Forum Replies Created
- Invest to Retire wrote:Hey Steve,
Just curious, do you plan to rennovate/flip or rent out the properties? By your description, St Louis sounds like it might be ripe for some section 8 investments.
I agree St Louis is a terrific market, it has strong demographics and in well positioned in the Midwest, if you drop me a PM with your email I’ll send you some video I took of the properties I looked at.
I am just a buy/hold sort of guy,
Steve
Will do Alex,
I have a few days in Cancun first I expect around 18-20 Jun
Freckle wrote:Boy I’m glad you cleared that up. Here’s me thinking QE is inflationary and devalues the printers currency.Silly me.
The Freckle
Freckle have a look at this video
http://pro.stansberryresearch.com/1202ENDOFAMR/PPSIN513/Steve
kylermrice wrote:I'm surprised you couldn't find more options in St. Louis than just the slum lord multi family. I haven't heard of to many people tapping that market other than the locals.Hi Kyler,
it is all I was looking at in St Louis, I went over with a plan and stuck to it. I am sure there are many more options, I just didn’t have the time to explore them.
Steve
kong71286 wrote:What's the purpose of the thread?To determine if there is any correlation between the car you drive and how wealthy you are?
Personally I believe there is no correlation between the two, and that it in the end it comes to personal taste and affordability. Some wealthy individuals will buy more affordable cars, whereas others will buy more expensive luxurious cars.
The car you drive will not determine how wealthy you will become, although it will impact your finances.
How wealthy you are will determine which cars you can afford to buy, although it will not determine which car you will buy.
You are absolutely correct, but I might add that you can tell if someone has a keen sense of investing by the type of car they drive. Generally cars are atrocious investments, buying a depreciating asset is no way to wealth. However it is not always the rule.
I said before that I had a Porsche Turbo, a Mercedes ML, a Ford Mustang and a BMW X5. On the surface it looks like I have hundreds of thousands of dollars of depreciating assets. The natural assumption would be that I am either too rich to care or foolish, but there is a third option, let me explain.
My number 1 rule is never borrow money to buy a car.
My number 2 rule is don’t buy a depreciating asset
My number 3 rule is if you can’t avoid #2 make sure you can claim the depreciationcar #1 1988 Porsche 911 Turbo – Bought from the Porsche Dealer in Saudi Arabia, one of a limited run of 384 Targa Turbo’s ever made. purchased for $13,000 AUD in 2001 when I was working there. Imported to Aus as a personal import, total cost $25,000AUD currently valued at $85,000-$100,000AUD and appreciating.
car#2 Mercedes ML 270 – Originally bought under one of my businesses as a lease, it was 4 years old and paid under 50% of the new price. I paid out the residual and acquired it as a personal vehicle on sale of the business well below market value.
car#3 2005 Ford Mustang GT – Bought 3 years old in new condition in Dubai for $15,000 AUD, will import it back to AUS under the personal scheme when I return (see car #1)
car #4 2006 BMW X5 – I’m living in Dubai at the moment, bought this car for $10,000 AUD! Because second hand luxury cars here are cheap.
The cars I own are both great fun and good investments.
The purpose of this thread? maybe meet some other property investors who are also car enthusiasts.
There you go.. great report. Shame is these cowboys have been doing this in various forms for years. I remember many Australians got stung in the 80’s with large markups on Gold Coast investments.
BJG88 wrote:I just arrived in the States on a fact finding trip.How long are you there for? I am flying over that way tomorrow.
Steve
WOW………Emma……..WOW
That was an incredible response,there is a lot of important information here. Very very valuable post(s)
once again
thank you!
Steve
Jeez three days til I fly to the USA and start looking at the property market from the ground. I haven’t even been able to decide on a a city/state yet, and it is embarrassing. There is just such an overwhelming volume of data to sort through. I understand now why investors concentrate in specific regions, the market is so big and the laws vary so significantly across the country. The USA is not a single property market but multiple and often independent markets. Trying to get a handle on the full foreclosure/REO/Wholesale/Promoter/Retail property market is harder work that I first Imagined.
It is easy to see why people on a macro scale are choosing Florida/ Atlanta/Nevada, but I am not sure that is what I am looking for.
I promise my self tomorrow I will get down to brass tacks, and book a flight.
Steve
I was reading a terrific article on the increasing rate of foreclosure activity, and what in means for the market in various states.
I rarely agree with anything CNN says, but the facts seem to be in place in this story.
http://money.cnn.com/2012/04/13/real_estate/foreclosures/index.htm
Steve
A preview of my upcoming property hunting trip…
Now that is funny
He he…. I have
Porsche Turbo,
Mercedes ML,
Ford Mustang,
BMW X5,I live in two countries so I need a toy and a people mover in each
Interesting report and a landlords worst nightmare, loosing your life over the performance of an investment. I am saddened to hear it, but as we are all critical thinkers here, lets look at the report and see what we can learn….
