Catinthehat wrote:

<div class=”d4p-bbt-quote-title”>EngeloRumora wrote:</div>
Please feel free to click on the link and go up and down the street and let me know if you would consider this a “bottom” poverty ridden area?

https://www.google.com/maps/@41.69973,-83.573364,3a,75y,4.85h,81.43t/data=!3m4!1e1!3m2!1s4xqsgjEcgUqt9C3V3BMBHA!2e0

It’s showing all the signs of urban decay. Another ten years and it’ll be another slum if things get any worse. The housing type is high maintenance and in a socioeconomically depressed hood/city/state the long term outcomes aren’t positive. It’s inner city bordering on the worst crime areas of Toledo

It’s probably an average area for Toledo. In Auckland or Christchurch it’s where you’d expect to find Black Power and The Mongrel Mob.

Having said that though it’s probably a good fit for your PI strategy. Lower middle class and predominantly white with low unemployment comparatively.

I await your arrival mate.

Taking you here http://www.mancys.com/

Very old Italian mafiaso style place.

Dinner will prob set me back 1 months rent hahaha

Nigel Kibel wrote:

Personally I stay away from the bottom end of the market. I think there are good opportunities without going to the bottom. Often really cheap properties are in really poverty ridden areas. Remember if you cannot collect the rent its not a good deal.

Thanks Nigel,

Please feel free to click on the link and go up and down the street and let me know if you would consider this a “bottom” poverty ridden area?

https://www.google.com/maps/@41.69973,-83.573364,3a,75y,4.85h,81.43t/data=!3m4!1e1!3m2!1s4xqsgjEcgUqt9C3V3BMBHA!2e0

As mentioned my girlfriend and myself are looking at moving into this zip. My mother is also coming to visit and spend quite some time with us.

I wouldn’t consider my mum, girlfriend or myself to be hood rats haha

Thanks and have a great day.

sciencesurf wrote:

Awesome cash flow Engelo!

It got me thinking though.

Assuming initial purchase cost $12000 + $10000 Reno = $22000

Revalue $40000 upon completion.

Lets say the Toledo property goes up 10% per year for the next 3 years, compounded. You make around $15k in unrealised capital gain on top of the $18k after the reno.

Is this worth all the time and risk? Be interesting to know the gross yield on this one to see if you’re making up for it in positive cash flow.

Would you say compounding is more effective on Australian properties selling for much larger figures? I know if i made $15 grand for three years in the market I would be less than impressed.

Next week I begin my next reno project on the Sunshine Coast. 1 week – in and out. Total spend $5000 with projections of capital increase of 4 to the dollar. Your’s is barely gonna hit 1:2.

I havn’t got my head around US realestate yet. Please let me know if i’m completely off the mark and missing something.

Cheers

Hi sciencesurf,

Thanks for your post reply.

Toledo and the US market should only be considered as a cashflow play. I would never recommend to anyone investing in US real estate with the hopes that they will see the market appreciating in the near future.

The cashflow on this particular deal and many others is stupidly big when compared with the Australian market.

Rent – $750pm x 12 = $9,000

Expenses:
Management = $1,000pa
Taxes: $1,000pa
Insurance: $500pa
Other: $1,000pa

NET= $6,500 / $22,000 = 30% yield

Just as an FYI I maxed up all expenses. I will most likely self manage if we don’t move in and the “Other” expense i just put in the for FUN haha

With a 30% yield there really isn’t any need for growth.

Cashflow is KING IMO.

The income can be re-invested into more properties and they can all compound together.

Imagine owning 20-30 of these with all cash. That’s my goal that I am working towards.

Please feel free to go to my personal website and under the blog tab you will find the my most recent post I had published regarding this exact same topic we are discussing now.

Thanks for reading and have a great day.

ps. It took me a long time to wrap my head around investing in the US and how it all works ;)

It already fell :)

Picked it up and slicing through everything now hehe

Hey Cat,

Check this article out:

Ohio cities amongst the most undervalued markets in the US. http://www.businessinsider.com/over-and-undervalued-housing-markets-in-us-2014-6?utm_content=buffer28a8d&utm_medium=social&utm_source=facebook.com&utm_campaign=buffer#ixzz35ZgjMZi4

These low prices can’t last forever. Just submitted a $12,000 offer on a 2 story 3 bed, 1 bath house.

