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Thanks Jay,
We are pretty good at rehabbing and i actually brought my business Partner in purely because of his skill in that area. I recognize how important it is along with Property management which is why we also helped establish Ray Whites first Property management office in the United States. They are very much bringing Australian property management standards to the USA.
Engelo, i am sorry if i came across as aggressive or challenging your model. It was not my intention and i also wish you all the best in your endeavors.
Regards,
Reid
Hi Engelo.
We do receive standard Real Estate commission from the seller of around 2 or 3% per property as any licensed realtor does. This is displayed as standard on the HUD. It is illegal for us to charge commissions outside of that paid on the HUD. We get appraisals on all our properties to show the client there instant equity at the end. So far we average around 14%.
We charge the $4,999 thorough our services company which is separate to the Brokerage and charges its fee for professional services.
As far as renovation is concerned we have a construction manager who runs our teams of Contractors. There prices are inline with the market for licensed and insured contractors. A client is welcome to get there own quote if need be but beyond that it is difficult for me to prove this to you.
Quite frankly we will do what is necessary to prove to our clients that they are getting value for money. We do not necessarily need to prove this to our competitors which i presume you are.
Can i challenge you Engelo. You like properties on your website like 5643 Euclid Ave, Kansas City. Do you collect rent and manage the properties on behalf of the clients? Do you or would you live in these areas. A quick search on City-data.com and greatschools.org would suggest this may not be a great area to invest. I know it is a cheap area but experience of over 1000 deals has taught me that Cheap usually just means headaches and although returns look decent on paper they are in fact much much lower in practice and there is really no exit. I think that if you are living in the city and Self manage these things (know here as slum lord) you can make a decent living. You would however need to have a sizeable portfolio in order for it to be worthwhile. Below is some data on that area.
Median household income ($) : $23,125
Kansas City, MO (income)
64130
Population: 1,097
Households: 367
Family households: 270 (73.6%)
Non-Family households: 97 (26.4%)
Median house or condo value: $68,078
Median contract rent: $450
Unemployment: 10.8%
Residents below the poverty level: 17%
http://www.greatschools.org/missouri/kansas-city/954-Troost-Elementary-School/
Thanks,
Reid
Hi Guys,
I am the President and founder of INPROP USA and I would like to clear a few things up. I have set up INPROP USA as a way for people to extract the best value out of the US Housing market. We are licensed Realtors through our brokerage INPROP REALTY, LLC. and we do charge an arrangement fee of $4,999. This fee includes property research, renovation and closing oversight, market research, purchasing services, etc. as this is work above and beyond what a realtor would normally provide.
After years of doing the turnkey model, I decided the best way to go about things was to act more as a real estate services company. This means we have access to the entire market of inventory and because we do not need to make margins on the product we can provide better prices. Despite what some of you have said above, it is possible to get deals that the locals would usually get using us. We have all the affiliations that everyone else has and through the MLS as well as private connections we can get you the best deals in town. We believe we are better set up for this than anyone else in the market place.
We are 100% transparent in our practices and walk our clients through exactly how we do our research and why we choose certain areas above others.
Engelo you stated that, “If your looking to buy the "gem" from Australia and also project manage the rehab you might as well donate those funds to charity.”
This could not be further from the truth when using our services. We have exactly the same ability and experience to get the same deal as the locals. In fact, since we have 5 day due diligence and a 5% deposit we actually have greater success than locals. To say that the best deals are found on Craigslist has some truth to it, but they are few and far between and we monitor Craigslist daily looking for them. We have short-sale radio commercials in Atlanta and do large pre-foreclosure direct mail campaigns to get the best short sale listings before they’re even on the market. It is very much possible to get a gem without being here and project management is not an issue either.
Scott, The Fed has just tapered off its stimulus while the Australian economy continues to struggle in many sectors. Most analysts predict that the Australian dollar will sit for the next 12 months between 80 & 85 cents. It is currently around 92, so while it is not as good as it was last year, it is still attractive. The Fed’s expected continual slowdown on the purchasing of treasuries should help the USD to strengthen further in my opinion.
Our agents have much more experience than most when it comes to finding profitable single family homes in the markets we work in. They work as if they are finding a deal for themselves and show our clients how to research their properties from their home base. It is actually quite easy to do this once you know where to look. The 3 factors that will always determine a good area no matter where you look are: 1) Schools- http://www.greatschools.org, 2)Crime rate, and 3) Median Household income- http://www.city-data.com
With City Data, you can find medium household incomes for zip codes as well as small communities within these zip codes. This is a great way to narrow down the neighborhood you want to invest in. INPROP does not advise its clients to invest in areas with lower than average state income levels. We also don't encourage investment in areas with schools lower than a 5/10 rating.
I hope this has cleared a few things up.
Also Jacob is on his way back to Australia now. He bought 2 homes, but I will leave it up to him if he wants to go any further.
Thanks,
Reid
