My USA Property

lawsjs,

About your sister buying property in LV, I think she is crazy to invest in property there. I'v been doing some more research and found that LV is forecast to drop 19.4% by the end of next year! Here is a link to prove it http://cgi.money.cnn.com/tools/homepricedata/index.html
Just select the state and then the city and you will see the figures. Now this site, CNN Money uses data collected from Moodys, the top analytic research company in the world. Now i'm not having a go i'm just curious as to why she is investing there.

This is straight from my post regarding the foreclosure market on somersoft. Straight cut and paste  feel free to ask her (Emma) directly anything you want – selectusaproperty.com. I hasten to add that she is up about 100% in CG in the last year and half. Her worst return is around 19%, she is currently getting 16-17% as a buyers agent. She helps people choose the properties then helps them rehab them THEMSELVES (if they want to save money) – no multi tiered marketing at all. Rehabbing costs so far havent been above about $2k, some as little as $500. Its not for everyone but she _really_ knows what she is doing and is there doing it herself. Before anyone asks, the only reason she is doing this is because so many people asked her for help to avoid the multi tiered things. As she said to me she is in LV looking after her own stuff, so it makes little difference to her to assist others not be ripped off. I have not bought in LV but I wish her all the best in it. I buy very different stuff. But you asked so I will repost one of her somersoft posts when someone asked the very same question.. If you read the thread you will understand she was not out to sell anything, but so many people were asking for direct help and even turning up on her doorstep in LV – sort of happened by itself.

http://www.somersoft.com/forums/showthread.php?t=66392

Vegas specifically:
1) in SFR's virtually no vacancies… See below
2) no state income tax and under US tax rules, I can claim the 8.1% sales tax back
3) the most pro landlord rules I have ever found anywhere… Where else on the planet do you have a situation where every tenant pays the $50 late fee on the fifth day of rent due? Why? Because on the sixth, I can go to the constables office, walk in, pay $39 and they, not me, go and deliver a 5 day quit or pay notice… Unless all outstanding rent is paid in full by that fifth day, THEY go down to the property, the sherrif changes the locks and evicts the tenant… NOT ME… YIPPEEE! Try that in Australia, Alaska or any other pro tenant place.
4) no earthquakes, termites, mold issues, snow, ice, hurricanes etc… Leave a house in Vegas for four thousand years untenanted and the desert dry climate will worship you… I spent three weeks driving Florida properties and apart from atrocious vacancy rates, can anyone say termites, mold and water? After Alaska I will never pay oil bills again.. First you are protecting from frozen pipes then, come thaw, you are dealing with melting snow and leaking basements that tenants don't tell you about…. Ha lessons learnt from what may look like a great yield on paper… Start thinking new furnaces at $8k a pop!
5) I didn't go to "the strip" until I had done 3 properties. Once I went though, I got it. They would bulldoze the rest of Nevada and probably the United States before Vegas would go under. It may be kitsch, it may be over the top, but it is quintessentially USA. Ever wondered why songs come out about Vegas, "the Hangover" is based in Vegas etc… There is money churning to keep Vegas going. The value of a movie based in your city is worth millions upon millions in translated occupancy. Vegas has "it". "It" requires staff and those staff are my tenants.
6) Vegas is not reliant on my real estate taxes. Government is supported by gambling revenue and liquor taxes. Name any other city in the US where property taxes were cut in half this year without a major glitsch on services? Mine were. Room rate taxes, gambling and alcohol taxes, no matter what your thoughts are, these keep my rates down and survival of Vegas guaranteed… And the police employed and the fire and ambulance…you get the idea.
7) I don't personally know what the "voluntary foreclosure" rate means in the rest of the states but in Vegas people aren't leaving the state, they are merely quitting the mortgage and buying a cash foreclosed property on the same street! I have bought back the blinds for my own property from the previous owner who lives three doors down now….. Another topic another day.
California is bankrupt and Arizona is anti immigration… People are moving to Vegas.. It was in the 2009 Uhaul ( massive moving rentals van company) top inbound rental destinations… Significant.
9) cheap, cheap labor…cheap, cheap qualified labor. Cheap, brand new appliances.. Whole kitchens available for $350 ( my latest… Including stainless steel microwave, stove, fridge and cabinets.. Although a bit of a don't ask don't tell but done..)

