Interesting talk with Au accoutant today on what qualifies for Super funds in US

here come the Aussies…..We have opened the hole in the dike and its goig to be everything we can do to keep up with demand.

I love working through the Accounting firm. they really have their clients best interest at heart , and have determine that an inestment in teh states that involves day to day management of a third party vendor manager is not something they want to deal with in any capacity…

First 6 properteis went over today with orders for 10 more… We will be back on the buy this next week to keep up with demand.

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 I always thought that of Doctors that are pilots… You know the one's that contantly land wheels up And or get their ticket have 80 hours and buy a 200 knot complex machine because of the doctor complex,, its huge here in the states.

I really like were we are going with this.

This accountant in Perth is a fee based accountant this doctor group is paying him by the hour to research and find the safest US investments, and the major concern of course of these investors is what happens when a property goes vacant and or any other malady…And the last thing this accountant wants to do is recommend an investment that does not pan out as advertised, and as we all know SFR's in the US in the turn key model are anything but consistant returns. One year you can get 12 to 14.. next year you have some issues a few vacancies and the next thing you know you made 3% or negative if you have a real bad experince like what happens to those that buy in the war zones or the super cheap properties of the N. east.

these investors want the account to do all the due diligence then he makes recommendations and controls the settlement etc.
This accountant does not take a sales load on either side of the transaction, and that is really refreshing it allows us to rebate back to the investor the dollars we have ear marked for sales load ( and of course in our model thats not huge by any means) but it will raise the 9% net yeild up to close to 10%..

thank you for the kind words,, we really beleive in our product and we are going to open in Carolina so we can keep up with Demand… Alex out there has a really button down crew.. and can execute on the rehab and management side. So we are excited to add that market to our program.

And the success we are having here in the states is really the same, we have accountants and IRA consultants referring us business.  For the US IRA our model is really a no brainer,, the US investor has issues if they have cash calls with investments in their IRA… So the fact that they would never have a cash call with TWH makes our investment far more suitable for the busy professional that wants to look at alternate returns vis a vi the stock market. I have a meeting next week with the accounting firm that represent the NW association of Dentist. this is a huge fund… Those dentist once they pay off their practice make some really great money here in the states not sure how it goes in OZ… 400 to 600k a year is not uncommon for a flurishing practice.
Just takes them years to pay off student loans and the Million bucks it cost to set up their offices.  Same concept this accountant is tasked with finding alternative investments that will create 7 to 9% net yeilds which are just huge in the states and offer low risk and no management issues.

There is a huge movement going on right now coming out of the stock market and into real estate this will help firm prices as well as all the off shore investors buying.

Now if the rental market continues to hold all will be well… Some markets are tough with vacancy and decending rental values. the deserts of the west have and do experince that…

One of my best buddies has a property management company in PhX.. over 1000 doors. and its a struggle to keep occupancy. and rents have gone down in the last 5 years 20 to 40%… Of course did not help with the AZ government getting all over the mexicans and those people fleeing back to mexico. First time in history more left than came into our country… Lucky you guys are surrounded by water little tougher to sneak in.

We are spoiled here in Portland vacancy rates under 2% collections by and large never an issue. we do deal with trashed units though you never get away from that. Hoever it will run you 150 to 200k for a decent rental that will rent for 900 to 1100… So no where near the cash flow here. I have pretty much sold all my Oregon rentals and reloaded down in our markets in the South east… Even if they never went up a dime cash flow is just twice as good as in Oregon…. but you always have that investor that will only buy a rental they can drive to in 30 mintues or less, and I fully understand that.

best

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again good questions.

The ARV is supported by for fee apprasial. So thats market value despite Zillow.

Out of the 400 a month 150 is for tax's and insurance and 200 is for vacancy and maintenance… Our positive cash flow is 50 to 150 a month per property… And we make our money on volume. 10 new homes plus a month into the system and our cash flow goes up accordingly, We make a few thousand on the front side…. Again how much can one make on a 33k home.. Which of course is the very cheapest we have in our portfolio…..And there is NO Management Fee's no leasing fee's no maintenance fees no fee's if someone steals something from the house etc etc….

The major issue with all rentals be it you folks from OZ or US investors is the burying your head in the sand about vacancy and maintainence.  House's rarely if ever are fully vacant over a 3 to 5 year period and unless your a slum lord you will spend at least 100 a month keeping it in tip top shape…

Good news is our investors come into the investment for even less than zillow estimate not twice as much.. So thats a good thing right????

end of the day our product stacks up nicely for those that really just want a return,,,

And once they do their due diligence on us,,, and our abiltiy to execute they make the decision to be our partner on these houses.

And for the ultra conservative investors as I say.. if you can get 6% in OZ 100% guaranteed then by all means you should keep your money at home thats what I would do for sure.

