- PQ wrote:
The honest ones will sign an agreement with those clauses
No PM I met in the USA would sign such an agreement.
chriscarman wrote:Hi – i have been researching the pro's and con's of investing in the USA for the last 8 months or so and have a couple of areas in the USA that i particularly like.I have been very interested to read all of Michaels posts, enough that i sent him an email as per the request in his blog etc…
Michael i know you are busy over in the USA making money, but do you reply to your emails? hehe
Chris,
Sorry mate – I didn't receive your email. Please use [email protected] sas it pops up on my blackberry straight away and I can reply.
Also anyone else who wishes to contact me please email me directly or give myself or my partner a call. We are leaving for the US in 2 weeks and have almost reached our maximum client capacity so if you wish to be a part or just have any questions, please feel free to call me on 0412 509 995 or Bronwyn on 0413 55 77 54.
Guys,
I would recommend Elite Property Management in Atlanta – they are doing great work for us so far.
No complaints to date but only time will tell.
actually that was the address i sent it to, but i just re-sent it just in case something went wrong the first time
Singer wrote:tonyy21692 wrote:If you are inexperienced you will be financially bled as quickly as possible.You hit the nail on the head. From someone who lived there for many years, I hope your post is widely read.
Somehow I don't think it has been Singer but hey, what can you do?
I guess I can spell it out;
Don't bother taking a baseball bat, as in some of the hoods you will need a gun and that is in broad daylight – dont even think about going at night as you will be dead. Before I hear the groans of ,"it can't be that bad" you need to remember these are suburbs full of $10,000 "homes" and there is nothing here in Australia to compare to the urban decay of these places.
As for thinking PM's or anyone else in the US for that matter, would be frightened by the threat of being sued is simply naive.
You need a miracle to make money out of these "cashcows". For me that came in the form of the AUD hitting 63c to the USD late 2008 and I was finally able to end the pain.
Tony
Risk and Reward
I do not recommend casual investment in the US. It is not easy or safe for part time investors.
Investing in the US takes courage and commitment. There are plenty of lack-luster operators who say one thing and do another. They appear genuine and tell you what you would like to hear, but do not honour their word or give good service.
Building Your TeamThe key to success is in building your team. It takes time and a willingness to test your connections in small ways before making big commitments. Do they deliver on time? Are they accountable? Are they prepared to invest time in building the relationship?
I expect high performance. There will be breakdowns. It is how we deal with breakdowns that makes a difference. One way that I protect my interests is through triangles. I have a buyers agent, a builder and a rental manager on the ground. Each one operates independently and reports to me about the performance and conduct of the others. This avoids collusion. The builder knows his work will be inspected and photographed before payment. The buyers agent knows the rental manager will be reporting about the social and economic realities of a particular location and the realistic return. The rental manager knows the buyers agent will be monitoring the property, doing drive byes to check on occupancy and conditions.
It takes time to build trust. It takes trust to build a network. I am committed to building the best networks possible in the US for my investors. Two weeks ago I terminated one of my buyers agents. He was not walking his talk. I have a rental manager who is not delivering and keeping their word. We are talking to everyone in the market and we keep talking to everyone, in case our initial choice falls over.
For me it is a passion to create excellence. I work on it city by city, finding the sweet spots between risk and reward. Where there is a circle of trust, there is greater reward. When people deliver great results I let them know how much I appreciate them. We have fun and enjoy ourselves, knowing that the team is together and achieving high performance.
This is not possible without integrity. I love having Michael and Bronwyn on my team because they have integrity. If we experience a breakdown, it is just a breakdown. It doesn't mean anything, it just gets fixed.
The Next Wave of Foreclosures
The continuing foreclosures due to the Alt A and Option Arm mortgages resetting over the next few years will provide continuity and ongoing opportunity for astute investors. The home ownership failure in the US provides a solid foundation for property investors, with a growing rental market. The risk of a further price slide is present, particularly in markets that have fared better through the sub-prime crisis.
Where we are getting cash returns above 20% net, however, there is little likelihood of further decline, particularly with the growing appetite for these properties from international investors. For instance, when we are buying a property built in 2007, with a county tax valuation of $207,000 for $35,000 from the bank and it has a rental return of $13,200 p.a., can you imagine that it will fall significantly enough to phase a long term investor? The property is at rock bottom already.
