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worldinvestor
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March 29, 2012 - 12:20 pm
jayhinrichs wrote:
talked to kevin today he is getting me numbers. I think we can folk that in to the TWH model quite nicely.
send me pictures, I don't know if you know this but these modern phones you can take pictures with them then send the pictures over the airwaves and the pics end up on my I phone…. If you can figure out how to do that that would be great, I will have my secretary retrieve them….
I like the look of the place and the location its an exicitng property. I have to go to Hood river tomorrow to check on our new construction and I made an offer on another 20 lot plat that we are going to build out. WE want to buld Eichlers on them. Any one who knows the Palo Alto CA market will know what an Eichler is… they built 40k homes after the war.
We want to take this retro design and build them up in this really cool town of Hood river Oregon… I invite any Aussies to google Hood river. you will see its a spectacular place. I actually just closed lot 11 to a couple she is an aussie re agent he is Us dude… the live there full time.
Village at Rand rd. Hood River Oregon… might be able to see it on google with that description.
Man things are getting fun again……
JLH
Very impressive Jay, I like it
http://en.wikipedia.org/wiki/File:HoodRiverOregon.jpg
I am now going to show off, my father is from Lago di Como, northern Italy…. …..to die for
http://www.google.com.au/imgres?imgurl=http://www.wayfaring.info/wp-content/uploads/2008/11/lake_como_italy.jpg&imgrefurl=http://www.wayfaring.info/2008/11/01/the-italian-heaven-lake-como/&h=480&w=640&sz=94&tbnid=D7tA5jLY4JCcFM:&tbnh=92&tbnw=122&prev=/search%3Fq%3Dimages%2Bof%2Blake%2Bcomo%26tbm%3Disch%26tbo%3Du&zoom=1&q=images+of+lake+como&docid=qg4ZDRfNXlP7nM&hl=en&sa=X&ei=8FJ0T-WSAuyTiAfw0pXkDw&ved=0CDUQ9QEwAg&dur=1579
http://www.google.com.au/imgres?imgurl=http://www.holidayrentalweb.com/blog/wp-content/uploads/2011/06/lago-di-como.jpg&imgrefurl=http://www.holidayrentalweb.com/blog/index.php/tag/milan-rentlas/&h=359&w=550&sz=76&tbnid=g5oRs19hHkTSDM:&tbnh=90&tbnw=138&prev=/search%3Fq%3Dlago%2Bdi%2Bcomo%2Bimages%26tbm%3Disch%26tbo%3Du&zoom=1&q=lago+di+como+images&docid=C9tX8vSBeqnTAM&hl=en&sa=X&ei=b1B0T–MBIuhiQfInNSABA&ved=0CDQQ9QEwAg&dur=281
worldinvestor
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March 29, 2012 - 12:00 am
lawsjs wrote:
Jbelmore – I posted that link and no-one bothered reading it:( 'worth a read' – clearly it wasn't:( I will go back to weaving baskets and singing kumbahyah…
Yes, I read it lawsjs it was interesting, just decided to post once it came up again. Wonder how many times the Warren B article gets posted.
worldinvestor
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March 28, 2012 - 6:32 am
zmagen
I have purchased 8 properties to date and I used buyer agents to source properties direct from the bank, I personally would not do it any other way.  They also arrange quotes for the rehab and manage this until completion. I provide the criteria – ie, sq ft – 3/4 bedder, age etc.

I could not achieve the awesome deals,(30% of building costs) if I was purchasing a turnkey product. Not bagging turnkey, but just not for me.
Cheers, WI
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March 28, 2012 - 4:45 am
zmagen wrote:
Alex SC wrote:
I would just continue purchasing foreclosures in Atlanta, there are other markets that do interest me, however I feel I need to stick to one area to reduce the risk/challenges. Great advice ….
Don't quite follow – I get the logistics bit, but how exactly does putting all your eggs in the one city basket reduce the risk by anything? In my view it vastly increases risk – unless I'm missing something in this equation? (assuming you'd do your DD wherever you may invest, wouldn't spreading your investments geographically reduce your risk far more?)
In my playground Oz, I invest in all States, I follow the cycles and I think this is a great strategy to reduce risk and it has worked very well for me.
US – I am dealing with a different beast, as mentioned the banking system a challenge, property management statements and the psyche around PM service is frightening. Finding suitable Subdivisions that's another story, the list goes on.
