Forum Replies Created
there are many neighborhoods in chicago that are just as bad as detroit,, but it will never be a wasteland like Detroit
SAH please contact me would like to catch up with you
It will be interesting one hedge fund or REIT that I know of is retrenching some… their stock opened at 22 and is now trading at 16… So yes Freckle is right the large companies are raising money through Wall St. who are selling to Mom and Pop… The Huge difference and this is why its hard to crystal ball this… Is that so many of these properties are sold for cash.. The Hedge funds Have CASH there is no leverage or fixed bank debt on any of these properties… So the only obligation to keep the property is pay property tax.s they could board the houses up if they wanted to and still not loose them…. the US problem that got us in the first mess was Sub prime loans and loans that banks new exceeded value… heck you could get a loan back in the day for 125% LTV and you could get a loan with crappy credit… So put those two together crappy credit and no need for cash to own a home and there you go… People that should have stayed as renters decided to grab the american dream of home ownership, as we saw many of these folks just were not prepared to own homes… For a myriad of reasons,, some as simple as they had never owned a home and had no clue on how to maintain one.. They had always rented and if something broke just call the landlord. Look at the houses that are still being bought by wholesalers… Rare is the house that one just walks in and vacums the carpet and cleans the windows and sells the home… be it owner or renter what we typically see in reno is > New flooring, new cabinets , new appliances, new bathrooms, landscaping paint in and out. were as I am sure there are many readers of this forum that have lived in their homes and they may change these items once every two decades… Everyone has a certain degree of neatness that they live by, however if you really think about it ,,, just look at the pre reno and after reno shots of any turn key operator.. they are all the same… Not sure its like this is OZ but many many americans are just tough on houses period.
New hot water heaters and Hvac now thats major reno
… Detroit just has so much fraud its hard to tell the good from the bad. I for one lost 100k on 2 ;houses, Not through metro property group but just through plane ole vandilism and what is truly one of the toughest and worst rental markets in the world in my humble opinon. And Hey I am an expert in single family rentals… over 300 homes I own personally and thousand financed. Detroit is just a waste land in most of the ares the spruiekers work.. Again I do not know metro housing but I have my own experinces.congrats. 51 plex means ???? is it a 51 unit apartment… or 51 duplexes or fourplexes… What area of the US did you make this purchase. I certainly hope it is a successful venture for you and your partners.
Freckle, I think there could be another correction but no way worse than the last one. Houses dropped 80% in some markets and too many houses have been paid for in cash… Even if the market dropped 100% those that payed cash would just hold they would not give the houses away, at least thats my experince. I think the bigger issue is those that are in Aligator houses IE ones that eat you alive every month some of those folks could just take a walkabout.
USA investor, Capital growth in certain markets is very real right now….I am sure there are many happy Atlanta investors that bought a few years back as well as Vegas Pheniox Souther Ca … Even here in Oregon our values across the board rose 12 to 15% year on year… Now as long as those investors had good properties and they at least broke even on cash flow there is some money to be made… We sold our TWH portfolio last month in Atlanta and returned our investors 23 to 28%… And that return was a split of profit with us so we netted 46 to 58% for the entire portfolio and then split that with our investors.. So pretty good deal for them being totally hands off and not having any down side risk on the tenant side… We are looking to move the rest of our 250 house's this year as well and go ahead and cash out and wait for the next opportunity..
Benson, if your talking Detroit and Wayne county, then I think your talking about buying low and selling for even lower whilst getting your properties vandalised etc…. Not that one could not make a go of it in Detroit.. the locals can and do but you cannot do it from your arm chair in AU. In my humble opinion. I tried to post a hyperlink for a few good Detroit articles but for some reason does not work on this site… A lot of good articles floating about right now that will give you the history of Detroit and other Rust best cities and why Detroit has not and probably will never return.. Cannot save never but 99% sure it won't in any of our life times… There simply is too many existiing homes. The population of Detoit is 83% black and the racial tensions are still alive and well. Surrounding suburbs were the white flight went may stand a chance.. However I for one still think the Sun belt and West Coast is a better play than anything in the Rust Belt.
Come devils night there will be about 10,000 less vacant buildings…. For those who do not know.. Devils night is the night after Halloween ( and maybe you do not know what Halloween is) any way… the Natives in Detroit set fire to thousands of vacant homes on Devils night… I did a lot of bizz in Detroit back in the day… And there are great brick homes that were built by European craftsmen however those folks are long gone. As with all things though if you get out of Wayne county there are some pretty nice spots.. there are still many weathly areas there,, However this is were Nigel and I agree wholeheartily, tread very cautiously when looking at a property that is cheaper than stamp duty in AU. Or the price of a car.. Your just throwing your money down the drain .. the Tenant pool in Detroit is very tough Not nearly as managable as the same socio demographics as the South east,,, just saying
my policy covers loss of rent in this situation were my property got wiped out by the tenant.. however I have not ever looked for just vacancy insurance or lease break insurance.
