Forum Replies Created
Ian,
Check out the latest Australian Property Investor Magazine. There's an interesting article about an Australian guy who's done quite a bit of investing in Memphis over the past 6 months and is about to head over there for a longer stint.
remeYou're doing the right thing Giacomo. Try to speak to as many people as you can, gather as much information as you can and get as many different insights as you can. It is all part of your DD, and we've all had to start gathering information at some point. Don't pay for anything until you're 100% comfortable with your decision. Once you've gathered all the necessary information then you will feel more comfortable using one of the many companies that offer US investment services (or not).
Good luck with it all!I like your attitude Treasure Hunter. There is nothing like being there and being able to see for yourself, and weighing up your investment decisions first hand, so what you are doing is very smart indeed.
Good luck with the trip, I hope it serves you well!Hi TL,
Sorry for the delay in response! Yes, CFG do concentrate in Michigan, it is my understanding that they have decided to concentrate their expertise in the one state. You may be more comfortable looking in to areas outside Detroit but still within Michigan.
I did look in to other tours such as Mark Joseph realty in Florida, but it is run by an American (not that I have any issues with that) but I wanted to tap in to someone that could offer network connections from the outset.
There are plenty of companies that specialise in buying property for you in other cities, but I'm not sure how many of them do actual property tours. Ask all of those questions when doing your research…I do suggest going there and being on the ground if you can.
Good luck with your searching, I hope you find something right for you.
Cheers
remeI too would be interested to see some examples, I am a little sceptical about buying from properties except where you are putting in offers direct to the banks and not sure how much transparency is there when you're not?
But, I am always keen to learn as much as I can about investment in the US, so some examples would be good to review
Many thanks,
remeHi BB,
Has been great reading your posts and following your journey. Can't wait to hear more about your family journey's to Miami. Hope the sales of the Chinese properties go smoothly.Cheers,
reme
Hi TL,
To my knowledge there are a couple of different tours available, I researched quite a few, as well as looked in to various markets including the one's you mentioned. After much research, including weighing up the pros and cons of different options I went with Cash Flow Gold.My decision was based on the fact that the tour included introductions to all the teams you need access to when buying overseas (agents, property managers, rehab team, banks, insurance contacts, accountants etc…). You meet with them and have the opportunity to ask whatever questions you want.
You are also shown different markets and areas of Michigan on tour as well (ie also outside of Detroit, in good neighbourhoods).
I didn't feel as if I was pressured to buy at any time, and decisions are left entirely to the investor.
I also liked the fact that I was able to purchase directly without any middle man – so I knew my offers were going directly to the banks without mark up or someone else taking their cut on loaded or flipped properties.There is no denying that Michigan has been hit pretty hard, this is evident in the number of foreclosures, but I think it has quite a lot to offer and it certainly seems like a good time to look in to the market there. There are some positives starting to come out of the state, and they are working hard on reinventing themselves, this was evident while we were there and by continuing to keep an eye on local news, trends, figures etc..
Where you buy depends on what you are looking to achieve from your investment as well – cash flow or capital growth potential, or possibly even both? For us, the cash flow is attractive, and this market is very achievable for these results, as it is in other areas as well – just be sure that you are comfortable with the team you use. Also remember that property management is quite different than what we're used to in Australia, so a good property manager is essential.
This is all based on my personal experience only – you need to work out what is right for you.
Hope the info helps with your investigations, let me know if you want any further info from our experiences.
Cheers
remeSpeedy,
Be sure to check out zillow thoroughly to see whether you're getting a reasonable deal. eg. If you look at that property you'll see that it looks like that it was for sale at $45,000 in Jan this year and by Sept this year it had dropped to $14,990??
Some people are happy to pay a premium for houses to be renovated and handed to them on a platter, and that's fine, just be sure to do your DD and research the areas/houses well. The question is, what sort of premium are you prepared to pay, and what are you looking to achieve out of the investment? How much would it cost to employ someone to do the work for you, remembering on a whole, labour/rehab's are much cheaper in the States then what you'd pay here.
I'd be checking all of this out first and doing all the research you can to check on figures like that…
My guess would be, this looks like a classic flip deal??
Cheers
remeHi British Buyer,
Great read – I hope you manage to snap up some of those bargains! No need to be 'in love' with the houses, just as long as they achieve the results you want.
We had some good results yesterday in Michigan with 2 more offers being accepted on properties. After bidding on quite a few, we've managed to snare a couple for what we think are good deals in nice neighbourhoods. Persistence pays off..
Oh, and I hope for C's sake that someone realises that she is one of those sitting gems, wins her over and lives happily every after
I agree with Rick, most of the companies appear to buy very cheap and do them up and sell them off at a profit. Make sure you use someone that can help you setting up all your legalities and make the process as seamless as possible. If you want someone else to handle everything expect to pay for it too. You could use an agent that does long distance property investing for you as well – but once again, make sure they're on the ground and have seen the property themselves. They send you a selection, you choose what you like, put in an offer and you're on your way. Personally, I like to check out first hand what you're buying, what the area/neighbourhood is like and check out the sales history/taxes of the properties etc. Just be cautious as I know a couple of people that have been burnt buying over inflated properties which they thought were bargains, only to find out that they were in bad neighbourhoods and they'd paid too much for them.
