when we all have our millions (well at least a good step)! I vote Sharkbite bar in Provo in Turks & Caicos for the rendezvous if our yachts can handle all of us….lol…happy to be outvoted…first round on me…!
PS WOW – I had no idea there were so many variations – so for the record I am SELECTUSAPROPERTY!
