TLC investments
I attend 10 to 15 seminars/talks a year of all sorts of investing, so I am quick at evaluating want I want to do, and all the best deals tend to offered on the night.
And I read that the extra conference ticket was available for tonight only.TLC you now have a copy of the book, are you aiming to follow Steve's 4 steps of having a plan in place before 2010?
I aim to read the book the next 2 weeks and work on a strategy for 2010.
AND of course save some money to buy some US property or Tax Liens! I figure by May 2010 I'll have worked out a way to buy in the US and be doing it.
It's finding some contacts.
Hi Joanne
I take it you found that dela last night to be of great value.
I havent been to many seminars or talks lately, you could go to one every weekend if you wanted to, all trying to sell you their program, or their offers, or their packs of DVD/ CDs. I have been burnt before and dont like the feeling that some pple are taking advantage of other peoples ignorance.Anyway, I will get started in the book.
Hello TLC Investments,
you are right, their is alot of various degree seminars. I know it’s a good seminar if I go home and I am so excited I can’t sleep, and that’s what happened tuesday!
Back to the US investing I shall continue research, it’s tricky as I can find several property/foreclosure sale database sites. But unless you have the other parts of the team, lawyer, mortgage broker, accountant looking into if it’s worth setting up a trust or company, and of course a property manager.
very keen to hear if someone has successfully brought and HOW..
Hello again
I have been property investing in America and know a multi property is a nightmare you will see the dollar sign on cash flow but look right through the real issues and have at least one unit empty most of the time.
Why
Well the bargain properties sell around $30,000USD Rochester, Buffalo and Las Vegas I should know I was there in July this year walked through heaps of them, and they are old like most of the properties under $100,000USD and noise and all sorts of issues arise just for a start and what demand would a multi home offer against a single family home where everything is yours?
Single family is the way to go and will deliver more passive income and be in demand form renters always.I just read in the latest Success magazine something like (don't quote me) Warren Buffett buys when people are scared and sells when the market is strong and this guy just spent something like 200 million on the stock market in two companies,
I think General Electric was one but anyway what I am trying to say be scared if you want to be scared and this will slip by.Now is the time to strike and now is the time to grab this market by the neck and take advantage of the hottest property market in the world!
Can you imagine Warren Buffet buying stock in the market now? who dose he think he is……oh that's right a billionaire
Buy when the market crashes and sell when it strong or hang onto the passive income.
I went to the states just for this reason and with all the problems and lack of information on this off shore investing I have established a website to walk people through it stress free.
Detroit is the place to be it is red hot quality homes with great demand and high rents and the more people put it down bad this bad that all the better for me because I have seen it I have homes there and I love it, the more doom and gloom the longer the low prices may last and the more property i can secure for passive incomeBe sure when getting advice always ask if they have done what they are talking about first and be sure they did it correct.
Best of luck with your investing and hope you find passive income soon.
Hi Jason,
Congrats. You've certainly created an great niche with local knowledge and your website is excellent. With regard to multi family, you are correct in that the they do require greater management, same as in Australia or anywhere for that matter, but there are many upsides a single dwelling does not offer. Both sides are of equal value really, it's just a matter of what strategy one wants to take.
I was talking to a Detroit local last week who gave me an amazing insight into the city I hadn't realised before and I now know why some locals are doing extremely well there investment wise. Same applies for Cleveland too. Really it is a matter of Aus. investors choosing an area and visiting it. If that is with the aid of an Australian living there, even better for them.
I am in NYC and have purchased 4 houses in Oklahoma City. I am scouting for NYC property as well for Aussie investors who have contacted me via this thread. Just found a 3plex apt in Prospect Park Brooklyn in foreclosure asking $295k. The comps for the street and immediate vacinity are $850k and more, so if that is not enough incentive to act I don't know what is. More expensive apartments in Manhattan are selling for $200-$400,000 less then last year as well.
My understanding of Tax Liens by the way for anyone reading and interested is basically buying the tax owed on a property but not owning it. This can be done via auction and usually for less than is actually owed. Depending on the US state you can then charge 18%pa on that debt for the owner to pay the tax owed and reclaim their property. If they don't in a minimum of 2 years and up to 7 years, then you can apply for the City Office to sell the property usually via auction to get your money from the sale proceeds, plus of course the 18%.
