Good post Sapphire.     

Anyone can buy a cheap house in  the USA.  That's the easy bit. 

It's the after wards that is the hazard.   From  snake-agents to PM's to property and govt. taxes to tenant vacancies – that's when the nightmares begin.  

And you can't even claim any of this stuffing around off your Australian tax. 

 I still dont see just one of the $40k house purchase titles with your name on it Vince. The one's you just love to buy remember?

Michael and Bronwyn, we are not arguing about the population of Atlanta or greater Atlanta or the fact that Wikipedia is not a credible source for anything. In fact we are not arguing at all. I repeat, I take my hat off to you both for getting out there and treading the sidewalks and getting the job done.

My point, which I made quite simply and plainly was that all is not what it seems and moreso when investing overseas and for people reading this forum, who are thinking of investing in America, then it is doubly important to do their due diligence on everything, including you guys and anyone else finding properties on their behalf. Me included.

I'm sorry you took my simplistic explanation of reality personally.

Vince on the other hand continues to post self purporting drivel and has yet to back up his claim or at least his flowery inference of buying numerous $40k properties that were valued at $350k in 2006.. Holding someone accountable is not tall poppy syndrome.  You too can "share freely and encourage others" in this way. Share the love Vince.

It has been an interesting exercise conducting some due diligence on this forum. So far I have…..

You haven’t personally bought any houses in the US Vince, is that correct? You don’t own one $40k house that sold for $350k in 2006 with your name on the title even though you said that you love buying them?

You advertise assessed house values from 2006 and maybe 2007 when the boom was in full swing in Georgia, not 2008 when prices fell dramatically, nor 2009 when they continued to fall, nor 2010 as they continue to fall.

You receive a bigger commission per deal than the US realtor.

You sell houses that are banked owned property that may be valued at 50c in the dollar, which is very good, but may be valued at 90c in the dollar which is very average, but never 15c in the dollar as advertised, which is BS.

You do this from beautiful Byron Bay.

You haven’t been to Atlanta.

You seem to be very proficient in what you do but you do write self promoting drivel on this forum

The administrators on this forum need their ass kicked for allowing blatant advertising.

Had a look at this link and the house looks very nice. When did the county assess it for $207,700? You don’t put a date to it.
Correct me if I am wrong, but I’d guess that was in 2006 or 2007. In 2008 according to tax file data, this house was worth $112,560 and with another 18 months of falling prices, I’d say this house is now worth $50k. Your investor bought it for $42k and after reno etc and your fees paid $55,658, about what it is worth with a good +CF return of $10k or a free house in 5 years. A pretty darn good result and with management issues maybe 6 years – still pretty darn good. The fact remains though, for examples sake, that this house is worth $50k and in 10 years time it could be worth…… $50k. Just kidding, but it is possible.

Why don’t you put the current appraised value on these places instead of the price during the boom which is irrelevant now. And sweet to get 8% commission on these while you sit in Byron Bay – you get more than the US realtor! The truth IS out there.

I don’t begrudge you anything, I don’t take offense either, I truly think you believe in what you are doing and you have expertise in your field. My initial contribution was to get people to think before they act, do their due diligence on everything and everyone, make an educated decision and once they were happy with that decision to go for it. Now what I question is the transparency in your dealings with investors and the fact that on this forum so far, you cannot back up what you have said you have done.

In your advertising it would be clearer to have : This house was last bought for x amount, it is now worth only x amount, if you were to build it today, it would cost x amount to do so, but you can add value by rehabbing it and renting for x amount. Your return is x amount. Here is our network of people to help you. And by the way, I havent ever bought a house in Atlanta

I have seen an Atlanta house for sale that was advertised your way and last bought in 2006 for $300k+ but in fact was purchased 6 mths ago for $22,500 and selling to an Australian investor for $40-$50k.. Every house in the street was valued at $20-$30k. You’re not doing that are you?

I’m going to leave it there. No need to reply,(unless it’s a posting of that title) because I don’t care anymore. When you have bought some houses personally and tell people in your advertising all the facts then give me a holler.. now yer hear.

Hi Sapphire

Thanks for your concern for others and taking the time to warn them to conduct their own due diligence. Thanks also for concurring that the houses we are buying are pretty darn good in regards to cash flow of 20% net return.

