WI,

Many neighborhoods in Atlanta metro and for that matter the US that were heretofor owner occupied have turned the corner and have many renters…

I would venture to say each of the homes that you and I own are in neighborhoods with many renters. Where 5 years or 10 years ago (depending on Age) these were predominantly owner…[Read more]

Cheeves,

the deals that I see that proforma out to high returns are clearly in the Hood, and are usually boarded up and or have 70% vacancy or better, and it takes a small army to move in and turn them around..

And I mean an Army,,, One needs fortifications to surround the project  IE chain link with razor wire,,, Arm security gurards, Not the…[Read more]

John,

looking at many deals, one see's the commercial agents proforma  ( best case scenario) then there are actuals backed up by financial statements and tax returns for 2 or 3 years.

are you saying  17 to 25% cap rates?              

In my experience the hot deals never come to market and would never come to this kind of forum or be looking…[Read more]

USAinvestor,

Before one can "lodge a lien"  there needs to be a trier of fact ( judge) render a judgment against the defendant. And the  "plaintiff"  Needs to file a court action..

We have whats called Small claims court and that is for disputes under 5 to 7500.. depending on the state. The caveot though is YOU MUST PERSONALLY attend, and no…[Read more]

Nigel,

sounds like the same story from the aussie marketing companies,  WI posted about one of them that sold 400 plus C class properties and now has found Jesus and decided that A and B is better.

When the reality is C's are just too tough to manage and in Atlanta where this company has been buying the competiton has been intense and the only…[Read more]

Cheeves,

I am fairly certain there are those deals out there but they are in the hood,, Last guy that tried failed,

buddy of mine just bought one in Memphis, 70% vacant so if you run a proforma on it looks great on paper,

try to actually reno it and tenant it thats the other side of the coin.

Your right on the mark with your cap rates… Here…[Read more]

Nigel good post:

I agree with you on the single family side of things I think there is no argument that we both think that TRASHFLOW houses in the US are really poor investments and extremely risky.

Here is what I see happening.

The US and OZ marketing companies and fellows had a pretty nice run at higher  gross rental returns for the last 3…[Read more]

cheeves,

Its an issue, and all about setting expectations up front.

It was one reason I thought my TWH model would be a hit in OZ .. Payment of the exact amount on the exact same day transferred into their account monthly.

TWH has caught on now in the US.. And I have a back log of probably 30 to 40 US clients plus about 10 OZ…..

Its a…[Read more]

Freckle,

tipping is necessary in the US.. I bought a house up in British columbia,, and when I tipped 20% for my evening meal the waiter would follow me to the car thanking me and inviting me back

Its just what we do here.

In many states waiters only make 2 to 5 dollars an hour.. If they did not get healthy tips how are they going to pay for…[Read more]

Not sure if any of you saw the movie WITNESS with Harrison Ford. But it reminds me of a scene in that movie.

Harrison Ford has gone to hide out with the Amish (Pennsylvania Dutch county).. And the Bad guys are trying to find him and call the local sheriff.

Bad Guys ask the local Sheriff to just call the house were they think he is hiding out..…[Read more]

Yes I am taking some liberty,

In the states if you bounce checks too often your put in the nationwide system and you CANNOT get a checking account.

In each state we are different.. But by and large we do not accept checks for rent.. Money order or cashiers checks or cash.

I don't recommend cash as its easy to go missing and you get in the he…[Read more]

in no particular order

Fulton
dekalb
cobb
henry
clayton
gwinett
rockdale

then ones that are a little farther out but still considered in the metro area

Douglas
Carroll
Cherokee
Forseth
Cowetta

Takes an army and a very well capitalized team to cover all these counties. Just for informational purposes. the foreclosure sales are only 1 time a…[Read more]

Temple looks to be half way to Alabama so pretty far out of Atlanta per se.

We own Douglasville  and I own a few in Carrolton which is just as far.. However they are more modest in size.

From my vantage point the farther out you are the less price per sq ft will matter.. IE its going to be price range for bd and bath.

Although to talk about…[Read more]

Freckle,

any property that is not SFR or Multi family can be classifed as commercial.. Although I think we all kind of think of commercial as office or retail.

Not having any first hand knowledge of Steve's activities or their choice of trailer parks they are buying, its still the same philosophy,

the really nice stuff with no management issues…[Read more]

Thats an easy one… My new short term foreclosure fund  

WI,

I think what your seeing is the stock move back to more of historic norms.. Properties just could not stay that low that long.

And of course we have talked in depth about the very large money players moving into certain markets were 6% yield is fine for them as they are counting on…[Read more]

With mobile home parks its all about location, age, age of the mobiles that are there,, are they single wide or double wide.
Are they pit set on perminter foundations.  Is there a club house etc etc.

And the death nell are ones that have a lot of vacant pad's… takes years to fill one of these.. so one has to be careful about cash flow at the…[Read more]

Wi,

there is a difference in Trailer parks and class A manufactured housing parks.

I owned one in Portland that a sold a few years ago here are the numbes.

43 spaces… I paid 1.4 mil for it.. rents 250 a month.. I raised the rents to 400 on average and sold it 2.5 years later for 1.8.

Class A parks are some of the finest investments in all of…[Read more]

since there is no financing available in the US per se… and Offshore investors pay cash.. then as long as your no buying ultra low end ghetto no hope properties… Most everything will be positive geared in a fashion.  I am not an expert on NY NJ that area, so I know the west and south east.

Most stable markets with best CG of course have the…[Read more]

Peter,

Not sure,

from my perspective the market has changed a lot..

Maybe the US does not look as attractive for SFR rentals as it once did…

Although there will always be the C and D class to go after with a hope and a prayer that you receive your rent.

the A and B's there is stiff competition and returns are sub 10% Net and probably gross…[Read more]

WI,

Big funds will want to achieve their 6 to 8% return… and will back into that with regard to purchase price…

so if at the price's one was paying for properties a year or so ago and were Making a Realistic 10 to 12% net.

then hedge funds can pay about double what they sold for a year ago and then will stop or look for other markets or…[Read more]