900sqft lot. If accepted will look at moving into this one. Needs around $10,000 on first glance. A few comps around the corner just sold to owner occupiers in the mid $40,000s.

Solid B class and very desirable area due to close proximity to Washington Local school district.

Ill do a professional video (iphone haha) for you if I get the offer accepted. Would rent for $750 – $800

How can you go wrong with such low prices???

Thanks for reading

• This reply was modified 10 years, 4 months ago by  EngeloRumora.
• This reply was modified 10 years, 4 months ago by  EngeloRumora.

lol

Thanks Cat

Its all good fun :)

We all end up in the same place when all is said and done and we can’t take anything with us either.

Thanks

• This reply was modified 10 years, 5 months ago by  EngeloRumora.

Catinthehat wrote:

<div class=”d4p-bbt-quote-title”>Catinthehat wrote:</div>
Your missing something tho. Ohio Cashflow is here now.

You remind me of my youngest son…. persuaded by passion and what’s happening in the moment and unable to see where trends and less visible markers are likely to take you.

Old dogs like Jay and I have seen much of this stuff before and have a pretty good idea of how it ends. That doesn’t mean you’ll fall on your arse but it does suggest you’re hoeing a much tougher road than you need to.

Life’s short and you’re a long time dead. Toledo has zero sex appeal for me and I much prefer sexy ;-)

Thanks catinthehat,

I wouldn’t say you and Jay are “old dogs” just slightly pruned hahahahaha

Love your work mate and it would a pleasure meeting you some day. Maybe your son and I cross roads sometime ;)

Have a great day.

superAndrew wrote:

<div class=”d4p-bbt-quote-title”>EngeloRumora wrote:</div>
I will reply to this post as I feel it was directed my way but I refuse to get into any Argy Bargy with you.

I’m not trying to get into any Argy Bargy with you. It’s none of my business what you do. I am just pointing out something that people who are getting into investing should be aware of.

<div class=”d4p-bbt-quote-title”>EngeloRumora wrote:</div>
As for the time factor. If you “like” Trumps page on Facebook you will find the odd video even from him. In his book “The Art of the Deal” it outlines his daily schedule and its crazy busy yet he still has time to do a video.

Do you know how many times Trump has gone bankrupt? He has to do those video, write the books etc to build up and maintain his image so people can continue lending to him. That’s where his value lies: his image and name.

When he files for bankruptcy he doesn’t loose any of his wealth that is protected through his legal structures. But someone is losing in the process.

He said one time: “Many “great entrepreneurs” have used bankruptcy to restructure debt, free up capital and improve their businesses.” (Btw I wouldn’t call him an entrepreneur)

Sometimes the best option is to file for bankruptcy but making it part of your business model and using it as an exit strategy is a different thing.

This seems to be his business: Start a project, inflate it in value, file for bankruptcy, move to next project.

However people continue to do business with him because of the value of his name and brand.

<div class=”d4p-bbt-quote-title”>EngeloRumora wrote:</div>
Just as an FYI our group does not sell to Australian’s and I wish more would jump on board instead of buying overpriced Australian properties. Its sad as most did get heavily screwed over by shady US turnkey operators.

Why don’t you sell to Australians? Also why does it matter who you sell to?

<div class=”d4p-bbt-quote-title”>EngeloRumora wrote:</div>
There you have it. I am trying to prove to you that I am successful and still have time to do a video and post a blog hahaha

You have to do it mate. It’s part of your business. You need to market your business, your image and brand otherwise no one will know about you or trust you. Like you mentioned in your previous post. There is nothing wrong with that.

<div class=”d4p-bbt-quote-title”>EngeloRumora wrote:</div>
People who really really want to learn should go out and do it themselves lollol

That’s the best way to learn. Make mistakes and learn from them.

That is a good way to learn. The best way to learn is to learn from mistakes of others first then go out there and try not to repeat those mistakes at least.

FYI on your website you have this written:

“A successful property investor that quit school at the age of 14 and built a property portfolio valued at over $1,000.000 in 6 months.”

Is that supposed to be $1,000 or $1,000,000?

Hi mate,

Thanks for your reply.

