Forum Replies Created
- lawsjs wrote:jayhinrichs wrote:Buying OZ company that is ASIC approved Like buying shell Corp in us
Jay – fantastic you are going that route. I believe technically what you are doing is buying an AU company. ALL Au companies are considered compliant (therefore ASIC approved) until they do something wrong. From my discussions with them over some of the more (shall we say) 'aggressive' AU/US RE operators out there, it is pretty hard to fall foul of them. US securities laws seem far easier to breech.
World Investor – To qualify for the nomenclature I would experience the US and hi cap properties first hand over a few years at least. Without wishing in anyway to appear rude, you seem to have only a vague grasp of US realities. In general I find it very funny when people compare AU criminals to US criminals… On a scale of 1 to 10,000, our criminals would be a 1 and any enterprising US criminal would be 10,000+. I know a Police Officer in LAPD. If they are in a pursuit and hit the South Gate border before they get the guy, they just turn around – if they keep going they WILL be shot at by people from their houses, as well as the bad guys they are chasing. Bloods and Crips hate each other, but they both hate the police. How many Australian police cars have bullet holes in them?
Hermosa Beach and Manhattan Beach in LA are ultra premium suburbs, where Baywatch was set and $10m houses are not unusual – even in todays market. Less than 15 minutes drive away on the coast side of PCH (Pacific Coast Highway) the property manager occasionally (as in more than a couple of times) got shot collecting rent, a supposedly 'good' area, nothing like a high crime area. The 'inland' area of PCH is the 'wild west' (or east I guess, to be geographically accurate:) )
I know for US readers that is saying 'suck eggs' but Australians just do not understand how bad things can be in the US. Stealing white goods from a building site in the 'lesser' areas of the US probably wouldn't even count as crime – unless there is a body count involved the paperwork wouldn't be worth it:)
Lawsjs, thanks for your tips, I lived in US (Washington DC) for a number of years.
Cheers, WI
worldinvestor wrote:Hi All
another great property I purchased, renovated in 4 weeks.http://s1178.photobucket.com/albums/x374/selectamericanhomes/Course%20Side/?albumview=slideshow
Hi Guys
thought I would give you an update on this property. It has now been leased and achieved $100 per month over the estimated rental return. Quite amazing it only took just over 2 weeks to rent out considering the time of the year (holiday season etc)This naturally changes my figures –
Gross reutrn 25.93% net return of over 17%
My major expenses were – 2 airconditions, repaint, carpet, new kitchen appliances and all other standard bits and pieces which come with the rehab.
This property was built in 2001 and is just over 2300 sq ft according to zillow.
________________________________________________________________________________________________
The property below was my first property I purchased with Karina (Select American Homes)
This is a larger home 2500 sq ft, built 2001. This property was rehabbed and rented out within 4 weeks would you believe and achieved $200 per month over the estimated rental return. The net yield is just over 15%.
Delighted with the results.
I have just settled on property number 6 and still looking to add.
WI
Alex SC wrote:DHCP wrote:Good home Alex. Do you have the finished video footage of this property? i'm interested how the rehab turned out for $15K…I'm sure it brought the inside after rehab looks almost brand new?Guys maybe I was not clear in my writing as I said I am not the smartest guy by any means….
I am closing on this property today at 11 am, along with 4 others.Presold this property to a client.The rehab will start after they buy from us next week. After they close on this property. Just wanted to show the folks here what can be done and why…I see a similar house being sold for $83k. I know buyer purchased for $37 k and said rehab was 20k ( yes Lawsjs ) I agree that one was high for that property ) and is now selling for $83k .Again people will complain but that's his advantage being able to buy and do that. Now if I was to buy and rehab the property listed above the price would also shoot up. This is the point I am trying to show all how and why.
I would be borrowing capital for the job. Loan would be roughly $33,600,+ $15k for rehab + $1k for closing cost +1k for operation cost( yes we have to pay staff and keep lights on)so now I am in the deal for Roughly $51k ..( our private lender would fund)…So finished sales price would be $65k _ to $69k that is after rehab is finished ,and property rented. Depending on which cash lender we use( that would decide on how much interest I am paying him ).Again this is just me educating the buyer on why the price change …..Whole sale is just wholesale and flip. Turnkey is another animal ……
I will post some other deals before, and after videos for rehabs we have completed in Charlotte and Atlanta..( yes I like to brag on the job some of our rehab crews do) Also a good tool for others to go though and see what we are looking at and for …in our homes.
This house main concern and issue if you watch the video they destroyed so many walls to steal all the plumbing out of the walls, along with the Ac unit that walked off.
talk soon
Alex
Thanks Alex for posting, its refreshing that someone is actually posting figures.
What next….. now they steal plumbing, do they on sell or what?
