Only thing that would destablize or send riots and social anarchy through the US is to cut off aid programs.

No EBT cards.

No section 8

elimate all the other welfare programs.

Close the hospitals if your not a US citizen tough luck,,, Just like when I went to a hospital in Canada… they woud see me but I had to let them charge 5k on my credit card. Not many farm working Mexicans are going to have that kind of warewhithal,, but you walk into any emergency room on the west coast and your insurance is all paid up… you take  a number and get behind the illegals that cant and will never pay. they get the exact same treatment as I do an american citizen paying who knows in taxs and full bore medical insurance… I think we need a special line

Same happens in the African american community by and large,,, If you run credit on your tenants 95% if they are not on company insurance have none and use the emergancy room as day to day doctor… And will have all sorts of charge offs on their credit.

So yes Frekle,,,,, take the EBT card…. Sec 8… rent…… refuse service at hospital like canada… and you would see some major anarchy,

Just think back to those news feeds during the Karina hurricane,,, there was plenty of warning yet the people in N. Oreleans did not leave as they should have,,,, then it was total lawlessness… over 4,000 murders during that week.. And big signs ( hey fema were are you)… these people expect the government to solve all their problems from housing schooling to feeding them and then medicating them…..

Normally I would not be for socialized medicine but in our case I just do not think we have choice we need to get these people on  something B/C it would save us huge amounts of money,,,,, they can have one form like a canadian form ( which is very poor compared to US standards) but its basic and you by and large won't die… but keep our better plans for the working class that wants and can afford insurance… I pay 900 a month for 2….. full choice doctor,,, no waiting for any procedures… I had a bad chest exray that my doc wanted checked out on a ct scan… not an emergency but the type of thing that gets you nervous… by the end of the next day I was in and out of the hospital with the procedure done and will have results tomorrow.

That would never happen in Canada it could take months to get the same service if they deem it a non emergency… Having had my home up in BC for years I have a lot of close Canadian friends so I hear the real stories.  but there is no finer place on earth in july and august sitting on those mountain lakes casting to rising Kamloops trout… Just love it….. I know NZ has some great fising but I can be there in 2 hours in my personal plane so it makes it fun exciting and just a great spot on the earth.

Just do not want to get sick there.

JLH

JLH

mahvi:

I fly a Cirrus Sr 22… a 2004 I bought brand new from the factory there in Deluth…. My next plane if the RE gods are good to me will  be will be a TBM 850…. And my health allows me to keep current and on top of it.

If I can give you any advice thats worth reading is this:

many have come before you with claims of rehabs that were done that will never need maintenance.

perfect tenants that always pay and treat your homes like their own.

And Inner city US is no problem we are here to help you ( from any number of Turn Key guys)

These statements on their face are just not reality, So when you leed with those you lose some credibility,,,

You can still do business with these folks in your area but they understand there will be maintenance and vacancy.

And if your working above 8 mile and out in the out lying areas they know these are not South of 8 mile and in the war zones or we hope they do and we would hope as a member of this forum you would explain the difference to them in an honest open manner…..

However when you work Metro Detroit or MI  or Rochester new York  your going to have to overcome all that bad press….but hey washington DC has hoods… The murder capital of the US is new Oreleans,,, and people love to go there… Nevada is the second most dangerous state in the US as it relates to violante crime per captia  ( although i am sure all the gambling and drinking heavily sways this)…And I am in the processing of buying myself a winter home there right now. I like it there.

So maybe if you come on the site and educate the forum attendees with what they should look for and what they should be very careful with in MI… and educate them that there can be good places to invest… that may be better for you in the long run.

Not sure if your aware of my back ground however from 2002 to 2008 I was one of the 5 largest hard money lenders in the Middle US in the turn Key space I  loaned to over 40 turn key companies clients… Averaged 40 to 50 a month for years. And ran my book of business far north of 35 million on my way to 50 and up right up until the GFC…. When that happened I got stuck with just under 500 loans on the books and only a few over 300 got retired.. I ended up foreclosing and owning just under 200 homes. From Chicago, Detroit, Indy, Memphis, St. Luis, KC,, Jackson, Bham, Atlanta, Columbus, Kokomo, Marion, Cincinnatti, and even my home base here in Portland Oregon and Washington,,, I  ended up with 95% SFR's,, but I had a few multi's a Mobile Park and a bagel dog factory.  Now the Bagel Dog factory seemed like a good loan at the time as they all did… I successfully closed well over 2500 loans over that period of time… And know most of the movers and shakers of those days in teh turn key bizz either personally or by reputation….. And when I say they come and go, thats a fact. 90% of the guys I did bizz with went out of bizz from 08 to 09,,, leaving me in a huge effort to reclaim my properties through deeds in Lui, foreclosures cash for keys etc.

