Risk reward is what it’s all about

From what I see from OZ investors they have a very high risk tolerance, IE chasing the sky high rental returns that can only happen in a perfect world or in ones dreams

At the end of the day most investments will be positively geared but no where near quoted rates of return

Then there will be the unfortunate…[Read more]

To much stock put into the head lines"CNN says this market is one of the 10 bestAOL say this is one of the 10 worst markets.From my prospective the foreclosure crisis is thus.1. sub prime   IE interest rates over 10% to home owners who bought with teaser rates.2. Investors who either like KC posted have Arms that adjusted up, or decided that t…[Read more]

Scott,some probably think I am putting up Cr@p and others probably apprecaite the heads up to the risk's involved in lending and or residential real estate investment property in the US>I know I have sure learned a lot.Especially the perspective of OZ investors that are not experinced  in owning and running rentals. The US poses challenges in the…[Read more]

nateb,can you elaborate, you bought tax liens recently and they already paid Off….?has everyone paid off or are there still ones outstanding,As I have done this over the years. And have not reconciled my return because I only dabbled at it out of curiosity maybe invested 50k to 100k… I have gotten some pay offs then I lose track of them and…[Read more]

Can you send me an e mail on this site, I have multiple web sites that explain not only our loan products however in addition our Equity participation net cash flow investments.I think the moderators frown on posting one's web site.Be happy to help you navigate the lending world.

shape,good questions and simple answers.1. You get an apprasial from a 3rd party independant apprasier and whats even more important is that the Broker or arranger of the loan is some one you have vetted and has impeccable credit reference's surety bond and NMLS licensed ( you can google NMLS  this is the new government licensing program you are…[Read more]

speedy gonzales wrote:
Engelo,This sounds similar to a product that a forum member Jay Heinrichs from True Wholesale Houses does. Slight difference is that with Jay's product…the rate is 7% to 9% on your investment paid monthly. The big difference however is that with TWH…you also participate in the equity of the home and have a note over…[Read more]

what did you find out on your search’s

One reality check is :

1. foreign investor wants this huge due diligence check by the local realtor.

2. local realtor makes 3% of purchase price or 2k which ever is greater.

3. what realtor is going to answer all these questions that the foreign investor poses. I for one would tell the investor take a hike.

for 2k what the hecks in it for…[Read more]

Stu agreed on your assessment of the New construction in the portland market and elsewhere.

The day of putting maximum sq ft of house on the lot has been replaced with much more modest homes. The main reason is builders want to be under the 425k FHA limits that are also going down.

There is a real sweet spot in Portland for 250 to 399k… My…[Read more]

Alex SC wrote:
JayI give you that one.  Turn Key ….LOL Sorry but thanks for catching that( did just leave the gym ) . I appreciate your opinion ,being you have many more years in this business them me. I prefer people that give it to me straight then basically give me a line of bull…So thank you for that . That being said, that makes me…[Read more]

Legal and accounting are not big factors when owning a single family rental, they should be minor expenses. Legal for a one time look at your contract to purchase, and accounting once a year to file your tax return.

Atlanta is a huge place, we like the suburbs south, south west, and north west…

If you want to buy outright and own it yourself…[Read more]

Jane if you have assets there in Texas and a base to work from that is probably the best place for you.

Just make sure you double check the property tax’s before you settle on a property, and make sure the tax’s you are quoted are for non owner occuppied property not owner occ with the tax exemption that will only last a year then your tax’s will…[Read more]

Do not disagree with you on the speculation, thats the definition of land investing its called speculating.

I own one piece of property just north of San Francisco in a town called Rohnert Park, I bought it in 1989 for 35k. its 4 acres was unbuildable at the time and has been ever since, However I new town was coming my way, there is a shopping…[Read more]

this is whats fueling the USA market homes for exactly what you describe less than replacement cost and the land is free,

the difference here in the states and I have no idea about OZ is that there are always buyers willing to pay the price for NEW CONSTRUCTION. Buyers just do not want to live in someones flea trap, etc etc.

whats happening here…[Read more]

Chiming in per Alex

We have 500 plus units in our portfolio of whiich we own the majority. although this includes MH parks as well as single family.

The biggest thing I take from this thread is that expense’s are generally understated as one poster said. Not near enough allocation for on going maintenance ( that is if you want to keep your unit…[Read more]

Stu,

I grew up in the land business my dad was a an agent for Boise Cascade when they developed 27 subdivisions in CA in the 60’s.
Some of those subdivisions did well, ” Pine Mtn Lake, Lake Wildwood” and some like you say were and are stinkers. It was acceptable practice in the day to build out literally 5,000 lots and only put a water system…[Read more]

Alex what is a Turkey house?? ))) just could not resist.

answer to your question though

this is my 3rd recession depression that I have been fully involved in the real estate industry, and each had their own issues,

back in the early 80’s it was sky high interest rates.

89 to 95 was the first gulf war and for us Bay Area folks it was the…[Read more]

jane,

depending on where you are in Texas the property tax’s can be much higher than almost anywhere else in the country and by much higher I mean 2 to 3 times other areas with same purchase prices and rents. .

Like any of the investments you will have proponants of one area and others who like something else for other reasons.

The discussion…[Read more]

Alex your right keeps us hard money lenders in business:)

As you know there are many folks with marketing companies for these properties that do not own them and are not licensed. What has happened is that so many US investors got wiped out from their 05 to 08 purchases, these same folks are going back on the Turn key guys that sold them the…[Read more]