Where do I start?

Wassup Nick,

It depends if you want cash flow properties or long term capital gains on a property u will hold for a while.  I like to do a mix of both and do most of my investing in the midwest ( the central states of america) and florida.  I can help you with these areas if you like.  It's fairly easy to obtain the properties and just takes a good real estate agent.  Hit me up if u would like to talk more, facebook or email.

Kyler Rice
[email protected]

You should put that on your business card Engelo.

[/quote]Engelo

How are you? Yes to me appreciation= speculation and Cash flow = cash Flow .Very simple way of looking at today's real estate market . I do agree some  market will eventually come back. I am  just not sold on the time period every one else is saying. I am sure I will miss out on some deals down the road because of my cautious approach. I also feel that it is a safer play  in today's real estate market.So I am not trying to line up all my investment properties with that idea for appreciation.  This is where diversification comes in. 

As always just my two cents..

Alex

[/quote]

Yep,

We dont know when the market will recover, and the numbers in a deal never lie. I would suggest for every 5 cash cow properties maybe speculate with one property with potential for capital gain.

Alex,

Where do you think is a good spot to buy in the US for potential for capital growth when market recovers?

Engelo

That should, and would  be the million dollar question /answer for  the new year .I  sure wish I could give an exact answer but again I think it is more speculation and hope then anything thing else.What we can say are prices are still dropping in some areas.

USA ,and International clients are buying for cash flow today. We are all waiting and watching. Right now I am focusing for myself and my clients is Charlotte NC and surrounding 60 mile radius. I am just not as optimistic like others that say 5 years we should be good. From everything I see , hear and feel. I think this could be 7 to 10 and that is being  hope full.

 What  does worry me  for example in Atlanta  and some other markets. Is when all properties in a certain area are foreclosures. It will  turn the neighborhood into a rental area reducing the resale value down the road. Who would buy that house down the road in a rental neighborhood. Now on the other hand if we do set up owner financing for these renters. This could be a different play for those homes on 5 , 10 year notes.

For me it is called diversification.  We are buying lower end ,  and newer homes .While working with Jay Hinrichs who has a unique investor option for investing ( for us just using his program ) the NC and SC mix of homes. Our company is  looking at buying as many local lots as possible for future build and development. Which do cost money to buy and hold. Again in real estate you must look for short term , and long term opportunities .With a huge emphasis on exit strategies and the what if's down the road.

So basically mixing a few different  real estate programs today, making sure us and our clients are not stuck in a no win situation 5 years from now.

I know this really don't help but more of my two cents

Sincerely
Alex Franks
[email protected]

[/quote]

Here is another way to look at Capital growth:

In reality there is nice capital growth right now for the 1st Gen wholesaler selling to the buy and hold investor.. And certainly the marketing companies in Aussie.

Average profits for these companies are 5 to 15k per house with some profiting much higher. Most of the these homes are 30 to 60k… And the wholesaler flips them in a matter of a day to 90 days max.

So whats the profit on these… All in on a property for 30k flip it for 45k 60 days down the track… I know this audience loves to compute gross and Net return to the decimil point. so will let someone figure it out.

For those flipping

In our market of Portland Or we have a little micro market going here. You get out of our metro area to the country and the State is still mirered in a recession that started 25 years ago and really never went away  ( Big Timber laws changed Mills shut down by the hundreds)

Portland Metro though through very stiff reginonal zoning laws never had a huge over supply of lots and land ( except just north of the border in Vancouver WA)… So All the bank owned New construction has been absorbed, 90% of the land and lots the banks have sold..

To put it in historical perspective the PDX Metro area built 10 to 12k housing units a year…. 30% multi the rest SFR. 09 Saw get this 700 units total. A 90% drop and a devestated building industry. 2010 saw 2500… And 2011 that number was up to 3700. We are seeing our first Multi's being built in the last 7 years. And with historic interest rates and lack of new product. New construction is doing well.

We have 8 pre sales right now all with nice profit margins, not quite what we would do in the good ole days but 50K plus per house NET profit. And it looks like we will finish the year at about 25 to 30 houses built and sold. Staying in the starter home prices of 260 to 400k….

Intel is one of the main reason for the rebound as well, they are building a new 3 Billion dollar Fab plant and bringing in 4k workers to build it then 2500 full time highly skilled and paid employees. 2 of my presales right now are both to Intel Engineers that are transfering in from other areas one texas. and the other CA.  The one from Texas by the way Lost a lot of money selling their home they bought 5 years ago in Dallas this last fall. Of course anyone who bought new construction virtually anywhere in the US 5 years ago would not be able to sell today and get what they paid for the property with again some rare CA exceptions Like Palo Atlo Cupertino,, those hot beds of High tech and my birthplace.

Now you take Atlanta for instance which is soup de Jour right now with the Aussie buyers, and I have been buying 2 or so a month there my self for my program….( very very selective) And when I was there at the first of the year I toured New construction that was built 4 or 5 years ago and is still vacant…. Thats just not the case on the west coast with very very few exceptions as I stated.

I am not advocating Oregon, Although it has the lowest vacancy rate in the country, And by and large pretty decent tenant pool, but this market never really moves up or down quickly like CA or Seattle… Big money is moving in right now on Multi family though been 10 plus large transactions in the last year meaning 10 to 20 million dollar projects changing hands.

Go 49ers kick some Giant butt.

crap,  we coulda shoulda won that game….

we need Andrew Luck… with a first rate QB and our Defense we win it all

Giants defense could win the super bowl  alone and If Elli steps out of his big brothers shadow…

no telling 49s defense was solid …

Alex Smith first year he has been solid for his team

Typical west coast fan ..not want to give the NY giants defense credit.

Well guess after the super bowl we can see how good the defense is..

Look forward to fri conference call..

Alex