Its just not practical to try to repeat this process somewhere else.
I have spent so much time trying to understand/research Atlanta and believe it or not even when I ask the locals about various areas etc. they have no clue, coz its spread out and they seem to only take an interest in their own area. Maybe I am speaking to the wrong people… who knows. I believe I have a better chance of getting it right if I focus on one State.
Cheers, WI
worldinvestor
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March 28, 2012 - 3:18 am
"The bidding wars seen in such places as Seattle aren’t found everywhere. In metropolitan areas including Atlanta and California’s Riverside and San Bernardino counties, housing remains weak as high unemployment and falling prices deter first-time and move-up homebuyers"
Can not agree with this, in particular Atlanta, currently we are seeing 18 + cash offers on one property and well above asking price. If that is not going to drive the market north I don't know what will.
Getting back to the topic "Building Lots", has anyone mentioned the tax implications while holding??
May be a good play for those who can jump in and hold and understand what they are buying, but educating yourself on what is worth buying would be another hurdle for the Aussie investor.
I like buying houses at 30% of build costs, its a win/win, cashflow and eventually with new builds will see the growth.
WI
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March 26, 2012 - 11:47 pm
Coincidently I just found out that someone I know was looking at this property and it required a $20,000 rehab, Not a cheap rehab.
This would have been an awsome deal if purchased direct from the bank. Great cashflow and the house/area ticks all the boxes.
This company is making approx  $24,000 profit, that would kill the rental yield for me.
If you can buy foreclosures directly from the bank makes sense to me, cutting the middle man out and commissions.
WI
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March 26, 2012 - 11:09 pm
I set up personal bank account when I was in Atlanta.
My lawyer set up my bank account for my first LLC. I have since opened several bank accounts for various LLCs myself from Australia, I have a contact person, happy to pass this info on if interested.
I am with Wells Fargo, I must say I think the US systems are miles behind Australian banking systems, don't understand this. TCC is probably right as far as Wells Fargo goes, but I am told that US banks in general are hopeless.

I am visiting Atlanta again in the next 6 weeks and will be setting up another bank account, want a bank that is affiliated to Australia, can anyone help with this question? Thanks
WI
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March 25, 2012 - 12:27 am
If I was playing that leverage game I would only buy Higher end assets,,, like we talk about A B C type that have realistic returns. The first rule of investing in the US is capital preservation, yields is second, furture equity 3rd.
Jay
Good advice.
Out of curiosity what do grade the properties that you are purchasing in Henry County, GA??
WI
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March 24, 2012 - 6:12 am
Jay
"There is going to come a day and its going to be in the next 24 months to 36 months that cash flow rentals for the Net YEILDS we like to make will not be there in any great number… And we will start to sell off our houses to those that will pay us our profit and I am not looking for huge profits if we can sell and make 20 to 30k a house we will be fine…."
I can understand why you are happy with 20-30K profit per house, you have huge quantity, would your investor be happy with this??
I would also be interested to hear from Aussies and whether they would be happy to purchase land, no income. With Aussie investors the goal is cashflow. This would go against the grain I would think??
WI
.
worldinvestor
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March 24, 2012 - 3:53 am
Hiya Jay
This strategy just would not work for me, you need deep pockets to be holding this stuff and if you are not buying large parcels why would you bother, lots of pain during 2-5 years, or perhaps longer.
In Australia I like buying properties that are sitting on land which can be rezoned/subdivided, eventually bulldozing the house and building 3 or putting together plans and permits and onselling to an investor. However with this strategy you still have rental income to offset holding costs.
I would be interested in understanding why you are buying land in a particular area, as mentioned Atlanta, what is the attraction here?
Also, you stated in one of your posts that you would not buy in Texas – oversupply land/blocks?
Cheers WI
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March 22, 2012 - 5:42 am
speedy gonzales wrote:
worldinvestor wrote:
kylermrice wrote:
I'm just going to post about A and B type neighborhoods anymore, lol. I just really like the numbers of the C stuff. Jay thinks all i do is the hood.

There is a Aussie spruiker (wont mention his name) who promotes his properties using these categories, A, B and C, I find it amusing that there are investors who actually believe this stuff.