Hope this helps someone.
Ian
Hi Ian
Can I ask why Oklahoma? I"m looking to invest in the US and just want to know what cities to start researching. My thoughts were Florida….
Ta
RebekahI saw the question asked about investing in detroit. The problem with detroit is that they are bleeding people. You can buy things for cheap the question is will you even be able to rent it. Even if things reyrn for the auto industry so much of it has moved outside of detroit that it has crippled the city. I live in Cleveland and we got hit very hard we are lucky here because we have two very large hospitals that keep on growing, without them we would be just like detroit. If anyone is intrested in investing in single family and multifamily houses in the Cleveland area contact me at [email protected] I own several homes and am currently looking for capital to expand.
Interesting reading. The new FHA waiver should help things greatly.
What is the FHA waiver?
Hi Tuli34
From the latest figures out on the US property market Cleveland is actually making a comeback after being one of the first to hit the bottom. I have seen some great multifamily deals in Cleveland but know little of the city.
Useful tool, among many is http://www.housingpredictor.com
In answer to a couple of questions…
FHA stands for Federal Housing Administration and if you google FHA Waiver there is plenty to read about it.
Oklahoma because it wasnt hit as hard by the economic downturn and I bought off landlord owners who just wanted an out, not banks. There is a law that states foreigners cannot own property in OK for longer than 7 years so I wouldnt advise investing there if you are a buy and hold investor.. As I am not holding these properties it worked fine for me.
Have a look at the website above to start with and read up about each state, the trends and each city. That may give you a starting point if you are confused.
There are also some people selling USA properties in Australia to ill-informed local investors. I just advise each of you to do your homework on these operations as some of the people involved have never set foot out of Australia, yet are giving a lot of advice about cities and suburbs in America they know little about. What they are doing is emphasising the gross return to get you excited. Don't be fooled by the high returns only, as these can be depleted very quickly once all outgoings and possible social/tenant issues come to light. Investing in buy and hold property in Atlanta is one that comes to mind.
Atlanta has a 60% black population which is high. On it's own it means nothing, but mixed with education, unemployment and economic status, you get a different picture. The city has been hit extremely hard by the housing problem. Unemployment is high and there are thousands of houses going cheaply. The 'good' suburbs are few and far between and you can bet your last dollar, that the many of the houses going for $10-$50k are not in these suburbs or they are in what is referred to as the 'cookiecutter' developments. These are small subdivisions of usually one street cut into a section of forested area with up to 100 houses, all the same. In some of these streets over 50% are in repossession. Have a look at any American city on google maps and you can see these new subdivisions on the edges of the city ( Try Atlanta and you will see what I am talking about). Zoom in so you can see the street name, then type a number and the street name in the search bar and see if you can get a street view and have a look for yourself.
This little rant is not to put you off at all because there are great deals around. What I am inferring to is to do your due diligence x 200% and ensure you know what and where you are investing in. The good ones often go so fast that down here in Australia we wouldn't even know they existed.
Wow I had no idea laws like that existed for OK. Do you know if they exist in other states? What happens after 7 years if you still own the property?
Thank you for these tips. I know a lot of people seem to be going for the obvious areas like Las Vagas, Florida, Detroit and Atlanta. Those areas still seem to be in decline. I want to invest in a city that is moving up not down.
all the main cities in texas are moving up
Nigel Kibel | Property Know How
http://propertyknowhow.com.au
Email Me | Phone MeWe have just launched a new website join our membership today
OKeydokey Oklahoma is the only state in the USA with the no foreigner land laws as far as I know. Hard to pick areas that are on the up. Look at the economy of the state first, look for job growth, look for infrastructure dev. – same as here in Aus. Many of these point to Texas and Austin is doing reasonably well, also San Antonio, Houston to a degree and other areas. Stay clear of El Paso, but the far west corner of Texas down near the Rio Grande was doing exceptionally well up until 2008, not sure now.
One thing to consider is the spin doctoring about the market on the up, but a 20% or in one case 50% rise in value in one little town is not hard when the base is so low. A house valued at $15k is suddenly worth $20k and we have a 33% rise. Means very little. There are a lot of investors in the market right now and the low end of the market has a lot of activity. Go up to the middle and high end and you will see that values are still going down. Also to put a spin on prop value growth and in the same breath happen to mention that foreclosures are 15% up two years after the subprime problem began, should tell you exactly where the market is right now.