The Main Risk is Vacancy
Given that you have a competent and honest manager, risk of vacancy is mitigated by working with supply and demand factors. We renovate the properties we buy to a higher standard and ask for a lower market rent than our competitors. We choose family homes in good locations close to schools, shops, transport etc. Once a family moves in they are less likely to move out, compared to singles and couples. By providing cheaper, better accommodation it prevents vacancy by retaining the tenants for longer periods, since they would be paying more for a worse house if they did.
One of the problems with buying foreclosed homes is that they lie vacant for extended periods while the bank gets it together to sell them. They are often boarded up and become targets for theft and vandalism. People will steal heaters, air con, appliances, tapware, doors and in one case recently they even stole the kitchen sink! A vacant home is a magnet for theft and damage and this is the greatest risk we have experienced in US investment. Insurance covers repair, but doesn't often cover loss of rent.
With exceptional rent returns, we can certainly afford to be generous with rent to mitigate the main risk factor. Another important factor is location. There is a mentality we have seen where people just want to buy the cheapest properties on the market. There are vast difference between the conditions in different suburbs in US cities. We found buying properties in one location for $20,000 was not as cost effective as buying better properties in another area for $35,000. The cheaper properties needed more spent on them to rehab them and the 2-3% difference in net return was minimal when considering risks of potential vacancy. Yet I see people heading to Detroit where vacancies are through the roof and rent is only collected at gun-point! There is no point in going for a 40% return if you can't get someone to reliably pay it.
The Kookaburra Has Landed
The US may seem as far away as the moon to some investors, but it is surprising how easy it is to manage a property once a successful network has been established. Having fellow Australians on the ground in the US is great way to start a rewarding investment journey. It is important to band together and use the strong connections that are established to help you find safe ground in the US.
We are delighted to have Michael and Bronwyn as one of our buyers agents in the US and look forward to their arrival in The US next week. They have already accumulated scores of orders for property and will be busy for some time to come. Considering what they have already achieved from Australia, they are sure to be successful in the US.
I am really glad they are going to Atlanta and not Detroit!
P.S. If you would like to find out more about our US property buying network, visit our website at http://www.888wealthcreation.com
Many thanks to all those who have posted in this forum.
Vincent Selleck
Licensed Buyers Agent
Accredited Mortgage Broker
888 Wealth Creation Pty Ltd
Ph 02 66 857 888 Mbl 0403 255510
[email protected]Wow! Very interesting reading..
All in all seems a worthwhile risk to buy 1 or 2 properties outright for that kind of return..
Will be trying to wrangle my way onto Michaels client list!!
Thanks to everyone for amazingly valuable information.Hi Vincent
I have contacted Michael but unfortunately I haven't heard back from him. I'm extremely interested in purchasing some properties in the USA. I would like to know more about your services but I would also like to do some more of my own research. How do you narrow down your search to select the right cities to invest in?
Bek
Hi Vincent
I have contacted Michael but unfortunately I haven't heard back from him. I'm extremely interested in purchasing some properties in the USA. I would like to know more about your services but I would also like to do some more of my own research. How do you narrow down your search to select the right cities to invest in?
Bek
Usa market not really in our comfort zone seen many deals that seem to stack up but re agents charge 10% many can be dodgy heating snow removal etc so 20% dimishes down alot so still looking around qld areas with returns 105 and over and can self manage.
bek_leigh wrote:Hi VincentI have contacted Michael but unfortunately I haven't heard back from him. I'm extremely interested in purchasing some properties in the USA. I would like to know more about your services but I would also like to do some more of my own research. How do you narrow down your search to select the right cities to invest in?
Bek
Hi Bek
Michael and Bronwyn have just landed in Atlanta, so i am not surprised he has not replied yet. We are filling orders for our investors regularly from our buyers in the US and keeping Michael and Bronwyn very busy placing bids.
We are delivering a quality buyer's agent service for Australian investors with a fixed fee and direct access to all our professionals, contractors and agents for legal, accounting, management, renovations, insurance, and buying. You buy the property and hold title through your own structures. We do not receive any commissions or mark-up from any third parties. We represent you and your interests in the deal from beginning to end.
Our objective is to create a seamless experience for investors to buy foreclosed US properties including tenanting and ongoing support. Most of my buyers are buying multiple properties because they see the incredible benefits of over 20% net return, huge potential capital growth and a high Aussie dollar.
