Thanks DWolfe.
To add to moneyforjams great links above, check out this:
trentrichards.comNothing like courage in the face of adversity!!
Same guy. I wouldn't trust him with anything more complicated than a mouse trap – let alone a '44!
The money for the toys has to be coming from somewhere – they are not inexpensive trinkets, and there is at least one place we know of (for sure) where 'super normal' profits have been (or are being) made.
He lists himself as a Financial Planner and an Accountant. You would think that the Financial Planners Association or Chartered Accountants Association would think he doesn't act in the best interests of his clients and withdraw his membership ?
<moderator: delete personal comment>
I know the ACCC tend to be toothless tigers but couldn't these guys go for unconscionable conduct under the Trade Practices Act ?
What has annoyed me from the beginning is that there is good money to be made – what wrecks it for everyone is the out and out scams. And I am not talking about someone like Steve M standing up and slightly exaggerating by saying 'you too can get 30% net buying US property' but the multiple layers of profit that these guys reap from every sale. 30,50 up to 100+% – and then probably finance the profit as well.
It was my broker in LA who first said 'I would go to jail for doing that in the US because I am a US citizen and a licenced agent'. My sister is likewise hamstrung by being licenced.
It didn't come out in the show but Emma found out one of Gavin's properties he 'bought' through the LLC (which he also paid for!) had not even got title to the property he had paid for. They WERE that incompetent. Emma fixed it, but not only were they ripping Gavin off blind, but they also were not competent enough to even check that title had transferred.
It would also be interesting to know exactly what jurisdiction these massive profits are taxed in. Surely the ATO would be interested if no one else.
This must seem like the promised land for these guys. They were a relatively small part of the interview we both did, but there is no doubt they are 'huge' players in the quasi legal offshore marketplace.
Maybe I am being silly and they are just filling a need in the marketplace for people who want to be ripped off. I don't get why they are allowed to continue as much as I don't get why they still get people throwing money at them. I would like people to throw money at me as well, but they just don't!
Nice Job folks…..
The fact remains there are many areas of these older industrial mid west cities that have many properties that have suffered functional obsolesence and just need to be bull dozed. And many of these homes would have been had it not been the GB, AU, NZ, GE, investors buying from these spruikers from these companies that hung that big profitable carrot out in front of the US Wholesaler.
Fact is these folks took the money simple as that… They know full well when they are selling a house that is beyond help or neighborhood is blighted and should be bulldozed….But the money for both the Spruiker in what ever country and there co hort in the US is just too great.
I was at a conference in Atl this last week and one US wholesaler was showing properties that could be bought for 500 to 2000… per house. they need 10 to 15 k in rehab… and supposedly rent for 600 to 700… So I google it and its a waste land… Yes you can do this but at the end of the day these towns and areas have died and all the homes need to be bulldozed and return to nature….These properties are suffering from Terminal Obsolesence.
Detroit has 40,000 yes 40,000 surplus homes, that should be bulldozed…Or at least before the locals burn them down….
I have personally been on this site for 1 year now, and I think we have done a service to those readers on this site,,,, Do you notice the Detroit guys are gone,, Alex and I took them to task and when they new they could not take the audiance for big dollars for low end houses with no future they left the site… So I think thats a good thing.
On the flip side there are probably many that would like to invest but are confused and can’t pull the trigger for fear of making a boo boo.
US investor is back in the game so things are changing big time in our market here,,, If the OZ investor is not prepared to pull the trigger they are not going to get the best deals, Unfortunatly the days of plenty of inventory and the inventory would come to you is coming to an end…. So it will be even more important that the AU investor align themselves with folks they trust, these deals will not waite for your travel or holiday schedule, Retail deals will but not the best deals,, YOu need to buy those first day on the market PERIOD>
I wrote in another post, that I am considering buying a Professionals Realty of Austrialia Franchise,,,, They are the first off shore company to bring real estate company to the US… the US companies have gone to other countries for years. Of Course one needs to be a licensed Real Estate broker to operate in the US.. and I am licensed in 3 states.
The idea being the Aussie investor can walk into their Professionals REalty office in Sydney or Melbourne or wherever and view properties for free that are not marked up double what they are worth…( NOT PAY SOME REDICULUS UP FRONT FEES TO VIEW US PROPERTIES) they can shop for them just like properties at home… Then the PR broker deals with a franchises in the states who has a code of conduct that they ascribe too… Total transparency in the transaction IE its fully disclosed who is making what.
