Speedy   WI,

Agreed on the US value web sites…

Values right now are just really really hard to nail down… Take a market like Atlanta were 90% or better of transactions are foreclosure short sales or combo of both…

In the early 2000's when I was very active in the Portland OR foreclosure market,,,, court house step buying,,, we bought properties in those days at 20 to 40% of market value then you had to Reno… If you net 10% thats was a fair pay day anything above was time to celebrate… Lots of competition on the west coast for courthouse steps buying.

My point is when I bought one of those I would commonally get a call's from appraisers , I was also the Listing agent on these many times" The apprasiser would ask if it was an arms length transaction and when i stated it was court house steps or a pre foreclosure they tossed that property out as a comp….

So fast forward now and its just a mess with so many bank owned and foreclosres what is the true value,,,,, True Value what Us first Gen wholesalers pay for the property or is it what we pay for them RENO them then flip them to a buyer making our 10 to 25% profit margins… Then to complicate matters add in whatever the Aussie pays a service just to look at properties you need to add that in to be fair…

replacement cost and income approach is really the best bet to get some barometer of value.

I just bought one last week in Atlanta suberb….. We will bring it to you investment portfolio right at 60k it will rent right at 1000.00 its probably 40 a foot or so….  On the exact same block with the exact same houses floor plans etc there is new construction being built and being SOLD at 99 to 119k…

WI,

Build cost in Atlanta are far lower than 80 a foot…   we build in oregon including 20k for permits for under 70 a foot and I know things are much cheaper there. First off in the starter housing the materials are the cheapest you can possibly find….

but I do beleive WI your 30 a foot purchases will go up in value if you can just keep tenants not have any major tenanting issues pay to keep the house in decent shape then put 5 to 10k into it to make it retaliable in 5 to 7 years you should make a good profit.
Thats one of the items missing in all the marketing materials I see.. No dollars allocated to make the house retail ready,,, Big difference between retail ready and rent ready…

Astute comments.

I never look at Zillow, I might have been on that sight once in my life…. Zillow is all over the map, It can show properties far too low in value then properteis that are far too high in value given local sales. The only way to value propert is through a BPO and get 2 of those.. And or a for fee appraiser which is what we do , apprasier is your best bet for true value. Now this does not hold true in Atalanta were you have auctions short sales and all manner of sales far below last solds.

The Atlanta market you must have to use replacement value and common sense. I f you snag a 2000k ft nice home for 60k thats 30k a foot to build , one cannot build in the us for less than 60k plus permits. 'so as long as your not in the hood, there is going to be significant upside for these homes over the next 5 years.

Jbelmore,,,,, At the end of the day its going to be who we are what we can do for you our proof of our capacity and experince to execute on your behalf that will carry the day and you will make a comfortable decision to give one of our investmetns a shot.
We are not asking for 100% of someone funds and infact would never take them

If you have a 200k portfolio we would recommend1 of our notes 2 max then go for high growth stocks.

again good questions.

The ARV is supported by for fee apprasial. So thats market value despite Zillow.

Out of the 400 a month 150 is for tax's and insurance and 200 is for vacancy and maintenance… Our positive cash flow is 50 to 150 a month per property… And we make our money on volume. 10 new homes plus a month into the system and our cash flow goes up accordingly, We make a few thousand on the front side…. Again how much can one make on a 33k home.. Which of course is the very cheapest we have in our portfolio…..And there is NO Management Fee's no leasing fee's no maintenance fees no fee's if someone steals something from the house etc etc….

The major issue with all rentals be it you folks from OZ or US investors is the burying your head in the sand about vacancy and maintainence.  House's rarely if ever are fully vacant over a 3 to 5 year period and unless your a slum lord you will spend at least 100 a month keeping it in tip top shape…

Good news is our investors come into the investment for even less than zillow estimate not twice as much.. So thats a good thing right????

end of the day our product stacks up nicely for those that really just want a return,,,

And once they do their due diligence on us,,, and our abiltiy to execute they make the decision to be our partner on these houses.

And for the ultra conservative investors as I say.. if you can get 6% in OZ 100% guaranteed then by all means you should keep your money at home thats what I would do for sure.

Oh and last, What happens if we go belly up,,, Well you now own the home for a wholesale price you wipe out our equity we have done all this work for Naught and you end up at the same place as if you had bought it on your own.

We give you a pre signed deed if we miss 2 payments you record it and we are wiped out. 

