Forum Replies Created
Living in California, I saw first hand the Japanese influence.
The owner of Sega systems bought the country club I lived at “Silverado Country Club ” Napa Ca.
he paid 125 million for it and it was probably worth 30 at best….
Johnny Miller the golfer lived there, as well as other notible wine and business people from SF.
Johnny Miller just put a group together and bought it last year for 50 million.
JLH
In god we trust is written on US currency…
emma ,,,
We call them wobley box's…
If you have the latest and greatest ones that are pit set on perminate foundations… Lenders have to loan on them like a house.
But your right the market ferrets these out… People just will not pay a premium for a wobbly box no matter where it is..
Caveot to above.
Orange County CA… Santa Clara County CA… Wobley Box's in a park can sell for 250 to 500k….
This is a good example of the differnce's in buy attitude.
The reality is the US market is storming back and the old data points are surfacing.
IE much like OZ investing if your slightly positive geared or slightly negative thats great as you have values rising.
What do you call a neutral geared property Is the question????
Emma
Nice post thank you.
Kyler,,, modular homes exist in every market …
I was financing these in the Bay Area in the 80's and early 90's, My client pays 300k for a lot and 60k for a modular…
This again is an area that out of area investors will have no clue. IE any home that is Modular ( mobile Home) has very little value compared to stick built.. and is almost impossible to finance,, IE for an investor or owner occuppied.
Now do not get me wrong I have a few mobile parks I own and sold one a few years ago and did tremendous on but again like storage facilities they are there own little business
Alex its kind of ironic though with the above post…
I think we can all agree on this,,, what I don't understand is how someone from OZ ( and please no offense to those who's business it is) can just one day decide to be in the house flipping business in the US….They will go through the same learning curves as any other business person.
Its just they do it with investors hard earned money.
And Jayman is completly correct there are very few people of my experince level and skill in the SFR business ( could not help it) I know my markets and my product period and I pick my team for the same reason. Having made over 2000 loans in 20 different markets in the US over the course of a 30 plus years you get to know where the hoods are and where to invest and not to..
But hey I have lost on some deals for sure… Like I posted I did not get totally out of detroit before it cratered and then there is the stuff no one can do anything about…. You buy lend or what have you at 100k and the property devalues to 30k whatchya gona do. For me I income averaged and figured out a way to buy 100's of them at the 30kkk … Others sold lost and are doing other things.
There is absolutly no question that the bigger funds are going to give the SFR market a run here… Time will tell how well they do.
The main motivation for these funds is not cash flow its important but they are buying for Capital growth… And of course if you have 3 or 4 funds all decide they have to have Atlanta well there you go… Tomorrow is auction day in GA so I will be interested to see how that plays out the one fund I am close with is trying to buy 100 plus homes tomorrow. while I will be tickled pink if I can buy 2 to 4 at auction then another 2 to 4 through other REO means… at the end of the day 4 houses of MY choosing in MY neighborhoods and I can't be happier.Emma,
that is how most vendor financing deals work in the US. If your buying from a turn Key marketing company…
If you think about it from the sellers stand point. Like you said pretty good deal… make your initial costs back on the down payment and the note is pure profit.. Most of these guys will then sell the note on the secondary market and cash out completly and be down the road with no tie to the property
Kyler,,,keep me posted,,,,,
In my lending days.
Any way I think we will find one of 3 things:
Experince took draws and : ( never did any work) I learned quikly on this one that I needed to hire independant inspectors to do 4 draws per rehab…..borrower did not like it but hey at least I got a( from a first class rehab to one that was up to local standard)…..
there will have been some absolutly bottom of the barrel rehaber gave it the good Meth try……can prove some work but its piss poor
And or last… a combination fo the above and add some one living in the proerty probably without any lease.
Kyler let us know which one of the 3 it will go along way in percieving Mr. Patchins SOPS and MO
JLH
Cool my work is done here.
If you can help LLovehouses with the 1099 that may give him a little satisfaction
Also it could be a win win of sorts.
He can file the 1099C have it roll to OZ which I think he can do… then sell this property get all or more of his cash back take the loss now then recapture as needed or wanted…
Ilovehouses wrote:He has promised to get the transfer of title notarized tomorrow. We'll see….when he has said document… Please let me look at it before you record it.
JLH
llovehouses.
then go on line to the IRS site… Look up 1099c and then print one out and send in what you know of this guy.
I suppose when you lent him the funds you got a credit check and on that credit check is his SS… once you have the SS you just fill it in on the form mail it in… Inlcude the default interest your due send in the whopper 35k plus 1099… and Mr. Patchin will have real fun with the IRS and it will probably curtail his borrowing money from anyone.
Let me know if you follow up with this… You talk about a nightmare for Mr. Pathchin this will do it.
Mihovi
I think the major issue Detroit has and some other venues..Rochester, buffalo,, anything Ohio come to mind
Is the spruikers be it OZ US or GB have hit it so hard and so many people have had bad experinces,
Poor detriot gets lumped in…
Really if you bought Inner city ATL you would have the same issues as detroit.
When everyone talks atlanta on this site they are really not talking atlanta but the suburbs..
so much like detroit suburbs….. Its just a different animal..
Me personally If the Detroit proper had not imloded like it did I loved those briker's
And I like Detroit,, Down town is fun and Safe ( albiet because there are mounted police on every corner and that is no fabrication)…. But there is a huge water front and big water just minute boat rides away.