The silver lining is that I got to go to the southeast bring my Sr 22 and fly all over the place corralling all these properties. And being a west coast flyer it was nice flying were there were few rocks that could jump up and smack you…. MEA's for low level IFR at 2k feet that was nice.

So yes I am very opinionated about what can happen because I have had every malady know to turn key investing happen to me on these properteis. not only that the market crashed so I lost a fortune in equity….

But I am not blind enough to see buying back the same assets I was loaning on at 60 to 80k wholesale that rented for 600 to 800… and to be able to buy them for 10 to 30 how that made a huge amount of sense…..

But what I learned was just how vulnerable I was to 3rd party vendor management, and a less than honest rehabber,, take that and add the sales load that the Ozzie companies routinely charge and you get an overpriced under rehabbed property with a less than honest or pressional PM… And I can assure you these investors dreams of 15% net yeilds plus are just fantasy…

This led me to create my company… I endevoured to plug all the holes that killed me,,, And would give the investor the absolute greatest protection from a  day one….And although this Model is vaugely understood by this audiance its not something most of these readers will invest in… As the concepts are too foriegn and there is still that thought that hey I can come to the US and pick the right companies and it will be fine… And that can happened… Its just the long term of how these properties perform that the OZ investor really does not have any data points to lead them to beleivable returns over time… Your taking a property that has been vacant and just turned over no way you can predict your incomes to the decimal these readers like to talk about.

Now our program to the US investor is wildly successful. And I cannot keep enough inventory infront of me.. I have put a national team of partners together in the markets I personally like and with the teams that are expereinced and when the GFC hit their character came to the top they did not run and hide… So for that help through the mess, I have created a company and given them equal ownership in everything we do…. Its an alignment of interests…. When everyone is an owner in the key areas properties go much smoother and our investor never has a bad day,,,, Do they get 15% net yeild NO when we sell for a modest profit they will get 15% or better I just do not crystal ball the returns ,,,, and we share equity… For all that protection this is how we make our money long term,,, Not big front end fees… We take some front end but not whats standard in the industry when you have 3 levels of marketing agents in the deals… again I know this first hand as I closed thousands of these transactions. over the years…. I am sure you have heard of Armondo Montolongo of late night TV fame… I have even funded deals for his students as well as Marshall Reddick, and any other numbers of these guys….

So to finish thats where I am coming from, trying to give the Oz investor the other side of the coin if they want to risk super high returns in rough and tumble neighborhoods ( which we all know what we are talking about and would never live anywhere near them)….Then God Bless them and good luck and good night.. I think Walter Chronkite used to end with that line.

http://www.hardwaresupercenter.com  go to clearance page,,, we have smokin deals on pretty much anything you buy to rehab a house all shipped to your office or job site within 24 to 48 hours, and no sales tax….. buy in volume and free shipping. Rehabbing 20 plus properties a month for my company I found these guys and was one of the top buyers… Then I liked it so much I bought the company a few months ago… As I have so many contacts in this space that marketing in the states will be redicuously easy for me,… And I know exactly what the rehabber wants and needs. My hope as well is for the Home owner especially off shore they can order there own parts pay for them at cost and have them shipped to their managers office no more fighting over the cost of the items.. and no more having PM mark up everything,,, I got to think this should take off as well… emma 171 really likes the concept and will start pointing her clients to me… Saves her a trip to home depot….

My memphis turn key guys drive down to our warehouse in Jackson and load up box trucks full of cieling fan/s all the door hardware, plumbiling sets lights etc etc. they will save at least 50% or more per item compared to Home Depot or Lowes..
We have Aircondioner units tub surrounds toilets…. really at the end of the day we will carry 25,000.00 items that can all be dropped shipped…. Our close outs though are where the smokin deals are those average 50 to 90% less than one will pay for them at the big box store or hardware store,  check it out

http://www.truewholesalehouses.com is my version of turnkey and you will see that I am the only one in the US that sets up the transactions as we do and the only one that legally can pay specificed monthly payments…. Lots of guys trying to guarantee rent but thats getting shut down by the US government for security violations.

