follow up on this property sold to an Aussie by an Aussie buying service.
1. closed Feb 24
2 rents were represented at 1600 they are now down to 145o
3. simple rehab took 2 months and there was no where near 15k so someone made a nice profit on the rehab.
4. as of July 15th properties still on the market with no renter at 1450.
So tell me how this investment could make 12.65 as advertised net and 19 gross when it has not had any income for 6 months the 12 % return net is more like 6% and probably lower.
and this my AUSSIE FRIENDS is more like reality, these folks that tout 15 to20% are just giving you dreamland projections.
Not that this investor could make money on appreciation the fact remains very few investors in us property will make 10% if they are honest with their expenses and many make far less
Hi HighIncomeProperty,
I was encouraged to see your post regarding Indianapolis for investment as I have been hands-on investigating this area for the past 4 months as I'm actually in Indiana right now. I agree with everything you've said. It seems Govenor Daniels is hell bent on diversifying the business interests of this state and it appears to be a growth state amidst it's floundering midwest neighbours. For the Aussies reading this, I agree with Jayhinrichs on staying away from the likes of $10k properties that have the illusion of being money for jam, They're not! I've seen many of these types of properties with my own eyes and 'war zones' is exactly what they are. Lock your doors while driving through type stuff. Yes my experience is limited to just one city but I'm picking this can be applied everywhere. I'd be interested to see if anyone else has considered Indianapolis as an investment area?
I have an extensive history and lending portfolio in Indianapolis.
As I have repeated just make sure you buy the right neighborhoods. Indy is far more stable than Detroit for instance.
Fed Ex took over the old international airport recently. Downtown is really nice and not nearly as crime ridden as other big cities in the upper mid west.
We are opening Indy for our program in the Fall. and conitnue to do 2 to 5 loans a month there.
JLH
Thanks Jay!
Appreciate your comments. Sent you an email to your inbox with interest in your inpending program in Indy in the fall.
Hi AngieB,
thanks for your feedback, and it looks like a lot more investors (both Australian and others) have really started to take a liking to Indy, we've put quite a few investors in there in the last 12 months from Australia.
As has been pointed out by others, it does have a few really bad areas but in general it is very stable, and we do a number of deals on behalf of our investors there every month, focused on strong cash flow in areas that also are likely to hold good value.AngieB wrote:Thanks Jay!Appreciate your comments. Sent you an email to your inbox with interest in your inpending program in Indy in the fall.
Did not get your email in my in box. you can e mail me at: [email protected]
Cape Coral Florida , google it, good area to buy right now. Lehigh Acres is another area here and so cheap right now. Homes for 50k you can rent out for approx 750. Duplexes at 80k paying 650 each side. Lots of good investments here.
doesnt Lehigh arces have septic tanks ? Added expense.
Vacant land everywhere hense no real capital growth prospect for a long time. I looked at Lehigh Acres and didnt add up for me.
Everyone has different needs thought
Ya'll are going to really think I am an know it all now.
Leheigh acres has 750k platted lots or thereabouts Thats 750,000 Thousand. and Coral about 300k.
These subdivisions were built before there were any real zoning rules.
the lots that have Sewer system have more value. other lots have septc and well on each lot.
Nice product. supply and demand dictates here.
I bought 2 foreclosures 24 months ago for 30k each put about 10 into them. then gave them to a local wholesaler who had a local company that dealt with a british firm. The end buyer were brits and they paid about 85k for each. With the British company making about 15k profit on each the local guys about 5k and I made 5k each. About how it goes by the time it hits Britian.
Got to watch for Chinese dry wall as well.
I was on a California government committe back in the mid 80;'s that was dealing with antiquated subdivisions. Which by definition are subs that were platted and recorded. But never had the proper amount of roads sewers water to allow a even close to 100% build out.
Le High and coral were the poster childs for these, I spent a week there in the Mid 80's with the local planning staff. There is no way that the infrastructure can handle even a 50% build out.
so when you go there you will see long blocks with one or 2 houses. then none then a bunch. And someone owns each of those lots in between. Lots have traded there for 3 to 10k per for 50 years. then in the go go times of 2003 till the bust of 07 they got up to 90k, now there back down to 10k and will pretty much stay there.
Houses were 250k then crashed, Actually if you wanted to live there probably one of the best deals in the whole world.
