- Alex SC wrote:jayhinrichs wrote:this is exactly what I do we made a business out of it…
I will talk to the odd tenant, but thats rare,,, I do view each house I buy at the time we buy and after rehab.
But when your rehabber and your PM are your PARTNERS life is just sooooo much better than trying to heard cats which is what it seems like when your trusting people that are not in your direct control to take care of your investments.
At least thats my take on it after owning 100's of rentals over the years and trying to either hire staff or hire vendors… The Equity partner is the only way to go for me… And the 90% of their equity comes when we sell…. So everyone is on board for the length of the ride…
And because we are in 5 markets and growing for me to make my goals of 20 a month its only 4 a month per team in each city which is easily attainable. Like Atlanta right now is darn tough…. If I had all my eggs in the Atlanta basket we could no way be getting the volume we need…
At the end of the day when I was making hard money loans I had it cranked up to 40 to 50 a month and each of those were to rehabbers.. So we were directly involved in that kind of volume… So instead of selling the hosues off we keep them… And just let our investors come along for a PASSIVE income ride that they never have to loose sleep over… Its a wonderful thing.
JLH
Quick note I am beating your prices. Looking at opening up a supply company myself with my brothers help the one who works for Corporate lowes.
Jay just bid on 35 properties here in Charlotte. Out of those, only 4 or 5 would fit your program. So we are looking to hit that 4 homes a month mark with your company. The other batch, we are looking to pick up 15 or more homes before the end of march. For me, a real estate month is actually about 60 days in my mind. From when we buy a home, which then includes rehab , and getting the property rented. So you know our goal is changing with the market changing. More capital coming in then ever before just not wanting to grow any bigger then we are. For me it is a common sense approach. If we can do 20 to 25 homes every 60 – 90 days and every one is happy . Why change things? There will always be the guys who own 1000s of units, which is great, but so is a nice simple system that works. Greed + stress seem to go hand and hand in this business.
"Jay " you and I having a similar mindset on partnering . For us, lately partnering with our over seas clients, long term seems to be better for all. I have cleaned the rehab system up with some of your advice, being I took over the rehabs completely from Kevin ( for all of you who do not know that is my Real Estate Partner) Jay has some great advice on rehabs, and I am not foolish. If something works for someone else, and I can add it to my system to make things better and it helps us and our clients. Well that is a no brainer. Also fired two crews and one handyman, so cleaned house. Running the rehab is a lot of work but to me, that is the fun part of this business.
Now on the other hand, I am not seeing the competition like you guys are feeling in Atlanta and other markets. Charlotte is just getting the recognition it deserves with investment homes. In the last three months, we have had some heavy hitters in the USA Real Estate industry come to us . Jay, being one of them, to work out some form of partnership with my company here in Charlotte. Which Jay is again correct, the USA buyers are now jumping back in and don't look for the super high return. ( side note Jay new client from Charlotte I met him on flight back from LA and after speaking on the plane .He is now buying and lending with us ) Inside Joke between Jay and I.
Now on a different note, the holding of homes. My personal goal is 100 units, which will be a mix of commercial and single family homes. With me I can take the risk and buy some properties like Kyler and Engelo speak about, while mixing in the homes that Jay and I like to deal with. Since I own the company and live here the risk is less for me when dealing with lower end stuff.
I will agree to disagree with most about lower end homes. For me cash flow is everything. Unlike some others I am not here to sell the properties I keep. These are long term investments for myself, my family, and hopefully for future generations to come.
Sleep in this business is rare. Lol.
Hi Alex
I am noticing lots of talk now about Charlotte, with so much competition investors will start buying up in Charlotte.
I see one of your US gurus is buying up for investors in this area.Cheers, WI
A,B,C is what i picked up from my Aussie clients.
It's something that is general to explain the type of investment properties i talk about:
A=upper middle class, buy for 40,000 to 60,000 depending on areas that will see more of a demand, cardinal rule number one in my book Location! Location! I'll spend around sixty for those. That's the best way to guarantee you will get that rock star appreciation. Rents around 1,000 to 1,200 a month.