I do need to correct you in regard to some of the assertions made. It is true that i do not own any of these properties at the moment, but I do love buying them. It is far more exciting than looking for deals in Australia where great cash flow is break even after depreciation. I have a large growth portfolio accumulated pre GFC and frankly it is not generating the extended lines of credit year after year that it used to. Banks are not lending the sort of LVR's they used to and cash out for investment has become a dirty word. I have some of my non-performing assets on the market and will be investing solely in the USA from now on.

I entered into this venture to serve the needs of my existing investors, who like me, have negatively geared growth portfolios and need to generate cash flow to balance the drain on lines of credit. You can see by the examples given that we are achieving the results we set out to achieve. As for the information provided it is all true, including the values that the properties sold for or were valued at. Our due diligence package which goes out with each property also includes current comparable sales and county valuations, putting the current market value into immediate perspective. None of our clients commit to purchase until all the due diligence has been completed to their satisfaction.

I have spent 10 years living in the USA and will be returning again in June. I have been to all eastern states including Georgia and have been enjoying my contacts with agents and friends on the ground there. Your comments that I can not back up what I say I have done are difficult for me to comprehend. i just read all the posts and can't understand how you could come to that conclusion.

All my buyers pay the market price for the house. We do not buy it for $20,000 and resell it to them for $40,000. They have title and ownership from the moment of sale. There are plenty of agents who build margins into their deals and resell houses for huge profits after buying them themselves. We choose not to do that but just charge a flat fee per property and that is all the money we receive from the deal. It is listed upfront on our property offers.

My staff and I pride ourselves in our integrity and enjoy the fact that we do not have anything to hide. I am happy to answer any question truthfully and encourage enquiry.

It appears my only crime here is not owning a house myself, for the reasons just disclosed, and this is something I never purported to have done. What I do professionally is buy for others and i can assure you that we have been getting results that warrant the small fee we charge, which is less than airfare and accommodation to go to the US yourself. We know and trust the networks we are operating in and respect that others have far more knowledge and experience than ourselves. That is why we enlist the support of top performing agents who know localities, streets and houses due to the fact that they have lived there all their lives. Going to Atlanta for 2 weeks is not going to give anyone that kind of edge.

I am glad you have satisfied yourself with this discussion and that you recognise that I have expertise in my field. I always enjoy an opportunity to show my true colours against the doubts and fears of others, including prospective clients. I really do believe in what we are doing and that we are doing it really well.

I also appreciate the opportunity to be able to reach a wider audience through this forum.

My thanks to Michael and Bronwyn for creating this topic, and for the friendship we have shared through this process. I enjoy working with them and love the work they are doing for us in Atlanta.

In the end people have to satisfy themselves and I invite them to check out what we do for themselves.

You could always come to Byron Bay to see us… it really isn't that bad a place to live or visit.

Many thanks

Vincent Selleck
Licensed Buyers Agent
Accredited Mortgage Broker
888 Wealth Creation Pty Ltd
http://www.888wealthcreation.com
[email protected]
Ph 02 66857888  Mbl 0403 255510

SORRY ABOUT ALL THE GOOBLEDEGOOK ABOVE BUT HERE IS A DEAL FROM MIKE & BRON THAT I HAVE RECEIVED

677 Alta Pl, Atlanta 30318 – Fantastic Dual income opportunity – 3 bedroom Duplex for $44,000

677 Alta Place is a 3 bedroom with 2 and a half bathroom duplex constructed in 2002. The property is situated at the end of a lovely, safe, quiet cul-de-sac street with lots of nearby services including a child care centre and the Marta bus stop around the corner.

We have been hunting high and low to be able to bring a quality dual income property in this price bracket to our investors – just check out the Sales Comparison data. As you will see the average similar property is on the market for around the 120K mark making this an absolute steal. The property was last sold in  2005 for $355,000 and has been valued by the county tax assessor at $355,100. You have the opportunity to pick it up for just $44,000. It has not been vandalised or destroyed like a lot of the properties we see which gives you an idea of the safety of the street.

There is a zip file attached with all the info that you will need to do your homework on this one.

Purchase price is $44,000

Renovations estimated at $40,000 – we think we have overestimated here but wish to work on this as a worst case scenario.