In Australia crooks will go to building sites (new home construction) and steal everything – whitegoods, fridges, ovens, brand new carpet rolled up.
Cheers WI
CheevesFinancial wrote:Exactly! It's psychological warfare. Keep in mind, these thiefs are not smart. They have the education of a 10 year old. All they know how to do is roll up at night, sneak and snatch. They have found ways around cages. However, cages are working in our area for some. I just chose a cheaper alternative which has worked very well so far.Alex: I know for sure we can't put our systems on the roof.. Raising it a few feet won't help..at least in my area. Then what's that look like? It looks weird. To you, who cares because the system is safe.. To future buyers, it may look a little off…only my opinion. I'm telling you…try these cameras!!
In Australia some people use evap airconditioning, placed on roofs and come in various colours to match the roof and are strategically placed at the back of the house.
Where I live in Western Australia it is not uncommon to see these and I guess we don't give it a second thought as to whether they look ugly or not.http://www.aussieair.com.au/evaporative.shtml
WI
DHCP wrote:That is a good point, WI.It is common in Atlanta for the CAC to be stolen. The property that I'm about to settle, its CAC was also stolen.
I'm interested to hear the post of others about this also.
When you consider that each unit will cost you around $2600 and I believe somewhere Jay posted that within a 5 year timeframe I think it is around 80% chance of aircon unit being stolen.
I am keen to find out if you are sourcing your own properties in Atlanta, buying turn key or getting them rehabbed.
Cheers, WI
jayhinrichs wrote:World Investor.All good questions.
1. Prices falling,,, In atlanta who really cares if they fall 10 or 20% are you going to sell tomorrow???? The prices are already off market hi's by 50% or better. The prices are now down so low that 10% drop means 4k big deal. 10 or 20% drop on a 400k home is a big deal. So those that do not take action thinking they can buy for 10% less will be trying to time the market and will miss the bottom no doubt. Luck is the only way you time the bottom. There is no investment expert that will tell you otherwise. Just like timing the top. thats my take on price.
2. Amercians by and large do not share homes, other than having a child come back to live with them, or elderly parent. If they did the rental market would really tank. The Asian's and Mexicans though will definatly have 2 or 3 generations in one house. You have to take into consideration your demographics in the South East, 50% or better African american, as a demographic here in the US they have the most disrupted family structure of any group by far. And a very large % do not even know who their family is much less live together. Its a Matriarchial society. women and Mothers are the strenght of the family unit. The Men come and go. Many children have no idea who their father is, thats where the term Baby Mama and Baby Daddy comes from in the US.
If you watch American sports you will see all sorts of Human interest stories with our Black star's and how they were raised by their mother and or grandmother and never new or met the father. Just the way it is.
So in Atlanta your not going to get tight cohesive family units living in close quarters.3. What I see in the rental market is on par with what Alex is talking about, there is no question huge amounts of properties being bought by Investors instead of going to Owner Occ's… Now this is great for investor short term long term not so great for neighborhoods if they get over run with rentals.
4. The feedback we get from others in the industry is there are those that claim to have renters lined up for homes in Atlanta and if thats the case they are not doing enough DD on the tenant and are going to have a lot of issues with non payment trashing of units excetra. there is no doubt a lot of rental inventory and their are renters. We are not a volume shop for our fully managed program. So In each of our 4 markets we add 2 to 4 homes a month.. company wide thats a nice pace 8 to 10 a month however in our market we are very very selective on who we rent to. Much more so than say one of the big volume players that needs to get tenants in the houses to appeaze their client and live up to their representations that induced an investor to invest in the first place. We get an average ( like Alex in Charlotte) 4 to 6 applications before we take one. We do some Sec 8 but hey have to qualify as well. There are property managers that will slam sec. 8 in just for the rent realiability factor, but the tenant can be a bad one on phycially and do more damage then they are worth.
If your having problems finding foreclosures at your price range I can only take that to mean your looking at super low end prices. there are thousands of houses that can be bought just off the MLS for 30 to 60k…
The real trick is picking the best bang for the buck in the best areas and neighborhoods.. Proximety to the freeway for instance is huge in Atlanta. And Atlanta is geographically a very very large spread out MetroPlex.
Thanks for your comments, very interesting.
DHCP wrote:Thanks Emma…interesting about the dual role (i.e., property inspector / pest control inspector)…i know pest control inspector could come quite expensive. If you don't mine asking who did you used before who is qualified with dual role?I did my DD while under contract…for me 7 days to do my property / pest control inspection…thus far both reports are ok, nothing that would scare you and back out completely….i guess for me the property that I 'm purchasing was slightly old property, but the property inspection report was o.k.
Hi there
termite inspection will cost you $75, the building inspection, no biggy.