Ok, getting late, hope that answers a bit…there are of course other markets. I looked at Texas, phoenix Florida etc .. This is just my market.

Another way of thinking…

How to find a good market is another question. I do the most basic thing ever when I start a search on any real estate market.

This is coming with a caveat that this is of course just my two cents worth and not gospel

1) go to zillow.com and pick any city that you are curious about. In my mind, a good city is nowhere that involves cold weather that could freeze pipes or has a utility that the landlord has to pay to keep this from happening – especially not one that involves an ever increasingly scarce resource like oil!
2) choose any random property for sale in your target city that meets the bare minimum of walking distance to schools, transport and shops – within your target price range
3) take note of the address, the. Go to realtor.com
4) type in that you are looking for somewhere to rent.. Then type in the street (not number) of your target property and search. This will give you properties within half a mile
5) pick any of them and call them pretending you are renting. How much and how long has it been on the market… If they offer ANY discounted deal, you are looking in the wrong city or they are asking the wrong rent… That simple.. There is a glut.. Or the property is overpriced.. What would it rent for for the yield you are looking for?

It is getting late and I hate to say it but am packing in theory for Melbourne Cup. I am so happy to answer questions ..makes me feel as though all the hard work may help someone.

Ask away.

1eye,
Its pretty basic stuff really – buy where ppl want to be:)
Foreclosures are VERY specialised and presonally not my cup of tea. I am not there and not knowledgable enough to do really well + I am probably too lazy:)

My real point is that paying 80% more than anyone else in the street has paid is neither a 'bargain' nor necessary….

Ok, now thats a little better white_goodman. I understand where you are coming from and after reading your post I understand that yes, I would listen more to peoples views that have been through the boom and bust cycle, and I would never trust just statistics alone. <moderator: delete comment> I had a lot of trouble with them when i used to live there, mainly cause i couldn't keep my mouth shut when i should of but I like to stick up for myself. They are mainly one of the reasons I hate the bay now, and haven't lived there for 6 years. Beautiful place but the people ruin it. So I do tend to get a little touchy over the subject haha. But enough of the sob story. And Iaw, I think thats a photo from Zoolander or a ben stiller photo great movie tho

Haha, I just love the quotes from the movie. But yea, thinking i’m just going to sit for a bit and keep searching around till I find another property I deem “worthy” enough haha. Plus I don’t won’t to borrow to much money just yet, If I end up borrowing to much and something happens to my investments then I shall be McScrewed

Half from the bank, half from my dad Got to pay both parties back tho. Have a long term loan with the bank, and dad can just wait haha

or drawing on home equity ?

novel way of doing….good thinking and good mate of there  How do you go tax wise. With the loan being in his name and he is not a party to the property(ownership). You wont be able to claim the interest on tax and also the 50% your mate receives….. you will be the one paying tax on it from what i understand.
Big winner – the mate. I may be wrong …… just my thoughts

You got to be kidding… this whole tread is about self promotion and <moderator: edit> posting undercover…

Hi RickH,

I would suggest its not all that smart to try and exclude people who are ofering services from posts. What would the finance forum look like without all the brokers there? If professionals are adding good information to the forum then they are doing everyone a favour, if they never get business from their contributions they will probably leave and everyone is the poorer. Having said this I also have issue with those who blatantly self promote without adding anything and also those who make out they are experts in ceetain topics when theyu obviously aren't (This is the biggest issue on this sub-forum I would suggest).

As a side note, if you register a signature with company details etc. in your profile it immediately appears in all posts, including those made in the past.

The problem I have with the forum is that people here do not trust someone who makes money out of property or property services. So let me ask a question. When was the last time you spoke to an accountant or a solicitor and did not expect to pay for there advice. To be frank I am very worried about the number of people offering services to second rate markets who are often either Real Estate agents or thats where the deals come from. Then there are people promoting services where for anyone who is experienced clearly do not know what they are talking about.
However a word to the wise, be careful. The US market a place where you can easily loose money if you do not have the right contacts on the ground. Many real estate agents do not understand investing and they see Australians as a golden goose. I post here to put up a point of view, I do not need clients from this forum, I have a number of clients that i am working with. I have been involved in the Texas market for over 5 years and it took me a long time and a lot of money to find the right team. So you can do this on your own but be prepared to spend a lot of money and time to get it right.