Also, It is expected that upward of 1.45 trillion dollars is caught up in the commercial property arena with owners unable to get the rents they need to sustain their loans, nor able to refinance. Late payments on commercial loans increased by 400% last month meaning technically they are in the first stages of foreclosure. The ALt A loans need to be refinanced between 2009 and 2011 so expect another tide of extreme debt to be announced by the banks. They know this is coming and they have no way of stopping it.
What effect will this have on a) the federal govs ability to sustain their stimulus packages b) the amount of money already in the system, c) the ability of the banks to survive what could be worse than the residential subprime fiasco, d) the availability of what little credit there is left, e) the length of time the residential market will require to turn around, f) your investment and whether it will retain its value at all.
Because it is hard to answer these questions exactly right without looking into a crystal ball, it's best to er on the side of caution and make sure whatever you invest in does not involve retail or business of any kind, has a strong or multiple cash flow component, is purchased at a deep discount and is in a state that has some prospects.
To end , here are some Americanisms that may or may not help you understand the gobbledegook of finance and property in that neck of the woods.
Monetary Medicine – govt financial assitance.
Greenback Emissions – overload of govt spending
Underwater – negative equity in your property
Also – upside down – owe more money than have in equity
Burnouts – property that is bringing down the neighbourhood
Cash For Trash – property with owner inflated/unrealistic prices that make a viable exit strategy difficult
Hi
Sapphire said:
"There are also some people selling USA properties in Australia to ill-informed local investors. I just advise each of you to do your homework on these operations as some of the people involved have never set foot out of Australia, yet are giving a lot of advice about cities and suburbs in America they know little about. What they are doing is emphasising the gross return to get you excited. Don't be fooled by the high returns only, as these can be depleted very quickly once all outgoings and possible social/tenant issues come to light. Investing in buy and hold property in Atlanta is one that comes to mind.
Atlanta has a 60% black population which is high. On it's own it means nothing, but mixed with education, unemployment and economic status, you get a different picture. The city has been hit extremely hard by the housing problem. Unemployment is high and there are thousands of houses going cheaply. The 'good' suburbs are few and far between and you can bet your last dollar, that the many of the houses going for $10-$50k are not in these suburbs or they are in what is referred to as the 'cookiecutter' developments. These are small subdivisions of usually one street cut into a section of forested area with up to 100 houses, all the same. In some of these streets over 50% are in repossession. Have a look at any American city on google maps and you can see these new subdivisions on the edges of the city ( Try Atlanta and you will see what I am talking about). Zoom in so you can see the street name, then type a number and the street name in the search bar and see if you can get a street view and have a look for yourself."
I would be happy to take on your bet for your last dollar! Most of the houses we are buying in Atlanta are within 4 miles of CBD, in areas with predominant white collar families and netting in excess of 20% return. There are areas that in Atlanta, like any city of 5 million people where crime, drugs and vacancy are a problem. Fortunately, we have 2 Australian buyers in Atlanta working with local rental managers and property brokers who have told me that they know who built the house, why the property was foreclosed and where to avoid buying in that area. I agree that buying without sound local knowledge is an impediment to good investing. That is why we spend so much time on research and getting resources on the ground.
The great thing about Atlanta is that the prices are so low. We just bought a house 1.5 miles from the city, built in 2005, sold in 2006 for $350,000 for $42,000. A block of land in the same street is going for $40,000. You get a free, near new 3 bed 2.5 bath house! Rent is $1,300 per month and after all expenses it nets 21.5%.
I have discounted buying in Detroit to investors previously for the reasons of shrinking population, crime and unemployment, but I read in this forum there are investors with sound local knowledge buying very well there and making money. It is easy to criticise what you do not understand. Unfortunately much of what is given as good advice and warnings is based on assumptions made rather than than the facts of the matter. I will be saying "I don't really know" more often in the future rather than trying to look smart.
