Forum Replies Created
Richard.. banks here on the West coast will do them as well. However they are for Primary residence's and Second homes.. They will not do Investment properties unless your talking about higher end commerical.. I think what most of the investors on this site have are sub 100k rentals.. those are pretty hard to get done… Many banks will not lend to a landlord be it domestic or foriegn if they live more than 100 miles from the rental, this is the case with most of your community banks.. They only lend in the footprint and only to those that live in the banks footprint…
Best.
Kiyosaki' basically just lends his name to he Rich Dad poor dad.. Just like Trump has his Trump acadamy. And Greg Norman has Norman wines Golf Clubs and clothes..My business partner in Napa CA bottled and labeled Arnold Palmer wines Arnold all Arnold did was lend a name and make 5 bucks a case for it. These orginizations are run by very slick and highly cashed up marketing companies. Its just a business of selling information and mentoring.. I have been to many of these… As a spectator because I was financing the deals for the Vendors presenting. I have talked with many of the folks that paid the money to go on the bus tours etc… And for the most part the information that is given has some value, is it worth 40k for one weekend and two bus trips not sure about that.. But when I listen to some of the people I can see where they might have gotten value. Because they were so green that if they had tried to do a fix and flip with no knowledge they could have easily made 20 to 50k worth of mistakes.. IE bought crap property.. spent far to much on REno etc etc. and maybe they learned enough at the seminar not to make those boo boo's..
Freckle,,, Never been there how about cost of living… Is it Like Norway?
Homevestors is a Franchise… Like buying a "WE BUY UGLY HOUSES " Franchices
Of course I know
the inner workings of Rich dad poor dad I have meet their exec. team that works out of Florida.. they are all about $. The presenters that present the product will pay 20 to 30k for an hour on the podium,, AND they have to buy the lunch another 15k or so…. So its a 40k cost for the promotor so for sure Rich dad is hammering on you to buy from them other wise they will not be happy and won't repeat.. Repeat bizz is important to rich dad.. its just another form of the Guru seminar circuit here in the US…
I have banked some of the Vendors that use them for their marketing.
Streamline,
If you got loan docs to sign and Notorzie would usually mean your loan is fully approved and once loan docs are signed and notarized its a matter of days before the loan closes and records and funds… ( settles to you guys)… The application is usually done by the bank once you give them basic info so they can have the word processor do it and its ledgable. YOu will usually fill out one on the puter or by hand then they massage it and have you sign a final one at closing ( settlement).
If your still having to wait till mid feb.. then I suspect your loan is still not fully approved IE stipulations ( we call them Stips) still have to be cleared. And again I would not think you would have been sent anything that require notarization a this point. But maybe being off shore it is different docs and underwriting etc than if you were here and US citizen.
Good luck with this one everyone is waiting on you to see if you can truly pull this one off with a True bank in the US>
JLH
tim has moved into mentor guru mode Not sure he is hawking properties like he used to
call them… Like I said my conversations with the head underswriter and with someone who actually closed with them was that they were looking for operators not individuals… Would be interesting if you got a different take on it
from what I understood they are looking for guys like you that make a living out of running these kind of assets.. the big question will be will they loan on C and D or will have to be nicer newer type product.. IE 1990 newer 3 and 2 etc etc. let us know how you make out.
As you know I have no interest in building another rental portfolio I am going to stay on the lending side and short term mezz financing side.. And then just build new construction which we can throttle up when its good like it is now and throttle back if it slows down..
JLH
Additionaly…
Being a foreigner if you were being sued or threatened just sell your property take your cash go home and you will never hear from them again… It takes months and years to go through the lawsuit process plenty of time to sell off and take your cash home where its safe…Someone gets a judgement against you lodges it in the country were the property was big deal nothing happens with it past that its worthless paper.. Plus tenants by and large have no money and attorney is not going to take it on the come…
So for the average MUM and POP here that owns a house in he US not to worry.
I don't know who People are… However suits between tenants and landlords is not very common.. Unless a landlord is a HUGE SLUMLORD and deserves to be sued.
I have owned rentals for 35 years and hundreds of them.. I have only been sued in small claims one time for the return of a deposit and I won that one.
