Today I am on the third day of our tour in Texas. Have seen some great property tours. We have a unique system. We find properties at a pre forclosure point and take the properties over. Firstly we help save the owners credit rating and secondly we secure the existing mortgage within the property. What does this mean? It means that for between $20,000 to $30,000 dollars you can secure a property worth $120,000 to $140,000. So before you consider investing in a bad market see how easy it is to invest in a cash flow positive property in one of the best markets in the United States.
Nigel Kibel | Property Know How
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Hi Nigel,
Can you tell us more. It kind of sounds too good to be true.
Andrew
itsandrew
Go as far as you can see and you will see further.
I have spent 12 months working on the backend to provide the best US Investment service in Australia. If it sounds to good to be true consider this. I have been involved in Texas since 2005 not 5 minutes unlike many on this site. My business partner has been doing this since 2004.
If you want all the back up services including property management and great deal why settle for lessNigel Kibel | Property Know How
http://propertyknowhow.com.au
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send the email to the [email protected]
Hi Nigel,
I've found if something sounds too good to be true it usually is.
So:
if there is 100k+ profit in each property why aren't you flipping these for yourself instead of on selling them so cheaply. (btw what is your fee/commission in all of this)?
Why would someone discount a property >80%? Surely even a 50-60% discount would seriously undercut the foreclsoure market and get the vendors a quick sale with much better return.
How could selling for 30k fix their credit issue? Surely they would have to have moretgages quite a lot higher than 30k (ie. greater than the value of their property) for them to be in trouble?
Can you provide an address of a deal you've already done for 20-30k so we can check it out for ourselves? If you can show one that you've already flipped that would be even better.
Andrew
itsandrew
Go as far as you can see and you will see further.
I too would be interested to see some examples, I am a little sceptical about buying from properties except where you are putting in offers direct to the banks and not sure how much transparency is there when you're not?
But, I am always keen to learn as much as I can about investment in the US, so some examples would be good to review
Many thanks,
remeitsandrew wrote:Hi Nigel,I've found if something sounds too good to be true it usually is.
So:
if there is 100k+ profit in each property why aren't you flipping these for yourself instead of on selling them so cheaply. (btw what is your fee/commission in all of this)?
Why would someone discount a property >80%? Surely even a 50-60% discount would seriously undercut the foreclsoure market and get the vendors a quick sale with much better return.
How could selling for 30k fix their credit issue? Surely they would have to have moretgages quite a lot higher than 30k (ie. greater than the value of their property) for them to be in trouble?
Can you provide an address of a deal you've already done for 20-30k so we can check it out for ourselves? If you can show one that you've already flipped that would be even better.
Andrew
Hi Andrew,
I think you'll find that Nigels clients assume the loans from the vendors prior to them being foclosed on. They are not buying for $20K to $30k, that is the required investment to get the loan up to date and whatever else needs to be done. This is not an uncommon strategy in the US and is a good way for Aussies to get access to finance over there.
Regards
AlistairHi Alistair,
Thanks for that. Nigel's original post makes more sense if that's the case. But he really didnt do anything to 'tell us more' on his second post.
Nigel: Perhaps you can outline the model a little more clearly (an example would be helpful too). I'm sure I'm not the only one who would be interested to learn more.
Also, how much debt is left after you pay 30k and is there full ownership of the title.
Andrew
itsandrew
Go as far as you can see and you will see further.
I will write more on my return, however each deal is different. As an example one client had to invest $22,000. The mortgage on the property was $75,000. Therefore the property owed the client $97,000/. The property is worth between $120,000 and $130,000. In this example we put a rent to own client into the property with a buy out figure of $120,000. They are also paying $950 per month. Which is in fact positive cash flow of around $136 per month after all costs and taxes. These are safe deals that create a win win situation for everyone.