I can go on and on and the poor Ozzies that bear to even read my stuff now will just puke.
Its the curse of being able to type 70 plus words a minutes and don't give a crap about spell check
Nigel Kibel wrote:Yea its gone up in value with all the idiots that have invested there. Dont waste your money on this third rate cityNigel,
Please what do you really mean??? Please do not hold back
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:)” title=”>:)” class=”bbcode_smiley” />JLH
Casahunter
since you have a lonely post thought I would chime in.
to find a decent agent here are a few ideas to find one.
1. Search the web the number one agents will come up in the top 20 or so do not need the top one but top 20 in a town of 7 million or 1.3rd the entire pop of OZ will probably be OK
2. search real estate companies and inquiry that your looking for an agent that will do a specific task for you…
Now remember with the prices were they are at you cannot expect these people to be at your beck and call..
If your buying one 50k prop which is a big deal to the investor its still only 1,500 to the agent and then a broker fee split…
So please keep in mind that unless this agent is doing 30 transactions amonth or there about they are just making a living at best.
RE agents in the states are not like oz agents they only get paid on COMMISSION if they do not sell anything it actually cost them money to work?? I know novel idea but true.
JHL
Its all relative to the price of entry….
mihovi
Its exciting to see such quick turn around this year… We have been waiting for it for 4 years…. Still nothing like the go go days of 2001 to 2007,,, but its moving in the right direction.
Also, when a 20k house moves up 15% its now 23k so those kind of stats are misleading.
It will be very interesting to see where this all settles out in the next few years.
The bigger US players are buying right now… In my talks with one Silicon valley hedge fund they have bought 1200 homes since April in 5 states… Now it will be interesting to see how they stay on top of it all.
And foreclosure court house step actiivity according to another of my associates in PHX houses are bidding above retail forget wholesale… Its easier to buy a foreclosure than wade through the short sale disaster process.
For me I just count my self as one lucky SOB to have made 200 plus loans in detroit and got paid back 100% of my funds on 196 of them.. But the 4 I did not get out of in time cost me 200k or so in cash…
You get in the wrong street in Detroit and your going to get hosed thats for certain…
Just like any of the other inner big cities… suburbs are where its at for sure… Atl is the same way i would not buy fulton county sub 20k houses.. too hard to manage just like detroit.
What really excites me is the way our building business is coming back… we are making real money on each and every home we build and sell… there was a day there when I had to write checks to sell properties and that my friend was not fun.
JLH
llovehouses,
does not appear to be the same individual.. Moral of the story is the same… many hucksters out there promising the moon… Reality is these are undercaptialized con men that know enough to facilitate what appears to be a legit transactions and of course with all the hype about 25 to 30% returns in the US…. I can see where people off shore pull the trigger on these.
From the documents that I have reviewed Mr. Patchin simply needs to sign one of two types of transfer deeds and record them. And your all set. You then become the proud owner of your collateral.
1. Deed in Lui of foreclosure, this will wipe out your Note and you cannot sue on the note later but you get the property. Now as a lender when I have taken properties back with a DIL I issue a 1099C and or threaten to do that When they understand the power of the 1099C it has resurrected dead loans for me……….. A 1099C then is sent to the IRS and guess what happens the amount of the debt you forgave becomes ordinary income to this dead beat borrower… And then the IRS will take up the hunt… And they are nasty boys to deal with… So you can get a little bit of satisfaction. AND you can write the entire loss off on your US tax return and then however you handle the transfer to OZ… Now not sure if you used your super fund for this and how that plays out.. But if its cash I would think the above works… I have 1099C many a borrower who then screamed like stuck pigs.. They would not answer me.. But they get that 1099 and the next thing you know they are on the phone…. One borrower I hit with all most 300k.. So at the end of the day he had a 100k plus obligation to the IRS…. he would have been far better to just stay in my loan and work it out.
And if I had written this deal up and the Note I would of course had a default clause that allows me to charge default interest back to the day the loan was made and many states allow 25 to 30% for default interest. So your 17k loan all of a sudden is 30k plus
2. Warranty deed back to you and you re-convey the Deed of trust upon the resale of the property.
Both of these can be prepared by a title company or lawyer for nominal fee and recording should only be 20 to 30 buckaroos.
Also recommend if you have not gotten any pictures of the property yet.. To go ahead and hire a RE broker to give you a BPO that will cost you a few dollars but will give you pictures and a reasonable expectation of its current value IF ANY.
Sadly so many of those that are having these issues are just working with amateur wannabees be them OZ or US … that’s the simple truth from my perspective they do not even know what documents mean or what to use with what transaction.
Can you drive fast on those roads to nowhere?
Like say. 220khm or better looks like you can
Google earth Street view many times is not the right house..
Google is great just like trilla and others for generalities but not specific info.
One who buys a house based on Google earth is buying site unseen
JLH
Ouch,
those are not good commutes at all…
My commute here in Oregon,,, is 2 stop lights 12 minutes and a country drive through the farm land to my office (of which I own the building)
Now get on the wrong side of town where the cheaper housing is and you have 90 minute one way commutes on a daily basis.
When I lived in SF I lived in Palo Alto and commuted to the SF airport area on hwy 280 so commute was 30 miles 30 minutes.
In Napa,,, well that was heaven,,, I flew to Oregon on Monday came home thursday and worked like an airline pilot 9 days a month the rest I played golf worked from home and drank some darn nice wines.
JLH
:)” title=”>:)” class=”bbcode_smiley” />