The report says:
Quote:Greg McNicol bought the property in February hoping it would bloom. He had seen squatters and people who hadn’t paid their rent, and he told them to get out.A tough guy, McNicol was an Australian who came to revitalize the east side neighborhood and make a little money.
It didn’t mention any due process for eviction.
Another report from CBS Detroit says:
Quote:The incident happened Saturday when the 26-year old victim from California and a tenant were arguing at an apartment complex between Canfield and Beniteau. Detroit Police say the verbal fight escalated between the landlord and a woman, and as WDIV reports, a man drove up in a car and opened fire with one of shots striking and killing the victim.Clearly this 26yo landlord was either personally throwing people out of the property or threatening to do so. He was arguing /standing over a woman at the time of the shooting.
Personally, I am not this type of person.
The process for eviction in Detroit is clear, if it had been followed correctly then a Bailiff and not the Landlord would have eventually carried out the eviction.
http://www.36thdistrictcourt.org/realestate-faq.htmledit…. sorry but the trial has a lot more information and there was a little misreporting in the earlier quotes.
I believe the victim was not “Standing Over” the tenant but “He kept politely asking her to leave his property.” He had been personally doing the renovations, had built good relationships with most tenants who had described him as a “a peaceful man” the argument/shooting occurred as he was preparing to have a Barbecue with the tenants.
Quote:Mr McNicol’s property manager, Karen James, said Ayana had some “domestic issues”, was behind on her rent and had been given a 30 day eviction notice.
…
The prosecutor said Young “wasn’t happy with the way his daughter was being treated” and reacted by shooting Mr McNicol dead.
…I apologize for the edit but it certainly changes the facts as I see them.
Steve
KnoxOff
The Hague Convention of 1899, Declaration III, prohibits the use in international warfare of bullets that easily expand or flatten in the body.
Clearly these rounds are intended to be used domestically!
Someone is very scared about a catalyst event creating a breakdown in law and order.
I am having a bit of difficulty processing this.
Freckle wrote:…
Unless you know of a way an economy can spend more than it earns and print its way to prosperity we are goners big time.
..Hi Freckle, I live in the Middle East and I would like to give my perspective. The US is the only country in the World who can “print its way to prosperity”. It has just recently gone too hard and fast at it.
The reason I say that is if you look at all the commodities which are traded for in USD and the large number of nations tied to the USD at fixed exchange rates either officially (China, Hong Kong, Saudi Arabia, UAE and at least a dozen more) and unofficially (Australia, UK, Canada etc.)
Let me give you a fiction (for laughs) that illustrates
Just say each of the following fictitious countries had their own currency
FreckleLand has the Freckle,
PC9GeekLand has the PcPeso,
JayTopia has the JYen, and
the United Stated of Federal Reserve has the USFR DollarOk so we all trade goods and services and the value of our currencies is set by the work we do or the commodities we exchange, but the USFR insists that we all start accepting USFR Dollar for all transactions between us and some commodities like fuel can only be bough in USFR Dollars. They go further and the USFR insists that we fix our currencies at a fixed rate to the USFR Dollar.
So now the USFR can sit back and stop nationally doing work or exporting commodities because every Dollar it prints now dilutes the entire global multi-currency supply, but it is the USFR that gets to spend it.
So yes the US can print its way out of recession.
I do like the way you think.
Steve
Dubai,
but have a home in Port Macquarie NSW
kylermrice wrote:I stay with if it makes good money and it's worth the risk, why not?kyler do think people don’t asses the risk properly and shy away from these areas without thinking, leaving them as investments for people who are prepared to look at them realistically and put some work in?
Have you had many issues with unpaid rent / eviction / property damage. If so how was it dealt with?
Steve
Last time I invested in what other people called “high risk” property was in 2002 when I bought industrial and commercial in Brisbane, just about everyone I knew at the time said I was foolish , there was no capital growth on commercial and “I’ll loose my money”.
So I did my research, identified all the risk areas and asked myself how can I manage them, I bought general usage properties in fringe CBD locations, and tripled my money in eight years, as well as having strong positive cash flows from day one.
There was no substitute for research and footwork on the ground.
This is my plan macro to micro data, manage the risk by identifying it and thinking outside the box.
Obviously the main risks here are…
Vacancy
Vandalism
Tenant management
Asset value protection
Urban economics
Laws and bylaws including HOA’s
Foreclosure rates
Communication
Ability to act
My ignorance
Trust and litigation
Insurance
Oh… And let me add crime rate was just looking at East St Louis and wow not a place to go after dark!Just as I did on my commercials I intend to manage the obvious risks above in light of the expected returns.
Right now I am asking myself why single dwellings when owning a whole building of 19-20 apartments would address some of the issues… Any how it is case by case.
Steve
Hi Jay I sent you a PM and I checked my settings it says that I am accepting emails, but my contact page says I am not accepting emails. I’ll email you.
cheers
Steve
