Forum Replies Created
Tennessee has some great areas to invest in and some that I would highly suggest staying away from. I'd stay away from Memphis as it seems the values aren't as strong. You can buy property for very cheap and should expect it to be filled with problems. I used to live near it and know enough to not be interested in it at all. Nashville, on the other hand, is pretty sharp and they've got some great potential in the area.
I've got some family down in the area and love Tennessee.What a great discussion. I own a nice single family here in the US that I purchased for $60k and have it rented on a lease option for $750/ month. The option has expired now, but in the beginning I often wondered whether I wanted them to excercise the option and walk away with the $15k I would make. I'm thankful now they haven't excercised that option as I'm making $250/month in positive cash flow with no time involved.
I can't imagine selling property off like that and not having the positive cash flow. It seems foolish to let go of something that returns a solid profit with no time involved, even if it can make $35k when you sell it. At $25/wk, he'd have his $35k in 27 years and probably a lot more equity he could cash out.Knowing I can find more properties like I own now and better, I'd probably take that $35k and put into other properties here that could easily return more than I'm making now.Great discussion and great points, everyone.Nigel and I have been talking about this quite a bit and I believe this is a major consideration. I’d always take the time to get several references from them and do some serious research on their reputation, services and pricing. One of the biggest things you can do to help yourself is to bring several investors in with you and have enough properties to bring to them to have some leverage. If they screw with you, they screw with everyone and lose it all. In that way, Nigel would be good to talk with on the subject and could help to get you connected in the states and get going.
Good luck!
Derek Guyer
http://www.landchasers.comMany are suggesting that markets like Pheonix are not going to continue rising at this point. The bubble has burst and since many of these markets were inflated, they’re now suffering because the values are way to high for the homeowners.
Here’s a classic example of what I’m saying:
http://money.cnn.com/popups/2006/fortune/invguide_realestate/4.html
According to the “experts”, the values are expected to go down in Pheonix by 8.6% over the next two years.
Derek Guyer
http://www.landchasers.comI’m assuming you’re talking about Geneva City, NY, since your message title referred to Investing in the USA. I’m not familiar with NY, but do know of a broker who works with investors from outside the country:
If you’re interested in looking at Indianapolis, Indiana or other areas of the US and the properties here, I’d be happy to talk with you about the possibilities and connections I have to other cities.
Derek Guyer
http://www.landchasers.comGood points, Amanda and Richard. I’m not familiar with the tax situation there and so my adivce is based off of my understanding of US real estate. I don’t want to guide you away from important structures you’ll need to have in place out there.
Derek Guyer
http://www.landchasers.comI didn’t realize that people question whether positive cash flow is possible or not until recently. We see positive cash flow on a regular basis in Indiana.
One example: I have a home I purchased two years ago for $60,000 that brings be a positive cash flow of $250/month. I have never spoken to the tenants and have no reason to do so. They pay their rent on time every month and we deposit it.
As I told an investor in from California looking at our area, people are snowed into believing it isn’t possible and therefore they purchase properties in areas where there may be incredible apprecation, but you’ve got to be able to deal with serious amount of negative cash flow. I personally can’t afford to be in the hole $2,000/month on a duplex, like many investors are doing in different areas of the US.
So, yes there is cash flow. There are great properties to go along with it and as long as you’re willing to do your research and look in other areas of the world or country, you’re likely to find some pretty good stuff. I know that seems risky, but not as risky as purchasing a property that is digging into your pocket every month in negative cash flow.
Derek Guyer
http://www.landchasers.comI’d start by aligning your financing. You’ll want to know what you’re capable of doing before you try to do it. It gives you a sense of confidence to know your limitations and possibilities.
Then, look at as many deals as you can. I don’t think it’s wise to jump right in on a deal unless you have a great mentor who is helping you through each and every step. Take some time to just look at deals and run numbers. The more you look and think through numbers, the more sense it will make and the better grasp you will have when making decisions on your own investments.