Wholesale prices have risen a little from when I picked my up. but you can still get them for 35 to 45k at trustees sales as is.
Where to buy is largely dependent on your short, medium and long term investment goals are. In assisting our clients, its important to know firstly what their strategy is. ie. buy a couple of income properties, put aside excess cash flow to fund (or create the basis of) more property when lending becomes available, or buy property with a 3-5 year plan 9although this is very speculative) with an idea to realize a modest capital gain.
I often tell people that there are thousands of property markets in the USA, and the county as a whole will experience a rolling recovery. For example, we are finding in Phoenix AZ (which I read today has is reducing their foreclosure investor at the fastest rate in the US) that the $50k – $100k market is extremely active, and price bidding is coming back. That said, the market is depressed but showing signs of a reincarnation.
Memphis, Florida and Atlanta are my preferred options.
Good luck
I'm new to investing and interested in exploring US markets.
Any tips or suggestions of what to expect, where and what to find …
Any other thing that may be helpful.
Thanks
Everyday32,
Great questions and I could go on all day to provide a detailed answer. I guess there are some general “rules” when looking at investing in US property. First, identify what you want to achieve (ie. whats your strategy, how long do you plan to hold, do you have a bias towards income or capital gains). This will determine where to invest.
Secondly, do your research. Even though we assist clients purchasing property in the US, we still advise them to do their own research and ask questions. Get on the forums (as you obviously have), visit the US property news sites, learn about different areas etc.
Property management in an area where we pay particular attention, because on an income property, your property manager makes or breaks the investment.
Any specific questions, just email me.
mjcantrell wrote:Hi All,I have purchased quite a few properties in Kansas City. There has been a tremendous upside in this market. Alot of expansion going on and high rental returns. Most of the properties have over a 17% ROI. I only buy properties that are ready to go with a tenant on board. I found that working with a local firm on the ground there worked better for me. If you have any thoughts on other areas that can give me the same kind of return, please PM me.
Hi Mjcantrell,
What is the median property value in Kansas city, these days in AUD ??
USpropertydirect wrote:Everyday32, Great questions and I could go on all day to provide a detailed answer. I guess there are some general "rules" when looking at investing in US property. First, identify what you want to achieve (ie. whats your strategy, how long do you plan to hold, do you have a bias towards income or capital gains). This will determine where to invest. Secondly, do your research. Even though we assist clients purchasing property in the US, we still advise them to do their own research and ask questions. Get on the forums (as you obviously have), visit the US property news sites, learn about different areas etc. Property management in an area where we pay particular attention, because on an income property, your property manager makes or breaks the investment. Any specific questions, just email me.USpropertydirect,
Thanks for your reply.
What may be the specific or reliable US property news sites to look for detailed information. In other words where can we get detailed reliable information.
Everyday32 wrote:USpropertydirect wrote:Everyday32, Great questions and I could go on all day to provide a detailed answer. I guess there are some general "rules" when looking at investing in US property. First, identify what you want to achieve (ie. whats your strategy, how long do you plan to hold, do you have a bias towards income or capital gains). This will determine where to invest. Secondly, do your research. Even though we assist clients purchasing property in the US, we still advise them to do their own research and ask questions. Get on the forums (as you obviously have), visit the US property news sites, learn about different areas etc. Property management in an area where we pay particular attention, because on an income property, your property manager makes or breaks the investment. Any specific questions, just email me.USpropertydirect,
Thanks for your reply.
What may be the specific or reliable US property news sites to look for detailed information. In other words where can we get detailed reliable information.
For very general information check out Zillow and Trulia, but dont pay too much attention to their propitiatory valuations. Use then to get an idea of what properties are being listed for and the types of properties. You can do a search for a particular price bracket to see on a map where these type of properties are. For example, we do a basic search in cities for the lowest price bracket and see visually where these are (and stay away from).
Check out onboad Navigator to do broad zip demographic searches (http://www.onboardnavigator.com/1.5/webcontent/OBWC_Results.aspx?AID=759-2f444dbf8b8c)
News sites such as Inman News and the NAR often bring out some good reports on what is happening.
If you find an area you want to explore further, go as far as subscribing to their local newspaper.
For detailed property information and analytics, we use a system from CoreLogic calls RealQuestPro (the same system used by many of the banks, lenders and insurance companies) when assessing property along with our on-the-ground teams.