Top Rental Return also provide great properties unfortunately their rehabs take too long, Select American Homes (Karina) is securing properties at 10-15% cheaper. Stick to the facts and figures.
I would not purchase properties that are more than 10 years.
Whoever you decide to use you need to ask:How long they have been purchasing in Atlanta
Where they are purchasing, address details
Rehab time frame/quality are they using a builder etc.I think Emma has provided some great information however I need details of properties she has sourced, figures and addresses to establish whether her product stacks up.
property I purchased : 6120 Course Side Lithonia
Cheers
WIworldinvestor wrote:Alex SC wrote:worldinvestor wrote:Hi All
another great property I purchased, renovated in 4 weeks.http://s1178.photobucket.com/albums/x374/selectamericanhomes/Course%20Side/?albumview=slideshow
This is a nice home and many can be had just like .Typical A property in Atlanta ..
Nice Job
Again this business is not rocket science as some try to make it….
Alex
Ps so it is okay for us to put some finished products up here to show before and after picks of deals.?
Yes, this was an absolute steal at $34,000 purchase price.
Thanks Alex.
Karina is on the hunt again chasing another awsome deal, will post any new properties to keep formites in the loop.jayhinrichs wrote:there ya go, why time the bottom when you can get deals like this what did you spend on Reno… Looks like the airconditioning unit had been stolen as well.what city is this in ?
Hi Jay
Absolutely.
Great deal.I paid $34,220, rehab $16,182. As I mentioned I am loading up. Don't you just love Atlanta market/figures are very attractive.
Karina's rehab team is headed by a qualified builder and his team completes rehabs within 2-3 weeks not 3 months as I know is the case with another buyers agent operating in Atlanta. This will kill my bottom line.
I also got alternate quotes, however the costings from these builders did not come close.
This property is in Lithonia, I believe Alex also purchases in this area.
Just rechecked my figures, comes in at 15.33% net.
I just settled on another deal and once the rehab has been completed will post this.
I hope this post will help other Aust investors realise that it is possible to purchase well.But that is just the beginning, organising correct structures etc. is also important.
Karina has spent considerable time working on this area and has the added advantage that her brother is an accountant and has been able to liaise with accountants in America to clarify what Australians require and how our Aust Trusts work etc. This is huge, get it wrong and it will cost you at the end.
Cheers
WI
lawsjs wrote:My sister has been operating with the name 'SelectUSA' for more than 10 years. Emma has been buying her own income property in the US (she owns property in several states) and has done since 2000. Because of the advice she was giving and requests for help she got, she started her buyers agency. She has been doing this now for the last 2 years or so with the name 'SelectUSAproperty'. Her website is, of course, selectusaproperty.com. Karina has known Emma for the entire time and only very recently set up her own US property company (though she has no US residency) selectamericanproperty. I am Emma's brother and even I didn't know the difference, I naturally assumed they were one and the same. I rarely talk to my sister, but it came up in a discussion we had about Christmas Lunch of all things. FWIW she can't do Christmas Lunch because she is flying back to the US Christmas Day to finish off an investors renovation before NYE as she does these things herself overseeing everything for her buyers. However I was utterly appalled anyone would do such a stupid thing over a name – why choose the business name of a friend of yours??? To Emma's credit she just said 'well, I think she is mad, but whats the point – she rang me and told me she liked the name, I don't care and my buyers really only want to deal with me, so they don't care!'. I have dealt with a company that did similar things to me with a business I had for 5 years. They went broke and because of their deliberately misleading advertising it caused me no end of totally unnecessary hassles. So I don't share my sisters good nature on this particular issue. Unless you register a trademark or copyright, there is only very expensive and long legal process involved in actually doing something about this. Even then you are a coin toss as to what the final decision will be. Aside from this totally unethical name choice, Karina is NOT out to rip people off and by all accounts does a good job. Karina is in Atlanta, Emma is pretty much anywhere (ATL,LAX but primarily LAS, due lower ongoing maintenance) but I just have no idea why Karina lifted someone else's name – what WAS the point???Alex SC wrote:worldinvestor wrote:Alex SC wrote:worldinvestor wrote:I would be keen on specifics on why you are investing in specific areas the pros and cons.I mentioned in previous post that I am investing in Atlanta. I do believe however that prices may still fall back. Your thoughts would be appreciated.
Thanks WI
I only deal in Atlanta and Charlotte NC
My thoughts are the rents will need to come down in Atlanta. As the flood of foreclosures hit the market.Prices are still going down.
I say this because what we bid on 6 months ago to now.I offer less and start my offers way lower.Most of my old offers were in the $30k now in the $20k range.With that being said the later months in the USA banks are always more negotiable.Which could be the reason for the lower numbers.