Bek, there are markets within markets in most cities, places where you would do well and other places where the risks outweigh the rewards. The most important factor is getting a significant discount on property prices. I love buying homes for $40,000 that sold for $350,000 in 2006, particularly when i can get $15,600 p.a. in rent. Without the huge discount in price, there is not going to be a significant rental return. We like Atlanta at the moment. There are plenty of newer homes in good ares where we can secure tenants. The West coast is too expensive to get these sort of returns and places like Miami have held value as well. I am avoiding Detroit and other manufacturing based cities as their economies are suffering more than other locations and whole neighborhoods are vacant.
Send me an email at [email protected] and I will forward some more information and a schedule of services we provide. We are dedicated to providing exceptional service and results and making it easy and cost effective to invest in the US.
Many thanks
Vincent Selleck
Licenced Buyers Agent
http://www.888wealthcreation.com
Ph 02 66857 888 mbl 0403 255510Some of you have spoken to me over the phone or sent emails. I just wanted to let you know that you view me on a short youtube video with a link from our website.
The link is http://www.youtube.com/watch?v=l8-TmMzyQl4
I look forward to talking to you again soon.
Vincent Selleck
Licensed Buyers Agent
http://www.888wealthcreation.com
Ph 02 66857 888 mbl 0403 255510Hi
I am want to buy some property in the USA, my goal is 5 properties in 2010, i have about $45000 aus for deposits, does any one have any advise on finance, do i have to borrow from Aus, or is it possible to borrow in th US?? any help would be very much appreciated.
Cheers
SeanSean depending on where in the US you are looking at purchasing finance is possible within the US from a US lender.
No Australian lender will take a US property as security so if it is in a State where a Foreign National cannot borrow funds and you still wish to go ahead then you will need to use Australian security.
Again not many lenders will accept financing a line of credit to allow you to purchase overseas but we have ongoing 3 / 4 clients who we are working with who are doing this. Seems to a constrant flow of Australians buying abroad who needs asssistance with the finance structure.
Richard Taylor | Australia's leading private lender
Cheers Richard
Can you recommend anyone? i am looking at Las Vegas to purchase.
Sean
Ive been reading this forum for quite some time now and I can see that investing in the US at the moment is a great opportunity. Ive got a good cash reserve and strong cashflow, but im pretty time poor so I would probably rather use the services of someone over here to help me purchase the properties over there. There seems to be plenty of buyers agents and the likes plugging themselves through these forums – but I haven't seen anyone comment on using any of these guys. Has anyone out there used any of these guys services yet and are you hapy or unhappy with the result to date?
markgts wrote:Ive been reading this forum for quite some time now and I can see that investing in the US at the moment is a great opportunity. Ive got a good cash reserve and strong cashflow, but im pretty time poor so I would probably rather use the services of someone over here to help me purchase the properties over there. There seems to be plenty of buyers agents and the likes plugging themselves through these forums – but I haven't seen anyone comment on using any of these guys. Has anyone out there used any of these guys services yet and are you hapy or unhappy with the result to date?Mike here,
We were initially headed over the US to buy property for ourselves but we encountered lots fo people like yourself that we set up a buyers agency to facilitate Aussies buying US real estate.
We now live in Atlanta – check out or blog http://www.usaforeclosures.blogspot.com
Also we have put our most recent few purchases for clients on Youtube as it is the easiest way for clients and other people interested to see the properties. Have a look – links below.
Final offer Inspection1) 5461 Northcutt Dr – A property going through the final bid stage with the bank. Fantastic looking property – hopefully we can offer it for investor purchase early next week.Pre Purchase inspection2) 2384 Hackamore Drive 30349. A new Prospective Property Purchase – currently negotiating with the bank around the $45,000 mark.Pre Settlement Inspection3) 1601 Jonesboro – A property we settle on early next week for a client for $42,000. This is a great looking property that will rent for apprx 1200 pm. We met with the property manager the other day who is quiet confident in securing a stable tenant.Pre Renovation Inspection4) 3238 Kiowa Ct, Rex 30273 – A massive property which was built 1997 and needs some love and attention to bring it back to its former glory. Purchased for $35,500. A monster of a property in a quiet, secure suburban neighborhood sure to appreciate well.So as you can see from the initial offer stage right through to tenancy we are on the ground at the properties making sure all goes according to plan, from bid to build and property management – we are there. Sleeping little but having a ball.I hope this helps people on the forum begin to see what all this is about – Let us know your thoughts and how we can help with your next investment.vselleck wrote:bek_leigh wrote:Hi VincentI have contacted Michael but unfortunately I haven't heard back from him. I'm extremely interested in purchasing some properties in the USA. I would like to know more about your services but I would also like to do some more of my own research. How do you narrow down your search to select the right cities to invest in?
