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Nigel the other great thing and I sincerely hope our AU friends will participate is you can leave reviews of TK providers.. So if you have had great service and want to recommend a company you can do that… If you have had a poor experience and want to let others know that they may want to check into the deals a little further you can do that.. Gives the buying pubic real time feed back and reviews from real investors… Like Trip Advisor .. Again in my mind a totally invaluable tool for investing all the way across the world
I wish I had thought of this 5 years ago when I first got on this site.. I suspect between you and I we would have saved a lot of folks some heartache and allowed the best of class turn key companies to thrive.
Nigel have you had a peek at my new website
http://www.turnkey-reviews.com going on day 8 we have over 100 turn key companies listed in 20 markets and they are uploading inventory ( stock daily).. you may want to get listed there as well would be happy to have you and your product up there.
One really neat function is lets say your interested in Texas and Florida an Indy… you can click on the turn key provider. click compare on a home that may interest you.. it will align up 4 or 5 homes. hit compare button and you will get a side by side comparison of the home with a picture at the top … it will have all pertinent financial details so in one easy click of the mouse your shopping in real time with real properties in the US>. no need to pay money to look at inventory.. Go direct to the source.. Also look at the inventory and compare to what other marketing companies re doing just to keep them honest on Price.
MJ nothing to really ad to the above.. One issue is that 60k in most markets will put you squarely in a lower level type IP.
Another thing to remember is that cash flow and capital growth do not go together in the states generally.. the greater the cash flow the less capital growth. the biggest capital growth states will be just like AU neutral to negative gear but one can make big capital gains.
Nigel one needs to simply google US public companies that provide housing in the Oil industry and you will see that they have pulled back by over 80% their stock has tanked etc etc. Now these companies are US public companies will survive over time however the mum and pop developers who rushed in and sold hotel rooms I bet the majority of those will go under.
One cannot buy a Hotel room in the US one can buy a condo or maybe you call them strata’s but not a hotel room .. one would have to invest in the company that owns the rooms.. Just like you do your deals were your doing a REg D PPM type filing bringing in investors in a pooled investment. your not selling one store in your shopping center or one office in your office complex or one apartment in a Mutli you may do.
When this stuff first came out I wrote on this site that those doing this needed to exercise caution.. however the quote of returns were just to tempting to many… I am sure some are working just like I am sure some have lost ALL their money and will never get it back… Kind of like over paying for a Ghetto dog in Detroit or Rochester.
Lotte… you may want to put this on the website called ” bid 4 Assets” its like an E bay for RE and one off investors such as your self can list and sell your properties there it will also give you a good indicator if you have sellable properties and at what price.
AS Engelo states C class properties although easy to buy are very very tough to sell If your not a marketing or promoter of same !
Just checking in all quiet on the western front.. really amazed at how quiet AU investors have become vis a vi the US
David,,, I will be doing a pod cast after the 1st of the year… and I also wrote an e book with a fellow Aussie on the do’s and don’ts of buying USA property.. I have 40 years experience in the US markets being a RE broker in California Oregon and Mississipi as well as a Nationwide mortgage Banker.. I have personally funded deals in 21 states. and am very active today.
Be happy to help any AU investor through the mind fields of US investing. As many unethical US operators and there are many that are out and out felon’s for sure.. there are just as Many AU marketing guys that are not much better and sometimes worse.. I know I have been approached by many who wanted me to source properties for them.. and these AU marketers wanted outrageous marketing fees.
Freedom that was last 24 months in Orlando not 2 months I am good but not that good :)
Freedeom as a follow up as Nigel states he spent 15 months here figuring it out.. I have 40 years in the business. I am a Licensed Mortgage Banker.. This allows my lending activities.. I am a licensed Real Estate broker in 3 states and have been since 1975.
Along with doing business in almost half the us states over the last 40 years I have a pretty unique set of skills that are not easily replicated.. for instance in the last 2 months I did over 90 fix and flips in Orlando Alone… and that is just one market I play in.
freedom,
AS Nigel states if your going to want to flip in the US you cannot do it from your arm chair in AU.. you MUST find a partner that is beyond reproach with their personal business credentials.. Capacity IE do they even have any money or is it all yours.. Etc etc.
I personally started one company 5 years ago that most know about on this site I bought almost 400 homes in that model and I sold out last year in Oct. to my partner… Land lording just became too much for me.. The last 30 months I have rolled back into what I did very successfully prior to the GFC and that was very short term lending and or fix and flip.. Along with I build new construction now and have been for 3 years as well. All of these 3 endeavors are much more profitable than buy and hold by a factor of double to 5 to 10 times on an annual APR rate that most AU investors like to set as the bar.
Its not impossible to find a good company or person to invest with in the US but it really is rolling the dice… especially if your just thinking you can do it on the internet and Skype.. There was a very prolific poster on this site that since has gone away and he went away with a lot of investors moneys or butchered the JObs so bad that the investors lost money and not only AU invetors but US investors as well.
Then it depends on how much capital you have to work with.. That will dictate what part of the country you work in and the quality of the asset remember one home in Orlando that sells for 125k will sell for 300k in Portland were I live and will sell for 1.5 million in San Francisco… So its a big and vast market.. to use AU as an example take the interior of your country instead of vast open space we have towns ever 30 miles in every direction plus big towns its called the mid west.. And there are all sorts of TK companies and operators looking for capital in those markets.. Its just over load on where and how to invest.. But it comes down to WHO you play with.