All LLC BAnking ETC is done for one Fee 590 dollars OZ……We as franchises go through the background checks and vetting process.I think this has a lot of merit, Much better to be dealing with Real Estate professionals that are licensed then all these middle men that have nothing to lose and everything to gain if they rip a huge profit form an unsuspecting OZ inventor.
One last comment do not think the Foreign investor is alone here,, Many US investors pay far too much for properties.
Google Armando Montelongo he is a pitch man… He holds big events were people pay 2k to 25k for his mentorship,, then for that privilege you can buy a house for 25 to 30k more than the going market… its insane really….
And I know first hand I funded 8 loans for his students before I quit lending to his students… I did not want to be enabling this activity UGH.
All spelling errors are intential as I do not have time to run through spell check.
Good investing all.
Those of us stateside and those stateside but Australians would be appalled…. If you are US, it is REALLY hard to explain how easy it is for us Aussies to get sucked in…..
People ask about due diligence…but if you absolutely 110% KNEW that there was no such thing … (RP Data being a sign up and pay scenario for the few who have even heard of that) …. And had never (gasp) heard of Steve M orJan/Ian etc (i wouldnt have heard of Steve M.. I dont do seminars!) …….and the only thing you knew about real estate was this very very superficial knowledge of your Oz investments that just sit there ticking over nicely (albeit atrocious returns) with the same property management company for the last 10 years and rents always go in on time so you don’t even need to check…… And then you are sold what SOUNDS like the same……. I mean, where is the risk???? Seriously…..???
Put yourself in their shoes and then if you are in Oz and talking to anyone, just direct them to Zillow, Trulia and Redfin…….
Easiest thing in the world to sell is fear. Knowledge to decide for yourself is far far harder. I know one woman who spent 30k on advance courses studying how now to be ripped off in the US market she was so worried about it…. Hmmmmmmm…
Jason Paris was the other person from the interview. Gold Coast based and he is right up there if not higher than MyUSAProperty on who not to invest in… Again, not sure how many details were public… My Internet is too slow to watch it….
jayhinrichs wrote:Nice Job folks….. The fact remains there are many areas of these older industrial mid west cities that have many properties that have suffered functional obsolesence and just need to be bull dozed. And many of these homes would have been had it not been the GB, AU, NZ, GE, investors buying from these spruikers from these companies that hung that big profitable carrot out in front of the US Wholesaler. Fact is these folks took the money simple as that… They know full well when they are selling a house that is beyond help or neighborhood is blighted and should be bulldozed….But the money for both the Spruiker in what ever country and there co hort in the US is just too great. I was at a conference in Atl this last week and one US wholesaler was showing properties that could be bought for 500 to 2000… per house. they need 10 to 15 k in rehab… and supposedly rent for 600 to 700… So I google it and its a waste land… Yes you can do this but at the end of the day these towns and areas have died and all the homes need to be bulldozed and return to nature….These properties are suffering from Terminal Obsolesence. Detroit has 40,000 yes 40,000 surplus homes, that should be bulldozed…Or at least before the locals burn them down…. I have personally been on this site for 1 year now, and I think we have done a service to those readers on this site,,,, Do you notice the Detroit guys are gone,, Alex and I took them to task and when they new they could not take the audiance for big dollars for low end houses with no future they left the site… So I think thats a good thing. On the flip side there are probably many that would like to invest but are confused and can't pull the trigger for fear of making a boo boo. US investor is back in the game so things are changing big time in our market here,,, If the OZ investor is not prepared to pull the trigger they are not going to get the best deals, Unfortunatly the days of plenty of inventory and the inventory would come to you is coming to an end…. So it will be even more important that the AU investor align themselves with folks they trust, these deals will not waite for your travel or holiday schedule, Retail deals will but not the best deals,, YOu need to buy those first day on the market PERIOD> I wrote in another post, that I am considering buying a Professionals Realty of Austrialia Franchise,,,, They are the first off shore company to bring real estate company to the US… the US companies have gone to other countries for years. Of Course one needs to be a licensed Real Estate broker to operate in the US.. and I am licensed in 3 states. The idea being the Aussie investor can walk into their Professionals REalty office in Sydney or Melbourne or wherever and view properties for free that are not marked up double what they are worth…( NOT PAY SOME REDICULUS UP FRONT FEES TO VIEW US PROPERTIES) they can shop for them just like properties at home… Then the PR broker deals with a franchises in the states who has a code of conduct that they ascribe too… Total transparency in the transaction IE its fully disclosed who is making what. All LLC BAnking ETC is done for one Fee 590 dollars OZ……We as franchises go through the background checks and vetting process. I think this has a lot of merit, Much better to be dealing with Real Estate professionals that are licensed then all these middle men that have nothing to lose and everything to gain if they rip a huge profit form an unsuspecting OZ inventor. One last comment do not think the Foreign investor is alone here,, Many US investors pay far too much for properties. Google Armando Montelongo he is a pitch man… He holds big events were people pay 2k to 25k for his mentorship,, then for that privilege you can buy a house for 25 to 30k more than the going market… its insane really…. And I know first hand I funded 8 loans for his students before I quit lending to his students… I did not want to be enabling this activity UGH. All spelling errors are intential as I do not have time to run through spell check. Good investing all.Jay really good points . Interesting in hearing about the Franchise idea.