Our view on Atlanta is that it will provide huge discounts on great property for some time to come. The major risk factor of vacancy is mitigated by sound management and a highly competitive approach to the rental market. We viewed the risks carefully when proposing a strategy of quality rehab (renovation) and competitive rental pricing. We have been talking to all the dedicated property management companies in Atlanta and have had great results with our top two. Their screening of tenants is first class and their support with local knowledge has been excellent.
My buyers agents are also placed to support investors after purchase and continue to provide expert Aussie intervention with a cricket bat for negotiation when necessary. We have found Atlanta to be a friendly, laid-back city with plenty of helpful people, including many wonderful African Americans. Can we please drop the "Black" label, after all they do have one as president now.
We place hundreds of offers on property all the time. Out of a hundred offers, only ten will be accepted and of those ten, 3-4 will pass our inspection tests. Only after they have satisfied our due diligence for location, cost to rehab, rent-ability and comparative value are they offered to our clients. We are currently bringing through 4 -6 properties per week and plenty of happy Australian investors are buying them.
I would encourage every investor to do their own research and verify all the information they are given before committing to a purchase. Ensure you are in control of the transaction and only pay money into your own lawyer's trust account. We operate in a totally transparent way and assist our clients to access information, call and talk to all the people on our team and do independent research to ensure they are making an informed decision.
My first introduction to companies offering US property to Australians was from a company doing seminars on the Gold Coast. They were offering us $12,000 commission if we would encourage buyers to purchase Las Vegas condos for $95,000. Our research showed us they were buying them for $44,000. Needless to say we declined their offer.
I have been buying investment property as a licensed buyers agent since 2003, and take very seriously the fiduciary responsibilities of that position of trust. I can only act for my clients best interest in everything I do. Where their is integrity, there is high performance. Everything works better. There is nothing to hide. We expect integrity from everyone in our team and from all our business partners. Where that is not evident, we have parted company.
We are achieving great results and invite all your questions, doubts and fears. Trust is earned through loyalty and truthfulness and we are ready to take on any challenge to earn the right of your trust.
Please take the time to visit our website, contact me and find out for yourself. We want to make it easy and safe for you to invest in the USA.
Many thanks
Vincent Selleck
Licensed Buyers Agent
Accredited Mortgage Broker
888 Wealth Creation Pty LtdHey Vincent
You're a funny guy! You contact me on my personal email to enquire as to whether we can possibly work together, then infer I am am an uninformed Mr Smartypants on the forum.
Sorry I hit a nerve with you with regard to your credentials, but I wasn't picking you or your business out specifically, in fact I have never heard of you until your email arrived the other day. I could have pinpointed, Vegas, Miami, Detroit, for similar or different reasons, but I chose Atlanta. Remember this is a chat forum. The topic of this chat is USA Investing – My Opinion Only and you have to realise that first and foremost. I read your thread and good on you for adding more information to the readers of this thread. Now it gives your opinion.
I have been to Atlanta and seen first hand what has happened there, what is available and analysed the pros and cons for me. I have a close friend from Atlanta who is also a propety investor and he ( we) work with another friend who is an agent there, so I believe I have some understanding of that city. I have also seen properties 'spruiked' from Australia in Atlanta and I know the neighbourhoods they are in and personally I didn't feel comfortable getting out of the car when I was driving through those neighbourhoods. The 'white' ( am I allowed to say that) people walking the streets didnt look too friendly either.
Ironically we agree in most part, as in "do your due diligence" and this above all, I believe, was the point I was making. Sorry I used your stomping ground as an example, but what I said about Atlanta is true and no-one can deny that. Also. there are 'buyer agent' businesses ( you mentioned one in Vegas) who have their own interest at heart first and foremost rather than being fully transparent as to the real details of the deal.
.
One other thing, how well do you know Atlanta? Population 540,000. Half the size of Adelaide.
There seems to be a lot of people dealing with America. It concerns me that so many are dealing with the bottom end of the market. In Australians cities in most cases the closer to the city center the stronger the values. In many American cities the slum areas can be close to the city centers. In San Antonio if you are looking at property within walking distance to downtown or the Alamo its probably a bad location. It is so important that you research your markets carefully. Personally if I buy property I do it in person. I do not rely on the word or knowledge of buyers agents. I have been a buyers agent and reseacher for a number of years. Buying in America is great but always measure twice cut once when t comes to buying.