A more useful resource, if any one knows of it, would be an idea of rental vacancies. By zipcode…any ideas on this would be appreciated.
wobblysquare wrote:A more useful resource, if any one knows of it, would be an idea of rental vacancies. By zipcode…any ideas on this would be appreciated.
Zip code will give you some indication, but in many areas you will really need to drill down to certain neighborhoods within a particular ZIP. Local buyers agents/realtors will be able to give you the best information. If you are planing on “going it alone” – take your time and build a network of reputable local service providers on the ground.
NAR bring out some good data but again, it can be quite generalized and limited to a city or metro area.
Again, RealQuest data have more statistics than you will ever need to assess a property’s investment appeal/potential.
OnboardNavigator give data for a particular zip – rentals/owner occupiers/vacant on a graph. If you want, send me a particular zip and Ill send you a copy of what comes up. At the end of the day, its all relative.
morpheusbushy wrote:Dallas, Texas I've started to do a more in depth write up of the cities i've listed above. It's mostly a copy and paste job from various websites – it look a long time to put together but i'm happy to share and hopefully someone will find some use from it. General Overview Population centre: 1.2 million Population greater metro area: 6.5 million State population: 25.1 million Counties: Dallas, Collin, Denton, Rockwall, Kaufman Average annual income per capita: $40,147 Average annual income per family: $42,670 Current unemployment rate: 8.1% Background of Texas: Refer to blog Background of Dallas: Refer to blog Economy background: Refer to blog Public transportation: From airport – Catch the Monday to Saturday Trinity Railway Express to downtown Union Station ($2.25). The airport stop is actually in a parking lot; shuttle bus will take you direct to the terminal. On Sundays when there is no train, take a shuttle; Yellow Checker Shuttle and SuperShuttle run shuttles from DFW to downtown for around $18. Taxi to central will cost between $40 to $50. Around the city – DART (www.dart.org) operates buses and an extensive light rail system that connects Union Station and other stops downtown with outlying areas. Day passes ($4.50) are available from the store at the Akard Station (1401 Pacific Ave; 7.30 – 5.30pm Mon-Fri). Travel uptown from down on the free McKinney Ave trolley, which runs daily from the corner of Ross Ave and St Paul St, near the Dallas Museum of Art, up McKinney Ave to Hall St. — Property Analysis Median house price: $128,200 Zillow home value index: $89,200 Trulia home value index: $80, 620 Background/Summary: (provided direct from Trulia) The median sales price for homes in Dallas TX for Feb 11 to Apr 11 was $80,620. This represents a decline of 1.1%, or $871, compared to the prior quarter and an increase of 0.8% compared to the prior year. Sales prices have appreciated 19.4% over the last 5 years in Dallas. The average listing price for Dallas homes for sale on Trulia was $471,217 for the week ending May 11, which represents an increase of 0.7%, or $3,478, compared to the prior week and an increase of 1%, or $4,891, compared to the week ending Apr 20. Average price per square foot for Dallas TX was $69, an increase of 3% compared to the same period last year. Popular neighborhoods in Dallas include Preston Hollow, Oak Lawn, North Dallas, Far North Dallas, Lakewood, and Lake Highlands. – In Dallas the housing market has been as uncomfortable as Texas weather. Gains in home values produced by the federal credit didn’t have any lasting power. Home sales turned sluggish after the expiration and homeowners became increasing concerned over the economy. A rising supply of foreclosed homes hitting the market coupled with short sales is also taking their toll as the Dallas-Forth Worth area experienced record foreclosures. A back-log of inventory and more mortgage holders walking away from homes in the New Year will have an enormous impact on the market even with comparatively high employment levels. ??Consumers who drive the Dallas market are waiting for better economic signs before taking a leap to make a purchase in to make a purchase in most cases, which will act to keep the market sluggish and add to the time it will take the market to heal. Dallas is forecast to see sluggish home sales in 2011 on 3.4% average housing deflation. Dallas suburb report: Refer to blog Dallas homes and real estate data: Refer to blog Sources: Wikipedia, Lonely Planet, Zillow, Trulia, US Market Outlook, First National, Re/Max, Propertywire For my full write up please visit http://www.myusapropertynightmare.wordpress.comHi …… Would really appreciate any info you can pass on to us about investing in San Antonio
Sorry, don’t have any.
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