Now in Charlotte there are not as many foreclosures.Well let me change that there are alot of the homes.Just not the prices I am willing to buy at. Rental market still holding strong but turning down more renters then normal. I try to take the time of year into consideration when buying and renting homes. Nov and Dec always bad months for rental income in the USA .With the holidays 2 in row ( thanksgiving and Christmas) At the same time the first of the year great time for rentals.With the most blue collar workers in the USA doing rapid tax refund.This is one time the average person will have lump sum of money. To pay deposit and first months rent. I have had alot of tenants pay me for 3 to 6 months .During this first month of the new year .
Alex
Hi Alex
why will rents go down, what happens to those who lost their homes, don't they rent?Yes but reality if they lost their homes could not afford it. How will afford higher payments with rents.
I think there will be a flood of homes on the market after the first of the year. Again all this is speculation .
Alex
Hi Alex
I think the Atlanta market is very tight, I am finding it very difficult to source suitable foreclosures in my price range. Perhaps this will change, but the banks are strategic when releasing foreclosures.If you are right regarding rents, how are you personally mitigating this risk.?
I hear folks in US like bigger homes, a investor I know suggested purchasing larger homes so you have perhaps the possibility of 2 families sharing, not sure whether this would work. Any thoughts.
Alex SC wrote:worldinvestor wrote:Hi All
another great property I purchased, renovated in 4 weeks.http://s1178.photobucket.com/albums/x374/selectamericanhomes/Course%20Side/?albumview=slideshow
This is a nice home and many can be had just like .Typical A property in Atlanta ..
Nice Job
Again this business is not rocket science as some try to make it….
Alex
Ps so it is okay for us to put some finished products up here to show before and after picks of deals.?
Yes, this was an absolute steal at $34,000 purchase price.
Alex SC wrote:worldinvestor wrote:I would be keen on specifics on why you are investing in specific areas the pros and cons.I mentioned in previous post that I am investing in Atlanta. I do believe however that prices may still fall back. Your thoughts would be appreciated.
Thanks WI
I only deal in Atlanta and Charlotte NC
My thoughts are the rents will need to come down in Atlanta. As the flood of foreclosures hit the market.Prices are still going down.
I say this because what we bid on 6 months ago to now.I offer less and start my offers way lower.Most of my old offers were in the $30k now in the $20k range.With that being said the later months in the USA banks are always more negotiable.Which could be the reason for the lower numbers.
Now in Charlotte there are not as many foreclosures.Well let me change that there are alot of the homes.Just not the prices I am willing to buy at. Rental market still holding strong but turning down more renters then normal. I try to take the time of year into consideration when buying and renting homes. Nov and Dec always bad months for rental income in the USA .With the holidays 2 in row ( thanksgiving and Christmas) At the same time the first of the year great time for rentals.With the most blue collar workers in the USA doing rapid tax refund.This is one time the average person will have lump sum of money. To pay deposit and first months rent. I have had alot of tenants pay me for 3 to 6 months .During this first month of the new year .
Alex
Hi Alex
why will rents go down, what happens to those who lost their homes, don't they rent?CasaHunter wrote:I am planning to buy a property in Atlanta and I would like to know if you have had any experiences with any particular manangement company? good or bad.. Does anyone know Key property investing?
Thank you !I have not heard of them,
I have been purchasing in Atlanta for a while now and have used Select American Homes, Karina is a successful property investor in Australia and who has been purchasing in Atlanta for herself and her clients for 2 years now. She charges a fee, similar to buyers agent but you purchase direct from the bank, no 50-100% mark ups. The services include purchasing, renovating and property management services.
My last purchase was brilliant it was purchased/renovated/tenanted within 4 week timeframe and achieved $200 per month more rental income than what was originally quoted.
All costings from county taxes, rehab, setting up fees, rental esimates etc. are outlined and there are no hidden costs. Karina keeps her rental quotes real not like some companies which over state rental figures to make the net rental yields attractive.
I know where Karina is buying as I have visited these areas and can highly recommend her to anyone looking at purchasing in Atlanta.
Check this out
I like the Atlanta property market where if you are buying very well can purchase at around $25-30 per sq ft and I believe it costs around $80 sq ft to build, well below building costs.
Could not agree more, there is no point chasing growth as who the hell knows when the US market will recover, cash flow is the key for my strategy and the Atlanta market provides good returns.
WI
You need to discuss this with your accountant.
It may be too late now to get an extension, not sure.
My accountant lodged an extension for my US tax in October and is working through this now. He also stated that it is difficult to try to align US/Aust tax if you do not sort it out in the first instance.
I was told to align my US tax with Australian tax, that seems logical to me. Don't understand why any investor would not want them aligned.