Bek
Hi Bek
Michael and Bronwyn have just landed in Atlanta, so i am not surprised he has not replied yet. We are filling orders for our investors regularly from our buyers in the US and keeping Michael and Bronwyn very busy placing bids.
We are delivering a quality buyer's agent service for Australian investors with a fixed fee and direct access to all our professionals, contractors and agents for legal, accounting, management, renovations, insurance, and buying. You buy the property and hold title through your own structures. We do not receive any commissions or mark-up from any third parties. We represent you and your interests in the deal from beginning to end.
Our objective is to create a seamless experience for investors to buy foreclosed US properties including tenanting and ongoing support. Most of my buyers are buying multiple properties because they see the incredible benefits of over 20% net return, huge potential capital growth and a high Aussie dollar.
Bek, there are markets within markets in most cities, places where you would do well and other places where the risks outweigh the rewards. The most important factor is getting a significant discount on property prices. I love buying homes for $40,000 that sold for $350,000 in 2006, particularly when i can get $15,600 p.a. in rent. Without the huge discount in price, there is not going to be a significant rental return. We like Atlanta at the moment. There are plenty of newer homes in good ares where we can secure tenants. The West coast is too expensive to get these sort of returns and places like Miami have held value as well. I am avoiding Detroit and other manufacturing based cities as their economies are suffering more than other locations and whole neighborhoods are vacant.
Send me an email at [email protected] and I will forward some more information and a schedule of services we provide. We are dedicated to providing exceptional service and results and making it easy and cost effective to invest in the US.
Many thanks
Vincent Selleck
Licenced Buyers Agent
http://www.888wealthcreation.com
Ph 02 66857 888 mbl 0403 255510Vincent – 888 Wealth Whatever,,,
Do you actually believe the stuff you write in this forum?
Firstly, I don’t think you have ever been to Atlanta and I’d like you to post the title of just one 40k house that sold for $350k in 2006 here with your name on it as owner, That same house will be valued now at $70 -$120k. After repairs of $40k you’ve spent $80k and if the value is at the low end of the range above you have lost money. What it sold for in 2006 means absolutely nothing.
Secondly on your website you talk of Atlanta, a huge city of 5 million people – How wrong can you be. Atlanta is half the size of Adelaide.
I have been sent details of 2 properties in Atlanta from Australian buyers agents recently. One, west of the CBD where I’d never buy by the way, is a few blocks from one of the worst neighbourhoods in the country and the other in Decatur ” a place we just fell in love with” was the quote, but it wasn’t really in Decatur at all and the only reason you would fall in love with that suburb is after driving through the crack suburbs as a comparison.
To all you ‘investors’ and especially those that are time poor, do your due diligence. That means going over there and having a look for yourself. Spend that little extra money and shout yourself a holiday at the same time.
One thing Vince has said that is correct is build a team that you can trust, but do your due diligence on them as well.
As for Miami ‘holding its prices’ …. compared to what, a 25% drop every year for the past 3 and Florida still running at the 3rd highest foreclosure state in the US.
Where do you get this information from Vince?
To Mike and Bronwyn, I take my hat off to you both for getting out there and doing it. Doing what all you armchair investors should be doing yourselves, but are too scared, lazy, busy, or stupid. M & B remember may be ‘now living’ in Atlanta, for how long and on what sort of visa I’d like to know, but they are not locals, they have no history of the place, past or current and are being led around by realtors with their own interests at heart. The same as would happen if you were there. The properties they are locating are based on their due diligence, with their interests at heart, so where does that leave you……. the lazy investor with 20% net returns glazed in your eyes? At the end of the line, that’s where, so if you are comfortable with that then go for it.
