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I would stay well away from Kyler Rice. His way of "helping" me was to place a squatter in a home that I foreclosed on and that was the last I heard of him. Similarly, Alex Franks from Charlotte, South Carolina. I lent this guy money and finally had to foreclose on him when he couldn't sell the property. Not an apology, email or word from him since. Has taken off to NY now. Probably has a lot of investors chasing him. The only one I would trust would be Jay Hinrichs whom I have met personally and have a lot of respect for.
Alex has defaulted on payments he owed on the property I lent on. Be very wary!!
WorldInvestor
Yes, 15% net does sound attractive but most senior investors in the US such as Jay and Alex seem to think this is unrealistic long term. Either way it does beat the 2-3% we might see in Australia with no growth likely in the foreseeable future. I said on this forum over a year ago that house prices would continue to fall in Australia and I was accused of scare-mongering, so here we are now with 20% price deflation and no sign of a turn around. Australian investors have had enough of negative gearing and want money in their pocket now and wont buy until they get it.
Overseas investment does seem the way to go and so there are always risks, as you say. But the returns need to be weighed up against the risks. Risk=Return as always.
I just wanted to make an observation as someone who is struggling to make the best of 2 bad property purchases in the U.S. (My own fault, should have know better).
I have looked at Ziv Magen's website and I have looked at several U.S. markets. With many commentators on here saying that cap rates of 12%+ are achievable in the US if cashflow is the objective and little appreciation but beware of property managers, bad tenants, warzones, etc. Ziv appears to offer the same scenario of 12% cap rates plus almost nil property manager and tenant problems by investing in Japan condos. No appreciation but good solid returns… Exchange rates seem to be stable.
So the question is, why isn't everyone flocking to Japan via Ziv?
Jay
I am fortunate in that I own my home debt free so not too concerned about values dropping as I’m not selling. Most Aussies will hang on to their homes regardless of the current value apart from the fact that the bank will still usually want what’s owing on it if you walk away.
TZ
Anyone that bought property anytime in the last 5 or 6 years will have lost money. The hard part is getting people to realize it and accept the new lower price or not sell at all. My home in Buderim is worth $100,000 less than when I bought it 5 years ago. The price drops haven’t been as dramatic as the US but we haven’t bottomed out yet.
TZ
Tourism is not doing too weel in general. Queensland suffered badly during the floods but we have done o.k. down here. We bought in 2010 and have just sold for 50% more than we paid, so pretty happy. Hard work to acheive that though. House prices are still falling here despite what your local realtor might tell you, although homes at the cheaper end are starting to move now. Interest rate cuts may be getting first home buyers in again. Still looking $350k plus though.
TZ,
I have a house in Buderim but I am presently managing an apartment block in Port Macquarie, NSW since 2010. We have sold the business and will be returning to Buderim some time next month hopefully. The Sunshine Coast is still growing really fast but not as fast as it was due to the recession.
I am heading back to Queensland’ Sunshine Coast in the next month or two, Kyler. Happy to show you the local sights, mate.
Mango99
Different person. Same scenario. I am battling with John Patchin of rewholesaleking in Kansas City. Borrowed money to buy and rehab but didn’t pay it back and abandoned the house. Strange thing is it looks like I’m going to get the house and it’s worth more than he owes me. Go figure.
All sounds familiar. So I’m not the only stooge.
Jay is absolutely right. Most of the spruikers in Oz make no mention of vacancies, repairs, leasing fees or replacing carpets etc. Even in Oz, we have to allow for those things. In the US, it seems that tenants have little regard for property and in Oz we don’t have people stealing the a/c compressors!
I am still doing battle with John Patchin of rewholesaleking in Kansas City. Kyler has very kindly gained access to the property and it would appear to be partly rehabbed so not sure of its value. Considering it was supposed to have been tenanted at one time and sold as a turnkey, it seems likely this is just another lie.
Getting very wary of investing in the US. Oz is a very long way away when you have to foreclose!
Might put him out of action for a couple years though.
Just wondering what the impact on your credit rating is you are in foreclosure? If I have to foreclose on this guy I am having problems with, will he really care?
He has promised to get the transfer of title notarized tomorrow. We’ll see….
Looks like John Patchin of REWHOLESALEKING in Kansas City has gone to ground again. He promised to transfer the title to the property he owes me money on into my name but he was just stalling for time. Again he has refused to return my emails. He is a slippery snake all right. I guess my money went into the casino like all his other victims. H also has other aliases and companies such as Greater KC Homes. His $1 company is Amstar Investments. You can read about Amstar Investments here:
http://www.scaminformer.com/scam-report/amstar-investments-amstar-investments-llc-c34722.html
I guess the moral is, trust no-one.
In Australia, each state has an office of fair trading plus we have a national body, the Australian consumer and competition commission. They are government run and subscribers. Whilst they are slow and not greatly effective, at least it’s some protection for the consumer. I have used them a few times.
I have found name and shame to work just as well or better. A story to the local press here and there, Internet websites, I have even used TV. Worst case scenario is that the crooks get closed down, best case case is you get your money back.
Scammers rely on their victims being too embarrassed to do anything about it or can’t be bothered. The more it is made public, the better chance of getting them. Just make sure that you only quote facts not hearsay or allegations.A bit of an update on John Patchin. I managed to post comments on the Rewholesaleking youtube videos before he blocked me. So at least Ive got him on the back foot. Is there an equivalent of an Office of Fair Trading over there?
Kyler,
I can’t get to the bigger pockets chat. Can you cut and paste it? For some reason, I keep getting directed round and round on BP.
Kyker
I doubt you will either but their is worse to come for him yet.