Nigel Kibel | Property Know How
http://propertyknowhow.com.au
Email Me | Phone MeWe have just launched a new website join our membership today
Hello
Throwing my hat in the ring here
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We have targeted our investing to finding properties that are close to the local State College(Universities) as well as any major military installation. Our tenancy occupation is constant, even during the 2-3 months of summer when College is out as many of the folks maintain their jobs. also check on the areas unemployment rates to get an idea as to whether the property you consider will be affordable to the people living there. We looked at many cheap properties but decided that having an income producing investment far outweighed an empty one! Another bonus of renting properties to anyone in the military is that the income is paid directly to our company from their payroll,there is a constant need for short term rental (3-6 months) in many areas and most times the rates for rental will be higher to compensate for the short term lease.,and the personnel do take care of the home/apartment.
There are many local newspapers from each county/major city in the US that are online to read. It will give you a good idea of what future plans are for potential growth there etc. Most counties also are online and you can access the monthly building permit applications/approvals. This is also another good indicator as to how much growth the particular area is going to have in the near future. If, anyone is interested in further reading I would be happy to help look up the area/county papers and send the link on. I know how hard it was when we first started our investing and we lived here!
Thanks for reading this far, and i hope it might help in some way,
Cheers
Jeansapphire101 wrote:There are literally hundreds of thousands of deals available now across the US. This is not an exaggeration of the numbers. I use software that brings up many of the bank owned properties daily. You literally just have to choose any state, and city and property selling anywhere from 2c to 90c in the dollar will be selected and there are hundreds and hundreds and hundreds of them. The choice is quite overwhelming.If you'd like to buy a 4 plex (4 units) today in Oklahoma City in a decent neighbourhood renting for $2000 per month you'll need $30k. If you'd rather 16 units, that will cost you $400k, an 8 unit brownstone building in Harlem NYC that will rent for $10,000pm will cost $600k.
The situation here is so different to Australia, it's hard to imagine and if you can't find a deal everyday, you're either not interested or in jail, (or both).
Try going to the websites for Bank Of America or any large bank and the 2 gov't lenders Fannie Mae and Freddie Mac and see what they are trying to offload from their books. http://www.homes-for-sale-center.com/freddie-mac-foreclosures/index.htm
Also Century21 is a national REA, check out their site for a sample. Here's a sample
http://www.century21.com/realestatelistings/Detroit-MI-48219-16217+Greenview+Ave-35525363Also try http://www.auction.com, the list of online resources to locate property is endless.
Have fun and blow yourself away.
Sapphire,
Thanks for your wonderful post.
The web sites you have provided look good, but sadly many of the links on http://www.homes-for-sale-center.com/freddie-mac-foreclosures/index.htm
appear to be broken. I am interested in Austin, Texas. I was wondering whether you have any opinion ion this area and someone I can trust to talk to about buying investment property there.
Thanks for any help you can offer. Much appreciated.Hi guys,
a friend of mine both a property in Las Vegas last year for 1/3 of the price from previous year. I suppose two easy ways to do it is to have cash ready or borrow against your property here in OZ and you the cash to purchase a property there.
If you have SSN – social sec number, good b/c you will need it when you do your tax return in US (due in April if I remember correctly). If you don't have one, you will need to apply for one before you do your tax. It is a bit of paperwork but it can be done. BTW, to be more specific, you will not be issues SSN, but another tax number that can be used when you do your tax return.
I found banking services (because you will need to have bank account there) much better than in OZ. Services are available 24/7 in many banks over the phone, so you don't need to call during business hours.
For you who are interested in getting properties do your research on locations. yes, Detroit is a rough city (highest crime), St Louis can be also doggy, but with all honesty I would stay away from city locations. Most, not all, most cities, have high crime rates in downtowns, with low income populations <moderator: edit>. Last thing you want to get your apartments with shocking people living in theme.
I lived in midwest and did a lot of work for several apartment complexes (any where from 250 up to 900 units complexes). There were some really beautiful places with decent people livings there but some places that I have seen I don't want to describe here.
Again do your research on locations. Just one more thing, when you rent out place there, people will expect to have dishwasher, washing machine/dryer and fridge provided.
Mark
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