I predict this insurance company will not have that product for long and or will have all sorts of exclusions. This is strickly rent does not include vandilism by tenant correct? I just had my worse tenant vadilism.. over 50k in damage.. the house had to be fumigated and sanitized before the insurance adjuster would come in.. the walls had to be taken down to studs. all cabinets and appliances removed along with toilets and bath tubs.. the insurance company is going to subrugate and they are potenitally going to be going after the tenant criminally and put them in Jail. First thing insurance adjuster asked me though was how long was the house vacant… 30 days is what it was… He said good because if it was over 60 days you would not be covered… To all that own US rentals be sure to check that 60 day clause if you house is without a tenant for more than 45 days or so call your insurance company and get extended coverage so if you have a claim your covered.
Alex sure loves to fly to meetings Have to give him a ring and catch up. My point was,,,,,, there just does not seem to be the interest from individual investors that would come to the forum and ask a myriad of questions related to buying a property in the US>
2 year rental experince and history is one of the main underwriting guidelines these days… Cash out refi's are tough no matter the cirumstances.. Lenders got killed with these loans in the GFC.. tons of fraud
Thats Cheeves neck of the woods… send him a private mail.. I suspect he will have a referral for you leheigh is a huge area so I suspect there will be plenty of management companys to choose from
Joel, The foreclsoure business is ultra competitive in most premier markets in the US… There are many funds out there backing US companies from large hedge funds to small boutique funds that have maybe 5 to 100 million. If your working in areas that US buyers in the know avoid then you can compete with small dollars IE 50k to 1mil…. These markets would include Metro Detroit ( Wayne Co) Soutside of Chicago over towards Indiana ( crap there is all kinds of homes you can buy there at tax auctions for 1 to 5k.. Never be worth anything but you can buy them Fort Wayne Indiana etc etc… The Up state New York towns and many other 3rd and 4th tier Mid west markets…………. The worm has turned in the following markets ATL,,, PHX, CA both N. and S. VEGAS…and Florida is heating up in specific markets… And Texas markets are tight as well thats why a lot of the guys on this site that used to be in Texas are now touting FLA./// Best way for some arm chair AU investor to buy foreclosures would be to invest with one of the funds that speciliazes in this business… Do EXTREME due diligence on the Managers and( "leave the driving to them" old US expression anyone remember it? Hedge funds though the minimum investment is 1 million us dollars.
Bravo Group property management Stockbridge GA.. Joe Watkins owner tell him i reffered you… I think he has the key words rent atlanta as well. He was my partner in the TWH houses we bought there in Atlanta.. We just sold the portfolio to a hedge fund ( if you can call 37 homes a portfolio) <moderator: delete advertising>
cheeves,, even a condotel denotes a condominium Map being recorded with subsiquent individual units that can be sold with deed and title insurance. Maybe because of the emergency type of housing the state has adopted new laws to allow this. When I lived in the Napa Valley I lived at Silverado CC and we had Condotel untis but they were a full blown condominium plat or Strata as they call it in Canada
I have asked many times for information from these companies about structure of the deals,, and no one will answer. One cannot just buy and get a deed to a hotel room in the US these have to be some sort of partnership LLC 500 series offerings were they are pooling the funds so its a rather different investment than investing in a home where you are the sole owner and have a deed to the property… I guess I will respond to one of these and see what they are sending in the way of source docuemnts and supporting docs.
big Mel how do you structure these transactions one cannot just buy a hotel room in the US… are you doing a condo and selling the individual rooms as such.. Or are you just selling an interest in a 501c type offering can you elaborate for the general public thx
Carrington One of the first hedge funds to enter the sfr market is now exiting
thenreasons they site is :
1. Returns never matched proforma's
2. Property management (headaches). They did not have management in house
3. Price increases
4. Rehab over runs and much higher maintenance and vacancy factors than were predicted
… Detroit just has so much fraud its hard to tell the good from the bad. I for one lost 100k on 2 ;houses, Not through metro property group but just through plane ole vandilism and what is truly one of the toughest and worst rental markets in the world in my humble opinon. And Hey I am an expert in single family rentals… over 300 homes I own personally and thousand financed. Detroit is just a waste land in most of the ares the spruiekers work.. Again I do not know metro housing but I have my own experinces.