My point is – how the hell would he know?? I guess if you are paying more then you must be buying an A grade property
Wi
What's the amusing part ? It's quite commonly used on grading commercial buildings and is pretty easy to relate to residential property as well. An A grade property doesn't specifically relate to the price you pay…it's more the demographics and characteristics of the home and area.
I should clarify, it is about who is grading the property? I was referring to an Aussie spruiker from what I know about the areas where he is purchasing they should all be C, that was what was amusing.
Also, may be the norm in commercial, never seen this in resi until now,  seems everyone has a different spin on how to grade a property, refer to Kylers post. .
Cheers, WI
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March 21, 2012 - 7:39 am
Alex SC wrote:
jayhinrichs wrote:
this is exactly what I do we made a business out of it…
I will talk to the odd tenant, but thats rare,,, I do view each house I buy at the time we buy and after rehab.
But when your rehabber and your PM are your PARTNERS life is just sooooo much better than trying to heard cats which is what it seems like when your trusting people that are not in your direct control to take care of your investments.
At least thats my take on it after owning 100's of rentals over the years and trying to either hire staff or hire vendors… The Equity partner is the only way to go for me… And the 90% of their equity comes when we sell…. So everyone is on board for the length of the ride…
And because we are in 5 markets and growing for me to make my goals of 20 a month its only 4 a month per team in each city which is easily attainable. Like Atlanta right now is darn tough…. If I had all my eggs in the Atlanta basket we could no way be getting the volume we need…
At the end of the day when I was making hard money loans I had it cranked up to 40 to 50 a month and each of those were to rehabbers.. So we were directly involved in that kind of volume… So instead of selling the hosues off we keep them… And just let our investors come along for a PASSIVE income ride that they never have to loose sleep over… Its a wonderful thing.
JLH
Quick note I am beating your prices. Looking at opening up a supply company myself with my brothers help the one who works for Corporate lowes.
Jay just bid on 35 properties here in Charlotte. Out of those, only 4 or 5 would fit your program. So we are looking to hit that 4 homes a month mark with your company. The other batch, we are looking to pick up 15 or more homes before the end of march. For me, a real estate month is actually about 60 days in my mind. From when we buy a home, which then includes rehab , and getting the property rented. So you know our goal is changing with the market changing. More capital coming in then ever before just not wanting to grow any bigger then we are. For me it is a common sense approach. If we can do 20 to 25 homes every 60 – 90 days and every one is happy . Why change things? There will always be the guys who own 1000s of units, which is great, but so is a nice simple system that works. Greed + stress seem to go hand and hand in this business.
"Jay " you and I having a similar mindset on partnering . For us, lately partnering with our over seas clients, long term seems to be better for all. I have cleaned the rehab system up with some of your advice, being I took over the rehabs completely from Kevin ( for all of you who do not know that is my Real Estate Partner) Jay has some great advice on rehabs, and I am not foolish. If something works for someone else, and I can add it to my system to make things better and it helps us and our clients. Well that is a no brainer. Also fired two crews and one handyman, so cleaned house. Running the rehab is a lot of work but to me, that is the fun part of this business.
Now on the other hand, I am not seeing the competition like you guys are feeling in Atlanta and other markets. Charlotte is just getting the recognition it deserves with investment homes. In the last three months, we have had some heavy hitters in the USA Real Estate industry come to us . Jay, being one of them, to work out some form of partnership with my company here in Charlotte. Which Jay is again correct, the USA buyers are now jumping back in and don't look for the super high return. ( side note Jay new client from Charlotte I met him on flight back from LA and after speaking on the plane .He is now buying and lending with us ) Inside Joke between Jay and I.
Now on a different note, the holding of homes. My personal goal is 100 units, which will be a mix of commercial and single family homes. With me I can take the risk and buy some properties like Kyler and Engelo speak about, while mixing in the homes that Jay and I like to deal with. Since I own the company and live here the risk is less for me when dealing with lower end stuff.
I will agree to disagree with most about lower end homes. For me cash flow is everything. Unlike some others I am not here to sell the properties I keep. These are long term investments for myself, my family, and hopefully for future generations to come.
Sleep in this business is rare. Lol.
Hi Alex
I am noticing lots of talk now about Charlotte, with so much competition investors will start buying up in Charlotte.
I see one of your US gurus is buying up for investors in this area.