Freedom exactly right prices range from modest to 50k depending on the Guru you hit upon.
NO fee lunch… also be aware that there is an extreme amount of fraud on line in the US.. it is not AU… be careful
anyone you deal with in the US you MUST get detailed references the good player will have them the bad ones will never get back to you.
Freedom… one must be very careful in this endeavor… there were a few US guys that trolled this site and have since ripped off hard working AU investors for many thousands of dollars you can e mail me for specifics.
this would only work by aligning your self with a truly reputable US person.
Here is what you would need at a minimum to check them out.
1. recent credit report that you order. cost you 50 bucks US
2. criminal and legal background cost you 75 to 100 bucks US
3. bank references and copys of last 6 months personal bank accounts showing they have actual money and income.
4. 2 years tax returns.
5. References from fellow Aussies that can be verified.. you don’t want to be the guinia pig for some wanna be guy trolling for money on this site.
when you ask for this stuff from most you will hear crickets because there is so much fraud in the US in this type of investing.. the good players will have this… For my AU and Asian clients this is what I provide..
This site kind of went dead so I have not posted much in the last year…
Myself and a fellow Aussie wrote an E book on investing in the US a No BS look at the do’s and don’ts happy to pass that along if you want to ping me personally.
Nigel what class units are you closing. on is this Orlando?
good luck on it
If you decide on a property just get an independent appraisal… do not take Zillow or Truilas values as accurate they are all across the board and are really a JOKE with us investors. And only use an Appraiser you personally contact and YOU personally pay for.. that is the only way you will get true values in the US.. if you don’t want to spend any money and its cheap insurance. then talk to property managers in the market places your interest in and get what the rental rates are from them and what they think the values are.
Cheeves nice to see you again.
And your dead on about your thoughts of new construction vs a vi old properties.. I have seen more than one investment group from California just loose there bottom sides when the market heated up and A properties ere being built and sucking the tenants right out of the lesser buildings.. That’s were distressed MUlti comes form.. landlords that failed… Your on the right track building new that’s were its at . I would definably be careful of going into any older sub class units lest one finds themselves with no tenants because they moved across the street to the new units that rent for the same dollars.. this is a HUGE risk in TX
Colin
what area of Atlanta as you know its a huge metro plex.. I do have a very good broker to refer you to.. ( he was my TWH partner in ATL)
but I want to make sure he works the area your property is located in.Send your details to [email protected]
Dr. Suess this same argument has been played out a million times with California investors.. That get pounded by mid west and east coast companies to invest in their cash flow markets… Same price points you enjoy in OZ and the same scenario IE
Is it better to buy a property that is neutral to negative gear ( we call it negative or Neutral CASH FLOW) Gear to us is on a bicycle or a manual transmission car :)… Any ways CA is the same when you buy there its usually negative GEar or Cash flow but the properties will in the right part of the cycle go up in value substantially in a short period of time.
Although the values also crashed in 07 to 09.. so those buying at the bottom have made some pretty nice capital growth.. And the homes are sold to Owners not landlords.. that is the biggest difference in West coast and Mid west or East coast cash flow towns.. The retail sales to Homeowners is not nearly as strong in those markets as in the West coasts.
One simple thing to keep in mind…. In a town lets pick one that has been popular for AU investors “Memphis TN” TAke a guess at how many Detached single family homes are used as rentals ( no clue well its above 50%) and this does not include apartment blocks..
Now go to any town in the WEst coast be it CA OR WA La. SF PDX..SEA the amount of single family detached homes that are bought by investors for rentals.. Is between 5% and 15% of total housing stock… And the reason its that high is because of the crash….
So what this does is create demand from a true RETAIL owner occ market were in the Mid west there is a HUGE dividing line from where todays home owner is going to buy and where that inventory is… The reality is those that can afford to own and buy a home even in the Mid west will be buying at the median and above not lower end… The lower end is cash flow and will continue to be cash flow rental type markets. So to make the assumption that you can buy a lower end home in any place in the US and it will cash flow AND go up in value 10% a year is just pure speculation and wishful thinking and not truly knowing he market place. The only way a cash flow rental goes up in value is based on rental returns.. NOt on markets moving north.. If the rents go up substantially values will rise but these markets are very stable in rent rates.. and really do not move and have not moved more than 10 to 20% in the last 20 years.
Same with doing commercial deals in the US like Nigel is doing its all about CAP rate and back into value… NO rents and value is low or will be less than what you paid for it. High rents that are collected and or value add and value will rise.
cat
the Mexicans have already fled.. on the West coast were they represent a huge labor pool… When construction tanked they went back home by the 1,000s now that building is boomin again we have an acute labor shortage and the Mexicans are coming back to fill that need.All anyone has to do is google me in the US… I am proud of my pedigree
Best
JLHData point.
I just popped on Realty Moguls website and they are currently raising money for a mobile home park.. experienced operator 7500 plus pads 18th largest in the US… they are raising 500k in 50k blocks and their estimates are a 16 to 18% return.
this crowdfunding is really taking off in the US. I will post about it in a separate post when I have an hour to write it out.