B=blue collar or working class, buy for 20,000 to 30,000 rents a little better than C class maybe 50 to 100 dollars. Much better tenants that pay on time, more reliable than C class, generally just hard working mid to lower class folks. When the factory working class jobs come back this areas could see good appreciation.
C=Da Hood, the poor, and lower class, i like to spend around 12,000 to 15,000. I have done quit a few for 6,000 (that's buying for 3,000 and rehab for 3,000) You really have to be on these people. I make the best money on these properties though, it's worth the pain in my butt long as the cash flows.CA$H FLOW KING KYLER
jayhinrichs wrote:Lawsjs We have no hood in Portland. It's a fact. Not to confuse our market with San Fran peninsula which is priced well above the highest priced Sydney homesI stand by what I say 'hood boy' – All depends on your perspective. Sydney and Portland are equally Hoody:)
FYI: These are the 'non hood' places I was comparing to that flea pit you call home:)
http://www.dailymail.co.uk/news/article-2063771/Tamara-Ecclestone-Inside-Bernies-girls-jaw-dropping-18m-home-refurb.htmlI do agree with Petra's view of Candy's interior design skills. The Spelling's taste is appalling. I actually really liked Tamara's old central London house, the one she got for her 21st, with the 25m swimming pool she never used and the turntable in the driveway so she could get her Ferrari in the garage, sadly it was too small for her ….
kylermrice wrote:A,B,C is what i picked up from my Aussie clients.It's something that is general to explain the type of investment properties i talk about:
A=upper middle class, buy for 40,000 to 60,000 depending on areas that will see more of a demand, cardinal rule number one in my book Location! Location! I'll spend around sixty for those. That's the best way to guarantee you will get that rock star appreciation. Rents around 1,000 to 1,200 a month.
B=blue collar or working class, buy for 20,000 to 30,000 rents a little better than C class maybe 50 to 100 dollars. Much better tenants that pay on time, more reliable than C class, generally just hard working mid to lower class folks. When the factory working class jobs come back this areas could see good appreciation.
C=Da Hood, the poor, and lower class, i like to spend around 12,000 to 15,000. I have done quit a few for 6,000 (that's buying for 3,000 and rehab for 3,000) You really have to be on these people. I make the best money on these properties though, it's worth the pain in my butt long as the cash flows.CA$H FLOW KING KYLER
Kyler I am with you we buy in the same ranges. Here is my out look my wife is 5 ft 2 120 …ish .. Don"t want to get in trouble their with her. Simple put if she can go collect rent on a Friday night and I feel safe. Then I invest in that area. Simple said and simply put…Yes cash flow is king and long term wealth is buying and holding…
worldinvestor wrote:Alex SC wrote:jayhinrichs wrote:this is exactly what I do we made a business out of it…I will talk to the odd tenant, but thats rare,,, I do view each house I buy at the time we buy and after rehab.
But when your rehabber and your PM are your PARTNERS life is just sooooo much better than trying to heard cats which is what it seems like when your trusting people that are not in your direct control to take care of your investments.
At least thats my take on it after owning 100's of rentals over the years and trying to either hire staff or hire vendors… The Equity partner is the only way to go for me… And the 90% of their equity comes when we sell…. So everyone is on board for the length of the ride…
And because we are in 5 markets and growing for me to make my goals of 20 a month its only 4 a month per team in each city which is easily attainable. Like Atlanta right now is darn tough…. If I had all my eggs in the Atlanta basket we could no way be getting the volume we need…
At the end of the day when I was making hard money loans I had it cranked up to 40 to 50 a month and each of those were to rehabbers.. So we were directly involved in that kind of volume… So instead of selling the hosues off we keep them… And just let our investors come along for a PASSIVE income ride that they never have to loose sleep over… Its a wonderful thing.
JLH
Quick note I am beating your prices. Looking at opening up a supply company myself with my brothers help the one who works for Corporate lowes.
