- ed01 wrote:Hi guys, Love the new house worldinvestor. Just a quick question as I'm brand new to the forum, and stumbled across this post whilst looking around. Where do you get your finance for this type of thing? In Australia, or USA? My brother and I are planning to start investing in the US property market this year, but just not quite sure where to start with finance. Thanks, Ed
Thanks, will post the next property once renovated.
At this point in time have not been able to access funds to purchase have been using cash.
This may change down the track, but I would not be holding my breath. Am told it is almost impossible for a foreigner to finance properties in US.Cheers, WI
worldinvestor wrote:jayhinrichs wrote:law sys this is the concundrem right now nationwide, what is the true value….. Atlanta particularly, is dominated by foreclosure short sales. No one really knows the true value, where as other markets most of the foreclosures are pretty beat up and require a ton of work thereby creating added value. Most of what I see in Atlanta is very new homes or newer that only require flooring paint and modest fix up. I just look at the atlanta market one way. By the best neighborhoods you can. If your buying substantially under reproduction values. at some point there will be a return to a higher price. We bought one this week for 38k that needs maybe 3k. and there is brand new construciton 10 houses down selling at 120k same house same sq ft. etc etc. So what is the value?????Could not agree more, makes perfect sense to me.
I am purchasing properteis in Atlanta at $20-30 sq ft, where building costs in Atlanta is somewhere around $80-90 per sq ft
WI
The property market value in the US right now is measured through arm's lenght transaction between the buyer's and the seller.
Lets US wrote:Hello WorldInvestor and Forum Members.
Is there anywhere in Atlanta you should avoid buying?
Im very new to this US property market, I have thought of going to Florida to look at
some properties there but Im sure there are other States like Atlanta I have overlooked?
If so, what areas would be a good start to look into?
thank you and Congratulations on your properties World Invest, gorgeous homes indeed.Miss K
Hi Miss K
I have properties in Lithonia, Conyers, Douglasville, Covington, Dallas. For me it is important that the sub-division is well maintained, nice homes and good facilities.I like to target homes no older than 10 years if possible, homes around 2000 sq ft + (Cost – $20-30 per sq ft) , gross yields over 20%. I think this will help mitigate some of the risks involved – buying at such a low base.
When I met up with Karina in Atlanta we were pretty much on the same page in regards to what we would buy and what to stay away from.
Check out Select Amercian Home (you tube) to view various sub divisions.
All the best
WI
PS
I also like Henry County (McDonough), just waiting for suitable property to come along.Hey you guys stay out of my county
Don’t worry Jay – they are killing each other in the rush. As you well know the professionals will be safe – it is amusing to watch:) We had a few days ‘spruiker free’ whilst visa runs were in progress.
The ‘great’ US market has probably months to run in ATL (18? 24?)- I do not understand this race to the bottom. I discussed this unfolding ‘desperation’ with my broker over lunch the other day. His comment: ‘They are selling a product standing on quicksand – it works well in the short term, but they invariably cheapen the market, make their fast buck and hopefully have enough hard ground under them when the music stops to get out’.
I look forward with some macabre interest to the multiplication/plagiarism of the USA Property Power Pack thingy…
One can only speculate as to the imaginative titles the forthcoming seminars will have!
If I was starting out (and 13 years ago I did exactly that in the US market) I looked for someone like Jay to help me. I got that help from a similar personality and that is why I am now watching these sales pitches from the background…
jayhinrichs wrote:Hey you guys stay out of my county.plenty to go around
, though picking them up at $38,000 may be a tough call in Henry County.Cheers, WI
worldinvestor wrote:jayhinrichs wrote:Hey you guys stay out of my county.plenty to go around
, though picking them up at $38,000 may be a tough call in Henry County.Cheers, WI
So true about Atlanta alot to go around ,that is why I feel strongly about the rental market prices are going to come down. The inventory for sale now is tremendous Now more of what we call shadow inventory that banks and government programs ( Fannie Mae, Freddie Mac and the Federal Housing) are about to release. Read the link below. Our company is actually looking at pulling out of Atlanta and concentrating more on North and South Carolina. Oh it does help that where my office is located right on the border of NC and SC. Not saying Atlanta is not good just think rents will be lower and longer time for recovery then most are saying or planning. If we take retail area and turn it 90 % rental area. There are alot of things that will negatively affect those areas long term. So if and when the retail market does come back. What appeal would a retail home located in a rental neighborhood for a buyer. Food for thought.
Good read below..
http://www.bankrate.com/financing/mortgages/government-to-unload-foreclosures/Alex
Alex good points,
back in 03 04 05 , the Californians were the Aussies,,,, Huge equity run up, easy home equity loans, can buy a rental in the mid west for the price of a mercedes or less…..
And thee were new home developers that sold entire subdivisions to out of state owners. Think Pheniox and Vegas, Central CA and parts of Florida….
I had my hand in that one year, As I sold almost 30 million dollars worth of single families in Portland to Bay Area investors. We did have a Duplex project 22 duplexes and I bought and sold all of those to the out of state investor. Duplex sold for 330k and rented for 900 a side and I sold all 22 in 4 weeks or less. It was a feeding frenzy back then.