Robert Kiyosaki suggests looking at 100 properties before picking 2 or 3 of them. I would have to say that I probably look at a lot more than that for my investors before choosing 1. It’s not necessarily that good deals are hard to find, but it’s that you won’t know how to find them until you get out there and really begin looking and searching.
Derek Guyer
http://www.landchasers.com1% vacancy? Wow! That’s pretty amazing. Where are you investing? I’m trying to understand the AUS market and don’t know anything about it. What kinds of prices are you paying and how much are the rents? Just curious.
Derek Guyer
http://www.landchasers.comI don’t know if you have any programs like this in AUS, but I found this recently and have heard good things about it. It would be worth checking into if nothing else:
http://e-qualjustice.net/MMA/KeithGill/MMAhome.html
BTW, I’m not associated with the program above. I just found it on another site recently.
Derek Guyer
http://www.landchasers.comDo either of you have any idea what a good CF+ property would go for in the UK?
Derek Guyer
http://www.landchasers.comBoy, do I feel stupid. I can’t believe I didn’t think of that on my own.
…and they say there’s no such thing as a stupid question.
Derek Guyer
http://www.landchasers.comThat would probably be a better question for someone local to you. I have a Fee for Service Agreement I could send you and would be more than happy to do so, but don’t know if it would cover you well enough there or not. Feel free to contact me if you’re interested in seeing it. It’s simple, but has worked for me in the past.
Derek Guyer
http://www.landchasers.comI can only speak for birddogs in the US and myself.
A birddog locates properties for investors that meet their specific standards or interests. Depending on where you’re locating them, you can get paid a marketing fee, a consulting fee or a finders fee. A lot of this depends on the laws in the area and how much you’re actually doing for the investor. You can help to secure your funds through a finders fee agreement or something to that effect.
Most birddogs do this as a way to earn a little cash and experience as they work their way into their own investing plans.
Derek Guyer
http://www.landchasers.comJosh,
I’m new to this forum, but being from the US, would have to strongly agree with Nigel and Chad. I came on here to see what the international market was like and to begin learning on a global scale, but have a pretty good feel for the US and think you’ll easily find good cash flow deals in numerous places around the country.
The biggest factor for you and any investor is the people representing you, whether realtors/birddogs, appraisers, mortgage brokers, etc. You have to have a good team here, just as I’m sure you must have where you live as well.
I don’t feel as though I’ve earned any credibility on this forum and so I don’t have any intentions of selling my own services, but would highly suggest you look into areas like Indianapolis, Indiana, where I live, and Cincinnati, Ohio. There are plenty of good properties in good areas where the cash flow can be pretty amazing with great prices.
I also agree with Nigel in that you should definitely put together your financing now and find out what you’re capable of handling.
Good luck!
Derek Guyer
http://www.landchasers.comIn the US, there are numerous ways this is done to avoid causing problems and overstepping boundaries into illegal territory, but requires that you check the laws of the land. I can’t speak for laws in your area, but know that some here charge a marketing fee to the seller. Some also charge a consulting fee to the seller or the buyer. I’m not advocating these, but know they are done in legal ways in many stated within the USA.
I’d be interested to hear what you find out about this. Please let us know.
Derek Guyer
http://www.landchasers.comI think a lot of that depends on what you’re looking for and what your intentions are with the property. Are you purchasing to rent it out or are you hoping to begin flipping property?
If I’m looking for a rental, I run numbers on things very different from when I’m trying to find a house to flip.
I guess my question is, what is the end result you have in mind?
Derek Guyer
http://www.landchasers.comI would have to agree with AmandaBS. That’s a very comprehensive list and while I may not take it all in the same order, it covers everything you’ll need and want to know.
Building your team is the most vital piece I see on there. No matter what else you do, a good team will make or break your investing efforts.
Derek Guyer
http://www.landchasers.comI love Smart Money and thought you might be interested in reading up on the subject for US tax laws. I’m not sure where you’re from, but I hope this helps:
http://www.smartmoney.com/tax/capital/index.cfm?story=capitalgains
Derek Guyer
http://www.landchasers.com