Do your DD and you'll be fine!Hi Jimmy,
Have you thought about going over and taking a look for yourself? I would suggest using an Australian company that actually spends a lot of their time on the ground in the US and has a great team set up there. You will be relying on that team to look after your investment after all so it would make sense to know who they are, research them and feel comfortable with them. Make sure you do your due diligance and ask lots of questions. If you can use a company where they can show you how to set up all of your legalities and buy direct, have rehab teams in place and good property management teams to rent it out you'll be saving yourself a lot of $. Often you'll find hefty margins on properties sold to Australian investors on properties that have had their rehab's done with a tenant in place. But, having said that, it's up to you – if you want that convenience and are happy to pay for it, then there are quite a few companies to choose from that offer that service.
If you can afford just a little bit of your time you'll probably feel a lot more comfortable going over and doing your due dilligance. There are tours you can do that can introduce you to teams already set up on the ground there.
I did exactly that and it was definitely worth it, and can give you further information if you want.
Good luck with your investing!
Cheers,
remeI've been reading this thread with interest, we have just purchased some property in the US and agree that Due Diligance is the key. If you can get over there and see the market for yourself, you'll feel a lot more comfortable with your investments. There are many buyers agents, investment companies and flippers, but make sure you use someone that is on the ground and/or spends a lot of time there.
It is also important to feel comfortable with the team that are looking after these properties for you (eg property managers, rehab team, accountants, bank managers etc) so you have the full support once you're back in Australia.
After much research we used Cash Flow Gold who specialise in the Michigan market. There has been some negative media about Michigan, but if you select carefully and in the right areas (they are very selective about this), there are some great deals to be done. Personally, we liked what we saw. They don't do a lot of marketing but specialise in doing property tours where you buy direct and are very transparent about this. They have a top team set up, so the network support is in place. Do yourself a favour and get on one of the tours and find out yourself.
I think it is too good an opportunity to sit back and do nothing.
Cheers,
remeHi ReggieZ,
I have just returned from Michigan as I was interested in finding out all of these questions myself. There are plenty of very good investment opportunities in the state. I have managed to secure 1 property from the tour and have a couple of offers still pending.
Renting out doesn't seem to be a huge issue. It may take a few weeks, but that is pretty normal in most markets. The property management team are very thorough in their selection process (I asked every question i could think of and was impressed).
Yes there are a lot of foreclosed properties, but these people still need somewhere to live (as they can't get mortgages), so they rent. By renting, they are often eligible for some assistance, and there is a program called Section 8 where the governement pays a portion of the rent directly to the owner.I have just done the Cash Flow Gold Tour, and found it excellent. Pay a one off fee for the tour and get access to their network, which I found impressive (the tour also includes the accommodation which was very good and all meals).
I'm pretty picky on who I use for our investment properties in Australia, and the networks there I felt ver comfotable with. There are also a few investors who have already gone through the process of buying, doing the rehabs and renting out, and without proplems. That's not to say that everyone will have a perfect experience, but if you do your due diligence and research the areas you buy in, then that will make the process a lot smoother. Being on the ground in Michigan, I was really able to get my head around all of this and ask all the questions that I had. If you can't get there, then there is a long distance buying option. I think it would be worth every cent as you'd be tapping in to very good knowledge about location – that is the key.$800-$850 per month rent seemed achievable in many of the areas I looked in for a good 3 bedroom home in a good location. Net yields of 20-30% are very possible, which is certainly very attractive.
I'm just speaking from personal experience as I have only just returned last week from the tour which was very transparent and worthwhile.
Regards,
remeHi Kurnster –
I have just returned from Michigan where I have been investigating the property market.
I am just speaking from my experience only, but after some time of researching the different options available, reading forums, and lots of comparisons of the various buyers agents and tours, I decided to jump on the 'Cash Flow Gold' tour. You can google their website.The reason I went with this was that there was a once off tour fee that you pay and you get access to their network of people already established there.
I was a little bit sceptical at first, but thought the only way I was going to find out was to do the tour and see for myself. I was also hesitant about what the market in Michigan was going to be like, but again, actually being there put it all in perspective. Yes, there are definitely some areas to avoid, but being on the ground really put it in perspective.I was very pleasantly surprised. Part of the process is setting up your LLC and bank account and then meeting all the networks (accountant, foreclosure agents, rehab team, property management team etc)…
Then we spent several days looking at different markets and properties (in different areas depending on your focus/interest). There were even a few properties that I'd researched myself that they went out of their way to show me.At no time was there any ever pressure on the investors on tour to buy or use any of the services offered – it was purely up to the individuals. Basically it gives you the tools – and then its left for you to decide whatever you want to do.
For me and what we're looking for, this was a perfect solution. Yes, they make a small amount of money on the tour fee, but I was more than happy to pay for that as it gave me peace of mind and pretty much the company has done all the leg work for you by accessing their network. They also have a long distant buyer option available.
Everything else is totally transparent – no hidden charges, fees, commissions.
I found out this morning that one offer has been accepted on a property that I put an offer in on, with another 2 offers pending so I'm happy about that after being pipped at the post and missing out on a few initial properties I offered on.
Am happy to answer any questions for you, and I'm sure there are plenty of good options out there, but I am purely just speaking from my experience – which was successful.
Cheers,
Reme