I didn’t know those few things you mentioned about Trump. Thanks for sharing.

Australian investors have very much died down regarding US property mostly due to monies lost working with sharks and a booming market back home.

The same old philosophy “buy high, hope to sell higher”. This same greed brought the USA to its knees also.

You have to do it mate. It’s part of your business. You need to market your business, your image and brand otherwise no one will know about you or trust you. Like you mentioned in your previous post. There is nothing wrong with that.

I’m glad we agree on the above :)

Also, thanks for visiting my website and pointing out the error.

It has now been corrected to $1billion lollol

I wish hehe

Thanks and have a great day.

Catinthehat wrote:

<div class=”d4p-bbt-quote-title”>sciencesurf wrote:</div>
This is business, and Engelo is trying to promote himself just as much as the progress of the reno.

Horses for courses. You don’t do naff 5 min vids that try to achieve too much. The last thing I would be doing to promote my business and image is these sorts of low grade sloppy slapped together videos. Birch has spent the last several months cleaning up his YT mess that exposed his over inflated claims. He was popular based on the human interest story… a young go get’m teen making good not his videography skills because they obviously sucked.. Poor publicity, customer service complaints and poor presentation have left a video trail of questionable practices, ethics and honesty. He’s now trying to launder and re-present his brand.

Engelo’s making the same mistakes.

Hi Catinthehat,

I don’t just consider Nathan as one of the most honest real estate gurus in Australia but also a friend.

Very down to earth genuine guys that was always willing to assist. Believe it or not he where he is today due to the video’s he was doing all those years.

My intentions with the video’s are to showcase the properties and areas we are investing in and also to continue building the brand and be consistent.

By writing daily blogs, posting on social media, having stands at expo’s and doing regular video’s are all just numbers that need to be done on a consistent basis to get results. Its amazing to see how many doors start opening 6-12 months of doing such things. I would be happy to privately share some amazing opportunities that have come our way from “measly” strategies similar to this video.

I love what I do and that’s whats counts.

Thanks for everyone’s comments and I am looking forward to more of them.

Have a great day.

sciencesurf wrote:

Interesting vid Engelo. I tend to agree with some of the feedback but certainly not all.

<div class=”d4p-bbt-quote-title”>Catinthehat wrote:</div>
For Gods sake find a videographer who can teach you some basic video compilation skills because the ones you make suck! I absolutely hate the slit type view. They invented panorama for a reason!! Everything I and others view on these days is 16:9.

For $500 Australian get yourself a gopro and shoot in 1080P or 4K (will be slow but well worth it as video processing technology catches up). They would have to be a hell of a lot cheaper in the US??

<div class=”d4p-bbt-quote-title”>Catinthehat wrote:</div>
The other thing that sucks, and I think you caught it off your mate Nathan, is your always in the middle of the shot. Your not the subject so get out of there. Shot your focal points and then clip them together and voice it over(You get better sound wink wink). If you want your mug in the thing do an intro or summary.

I completely disagree. Do you honestly think people want to stare at white walls?? What makes property investing so interesting is the human component. Real people making real money. Nathan gets so many ‘likes’ because people find him engaging. Without him on the screen the true value would be lost – and no-one would bother watching. I can imagine how my students would react if I stood at the back of the classroom, while they looked forward, and I clicked away at a Powerpoint and spoke. Poor teaching. Learning occurs through connection. Engelo, I think you’ve done a great job at achieving that in the vid.

<div class=”d4p-bbt-quote-title”>Redwood wrote:</div>
My only constructive feedback is button up the shirt bro!

How long have you been in the states? It seems to be rubbing off a little!

Hi sciencesuf,

Thanks for your comment.

Go Pro’s are $199 here :)

I actually looked at one yesterday.

As mentioned in a previous post that all these things like the Go Pro camera and a more automated database system for example will come with time. My main goal is to drive the revenue for this new venture and build the brand as much as possible even if that means shooting with a mobile phone. Once the revenue is there I have an office full of things to spend it on to make us more efficient and professional.

If I told you what our projected annual operating expense is I think that most wouldn’t believe its possible.

I have been here for 2 years now and it sure has been quite a journey. Loving every moment of it.

Thanks for your comment and please continue posting.

I will do my best to post more “amateur” video’s haha