Jay just bid on 35 properties here in Charlotte. Out of those, only 4 or 5 would fit your program. So we are looking to hit that 4 homes a month mark with your company. The other batch, we are looking to pick up 15 or more homes before the end of march. For me, a real estate month is actually about 60 days in my mind. From when we buy a home, which then includes rehab , and getting the property rented. So you know our goal is changing with the market changing. More capital coming in then ever before just not wanting to grow any bigger then we are. For me it is a common sense approach. If we can do 20 to 25 homes every 60 – 90 days and every one is happy . Why change things? There will always be the guys who own 1000s of units, which is great, but so is a nice simple system that works. Greed + stress seem to go hand and hand in this business.
"Jay " you and I having a similar mindset on partnering . For us, lately partnering with our over seas clients, long term seems to be better for all. I have cleaned the rehab system up with some of your advice, being I took over the rehabs completely from Kevin ( for all of you who do not know that is my Real Estate Partner) Jay has some great advice on rehabs, and I am not foolish. If something works for someone else, and I can add it to my system to make things better and it helps us and our clients. Well that is a no brainer. Also fired two crews and one handyman, so cleaned house. Running the rehab is a lot of work but to me, that is the fun part of this business.
Now on the other hand, I am not seeing the competition like you guys are feeling in Atlanta and other markets. Charlotte is just getting the recognition it deserves with investment homes. In the last three months, we have had some heavy hitters in the USA Real Estate industry come to us . Jay, being one of them, to work out some form of partnership with my company here in Charlotte. Which Jay is again correct, the USA buyers are now jumping back in and don't look for the super high return. ( side note Jay new client from Charlotte I met him on flight back from LA and after speaking on the plane .He is now buying and lending with us ) Inside Joke between Jay and I.
Now on a different note, the holding of homes. My personal goal is 100 units, which will be a mix of commercial and single family homes. With me I can take the risk and buy some properties like Kyler and Engelo speak about, while mixing in the homes that Jay and I like to deal with. Since I own the company and live here the risk is less for me when dealing with lower end stuff.
I will agree to disagree with most about lower end homes. For me cash flow is everything. Unlike some others I am not here to sell the properties I keep. These are long term investments for myself, my family, and hopefully for future generations to come.
Sleep in this business is rare. Lol.
Hi Alex
I am noticing lots of talk now about Charlotte, with so much competition investors will start buying up in Charlotte.
I see one of your US gurus is buying up for investors in this area.Cheers, WI
Yes and they going through my company to do it . That was main reason for us focusing here and not Atlanta. We knew we had a good market but more important a solid system and team in place. The word does spread so all good their. I do look forward to meeting if you fly over. Hope you make the short trip to Charlotte NC 38 minute flight from Atlanta to Charlotte NC and the margaritas are just as good in Charlotte as they are in Atlanta.
Talk soon
worldinvestor wrote:kylermrice wrote:I'm just going to post about A and B type neighborhoods anymore, lol. I just really like the numbers of the C stuff. Jay thinks all i do is the hood.There is a Aussie spruiker (wont mention his name) who promotes his properties using these categories, A, B and C, I find it amusing that there are investors who actually believe this stuff.
My point is – how the hell would he know?? I guess if you are paying more then you must be buying an A grade property
Wi
I really don"t like a b c I look at it all as cash in and cash flow out. Then take some of the other factors ,weighing in the risk I am willing to take.Then I decide on dollar amount I am willing to spend.
kylermrice wrote:I'm just going to post about A and B type neighborhoods anymore, lol. I just really like the numbers of the C stuff. Jay thinks all i do is the hood.Never back down because some one does not like what you do.Hell I went searching for Jay to introduce myself at one of the seminars we were both at LA .I thought he was mean guy and wanted to briefly introduce my self. LOL Yes intimidation does work…
WI
A B C grade is used in the commercial real estate world here in the US.
Office buildiings are either class A Class B or Class C
So sometimes we will reference SFR’s the same way.
Class A would be a house and neighborhood you would personally live in,, dollar value is not the determining factor its, quality of neighborhood schools and crime or lack thereof.
Class B is typically what your buying in Atlanta in the better subdivisions.
Class C or lower is Non owner occuppied ares of town and or the Hood.
worldinvestor wrote:kylermrice wrote:I'm just going to post about A and B type neighborhoods anymore, lol. I just really like the numbers of the C stuff. Jay thinks all i do is the hood.There is a Aussie spruiker (wont mention his name) who promotes his properties using these categories, A, B and C, I find it amusing that there are investors who actually believe this stuff.