However to answer your question your right no attorney would take a case involving a landlord tenant dispute when they figured out the owner of the LLC was in AU.. Unless that LLC had a lot of assets.. So even in a suit the most they are going to get is whatever equity you would have in that LLC…
this is why lenders do not by and large lend to foreigners no way to collect if they walk away no lender is going to go to the trouble and expense of chasing someone down out of country.. Your Teflon when you are a foriegner unless your talking million dollar deals and you have huge assets that are provable. then their are attorrneys that would work with AU attornies to try to collect.. I have a friend at my country club that has a law practice that does just that.. but hey only go after big name brand multi national corps.. anyone else is not worth the effort..
All this BS about how people sue in the US is just BS to the extreme. it scares people into thinking they need to spend thousands on asset protection skemes… etc etc.
Freckle,
what blackstone is doing is a departure from buying SFR's by the thousands then packaging up the lease payments to sell as securities.
this is a different traunch for them this is true third party lending on their part.. they are lending funds that they raise through funds on wall st.. then create mortage backed securites and then they make the up fornt points and spreads plus mangement fee's on the fund.
engelo,,,
NO blackstone is looking for people like you that live and breath the business own the assets and live in the community.. Also ones that are well funded and have assets credit etc etc.
What Peak and I do is simply private money financing based on equity only and we can't do 2 million dollar deals we just lend to Mom and pops one at a time.. thats our niche. And or us and I can't speak for Peak we basically only fund deals that come from trusted marketing and rehab suppliers.. AS well as we cherry pick red line and many other aspects of being choosy on what we lend on.. what we lend on Is 100% subject to if " I PERSONALLY LIKE IT" not based on anything else… Peak use's algorythem tool to establish what they will lend on.. There are deals they will do that I would not touch.. then I do deals they don't like… at the end of the day I would say between Peak and My company we are doing the majority of 3rd party non recourse financing in the south and south east and FLA were I have a pretty big presense. And still at the end of the day we are just little guys My last conversation with JP last summer was that he was funding 10 deals or so a month and he is probably doing more than that these days.. I do 10 to 20 which is a nice deal flow for us. AND JUST FOR THE RECORD WE LOVE AUSSIE BORROWERS Once we get properly set up they are just great to work with. We do everything through ACH type bank transactions and just like we have talked about here the AUSSIES love auto mated banking.
Troy,,
One is blackstone, I have had in depth conversations with them… They are looking for experinced operators who have mid (25) large (500) home portfolios. I would be highly surprised if they would loan money to owners that live half a world away from the asset and solely rely on third party PM's ….. For US companies that can raise up to the bar they set it will be a nice niche for Blackstone. I would think the play for any aussie and I see it coming quickly as the Aussie marketing guys are pretty quick to jump on whats new..
The aussies will want to parnter with a reputable US operater Kind of like what Nigel is doing with his commerical deals. And set up partnerships to buy SFR's Blackstone requires the homes already be bought rehabbed and tenanted before they will loan so what they are doing is refinancing the deals.. So the OZ who is all cashed up can bring in the up front cash… The US operator can aquire rehab rent. then Blackstone refi's the US company and does its due diligence on the US operator who just happens to have a bunch of OZ investors as limited partners. Something like that is what will happen would be my guess.
I talked with one outfit in FLA who closed with blackstone on 40 some properties bout 2.5 mil they got it done but said it was very very difficult to get through all the hoops and due diligence Blackstone did.. And I know these guys they are top shelf… So if you think some spruiker with an idea to corner the market on low end slum lord Detroit or KC or any of the other really cheap areas is going to walk in and borrow funds just not going to happen…. But that all said those that align themselve with the real deal.. Guys in the US that can stand up to full FBI background Checks provide TAX returns showing they acutally make money, Have great credit.. ANd credentials ( like any good fund manager) the you will stand a great chance of locking up some financing that heretofore has not been avaliable.
Now here is the other question why do you think blackstone is going into the debt side of this when they just bought 200k homes in the US… Well because being the bank in the long run makes more money than owning the asset.. And a heck of a lot easier.. these guys are sharp and know which side of the RE equation they should be on… thats my opinion being the bank in the US rental market is sOooo much less stress than being the land lord and handling all the drama that comes with tenants.
