Thanks for the advice Jay.
I am a developer here in Australia, (not a builder however). I’m currently getting 30-40% net margin on costs, but don’t see this lasting much longer. Would the banks lend to me as a foreigner for development loans, or am I looking at hard money loans? If you could PM me any contacts, that would be much appreciated.
Thanks,
MattAlex… Yep here at end June but seriously Vegas break for 4th…. I am a pyromaniac from waaaaaay back and Pahrump beckons! I LOVE MORTARS!!!l. The best thing other than right on red is the legal capacity to blow oneself up in fireworks in the desert sky!!
your timing in certain markets for dirt to build able lots could be good.
doubt you could get a loan….
as the only banks that do these kind of loans are local commercial banks,, and the feds will only let them lend to clients that live in their lending footprint… this is not hard and fast rule but I would say i am 97% correct.
Much like business is done in Mexico you get a US partner..
my e mail is below if you wish to contact me… I would be happy to have a 15 minute Skype chat with you and give you a road map..mattnz wrote:Thanks for the advice Jay.I am a developer here in Australia, (not a builder however). I’m currently getting 30-40% net margin on costs, but don’t see this lasting much longer. Would the banks lend to me as a foreigner for development loans, or am I looking at hard money loans? If you could PM me any contacts, that would be much appreciated.
Thanks,
Mattthose are stellar returns… take a look at this website http://www.americanrealestateinvesting.com this is a property that I have in Oregon
You will see Intel’s new 10 billion dollar facility within 1 mile… its a path of progress play.. but returns will be 10 to 15X on the dirt and many times that as we build it out… Its too big for me to build the whole project,, we are likely to get about 750 doors…Plus a commercial project.
let me know what you think?
JLH
One of the gaps I am playing in is courtesy of now hubby who IS a builder…buying 3/4 built houses that have been abandoned at 2nd fit off. Falls outside the realm of the rehabber but great flips if we are looking forward to the “what next”. Obviously needs a builder but these properties are just completely walked away from and have nigh on everything. I figure next years model for me may be a few of those and a couple of MFR’s in an increasing market.. Work 8 weeks, off 10 while the lobster pots are just sitting out there…
Hi Emma
Yes, Its now time to look at doing things differently that will work, of course this will take a certain skill set.I am following a different path now which hopefully will provide me the required cashflow.
Cheers, WI
Emma,
Where are you finding 3/4 built homes… that are still bank owned,, from my perspective that inventory has long been sold and down the track as you like to say.
At least this is true for the west coast and what I have seen in Atlanta,,, I did have the opp last year to buy 15 homes from one bank that were 90% complete. we passed as we did not want to put 15 rentals on one street into the rental pool at once.
Please update us on this.
WI
Whats your knew thought process???? And will you lower your % yeild standard or just stand pat….. Now that your invested in the US would it not make sense to income average as oppossed to just stopping.. I mean you still have to pay to fly here pay for hotels and if its still positive cash flow does it not make sense?
Best
JLH
Hi Jay
I would like to accumlate more properties in US, but as I have mentioned before as an Aussie investing in US the attraction is the cashflow, income averaging will not work for me, as I can play in my own backyard and leverage my money. I am attending an auction in Perth this weekend and if successful will be flipping this property.
However there is a stategy that may work in US at the moment and will still provide me with the right returns. I will let you know if this all pans out down the track.
Cheers, WI
So Much For “Housing Has Bottomed” – Shadow Housing Inventory Resumes Upward Climb
Once one takes the number of homeowners 30- to 90-days late on their mortgage payments and includes the likely default of those that have negative equity on their homes, there is a strong possibility more than 6.5 million additional foreclosures will enter the pipeline. The addition of homes that banks may be holding back suggests a much larger number. Laurie Goodman of Amherst Securities Group has testified before Congress that it could be as high as between 8 and 10 million.
http://www.zerohedge.com/news/so-much-housing-has-bottomed-shadow-housing-inventory-resumes-upward-climbThis is the kind of scenerio I’ve been prattling on about. Bottoms aren’t always about price. Volumes have to be considered as well.
In saying that though I think the US property market has a few more black rabbits to pull outta the hat yet. The hedge funds will drop a toe in the water but I predict they will pull back as market conditions drift and in some cases continue down. That will make them nervous but more likely I think they will find it difficult to make a business case to risk clients funds in a fragile market. I doubt they can sustain this without extensive help from industry players like Jay and Alex. Even then I think HF’s will struggle. The most successful HF operators have been shutting up shop in recent times. Who does that leave?? The also-rans with questionable performance stats. I kinda feel that HF’s playing in the property market is a sign of desperation. I get a bad vibe when any business decides to play in industry it has no experience in.
Personally I think the US property market is still in phase 1 of a 3-4 phase cycle even though we’ve had in excess of 5 years of decline. When the middle class market starts to crash and burn then I think it will be entering the next phase. There are signs this is close as the US economy grinds into an official recession.
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