I heard from a friend today that 60 minutes did or were doing a segment on Buffalo all the Aussie investors that are getting ripped off. Has this already been to air? Or is it coming up?
Any info would be appreciated.Kind regards Rick
We buy properties cash fast settlements no fees no fuss. contact me on 0408 355568
[email protected]It was ACA from memory and the guy bought it off EBAY (aired the other night)
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorThe property was advertised on Ebay and purchased by a Brisbane Dentist for $11000 USD.
Regretfully the property advertised and the property purchased were 2 different properties. The purchaser did not visit the property or did he engage the services of someone to inspect the property on his behalf.
The Vendor agreed to renovate the property for a further $7000 USD but after parting with his money found out the that the Vendor has shot through with his money leaving him owning a unliveable property in the middle of the hood area.
(funny i have heard this before from another client who was dealing with an Australia Investment outfit who promised the same)
Moral of the story is if looks to good to be true then it probably is and irrespective what the purchase price is associate yourself with people who have experience in that area you are looking to invest. Undertake your own Due Diligience and use a Buyers Agent or someone has been to the area and owns property there.
Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.19%**
Licensed Financial Planner
http://www.yourstatefinance.com
[email protected]
Ph: 07-3720 1888Richard Taylor | Australia's leading private lender
11k usd – wonder what that works out to be as a percentage of the new construction cost ie if this is 5% of the new construction cost ignoring land value (which seems like it is worth nothing or less than nothing when taxes are added in and holding costs and negative appreciation) then you have a property that has used up 95% of its usable life or is worth nothing. eg if a new dwelling cost 200k to building and you purchase your land and dwelling for 11k – what the?? What do people expect???
Where are the valuers in all these USA horror stories. Surely there is time in the DD process to engage a valuer at $300 to 500.
(funny i have heard this before from another client who was dealing with an Australia Investment outfit who promised the same)are we legally allowed to name this outfit to prevent others for falling pray or is it something well known in the OZ/USA investors network.
Mortgage brokers may help here – is the fact that people are buying with LOC or equity loans for the whole of the purchase price circumventing the natural Due Diligence process imposed by lending institutions ie even the most basic such as valuations, building reports etc seem to be left out of the house buying equation.
cheers
I Buy Property http://www.cashflowproperties.co.nz
DLPP
I would prefer not to post it publically although i think the forum member knows who he is.
With regards to finance i agree with you. If you pay cash you circumvent part of the due diligence process. I always suggest my clients get the US Bank we deal with to undertake an appraisal and then they can make up their mind with regards to the true value.
Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.19%**
Licensed Financial Planner
http://www.yourstatefinance.com
[email protected]
Ph: 07-3720 1888Richard Taylor | Australia's leading private lender
DLPP,
Buying in cash does circumvent the requirement of doing your own due diligence. For those obtaining US finance, the lenders are generally very careful, and often will not just carry out an appraisal but also an engineering report and possibly building and environmental reports. There is no way that any lenders would loan against houses in the “no-go” zones. In this respect financing purchases through a US lender can force people into doing some of the necessary due diligence required to ensure they don’t get scammed.
Kind Regards,
Cameron Perry
Director
Perry Financial Strategies
Level 13, 30 Collins St
Melbourne VIC 3000
Ph (03) 9662 1999
Fax (03) 9662 2044Exactly Cameron, and I personally would never buy in an area that a bank is “not willing” to finance.
Come on Richard name the guy, there are enough sharks out there as it is if we can flush some of them out then it is for the greater good and if they are wrongly accused and do have agood record (which has happened on here before ) you will have people coming out in their favour anyway
when the going gets weird the weird turn pro
hi all,
Exactly Cameron, and I personally would never buy in an area that a bank is “not willing” to finance.Very wise!
I Buy Property http://www.cashflowproperties.co.nz
Hi Guys
is it possible to see this story ??
(funny i have heard this before from another client who was dealing with an Australia Investment outfit who promised the same)Richard are you saying that someone on this form has done this to a buyer ?
regards westan
We find deals in the USA with growth potential, with equity and showing at least 14% gross returns. Email at [email protected],
http://www.iproperty.net.auIt pays to be buyer beware.
As these new ways of investing rise up you will find that there are shonkters out there willing to take your money with no consience. It’s a little like the days when wrapping was all the rage and some “wrapping agents” sold thier services and provided inadequate supporting materials (eg. Wrap contracts with references to non existing clauses etc) and then took commissions prior to any deposits being received leaving people high and dry.
So remember. Buyer beware. Do your due dilligence not only on the property but also on the people that you’re dealing with. You may think you’ll be laughing all the way to the bank but you could be the one providing the laughs for someone else.Cheers
Chris.
[thumbsupanim] “If you don’t enjoy you’re wealth as your building it today you may as well be poor, cos you might be dead tommorrow.”[thumbsupanim]
I could not agree more. In fact what some people are doing is worse than the marketing companies because they are accepting a fee from the buyer then they put them into rubbish. The fees are also high. I am currently in San Antonio doing some work for a local agent. The market is rising but investors need to be aware that in Texas property taxes are at 3%. Unlike Australia, if you have put down a small deposit and you pull out of the contract even close to settlement all you are going to loose is the deposit. We are working on buying forclosed property renovating them and selling them to investors with a tenant and recieve around a 10% return with around 10% equity included. I will keep you informed. It is important to keep in mind that this service is aimed at the American market. Clearly to an American investor who in th US tax system their is a greater advantage than an Australian investor.
The number one rule is that if you are spending your money do your own due dilligence.
Nigel Kibel
http://www.propertyknowhow.com.au
Australian and New Zealand The United States Property Researcher and education
One Day property investment research workshop The United States. Please register your interest
http://www.changingplaces.com.au Buyers advocate.Nigel Kibel | Property Know How
http://propertyknowhow.com.au
Email Me | Phone MeWe have just launched a new website join our membership today
Hi all
i think the story highlight how careful you need to be in the US when investing.
I have a Cousin in LA and his wife works for Orange County in the building dept (not sure which one). I remember she says that its quite common for contractors to go a few great jobs build a a name then accept heaps of deposits for work and then vanish.
regrads westan
We find deals in the USA with growth potential, with equity and showing at least 14% gross returns. Email at [email protected],
http://www.iproperty.net.au
You must be logged in to reply to this topic. If you don't have an account, you can register here.
