Forum Replies Created
True:)
Prime property:) No hassles, no dramas! Doesn't really matter where! I don't know Las Vegas at all, but I am sure there are nice enough places there.
Indeed.
The US is NOT easy. Just because a comment does not fit into the picture someone paints should not alter the facts. If it was that easy then a million US residents would be doing exactly the same … And they probably are:)
Jay,
I own in San Fran, not a lot but I bought a while ago. Small potatoes and while I was living there:) SAH' (Karina?) post implied (+61) that she lives in Australia. I don't get that. There was a time when I was visiting Pacific Heights so much it was almost a second home, but those days are long gone. Now, I add up travel bills.
I think I can agree with you that subprime is basically over. My wholehearted advice for any Aussie is bite the bullet and buy prime. It is exactly what it says.
Quality pays:) It has certainly paid me…
Anyone should beware of anyone selling anything on the other side of the planet. I live in Avalon in Sydney and would never think of finding an agent in Atlanta to advise me about property in Avalon.
If you are buying an LLC you ARE buying a flipped property.
If you are based across the planet you are simply not able to do reno's/rehab's for anything like what a local could. Call a local agent – I do not understand why people do not do that.
How can someone possibly expect a good reno when it is managed from a different country? Bizarre:)
Then there is management. US management is not easy. I don't believe any advertised returns. All lies IMHO.
In any case – sub prime is effectively over. If you live out of town buy prime property. There is nothing wrong with San Francisco, Manhattan or Boston. Even if you buy an economy ticket and like to spend your 4 weeks holiday a year working for free it will still cost you $5k minimum just to make sure the lightbulbs are changed properly. Repair bills on sub prime will be enormous over time, especially as I suspect foreign owned properties will create ghettos of non-caring tenants.
But, if someone is silly enough to buy a sub prime property with what looks like a 15% yield (but will end up 5) and bugger all capital growth, then I guess you may as well buy through someone who lives as far away as they possibly can from their 'investment'.
The unknowing, buying through the unqualified, expecting the impossible, is likely to become the disappointed.
Or……
Buy APPL, GOOG or AMZN and check your investments on your smartphone:)
BTW: Beware of wholesalers/flippers (especially when they are based in Australia like SAH) you may do OK, but you can guarantee they will do OK before anyone they flip to – and that is forgetting any management issue that might arise when they are long gone (ie the day after you hand over the cash).
Do it yourself, in the long run middlemen are expensive. And as far as sub prime goes (and I have said this previously) it is over. These sales pitches are at least 12 months old. Think carefully about what 'sub prime' means. As I read the tea leaves, right now you are buying 'subprime' properties at 'prime' prices. Especially in GA and FL. If you are paying 'prime' prices, you may as well buy in Manhattan or Malibu – there you will have near zero risk.
BMH, good luck. Ive been trying over years to solve the problems you have given 9 days to. You might be lucky:)
I have looked at Ziv Magen's website and I have looked at several U.S. markets. With many commentators on here saying that cap rates of 12%+ are achievable in the US if cashflow is the objective and little appreciation but beware of property managers, bad tenants, warzones, etc. Ziv appears to offer the same scenario of 12% cap rates plus almost nil property manager and tenant problems by investing in Japan condos. No appreciation but good solid returns… Exchange rates seem to be stable.
So the question is, why isn't everyone flocking to Japan via Ziv?
I know enough about asia to agree. The language is a problem, but I deal with the US a lot and I do not speak American. In fact I communicate with asians far better than Americans. Seriously look at what Ziv offers. Having spent years in both the US and Japan/asia I can onl suggest you look at ALL possibilities if you want a hassle free investment.
Ga (like the rest of subprime) is over.
Go to Vegas or Star City – better odds on red:)
Advice – don't.
Frankly, if you 'need' advice you do not know enough about the subject to put your money into it.
JacM. In a lot of cases more than 100% is the answer. Think about what the words 'sub-prime property' really mean and why you think they may have been coined by banks to describe them. $11k properties are SUB-sub prime. If you are an out of town investor I think you should only be looking at 'prime' areas, or have extremely good assistance (and I mean extremely) to do otherwise is buying something I can all but guarantee you will want to walk away from just to avoid the losses/repairs.
As you would know Steve, a very, very dangerous game buying 11k properties in the US. The caveat (of course) 'a' tenant 'paying' (once?) $500pm gross.
Net figures?
I admire your work Steve, and encourage people to look for opportunities. In essence I agree with your comments above, but be careful out there people. Steve has a LOT of experience and a LOT of helpful contacts. Contacts you will NOT get from calling a local property manager.
Is the person selling you a seminar an investor, or a spruiker?
Sub Prime is over. Now is the time for the long term smart buyer in the US. In 'sound' areas of the US, with a little capital you can buy a lot – and you do not need banks.
Sorry LIL, I don't think you understand the US at all.
Wish you luck but I see nothing but 'House of Pain' (can't do Kramer sounds:) for you….
London is probably at least as good as anywhere else. I just wandered around Camden Town for example and seems market there is quite ‘firm’ – but tenants not thick on the ground. Place has a good feel though, advertising / fashion people moving in. I think you should sort out finances and buy – UK is and always will be a great currency hedge. Just buy property – they all work out in the end, regardless of the country!!