I enjoy this banter more for personal entertainment than to convince any Aussie to invest with us.. As a matter of fact not one has invested with us, Other than the group of Doctors that are investing with us…

Our investment is for the investor that once they vette us they are content with the return that is consistant and never varies and the potential upside…

Most mom and pops read about the 30% and will go for that,,,, time will tell… I have yet seen one person who actually bought a property in the US that has owned it for more than 24 months post on any of the Aussie sites about making 30% Net yeilds or for that matter anyting over 15%.

when we roll out of these I am 90% certain with the rebound that will happen,, And yes it will happen I have been investing for 35 years.. that our 33k house you mention will sell for 75 to 90k like it did 6 years ago. And the house I am buying In atlanta and bringing my investor into for 50 to 60k  All IN And totally rentovated to MY standards will sell for 100 to 120k.. thereby giving our investor a net yeild of 12 to 16% with no down side risk.

If the market craters and values do not go up we still have equity and worse case scenerio I will refi these out and keep them as long term rentals…. Once some on checks into our financial strenght they will see that we have that capacity.

Happy Aussie day I hear.

Why is our Note price less than ARV.. Because we are not taking our profit out up front and leaving equity in the deal for our investor and us.

We see this is Atlanta all the time,,,, My investments for the same props are 55 to 60k  and on many Aussie websites same vintage home  rental income and properties are listed at 80 to 100k…

So really how much can one make when you sell a note for 33k on a house we put 15k plus into just into Reno….

These lower end rentals are cash flow cows for our US investors. And I can sell anyone of them for 10 to 20k more than we are in them at any time just based on cap rate.  Try that when you buy a house from an AUssie company hawking US properties.

Or paying 50k for a house in Rochester or Detroit or Fort Wayne or Toledo or any other garden spot. 

 I always thought that of Doctors that are pilots… You know the one's that contantly land wheels up And or get their ticket have 80 hours and buy a 200 knot complex machine because of the doctor complex,, its huge here in the states.

I really like were we are going with this.

This accountant in Perth is a fee based accountant this doctor group is paying him by the hour to research and find the safest US investments, and the major concern of course of these investors is what happens when a property goes vacant and or any other malady…And the last thing this accountant wants to do is recommend an investment that does not pan out as advertised, and as we all know SFR's in the US in the turn key model are anything but consistant returns. One year you can get 12 to 14.. next year you have some issues a few vacancies and the next thing you know you made 3% or negative if you have a real bad experince like what happens to those that buy in the war zones or the super cheap properties of the N. east.

these investors want the account to do all the due diligence then he makes recommendations and controls the settlement etc.
This accountant does not take a sales load on either side of the transaction, and that is really refreshing it allows us to rebate back to the investor the dollars we have ear marked for sales load ( and of course in our model thats not huge by any means) but it will raise the 9% net yeild up to close to 10%..

thank you for the kind words,, we really beleive in our product and we are going to open in Carolina so we can keep up with Demand… Alex out there has a really button down crew.. and can execute on the rehab and management side. So we are excited to add that market to our program.

And the success we are having here in the states is really the same, we have accountants and IRA consultants referring us business.  For the US IRA our model is really a no brainer,, the US investor has issues if they have cash calls with investments in their IRA… So the fact that they would never have a cash call with TWH makes our investment far more suitable for the busy professional that wants to look at alternate returns vis a vi the stock market. I have a meeting next week with the accounting firm that represent the NW association of Dentist. this is a huge fund… Those dentist once they pay off their practice make some really great money here in the states not sure how it goes in OZ… 400 to 600k a year is not uncommon for a flurishing practice.
Just takes them years to pay off student loans and the Million bucks it cost to set up their offices.  Same concept this accountant is tasked with finding alternative investments that will create 7 to 9% net yeilds which are just huge in the states and offer low risk and no management issues.

There is a huge movement going on right now coming out of the stock market and into real estate this will help firm prices as well as all the off shore investors buying.

Now if the rental market continues to hold all will be well… Some markets are tough with vacancy and decending rental values. the deserts of the west have and do experince that…

One of my best buddies has a property management company in PhX.. over 1000 doors. and its a struggle to keep occupancy. and rents have gone down in the last 5 years 20 to 40%… Of course did not help with the AZ government getting all over the mexicans and those people fleeing back to mexico. First time in history more left than came into our country… Lucky you guys are surrounded by water little tougher to sneak in.

We are spoiled here in Portland vacancy rates under 2% collections by and large never an issue. we do deal with trashed units though you never get away from that. Hoever it will run you 150 to 200k for a decent rental that will rent for 900 to 1100… So no where near the cash flow here. I have pretty much sold all my Oregon rentals and reloaded down in our markets in the South east… Even if they never went up a dime cash flow is just twice as good as in Oregon…. but you always have that investor that will only buy a rental they can drive to in 30 mintues or less, and I fully understand that.

best

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