Let’s get down to brass tacks here and let me explain.
The full disclosed address of a property allows you the investor to source critical additional data such as:-
Last sold price and date
History of sales
Taxes / rates
Who owned the property
and other ther relevant data, get this information and do your homework!Without the full address you are being screwed 100% when buying US property, would you do the same buying a home in Australia?
This detailed information which should be available up front before ever taking the next step and contacting any company for more information, by not disclosing the address upfront they are hiding siginificant profits.Don’t take the numbers offered on the home as gospel check past data as anyone can list a home for whatever they like for sale on the web and it will transfer to zillow, trulia etc. It is the sellers purchase price that you want to look for not the selling price today.
A property purchased for 20K can be relisted for 69k easily and happens all the time, check the sales history!
<moderator: delete language> I have been approached by so-called wholesalers and it is just another word to use instead of the truth (money makers). These guys want to offload overpriced property that is the fact 100%.
Link to full story here! http://wp.me/p1CsOF-5
Thanks for your time
I hope at the least you will have learned something to save you the investor some money and assist with a more informed decision when buying overseas.J Simpson
J – agreed. I would be putting money on a house without full address details.
You have no chance of doing proper DD into the area and house without a full address.If a seller wasnt proving full address until your money is on the table i would walk away
fast as that displays there is something to hide !Looks like you Aussie's are starting to catch on to the US market. I thought it would happen one day.
Lots of profitering its a major industry here in the states.
two-tiered market? Or local knowledge?
One thing to point out in this example of 20k house being relisted for 60k
There very well could have been 10 to 20k in rehab done.
Most US rehabbers will make 10 to 40k per property flip. Again as a hard money lender in these markets I have funded more than most of you would beleive if I quote a number so won't do that. As such I see the buy HUD ( settlement statement) and the sell.
Its an industry here
When we do our deals we provide a copy of the HUD that we used to buy the property right up front, no many if any wholesaler flippers would do that here in the states. but we are different we are partners till the end of the deal we are full disclosure.
Our US investors love it. Aussies not so much as the concept of sharing equity just is not something they are used to.
I had some chinese in the office yesterday, and that was an adventure. I think we are going to do business but they want big deals with more risk but the huge upside.
I know a lot of tag lines in OZ are buy a house in the US for the price of a car. And thats a great analogy of the market. Flippers buying Used car's or in this case Houses, guy like me provides flooring money, they sell for as much as someone will pay who walks on the lot. And if the car craps out 4 months later oh well. Same with these houses. Same price points same ethics in a lot of the guys selling them. ( not all but more than you would think or want to think). So you buy a house the seller promised you the moon and your left with a crater on the dark side of the moon wondering what the heck happened.
JLH
We’re Aussies and have just completed and sold our first “fix & flip” and let me say our rehab was not half hearted. A new roof, an addition (room) totally rebuilt, new doors and windows, new wiring and plumbing, new kitchen and bathrooms, new flooring throughout, new stucco (rendering) swimming pool restored, resurfaced, in short not much was not renewed and sold within 3-4 weeks of advertising. Of course it sold for much more than we paid for it but we spent almost as much again to have the place rehabbed! The purchaser is very happy as are we!
Mick
Mick,
Congrats on the successful rehab, we do the same thing (hope this won’t get deleted!) together with investors from Australia and beyond. We source the deals, make no money upfront, and share in the profits at the back end. We have done so successfully for many years, across the country.What is important to point out, and I’m sure both Jay and Mick will agree, that when you buy for 50K and add 20K worth of rehab, you don’t have 70K home, but more likely a 100-110K home, and I don’t see the issue with that at all – I do see an issue when homes are “flipped” for that kind of profit with no work done to them though.
Doing rehabs and then selling them in the local market to a home buyer (like we do) I think is a very ethical way of doing business, we make money on the sale, the investor makes money on the sale, our contractors make money on the rehab, and the end buyer gets a home he/she will really enjoy, and it’s also in my opinion a very safe investment.
( Investor Mick )Awesome news on rehab , and Flipping it does work in all markets if prices are right.
As for not getting full information on a property before you buy . Are you kidding me. This is the most ridiculous thing I have ever heard.Yes I do sell properties, but I also buy in different states. No way I would ever buy with out being able to do my due diligence on the property. That is craziest thing I ever heard.
Alex
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