All spelling errors are intentional this website is wonky on my puter an spell check does not work
JLH
hllbkk
I am no longer and owner of TWH…I created the TWH model, My partner's bought me out 6 months ago. I am currently consulting in what I call a TWH Light program of which we have far more demand from US investors that we could possibly provide.. If your interested in learning more you can send me a PM.
You can see many previous posts of mine detailing the TWH model.. However in all candor it was not very well received at the time by AU investors. However US investors loved it and we did quite well and especially well for our investors as we sold our portfolios in specific markets. For the average investor I suspect we did much better for them than they could have possibly done on their own. One basic reason is 100% of their funds went to buy the investment.. No up front fee's No travel no closing cost etc. When you add all those things up its another 7 to 15k for the AU investor before they have even bought anything.. In my investments that I currently do that would buy almost half of the investment and you would be getting returns on them day one and each and every month after that with no surprises.. We could not compete with those that touted returns that, on paper were unrealistic to those in the know. Ours was fixed and REAL.
What I am working on now post TWH is a debt model, which is again very successful with the US investors especially Retirement accounts, however we have gotten some inquiries and I have made a few introductions to overseas companies and are looking at creating relationships on a Peer to Peer basis.. IE establishing relationships with very reputable off shore companies that wish to present an alternate investment to their clients that in my personal experience is more predictable than the ups and downs of land lording whilst still enjoying the high returns that the US markets create. So we will see if that gets any traction.. I do enjoy helping the OFF shore investor and trying my best to help them steer clear of the areas they should not invest ( at least in my Humble opinion) . But hey "I don't know it all" However I have pretty good grasp on what is safe and secure an what is super risky and not appropriate for out of area investors whether they are half way around the world or just 2 states away in he US> Same applies to US investors.
I think the issue here is the investor may have invested and gotten nothing but a story in return
I am a wine guy So there,, and I absolutly love Aussie Reds… and some NZ whites.
Is 5% annual appreciation in OZ year after year a reality??? Or does the market move in more of a peak and valley. 10% annual appreciation year after year in the US is overly aggressive in my mind.. our markets depending on area either are flat line ( most of the mid west for example) or see wild swings like up 25% one year flat the next. Our PDX market ( portland Or) had a nice 13% gain in 2013.. that followed devaluation from 08 to the bottom which was end to middle of 2012. Most US investors are looking at cash flow and appreciation is a bonus. IN 04 it was negative gear and appreciation. profit on rental houses also is tougher for individuals because of the flood of investors buying.. MOst that make profit on rentals right now in the US are the marketing companies and turn key guys that have highly advanced and well funded sales arms….IE they create their own market.
I see the OZ market very much like where I grew up in San Francisco Bay area… I bought a house in Palo Alto ( think STanford University) in 1985 for 170k 900 sq ft. on 6k sq ft lot 3bd one bath built post WW11 Sold it in 92 for 450.. that house just sold last year for 1.565.000 to be fair they did update kitchen and added 400 sq ft. So housing now in Palo Alto sells right at $1000.00 a foot.. and that house even today would rent at maybe 1k per week.
So the point of the above is it all depends when you buy in the RE cycle. Now that Google, Facebook etc moved into Palo Alto that house could be 2 million in a year or two…
then you go to Alanta and 1.5 mil buys you a mansion like those you see in Hollywood Movies… So really depends on when where etc here in the US.
refi madness s about over so mortgage originations will be down substatially but origination for new buys are UP
My business partner in
Hawaii has a brother in law that is a major builder in Tokyo his company is publicly traded on the front page of the stock exchange… He has killed it the last few years. Now he is looking at US assets to diversify. Target 5to 7 caps on the West coast in premier locations….. LA SF PDX SEA.. Vancouver BC
whow… impressed most 20 year olds in the US buying a home is not even on their radar. they are worried about pay for student loans… Do you AUSSIES have to pay for College and or do you get it financed… I bought my first home at 19 in Milpitas CA… But I was raised in a Real Estate family and the house was 60k back in the day.. So 6k down and 500 a month.. But made a pile on it in 2 short years and never looked back.