Sapphire, These forums are designed with the intention of investors being able to share information and help each other because not every knows everything. Although everyone is entitled to their own opinion your post has done nothing beneficial to help anyone in anyway. I think everyone is aware of the risks and potential reward of investing in America and are looking for quality support. Your post has achieved nothing but slamming us, buyers agents and even the investors themselves who are working hard to try and get ahead in the world. Are you saying that we should all pack up and go home and not invest anywhere but the city we were born or into coal mining towns or Brisbane because we are not locals? What an absurd idea. Have you not invested anywhere because you are not a local. Michael and I have spent the majority of our adult lives moving to areas after we have done our research and lived in each area up to a year working on our projects. We have a portfolio of over 20 properties in Australia and all we do is live off our portfolio. We charge a very minimum fee that basically covers our time to assist people like us investing in high yielding property in America while we continue to build our own portfolio. Atlanta by the way has 5.2 million people. Inner city Atlanta which is probably what you are looking at for your stats has about half a million. Atlanta Greater Metro Area is made up of multiple regional areas (cities) which in Australia are referred to as suburbs. We cover greater Atlanta to cater to the differing requirements of our investors and if you had done any due diligence on us, Atlanta or the services we provide you would know this. Is it your intention to make us look ridiculous with your unfounded comments or yourself? Please see Wikipedia info below which you can trace back to the original sources. As of July 2006, the Atlanta metropolitan area had an estimated population of 5,138,223.[6] According to a 2000 daytime population estimate by the Census Bureau,[11] over 250,000 more people commuted to Atlanta on any given workday, boosting the city's estimated daytime population to 676,431. This is an increase of 62.4% over Atlanta's resident population, making it the largest gain in daytime population in the country among cities with fewer than 500,000 residents.According to census estimates, Metropolitan Atlanta is the fastest growing area in the nation since 2000 by numerical increase.[12] Courtesy Wikipedia: http://en.wikipedia.org/wiki/Demographics_of_Atlanta How long may I ask do you think people should come over to Atlanta to work it out whilst having a little holiday. A weekend, a week, a fortnight. How long do most people have for holidays? Does that mean they should miss out on the opportunity because they have other commitments or do not have the time? If we put you in the middle of Sydney how long do you think the process would take to work out where to invest. People would come over here and do it all themselves if they could. I would reason that buyers agents have their place and that it is not achievable over “a little holiday”. One of our clients is a fire-fighter should he tell you to try and put out the fire on your house or would you leave it up to him as a professional. Property investing is the same situation. Our clients engage us as professionals to assist in this area. In regards to your comments on us being lead around by real estate agents – we have hired an agent who solely works for us and sits in an office placing offers to the banks who does not recommend any properties to us. We drive around all day looking at properties we have found not recommended by any agents. Please do not comment on how we do business as you know nothing about us or have made any effort to contact us. Please don’t slander us if you don’t know or are willing to make the effort to understand the correct situation. We spend a great deal of time going through deals we have found and culling a lot of what we personally would not be comfortable in buying before we offer the opportunity out to investors. We consider area, return, the amount of work required to bring the property up to a desirable tenant standard. We walk away from a lot of opportunities that our investors never see because of the due diligence we do on each property. It is easy to slam others who are doing what they can to help each other. It is far more difficult to offer constructive criticism to aide and assist those having a go. We wish you the best in your endeavours. Michael and Bronwyn
Wow, Michael and Bronwyn, I have been reading this forum and your blog with huge interest but you have just shot your credibility right out of the water! And I am not sure what your association with Vincent 888 is.
I have been also doing a lot of research and going over to US on the 28th of March to buy some properties. Here some facts
"According to the most recent U.S. Census Bureau estimate (for July 1, 2008), the population of Atlanta is 537,958 which would make it the 33rd largest city in the United States. The estimate for Metro Atlanta (the Atlanta-Sandy Springs-Marietta MSA) for the same date is 5,376,285. The estimate for the Atlanta-Sandy Springs-Gainesville Combined Area is 5,729,304. This takes in 30 counties comprising most of Northwestern Georgia."The states with highest rates of foreclosure (more than one house in 150)
1. Nevada
2. Arizona
3. Florida
4. Idaho
5. California
These are states that had the highest drop in real estate prices and will take the longest time to recover as they have huge oversupply. (Georgia is #9 on that list) Sure there are pockets that this does not apply to, but care needs to be taken. Miami certainly has dropped considerably in value.Prices have fallen 30-50% in good neighborhoods, that's where there are a lot of owner occupiers, white collar workers, job security etc. A neighborhood where the house has gone from $320,000 to $40,000 I would be worried about – if it sounds too good to be true, it probably is. It sounds more like Detroit rather than Atlanta, where the whole neighbourhoods just picked and left.
Saphire said that he take his hat off to you – because you are doing exactly what needs to be done to buy property overseas. At no point had he slammed or slandered you. He does point out however that a month in Atlanta does not buyers agent make. That's not slander that's a fact.
Kind regards
Vicky
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