You will be one of my go to companies as your full disclosure
Please continue to scare people away from the rough areas, i know they don't want returns of 20 to 30 percent ROI. My clients hate making good money and so do I. We get to the root of why Jay hates the ghetto, sorry buddy i wouldn't have bought Detroit and piled that type of money in a rehab in the ghetto.
Kyler the good news is I could afford to lose it and live to fight another day… Hate to see some mum and pop OZ investor buy the same and maybe that kind of lose would be devastating to them…. And that’s all I am advocating is for these mum and pops too understand that they need to be careful….Kyler you live and work your market and you can handle the hi maintenance and high risk properties,,,,
Out of area investors have been wiped out with these type of properties and that is a fact. What’s good for you is in my humble opinion not suitable for investors who do not live in that city….. There is a huge swath of LA investors that learned this..I personally foreclosed on over 150 of them and ending up owning all of these..lost about 3 million plus in cash…so yes I am sensitive to the low end rental pot of gold…. You can keep preaching it and I have no dought you will do fine personally, because you live it and work it..
At the end of the day though if you sell to others your. It going to hake care of any lost rent or trashed houses that’s A fact
“important that the AU investor align themselves with folks they trust, these deals will not waite for your travel or holiday schedule, Retail deals will but not the best deals,, YOu need to buy those first day on the market PERIOD”
Agree 300%, and this is crucial any day of the year and in any economical climate. If you don’t have a person you can trust on the ground ready to pounce (preferably with a 10-20% budget margin to go with), you’d darn well better be there yourself receiving those deals straight off the grapevine, or you’ll always be getting the scraps or, at the very best, the mediocre deals anywhere.
Ziv Nakajima-Magen | Nippon Tradings International (NTI)
http://www.nippontradings.com
Email Me | Phone MeZiv Nakajima-Magen - Partner & Executive Manager, Asia-Pacific @ NTI - Japan Real-Estate Investment Property
Unfortunately I think you will find this will not be the case. The US buyers agent thing has been going on for years, it was popular for a perioid pre financial crisis, with people buying in upstate New York and the latest round has just been a revival of this in otrher areas. Likely it will go quiet for a while and then will come back as soon as the US market starts to pick up or the A$ starts to drop.
The problem is people with little money or sophistication are always looking for something that is realtively cheap to get into and will provide cashflow, there are far more opportunities for this type of purchase in the US than in Australia. Many of nthese people are also not willing or able to do their own research or educate themselves properly and so rely on people providing services to do this for them. It is easy for service providers to rip such people off, because of their lack of knowledge, and there is no financial incentive to look after them so many don't. To make matters worse, the people being wripped off don't want to admit they've blown their money and come on forums like this acting like religeous zealots in defense of their guru/service, the reult being more people being ripped off.
There are some good people providing services over their, and youy can do things in the US you can't do here, so there is a place for such services. People just need to be a little more sceptical and do a lot more research before spending their money.
A perry,
Good comments… Uo state ny is the poster child,,, and the Loa Angeles investor bought the same crap for the same reasons as you state, and plenty of us investors still do…
I am opening Indianapolis this month I was securing inventory that I will bring into the TWH family at 25k. Same props being offered by late night tv guru selling to la folks at 75k
Caveat emtar
Great comments, and nice spelling, Jay
All spelling is intentional I do not have time to spell check when my wisdom gets flowingf
It is worth spending the time to decipher Jay’s posts. Hidden deep inside them (like the Da Vinci code) are buried messages of great intellect:)
You must be logged in to reply to this topic. If you don't have an account, you can register here.
