Hi
Just came back from Texas and meet up with 3 rehab teams, they buy propertys undervalued at tax foreclousures home stead and non home stead, pre foreclousures, morgauge foreclosures also government hud homes. I went to the city steps to watch how it all works and learnt heaps from the locals.Anyway I am looking at being an equity partner for these teams and see how it goes.
I wanted to talk to people about there expeirances or if you want to talk to me about mine you can contact me on 0408355568 or 03 93183856 or email on [email protected]Kind regards Rick
Monopoly, my favourite game
Hi Ricky
it looks like i might be the only one on this forum who has been buying in this market ? No one else replied.
Just to clarify for those who want an explaination, if a person defaults on a mortgage in the USA the banks foreclose on the person and sell the house off at a bargain price.
For everyones interest buying foreclosures for us as “out of town” investors is potentially a Minefield. When homes go to foreclosure there is an auction, if you win you get the home. There is no comeback, so subject too finance or inspection. One of the other danagers is the home might still have debt owing on it such as a 2nd Mortgage which you will inherit. There is a real danger for those who haven’t done their homework or don’t know what they are doing. One very experienced investor i know in the US said she wouldn’t buy at foreclosure as your “swimming with the sharks”
Anyway there are better ways to buy than the Highly competative foreclosure markets.
One is Preforeclosure. This is before the bank foreclose you get the owner to sell at the price they would get if its sold at auction.
This example of mine will explain. I bought a home in Texas. the owner owed 54K to the bank. the bank was going to foreclose on them and not only take their home and give them nothing but also destroy their credit score (very important in the US, it dictates if you get a loan and what interest rate you pay). We were able to come along and offer 55K, so the seller gets $1000 in their pocket to restart. They also keep their credit score in tact. So in some ways i have taken advantage of someone in a bad situation. but in another way i’ve saved them from the treatment the Bank would give them. The seller was happy so thats an indication.
With this home for 55k i spent 13 K on it and now its worth 88K. so there are some great opportunities in this preforeclosure market.
Now before you all go running over to the USA a bit of info about preforeclosures. There are people out there who just target these people to buy their home. When someone is about to be foreclosed they are placed on the Foreclosure “list”. this “list” is publically available. these home owners then get bombarded by letters, and door knockers. So like foreclosures its very competative.
I work with people in the US who have some incredible ways of getting to these home owners before the “list is out” They get the deals before anyone even knows about them !
This is the market to be looking, the pre-preforeclosures.Hope this helps anyone who was interested.
regards westan
Properties in the USA 15-25% returns- email to join our database [email protected]
Hi Westan ,Rick,
You aren’t the only ones after all.
Am just about to close on a pre forclosure in Texas
where I will pick up approx 15k in equity and 15% return.Really you can do a rehab and get just as good a result as a forclosure with less hassle.
Cheers.
Hi Flash
well done, and i agree with your comment about the rehabs.
hey where abouts are you buying ? Don’t need to publize here, but i’d be interested. PM me if you want. I’ll tell you mine if you tell me yours [biggrin]
regards westan
Properties in the USA 15-25% returns- email to join our database [email protected]
Hello guys,
West once again wealth of info their [biggrin]
Ok I have no idea what the following is
1. Rehabs ( this property that needs rehabilitation )just guessing there [blink] home2. stead and hud homes?
Sounds like you guys are going to do well over there.
One more, investing overthere can you organise finances here or there? or both?
Cheers keep the info rolling.
Hi Guys
flash, i wanted to add one comment that for Aussies trying to buy below market isn’t that easy. I agreed with your comment before but wanted to clarify. Homes that are listed of sale through R/E agents are listed on the MLS. Its hard to pick up bargains on the MLS. Anyhing thatsa super deal goes really quick.
The way to get good buys is to use locals who know the system. And for us to be patient while they are looking. I’ve been over many time to Texas and even though i know the cities very well i would always use a local to help. Not neccessarily a R/E agent.
Just for the record did you use a local to source your deal ?Auzzielad
rehad – yes a renovation
HUD- gov housingWith the hurricanes the Hud homes in one city i’m active in were all withdrawn from the market to make them available for New Orleans victims.
Finance is easy for Texas and you can get it from some specialist brokers here or from the US. qlds007 from this forum is one, based in QLD.
regards westan
Properties in the USA 15-25% returns- email to join our database [email protected]
I think it is quite easy to buy homes under value in the USA it just take a bit of homework, it is a lot easier than buying propertys under valued in aus.
I do a agree that to use a local is a good way to do so.Monopoly, my favourite game
Thats exactly right Rikky
thats just one of the great attractions of buying in the US,
regards westan
Properties in the USA 15-25% returns- email to join our database [email protected]
Hi Westan,
Yes I did use a local to buy over there.