Oh and last, What happens if we go belly up,,, Well you now own the home for a wholesale price you wipe out our equity we have done all this work for Naught and you end up at the same place as if you had bought it on your own.

We give you a pre signed deed if we miss 2 payments you record it and we are wiped out. 

I enjoy this banter more for personal entertainment than to convince any Aussie to invest with us.. As a matter of fact not one has invested with us, Other than the group of Doctors that are investing with us…

Our investment is for the investor that once they vette us they are content with the return that is consistant and never varies and the potential upside…

Most mom and pops read about the 30% and will go for that,,,, time will tell… I have yet seen one person who actually bought a property in the US that has owned it for more than 24 months post on any of the Aussie sites about making 30% Net yeilds or for that matter anyting over 15%.

when we roll out of these I am 90% certain with the rebound that will happen,, And yes it will happen I have been investing for 35 years.. that our 33k house you mention will sell for 75 to 90k like it did 6 years ago. And the house I am buying In atlanta and bringing my investor into for 50 to 60k  All IN And totally rentovated to MY standards will sell for 100 to 120k.. thereby giving our investor a net yeild of 12 to 16% with no down side risk.

If the market craters and values do not go up we still have equity and worse case scenerio I will refi these out and keep them as long term rentals…. Once some on checks into our financial strenght they will see that we have that capacity.

Happy Aussie day I hear.

Why is our Note price less than ARV.. Because we are not taking our profit out up front and leaving equity in the deal for our investor and us.

We see this is Atlanta all the time,,,, My investments for the same props are 55 to 60k  and on many Aussie websites same vintage home  rental income and properties are listed at 80 to 100k…

So really how much can one make when you sell a note for 33k on a house we put 15k plus into just into Reno….

These lower end rentals are cash flow cows for our US investors. And I can sell anyone of them for 10 to 20k more than we are in them at any time just based on cap rate.  Try that when you buy a house from an AUssie company hawking US properties.

Or paying 50k for a house in Rochester or Detroit or Fort Wayne or Toledo or any other garden spot. 

Your attorney is free to do due diligence on me though if you send me his e mail I will send him my credendials package.

1. FBI crimial background check
2. copies of my California brokers license in good standing since 1977
3. Oregon Brokers license good standing since 2002
4. Mississippi Brokers licnes good standing 2008
5. Oregon Mortgage originators license good standing 06
6 Federal NMLS mortage BAnkers licesne good standing 08  these were new in 08

7. Bank letters showing 7 figure liquitity for my partner and I  thats over 1mil cash liquid at anyone time.

8 Letters from closing companies ( settlement agents ) stating 500 plus transactions for each of us. and thats just one agenciy I have done well over 2000 in the last 10 years.

And any other documentatin an investor would want to make a modest investment with us.

If in the unlikly hood of a water landing  IE properties dropping drastically in the next 5 years. since we are coming into these asset already 30 to 40% lower than today values it would take a real catastrophic event. Howeve if it happen we would refit these properties out or cash them out. the investor keep s the 9% we take the equity going forward.

I would love just a couple of aussie to try us out. at this point I will give them each a 6 month money back guarantee to check us out. Not happy in six months I buy you out,   you keep the 9% I get the property released from the note. I am that convinced once they are in and get there nice checks each and every month with no worries this will be one of their better vanilla investments.

JLh

JLH

Astute comments.

I never look at Zillow, I might have been on that sight once in my life…. Zillow is all over the map, It can show properties far too low in value then properteis that are far too high in value given local sales. The only way to value propert is through a BPO and get 2 of those.. And or a for fee appraiser which is what we do , apprasier is your best bet for true value. Now this does not hold true in Atalanta were you have auctions short sales and all manner of sales far below last solds.

The Atlanta market you must have to use replacement value and common sense. I f you snag a 2000k ft nice home for 60k thats 30k a foot to build , one cannot build in the us for less than 60k plus permits. 'so as long as your not in the hood, there is going to be significant upside for these homes over the next 5 years.

Jbelmore,,,,, At the end of the day its going to be who we are what we can do for you our proof of our capacity and experince to execute on your behalf that will carry the day and you will make a comfortable decision to give one of our investmetns a shot.
We are not asking for 100% of someone funds and infact would never take them

If you have a 200k portfolio we would recommend1 of our notes 2 max then go for high growth stocks.

world investor

well done. ..its really insane in my mind the deals that are being had.

all we offering going forward is constant cash flow with no down side. ..To some that is worth something Others thing well I cna  make 347.00 more a year in cash flow if I do it myself get on teh phone calls at 13 a t night fly over ther twice a year etc etc.

We just bring a nice stable product. If folks want to make more they really need to move here and just flip older proeprites if they want rentals I would venture to guess we will out perform 80% of those that try to do it on their own.

and of course those folks by and larege will never admit it  they will just ride their negative cash flow investment down to the ground.