Hopefully the modartor will let these go as examples to you personally and note spruieking.

Curious why would you want to leave OZ and live in the US??? you have a great country great attractions.. Many US folks would want to live your life style,, whats the attraction for an Aussie to come here,,,, I get it with the Mexicans,,, Chinese,, Indians etc.

There is a program the EB5, that if you invest  500 to 1 million in a US company creating a certain amount of jobs that you automatically get a green card… This is how many Nouve Riche Chinese and Indians get in the US.

but buying a few rentals how are you going to do that.

but back to your thoughts of self management.

If all you own is 3 houses in the area you live there is absolutly no reason you could not manage them, unless you are too busy or just do not like confrontation when things do not go right.

On my personal High end rentals IE homes that I have bought for 200k to 300k.. I self manage all of those and they are out of state,,

What I do is have the leasing company procure tenant for 50% of the first months rent… thats 700 to 1000 in my case,, Then I take it from there,,, I engage a handyman service and off we go… Now caveot is these are all homes I bought brand new that are 100% brick with scored concrete floors… And carpet only in bedrooms. And in the very best school districts with tenants that are more corporate in Nature  IE transfering in to work in some corp for 18 to 24 months and want higher end properties… I have zero collection issues and maintenance is nothing more than I spend on my own house.

If you buy low end rentals it will be much more difficult and I would not recommend self managing if you did not live in the town you own them… And or if you buy in really rough hood type areas.. IE buying super cheap homes in big cities, collecting those rents can be dangerous to your health.

All the property managers that I know that have that product do not leave the office with our a Glock 9mm in their shoulder holster or leg holster and thats a fact unfortunatly.

JLH

Alex,

I think this is a really good point about you exiting the Management business. And demonstrates to the OZ investor that property management unlike in OZ is a very tough business to make sense financially for the PM company,,, Ton’s of work very thankless in a lot of instances putting up with hard to manage tenants and owners that were sold one story and then reality hits.

Take WI…

If WI has to fly all the way from OZ a couple times a year just to try to keep management in check, how do you not justify adding those expenses into your running costs, and thereby getting to a true net number….And I have owned properties in Douglasville and flown my own aircraft into the local airport there… this is not a garden spot anyone would choose to go visit.. its work its protecting your investment.

I have yet to see one OZ investor or investment company include all the ancillary costs that are associated with a foreign purchase plus their personal time and cost to come look and pick something out.

Also WI bought newly renovated houses from what I remember in the last year and now WI is talking about maintenance costs, so what WI is experiencing is reality,,, and goes to why I get a little miffed at say the guy from Detroit who just posted last week talking about fresh Reno’s and sec 8 with no vacancy etc etc… No such thing exist.

And if you and Kevin and your whole staff decide there’s no money in PM and your pretty much the mac daddy there in Charlotte,,,please need to read the tea leaves…

rental returns in the US directly relate to risk period. 10% or higher, risks are that much higher 15 or more and risks can get very high, 20% rates of return in the lowest end US cities and risk is astronomical over the life of an investment… One the main factors is who every you started with will not be in business 2 to 3 years down the line… And its during that transition time that investors get clobbered,,, I know that one first hand.

Our economy is changing for the better no matter what the stats say…

So what is a guy like Alex going to do beat his head against the wall to make a 70 dollar a month management fee, or use half the energy to rehab a higher end retail product or build ground up and make 20 to 50k per deal, he does not own any of the houses he manages and neither does any other PM… A PM can just exit when they want nothing says they have to stay in business. And owner cannot exit..

e mail me at [email protected]

Washington is a big state where abouts do you plan to relocated?  My wife is a Washington Broker.

tax deed investing is a tried and true model,, and courses have been bandied about for years.

takes effort some payoff some never do and you lose your money,,, If its a great house lets say the guys in the know are going to bid that lien down to a very low rate of return.

If you do get into a position to own the houses its just not as simple as you take ownership you have to "Quiet the Title" and that is a court proceeding…

some big players in the US do this for a business for certain.. And do well at it… Like anything over here in the US the best deals are worked for not just show up buy a tax deed and make a ton of money.

Tax sales were you own the property outright can be pretty exciting,,,, Thats what my dad did in California for a living he bought literally thousands of properties from late 50S till he retired in middle 80's.. And we got some killer deals no doubt.

However now with tax sales being on the internet and everyone bidding on them on line,,,, the deals are not nearly as prevelant because the properties get bid up real close to retail and or over retail.