My point is – how the hell would he know?? I guess if you are paying more then you must be buying an A grade property
Wi
What's the amusing part ? It's quite commonly used on grading commercial buildings and is pretty easy to relate to residential property as well. An A grade property doesn't specifically relate to the price you pay…it's more the demographics and characteristics of the home and area.
And class A , class B and Class C denotes airspace in the aviation world here in the states as well……Mainly around the larger metro airports….And there is a few more letter designations also.
speedy gonzales wrote:worldinvestor wrote:kylermrice wrote:I'm just going to post about A and B type neighborhoods anymore, lol. I just really like the numbers of the C stuff. Jay thinks all i do is the hood.There is a Aussie spruiker (wont mention his name) who promotes his properties using these categories, A, B and C, I find it amusing that there are investors who actually believe this stuff.
My point is – how the hell would he know?? I guess if you are paying more then you must be buying an A grade property
Wi
What's the amusing part ? It's quite commonly used on grading commercial buildings and is pretty easy to relate to residential property as well. An A grade property doesn't specifically relate to the price you pay…it's more the demographics and characteristics of the home and area.
I should clarify, it is about who is grading the property? I was referring to an Aussie spruiker from what I know about the areas where he is purchasing they should all be C, that was what was amusing.
Also, may be the norm in commercial, never seen this in resi until now, seems everyone has a different spin on how to grade a property, refer to Kylers post. .
Cheers, WI
Lol, no worries Alex. I was messing with Jay when i said that. He is always razzing me about those type of purchases. I don't really use A, B, and C when i work with my clients here.
Who is the Spruiker, i'm curious now. PM so i can share the laugh
I picked up the system from from Aussie investors and this forum.
worldinvestor wrote:Hi AllMy exit strategy for a number of reasons is to sell all my properties in US when the market starts to rise
However, be interesting to hear from others who have been investing in US for years.
From what I have been reading seems like most US formites will jump ship as well. Just keen to also understand why this is the case.
In Australia we are passionate when it comes to property, I know many like to buy and hold forever.
Cheers, WI
Take into consideration the currency conversion at the time…….. a GOOD rental may be a cash cow
If you do sell What will you do with the money ??????
it could be like the equities market MOST people will sell stocks rising in value to re-buy under performing stocks .
KnoxOff
All my properties currently provide good cashflow, however it is early days and will see how it all pans out in 12 months time where I would like to provide an update on my experience. I don't expect it to be a "walk in the park" but I do expect to be in the black.
If I sell my properties I would like to at least double my money, bring back to Australia and if the stars are aligned will also make money on currency exchange, now that would be nice.
I would just reinvest the money in Australian property, there are always deals around if you want to jump in.
WI,,,
One thing US investor do not take into consideration often is the currency exchange. In my lending days I was lending up in BC Cnd… exhange rate was terribly in favor of the US dollar… So I would 64 cents of BC currency for one us dollar. So when i brought a couple hundred thousand over into BC I had a pretty significant sum. I then lent out those funds as hard money loans at 5 ponts and 15% itnerest… by the time I got paid off the exchange rate was in the 90S so my income and gain on the exchange was very good in deed.. Only problem was Canadian tax authority withheld 25% of the gross until I filed a tax return the I got my money return minus what I owed them in tax… Canadian tax is onerous by the by.. US tax is mellow in comparison.
be well
JLHhttp://www.hardwaresupercenter.com buy all your rehab hardware needs at distributor prices.
worldinvestor wrote:KnoxOff
All my properties currently provide good cashflow, however it is early days and will see how it all pans out in 12 months time where I would like to provide an update on my experience. I don't expect it to be a "walk in the park" but I do expect to be in the black.
If I sell my properties I would like to at least double my money, bring back to Australia and if the stars are aligned will also make money on currency exchange, now that would be nice.
I would just reinvest the money in Australian property, there are always deals around if you want to jump in.
Looking forward to the up date…. i think you will do pretty good
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