Nigel Kibel | Property Know How
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Heading back to Australia today after a successful property tour of San Antonio. Another group of Australians now appreciate what a great place Texas is to invest. <moderator: delete advertising> Now the long trip home. I watched 5 movies on the way here I wonder how many I can watch on the way back
Nigel Kibel | Property Know How
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hi all
I am interested in the numbers as they don’t seem to add up to me.
if the client is putting in 22k and the 75k is lending I take it
so the client is in the property for 97k
its worth 120k to 130k thats about 80% lvr the return is 950 per month why is this a good deal
yes the clients has bought it but for me in the us market this is no shining light
I have one of my investors that just bought 2 weeks ago
2 x 2br 3 x 3br in a multi tennent in cleveland ohio and he paid 8k and its returning 2800 per month
22 k can buy a house returning 1k in alot of states of the usa
this would need to do a 40% capital increase to make it a good deal
yes you have a buy out but they are in at 97k
whats the term of the buy out at 1k per month 24k per year say 25 to make it easy thats 5 years plus
davids is 4 months most of our flips are in two years on my excels
I understand buying mortgages but if the debt was 75k I would be in the 35 to 40k max
if its the case that you have bought the mortgage for 22k
then the debt level is 22k so paid out in 12 months then its better
but even 120 to 22 is a bit high but not seen the house
150 to 15 is what we have been seeing
I have one 270 bought to 35 for sale which does come within my numbers
nigel I would like to see the numbers as I just can’t understand the ones you have put thru at the momentlooks like Nigel's still on that plane watching movies….thanks gross…hard figures and not hyperbole is what is needed on posts of this nature…
Interesting. I would like to hear what others have to say about Texas, I had heard things weren't so bad over that way.
Its just that I spend most of my tome working rather than posting here. The numbers work we have already done a large number of deals
Nigel Kibel | Property Know How
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It is my experience that cheap properties are often in slum areas. However I have only been involved in the Texas market for 5 years. I am sure that many people have been involved in the US market for a lot longer than me.
Nigel Kibel | Property Know How
http://propertyknowhow.com.au
Email Me | Phone MeWe have just launched a new website join our membership today
Hi does anyone know where i can find more info about these tours on the ground in the USA?
Thanks
MorganHi Morgan. I am not sure about tours but I have done a bunch of trips to Texas over the past two years. I think about 10 trips now between myself and my business partner. You are welcome to catch up with us when we head back in Feb. I have bought 9 properties in Texas now and we are heading back to secure some more. Our property investment strategies in Texas are now very solid and all is working well. No matter what you decide it is worth travelling over to take a look at the market and get a feel for the different procedures they have in place over there. It is worth getting to know all you can about the City you invest and the regulations with Section 8 tenants. The property market in the US is fantastic and I encourage Australian investors to get involved. This is a market we have all been talking about for years and now the opportunity has come
Guys. I have been buying in San Antonio Texas for two years now and the market is fantastic. I will head back in Feb for another 3 weeks and intend coming back with some more good deals. I encourage you all to take a look over there as the market is not like the rest of the US. The properties are not to difficult to let as long as the rehab is done well and the place has good curb appeal and is in a good rental area.. Airconditioning is a must to get tenants quickly. You need to get to know the rules and regulations from the City as to rehabs. Inspections are required on all plumbing, electrical and Air conditioning. These inspections can be delayed at the moment due to a number of inspectors being fired for corruption. I have a property which took 3 weeks for the final plumbing inspection. Tenancy laws in San Antonio are owner orietated compered to Australia. It is a must to read up on the law so you know what to expect of your property managers. We have gone down the track of having our own managers working directly for us. This has enabled us to keep a tight rein on the costs etc. We have also bought on a contracting team to do all our work. The trick to investing in Texas is to build relationships. Be honest and accountable to all the people you work with.
We have got a number of properties in San Antonio and spend a lot of time going back and forth to keep everything moving in the direction we want.
<moderator: delete advertising>
Good luck to all with your investing
DaleHi All
Some more information in regards to Section 8 tenants in San Antonio Texas. Prior to making a purchase it is essential to request a list of Non Section 8 Compliantareas. The City does publish a document which could save the possibility of buying in an area were you may not be able to utilise the section 8 system. Some areas such as The Glen and Camelot 1 and 2 appear to be good areas. I was very tempted to buy in those areas but as you cannot place section 8 in them they would be a risky investment. The areas do not attract locals who pay there own rent. Remember Do your research.good luck
Hi Dale
I am wondering what kind of return you get for your property over there? Can you offer some basic numbers like purchase price and rental yield, etc.?
many thanks
Marie
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