I liked it though as a young agent learning the ropes.. It was fun to buy 150 properties in one day…. 3 to 4 months of prep went into that one day….

happy hunting

JLH

paulromeo.

oil fracking…mining boomtown lots of activity there…… Same thing in Fort mcmurray Alberta for the tar sands.

once the minning is done so is the town…. Not a lot of appeal to living in that part of the world,, other than ranching.

good luck with it….

I seem to have read somewhere, about this fracking being somewhat contriversial, as in it can harm ground water supplies.

I also read some great articles about minning in OZ and how the minners fly hours out to their jobs each day…

I want to own the airline that fly's those miners daily probably one of he only ones in the world that can make a profit consistantly.

JLH

OMG,,,,

Gavin,,, this is not what the US is about….

It sounds like One OZ taking advantage of another OZ citizen…

there are so many red flags in your statements about how the process was to work…

bottom line is in my mind for everyone like yourself that steps forward there are many many more with the same experinces.

Lord knows there are literally Hundreds of  thousands of US investors that got taken for the same ride,,,,save the up front 13k fee you paid.  ?This is where all these foreclosures are coming from… Not from some poor subprime borrower,,, but from dead and dying cities with High intensity rental situations that can only have a positve outcome for companies that live there and work there and buy at cost …. not investors paying 2 to 3 times what a local would pay for the same property.

Also rehab on any home for rental only takes 2 to 4 weeks MAX… 6 months is red flag.. We build new homes from ground up in 4 months.

For anyone who has read my posts…. These lower end markets are just not appropriate for out of area investors being out of state or out of country ( Sorry Kyler)…. There is a business to be had in the lower end rentals but only for those that work it for a business….. problem is greed on the Oz and US investor front.. They want to beleive in these huge returns but have no idea about the risks……. Take in the money Oz investors pay to middlemen and the rental returns are never going to be what they think…. Keep your money in your local banks way better off…. in the long run…  Or invest with better properties make a 6 to 9 % return and call that realisitic.. by the time the property manager gets done with you it will be rare to get much above.

Frekle,

I know Aussie's are basking in their high priced real estate.. However being born and raised in Cupertino, lived in Palo Alto 10 years then the Napa "valley for 10…. High priced Real Estate became the norm in these areas 27 years ago..  1985 to be exact.

What was the price of a home in Brisbane or Sydney then…. I can tell you in 1987,, I personally paid 750k for a tear down home in Palo Alto on a 7k sq ft lot…. Now that lot is worth probably double, and the home I built and sold in 1990 for 1.2 is probably close to 3 mil… I designed it and built it 2700 sq ft nothing super special at all…

yes you talk about Facebook.. Google etc….. Just remember Apple which is headquartered in Cupertino,,, Just look at your I phone and see the red dot on the google map thats hwy 280 and hwy 9… thats their headquarters.. I was raised right there.

Steve Jobs was my neighbor in Palo Alto… did I get into software or computers no,,, and thats why I am still working.

You think just because Facebook will come and go… Fact is there is no more room for houses on the pennensulia…And its ground zero for high tech if its not facebook… It is where all the new internet inventions happen… Will prices go to 5 mil for average house probably not anytime soon… but you have multiple offer bid up situations happening again.

house 3bd 2 ba  1500 sq ft 50 years old nothing special listed at 1.2 and 30 offers come in on one day and it sells for 1.350.000

Is your market in Oz that strong and expensive???? I know you talk alot about 300 to 500k houses but what about 1mil plus??

do you have 100,000 plus homes over 1 million in 20 square miles??? just curious.

So frekle I just do not think you can really grasp anymore than what you read on Caseshiller ( which unfortunalty for the US re professional) its a joke,,, data is outdated and not germain to the real worlds other than bean counters.

And one last thing Freckle

The property and area that Lawys has invested is so far and above what is bandied about on this site its just not apples to oranges he owns mercedes and everyone else is dealing with Ugo's…

South bay and the good parts of LA are as good as anything in OZ hands down.

Only thing better is SF pennisula down to Los Gatos,,, Cupertino, Palo Alto,, Meno Park,,, Woodside,,,Atherton,,,

For LA it would be PV,,, Beverly hills and 100 other great addresses there,,, nothing that 95% of the people on this site would even know of or consider for an investment… Lawys is light years ahead of the group in quality of properties.. That I can assure you.

JLH