The fact remains though, in certain markets they have been and will always be high percentage rental areas. City of Memphis for expample has been 50% or better Owner Occ to renters for decades.
Basically you can follow the areas that were already high ratio rental areas spinkle in sub prime and you have a huge concentration of rentals vis a vi Owner Occ.
But thats the give and take you invest for cash flow return's and your going to get those higher % rental ratios.
here is Portland were no foriegn investor buys unless they are buying investment grade, SFR Rentals are only 10% at most , and thats only because of what happened in the sub prime markets in 04 we were less than 6% of exisiting SFR stock was a rental.
Were I live I built 14 homes, And 2 of them are rentals Although they paid 350k for each home that rents for 1600.00 a month.
More like Aussie numbers if you were in their country.
Most investors for rentals in our area buy plex's and apartments.
And they buy at 5 to 8 caps and an 8 cap is going to be a pretty crappy building that needs lots of deffered work, and or has a 100% hispanic occupancy and is a maintenance hog…. Hispanics do not complain and they pay their rent, but when they leave you need a full RENO to get it back into shape…. They are brutual on the plumbing cooking with grease and down the drain it goes. and multiple generations in one home so toilets get flushed 2 to 3 times normal, showers are going all the time, just very very intense on the mechanical componants.
Now if the 49ers can beat those Saints that will be a good day
Mate.Alex SC wrote:worldinvestor wrote:jayhinrichs wrote:Hey you guys stay out of my county.plenty to go around
, though picking them up at $38,000 may be a tough call in Henry County.Cheers, WI
So true about Atlanta alot to go around ,that is why I feel strongly about the rental market prices are going to come down. The inventory for sale now is tremendous Now more of what we call shadow inventory that banks and government programs ( Fannie Mae, Freddie Mac and the Federal Housing) are about to release. Read the link below. Our company is actually looking at pulling out of Atlanta and concentrating more on North and South Carolina. Oh it does help that where my office is located right on the border of NC and SC. Not saying Atlanta is not good just think rents will be lower and longer time for recovery then most are saying or planning. If we take retail area and turn it 90 % rental area. There are alot of things that will negatively affect those areas long term. So if and when the retail market does come back. What appeal would a retail home located in a rental neighborhood for a buyer. Food for thought.
Good read below..
http://www.bankrate.com/financing/mortgages/government-to-unload-foreclosures/Alex
Thanks Alex.
Alex and Jay
Here are some predictions from Kathy F. with vested interest she would be only highlighting positives, but would be nice if some of her predictions came true.
http://www.realwealthnetwork.com/blog
Also interesting that she states the cost to build in Atlanta is around $80 per sq ft ??
Cheers, WI
worldinvestor wrote:Alex SC wrote:worldinvestor wrote:jayhinrichs wrote:Hey you guys stay out of my county.plenty to go around
, though picking them up at $38,000 may be a tough call in Henry County.Cheers, WI
So true about Atlanta alot to go around ,that is why I feel strongly about the rental market prices are going to come down. The inventory for sale now is tremendous Now more of what we call shadow inventory that banks and government programs ( Fannie Mae, Freddie Mac and the Federal Housing) are about to release. Read the link below. Our company is actually looking at pulling out of Atlanta and concentrating more on North and South Carolina. Oh it does help that where my office is located right on the border of NC and SC. Not saying Atlanta is not good just think rents will be lower and longer time for recovery then most are saying or planning. If we take retail area and turn it 90 % rental area. There are alot of things that will negatively affect those areas long term. So if and when the retail market does come back. What appeal would a retail home located in a rental neighborhood for a buyer. Food for thought.
Good read below..
http://www.bankrate.com/financing/mortgages/government-to-unload-foreclosures/Alex
Thanks Alex.
Alex and Jay
Here are some predictions from Kathy F. with vested interest she would be only highlighting positives, but would be nice if some of her predictions came true.
http://www.realwealthnetwork.com/blog
Also interesting that she states the cost to build in Atlanta is around $80 per sq ft ??
Cheers, WI
This is very unique ,here is an Australian forum but yet Jay and Myself have basically met through this forum. Now you mention Kathy Feske her vice president of operation is flying out next week to meet the team we have in Charlotte and check out the office. Oh and Jay just left after checking out the Charlotte market. Most investors in the USA are just realizing what a buy the Charlotte properties are.
Now I have to disagree and agree with most of her predictions.
Alex
Kathey is very nice she forwards public info largely like many of us
jayhinrichs wrote:Kathey is very nice she forwards public info largely like many of usJay very true. Your 49s Wow looked good. Now it is my NY Giants today…
Had to get up super early Sunday third plumbing issue in a row. Was at house at 8 am this morning. With Plumber who was 1hr late. Tenant nice lady been there 4 years. Seems like your rehab plan was better then ours. I told Kevin that was it. All older homes follow suit to what you said. Guess I am hear giving you credit . You are really on the ball on these older homes.
Alex
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