We are also working on a worst case scenario for rental at a minimum $850 each unit per month for a total of $1700 per month. Some similar duplex units are receiving $1300 – 1600 each side but they may have been initially rented some time ago which is why we have tried to under estimate the rent for the current economic market. If the figures work on our worst case scenarios then there is plenty of blue sky in this deal when the market turns around.

Gross yield is 24%

To make it tenant ready the outside and inside will require repainting – painting the outside will also give the property more street appeal and character.

One of the outside heating and AC units will need to be replaced. New hot water systems, carpet, kitchen appliances, light fittings in both units, tree removal out the front to avoid future damage to the property, replace broken window, etc. We are awaiting the quote back from the builder to confirm the renovation amount.

We have done a walk through video giving a thorough tour of the property at http://www.youtube.com/watch?v=rMNa2HSOuec

With a nett income of $15,500 each year and fantastic comparison data this one could be an opportunity to create a solid passive income stream as well as have the opportunity of reasonable future growth..

Let us know if you would like a contract or further information.

We are very excited to see someone benefit from investing in this fantastic deal….

Mike and Bron.

Couple of things …….

Forgot to add in the interest you would get on your $92kAUS you would get at the bank (6.5%) . Have to factor that in otherwise it may be better off in the bank. So add another $5400 to outgoings dropping your net income to $10k and return to 12%

I don’t see any contingency for maintenance.

Subtract $500 per unit and you are at $9k and 10.5% return.

I don’t see any contingency for utilities. Maybe the tenant pays but I dont think so.

Subtract $500 per unit – $8k  and 9% return

Tax assessment is a guess… oh well it’s close enough.

Does that house look like it was ever worth $355k? No not really. Plus its out west of Atlanta CBD, not preferable for me personally. Shows you how much of a bubble there was. Property there is back to what it should have been worth in 07, 08, somewhere between $100 – $150k is my guess. Now at $44k that’s a good price but with $40k reno cost that brings it up close to what its worth at say $100k. Your real discount is 20 maybe 30% if its worth $120k

Not saying this is not a good deal for someone because there is an upside here, but is it worth it against the downside of being on the other side of the world.

Did a comp sales search of my own.

House just around the corner, 100 metres away – 8 beds 4 bath ( duplex) sold last Oct for $22,500 ( 8 S Eugenia Pl)

In fact this house at 677 apparently sold on the 10 june 09 for $22,500 as well.

http://www.ziprealty.com/homeinfo/GA/ATLANTA/30318/677-ALTA-PL-NW#headertop

100% return in 9 mths – not bad for the US market!

Nothing in the immediate area has sold in the last 3 mths for anything over $12k except one at $130k which is on the other side of the hwy

I have 2 value appraisals for 677 come in at $128k and $72k

If you renoed it and spent $84k and it valued at $72k you’d be a bit peeved.

Hello to everyone.After reading, listening , etc.  I've decide  to go to USA in April-May and see with my own eyes what's going on over there and buy a property.It would be great if  other people can join me. I am thinking  that Atlanta will be the place where to go first.My email is [email protected]

Hello Ludart. I have been looking at the Orlando market for over a year now. I lived in there before moving to NZ 4 years ago and I think that I have a pretty good knowledge of the area. I'm seriously thinking in going around may-june, but the market here it's so slow that it could take me a long time before I can sell a couple of things to take enough money to invest. So, it really depends of me selling or not selling before that date. After september I will be so busy here for the next 8 months that it will be impossible for me to go. I have a potential partner in Orlando that will allow me to get mortgage as a local by setting up an LLC with him, basically I come up with cash and he provides the finance security, he is also a contractor which means a very good reno rate for us.
Now, I know that you are talking about Atlanta, but considering that Orlando is so close, I'm thinking that maybe I could get in touch with the guys buying over there and spend a week or so with them before going to ORL. In that case and providing I have the money before May I could perhaps join you. Good luck. Gabriel.

     Hello Nigel and Gabriel,
 thank you for the encouragement.I needed that.
This is my first business trip to USA . I've been to Seattle and Colorado for holiday only.
Gabriel , I wish you everything will go according to your plans and maybe I will go to Florida too.Lets be in touch.
Nigel,I know you do investment properties in Texas and you have a good team over there. I've been to your website and I want ask you some questions.

Finance markets in the US are starting to open up again and we closed on 2 deals last week for clients albeit at a 60% lvr.