I wouldn’t even think twice unless i had been on the ground for 6 months to a year.Cheers
You can definitely buy below value in both NY state, and the other snow states. have done and will continute to do so and its agreat way of creating instant equity on closure with a cash purchase then a refinance, but you have to be prepared to watch and wait and then put in offers that will find a motivated seller. same principles as in NZ,
But as westan says u have to really get to know and understand local conditions, local people, time of year to buy, i.e. when the other out of town investors are not there. you only develop this with time this does not happen instantaneously for those who claim to have gone over and built their team( whilst this is vital you must work this team i.e. provide them with cash not just phone calls, thats how the US works cash is king,a business relationship over their must involve cash benefit for the US team member end of story), and then you only get competitive advantage in this market with knowledge and thats not just a bunch of research which is done pre market but with knowledge you develop by being active in the market, buying, selling, rehabing, letting mixes of them all.
wise advice flash
when the going gets weird the weird turn pro
I could not agree more. I have just gotten back from the States and once my head clears from travelling I will post in more detail. A small group of use are purchasing an apartment complex and we have carried out extensive research to this point. We will not promote the United States until we are confident that all of the information has been comfirmed. The United States is a great place to invest. Buying Foreclosures is a excellent way to make money and create equity. I have spent a lot of time with experts on the ground learning how the system works. It is not that hard once you learn the rules. We also have someone on the ground who knows the market back to front and will assist us in aquiring property through the forcloasure method
Nigel Kibel
http://www.propertyknowhow.com.au
Australian and New Zealand The United States Property Researcher and education
One Day property investment research workshop just $290 Melb 26 November Buying in the United States and New ZealandNigel Kibel | Property Know How
http://propertyknowhow.com.au
Email Me | Phone MeWe have just launched a new website join our membership today
From what I have seen over time buying foreclosures and pre-foreclosures with established US teams in Texas has to be the way to go. They do it bigger in Texas.
It all comes down to understanding the market. Once you know the product and market it becomes easy to reconise the opportunities
Nigel Kibel
http://www.propertyknowhow.com.au
Australian and New Zealand The United States Property Researcher and education
One Day property investment research workshop just $290 Melb 26 November Buying in the United States and New ZealandNigel Kibel | Property Know How
http://propertyknowhow.com.au
Email Me | Phone MeWe have just launched a new website join our membership today
Exactly , I couldn’t agree more
Monopoly, my favourite game
Hi bardon
yes your right Texas is the way to go.
Nigel, as someone who has been active in Texas for over 12 months don’t be suprised if your let down by folk in the US. I’ve had to tinker with my team in the Texas a number of times before getting it right. Some people are still the same. Sorry to any Americans reading this, but they have a nack of saying all the right things but failing to deliver what they say they can. time is the test.
regards westan
Properties in the USA 15-25% returns- email to join our database [email protected]
Hello West wealth of info as normal you are
When you talk about your team in the USA, is this like accountant, solicitor etc,
or
research team
or
group of investors, investing together?Just trying to catch onto the lingo.
Cheers
Hi Aussie Lad,
What Westan means by your team is leveraging of people such as Real estate agents,building inspectors,building contractors,Attorney,property managers etc.and building a good relationship with them.
Having a good team is very important in your success anywhere let alone in the US.
I could not agree more. I already have a good team in ther United States and have been working with another team in New Zealand for the past few years. Without a good team it makes it difficult to operate well.
Nigel Kibel
http://www.propertyknowhow.com.au
Australian and New Zealand The United States Property Researcher and education
One Day property investment research workshop just $290 Melb 26 November Buying in the United States and New ZealandNigel Kibel | Property Know How
http://propertyknowhow.com.au
Email Me | Phone MeWe have just launched a new website join our membership today
My understanding of foreclosures in the US means you must have the dollars available and have yourself or a rep/team member at the auctions.
You can also look for foreclosures through banks where they are known as REO’s (Real Estate Owned by Banks).
I think the risk is high as would be the level of education needed.
Immediate Income potential would be low, especially if repairs are neccessary it may take 3-6 months for repairs, however after that you may reap a great sale price.
As far as renting goes it may be a good option/return or would you guys be looking at wrapping it etc?
Wasp
**************************************************Its not what you earn but what you do with what you earn
Your right you have to pay cash. There are a number of rules you need to follow depending on the type of foreclosure you are entering into. In many cases you can not inspect the property at least not on the inside. You can certainly made checks as to whether there are any out satnding loans on the property or outstanding taxes. These are risks that can easliy be checked. Hense the importance of having a local team on the ground. If anyone is interested in forclosures we can assist you.
Nigel Kibel
http://www.propertyknowhow.com.au
Australian and New Zealand The United States Property Researcher and education
One Day property investment research workshop just $290 Melb 26 November Buying in the United States and New ZealandNigel Kibel | Property Know How
http://propertyknowhow.com.au
Email Me | Phone MeWe have just launched a new website join our membership today
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