Thanks for the advice quiggles. I guess going through these areas isn’t such a great idea. I’ll see if Mike’s free when I’m up there… maybe he can show me around [biggrin]

Regards,
Ozi

Hi Westan,

I’ll make sure I check out these rough areas, I’m curious to see how bad they really are. Playing it safe is good advice. I’d be far more comfortable with a lower return in a better area, as opposed to a higher return in worse area.

I’ll let you know how I go.

Regards,
Ozi

Hi all,

Thanks to everyone who has responded, your input is valuable and appreciated! I agree with Quiggles in that there is an upside here, in that more federal and state funding will poor into these areas. There are changes being made to help restore these cities, but I still think it will be a few years before both Buffalo and Rochester are standing on their own two feet again. Nonetheless, the governments have realised the trouble they are in and are making amends – a step in the right direction.

Quiggles, consider your misfires a valuable learning experience [grad]. You have dived in head first, well before any other Aussie entered these waters and you really have put in the hard yards! I’m glad to see you have ironed out any problems and built a team which you can rely on, because this is untimately what will make or break you. Anyone who thinks they can enter these markets and have everything handed to them on a gold platter, where they can just kick back and watch the money roll in is highly delusional. You really need to be on top of things, or you’ll more than likely get burnt.

grossrealisation, I used to think like you. If these deals are so good, why isn’t the guy down the road buying them? Well for some, investing just isn’t a priority. Especially in low income areas as such, many just can’t afford to buy. From what I hear, most Americans are more concerned about lifestyle, i.e. driving flash cars, owning plasma tv’s, holidays, etc… instead of securing their financial future. But as Westan stated, many locals are too blind to even see what is available to them in their own backyards. Investors from interstate and overseas can see the opportunities which are available here and are flocking there like a bunch of sheep.

The main reason for my trip is to go over and see the place for myself. Sure, I plan to buy while up there, but only if I feel I am comfortable with the risk and effort required to make this work for me. The numbers look great on paper, but you will only be successful if you make it work for you. While over there, I plan to focus more on building relationships with the contacts I have made and only then I will be able to decide if the USA is for me [strum]

I’ll be sure to give you and update on how things pan out when I return. Even if I don’t buy up there, its no big loss to me. It should be a great learning experience to say the least and one which I am looking forward to [biggrin]

Regards,
Ozi

Hi Richard,

I have considered Tax Liens, but from what I hear competition for tax lien certificates is extremely fierce, especially in markets such as Texas where you have really high returns (i.e. ~25%) with redemption periods as short as 6 months. Often the liens get bid far too high.

I look forward to reading your publication.

Regards,
Ozi