Hi Mark

I am currently involved in establishing a property investment group in San Antonio. I may be able to offer some advice. We are setting up so that we can assist investors to buy the right property. 

Sounds intersting Chad

I would love to know what area you can buy houses for this sort of price, even with a great discount.

The gross figures are one thing but the real figures are the net returns. For that you need to take into account 3% property tax, property management 8-10% if you can find someone to manage them. Plus maintance which at these prices whould be high as I would not expect that they would be in great condition.

It is important to look at all the figures and unless you know where the properties are located I would urge extreme caution. I believe in loking for good deals but not necessarly the bottom of the pile.
So chad perhaps you should redo your figures and explain why the sale returns should be at the figures you have mentioned.

Finally while we are on the sales prices that will attract a 15% capital gains tax in the United States. The only way to avoid this is to use a 1031 exchange which means that you have to buy something of equal or greater value within 180 days of sale.

Nigel Kibel

http://www.propertyknowhow.com.au
http://www.changingplaces.com.au
Buyers advocacy
Australian and New Zealand The United States Property Researcher and education

Property management is a major problem. It depends on where you are looking to invest. I am currently in the process of helping to organise property managent in both San Antonio and Indiana. I will be conducting a course on hour to buy in the United States based in Texas in the next few months.

Nigel Kibel

http://www.propertyknowhow.com.au
http://www.changingplaces.com.au
Buyers advocacy
Australian and New Zealand The United States Property Researcher and education

Generally in Australia positive cashflow is difficult. Where you find it you will in most cases not get great growth. However you can buy properties and renovate them improve values. The secret is that you need to research the market that you are wanting to buy in. I over the years have brought properties from Australia, New Zealand and the United States. Once you have researched a market until you understand it you are then in a position to buy.

Nigel Kibel

http://www.propertyknowhow.com.au
check out my new web site

Australian and New Zealand The United States Property Researcher and education

If the agent is doing a good job it sounds fine. The 8.8% does sound a little high. In Victoria and Id be suprised if it was diferent in NSW you cannot make a landlord sign a 12 month management agreement. They can get you to sign a sole agency to let the property. I would suggest that you sign a sole agency for 60 days. If you are unhappy with the service you do not have to stay there.

Nigel Kibel

http://www.propertyknowhow.com.au
check out my new web site

Australian and New Zealand The United States Property Researcher and education

Hi Josh

Returns are good. I have just come back from running a real estate group in the Unitedv States in San Antonio in Texas. It is important that you do your homework very carefully.
I suggest you work out your structures, preapproval of finance.

Only look at the net returns. Although returns can be very good in Texas their is a 3% property tax. That means that if you own $300,000 worth of property you will ber paying around $9,000 in Tax. Thats a big chunk of your return. Properties will rent well up to $1200 per month buy they become far more difficult after that amount.

I am also lookingh for people interested in buying large quantities of property together. Pm me or email to [email protected]

Nigel Kibel

http://www.propertyknowhow.com.au
check out my new web site

Australian and New Zealand The United States Property Researcher and education

I meet people all the time who have purchased properties over the internet including off shore. Most have made huge mistakes because often the internet only shows the house not the street or what is next door.
Frankly I think that anyone who buys over the net especially on a real estate agents recommendation is a fool at best.
Always research and remember the price of an airfare and accommadation is a small price to pay when it comes to the value of the investment property.

Always remember the saying measure twice cut once. If you do that with investing you are unlikely to make mistakes.

Nigel Kibel

http://www.propertyknowhow.com.au
check out my new web site

Australian and New Zealand The United States Property Researcher and education

Hi Michelle

I would suggest that you both either call in agents for a market appraisal or get a sworn valuation. If that does not work put the property on the market and your partner has the option of purching the property in the open market. If you make that suggetion I am sure he will negoiciate. Keep in mind that whether you sell to him privatey or publicly he will still have to pay stamp duty. If you make a profit then capital gains tax may also be payable.

Nigel Kibel

http://www.propertyknowhow.com.au
check out my new web site

Australian and New Zealand The United States Property Researcher and education

I do not really promote my services here because I have been running a property company in the Texas. My target market is in the United States not Australia. That does not mean that I am not prepared to offer advice. I have seem some of the crap properties that have been sold to Australians and I wold advise extreme caution. If you are interterested in the American market I would suggest that you go their and explore it for yourself

Its your money do not waste it listening to bad advice from people here or worse agents in the US

Nigel Kibel

http://www.propertyknowhow.com.au
check out my new web site

Australian and New Zealand The United States Property Researcher and education