Cheers, WI
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March 21, 2012 - 7:35 am
kylermrice wrote:
I'm just going to post about A and B type neighborhoods anymore, lol. I just really like the numbers of the C stuff. Jay thinks all i do is the hood.

There is a Aussie spruiker (wont mention his name) who promotes his properties using these categories, A, B and C, I find it amusing that there are investors who actually believe this stuff.
My point is – how the hell would he know?? I guess if you are paying more then you must be buying an A grade property
Wi
worldinvestor
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March 19, 2012 - 2:36 pm
labradorinlove wrote:
If you were drowning and you only had $100,000 USD to save you, which cities would you buy a few SFR foreclosures in and why?OK so that’s a bit melodramatic, but it you only had 100K left what would you do with it?Please don’t recommend me to enter into anyone’s property package or scheme, as that isn’t my question here.
I would just continue purchasing foreclosures in Atlanta, there are other markets that do interest me, however I feel I need to stick to one area to reduce the risk/challenges.
Its hard enough to find 1 good property manager let alone 5 or 6. Also logistically as a foreign investor I would not want to be travelling to 3 or 4 States.
In Atlanta 100K USD wont buy much, I have been averaging around $60,000 USD per property, this is changing fast.
I like Atlanta as it stacks up for a number of reasons – cashflow, newer builds, not a one horse town, diversified industries, warm weather.
WI
worldinvestor
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March 18, 2012 - 4:18 am
tonyy21692 wrote:
WI
happy to say after 7 1/2 yrs in the USA market the pain is finally over as just this month we have closed on our last property.
we quit because;
when you are 1/2 way around the world it is hard to find people with integrity,
it is hard enough managing IP's let alone be a FOREX dealer too, and
there are easier ways to make money in my own backyard.
My advice for those investing or looking to invest in the USA is to ensure you have a strategy to preserve your capital as unlike IP's in Australia over there you can face a total loss.
Good luck
Tony
Hi Tony
It sounds like you have birth….
I read one of your older posts, so you sold your 26 properties,  a mixed bag of great, good and ugly? Did you manage to preserve your capital, if you care to share.
I am interested to know when you purchased in US, where was the AUS $ at?
Perhaps we have access to much more information today, this does not mean it will be a "walk in the park", however the Aussie investor today who does not ignore the risks has a better chance of making it work??
Also, I personally would not invest in US unless you were able to purchase multiple properties, the costs will just kill the deal.
Thanks for posting, looking forward to more.
Cheers, WI
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March 18, 2012 - 4:00 am
kylermrice wrote:
The market is starting to recover, I have more competition and the deals aren't what they used to be.
It is certainly changing in Atlanta, the deals I was purchasing 6 months ago are out the window, unfortunately this means for me I may have to kiss 15% net return.
worldinvestor
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March 18, 2012 - 2:26 am
WI: You will be able to buy the properties Steve talks about forever. They are the worst of the worst – no one with half a brain wants them:) In any case he uses very specific management 'techniques' which will not work for everyone and even then I doubt the numbers really 'work' – I suspect the business in reality is offloading them immediately.
I absolutely agree, would not touch this stuff, financial suicide indeed.
Not sure whether you can buy these properties any day of the week though?? Be interested to hear from those who jumped in.
Anyway, that should be discussed in another thread, lets keep this one going.
WI
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March 18, 2012 - 1:57 am
Paullie wrote:
But steve is advetising 30% returns. …
Hi Pauliie
My understanding is that Steve was buying bottom feeder stuff in Florida, also multi unit sites, I think he started doing this perhaps 2 years ago.
From what I have been reading there is so much demand I doubt you could pick up these properties now for the price he paid,so that yield is probably very difficult to achieve today.
Once again seems like Steve always jumps in and makes his money before the herd.
Cheers, WI
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March 16, 2012 - 12:40 pm
Qlds007 wrote:
Yes no issues but only done as second home cant own a property in USA.
Cheers
Yours in Finance
Hi Richard
what does this mean?
What are the terms, I am told Atlanta is a tough market for finance, no one will touch it.
What I have tried to source to date has been shocking, over the top fees, high risk, I would not touch.
Cheers, WI
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March 16, 2012 - 12:34 pm
Lots of posts and have enjoyed this thread, have a few questions for British Buyer
How do you live in USA, permanent residency or what ?,how does this work
Have you been able to source finance?
WI