- Rixstar wrote:I thought Karina was a resident Australian buying and rehabbing in the states.
To buy one of those properties you need to purchase the LLC that purchased the property.
Please correct me if I have misunderstood the process.
If that,s correct isn,t that close to a flipped property.
Karina does source great properties it,s just the rehab is fairly pricey.
If you read this link Karina outlines the structure of her company.
I am directly involved with development and large purchases. Stop wasting your time and money on third rate investments. The problem is that most Australians are buying cheap property in slums and they are using cash to pay for them. It is important to understand that they banks for the most part are not interested in funding property. However there is huge demand that cannot be met in new construction.
Nigel Kibel | Property Know How
http://propertyknowhow.com.au
Email Me | Phone MeWe have just launched a new website join our membership today
Tash, I read your comments below regarding our company and thought I should clarify a few points.
"BTW: Beware of wholesalers/flippers (especially when they are based in Australia like SAH) you may do OK, but you can guarantee they will do OK before anyone they flip to – and that is forgetting any management issue that might arise when they are long gone (ie the day after you hand over the cash)."
Just to clarify,
Select American Homes (SAH) facilitates the purchasing, renovating and tenanting of homes in the USA for international investors. I am located in Australia and have a full team on the ground in Atlanta that manage the end to end process. I have personally been investing in the Atlanta Georgia market for over 2 years now and have purchased 10 properties for myself along the way.
I have set up Select American Homes to assist international investors to purchase foreclosures at wholesale prices (without the middle man mark up). I understand investors need more assistance than just purchasing a home so we facilitate renovations and property management with reputable Atlanta based companies.
Just to clarify what we do and don't do.
We DO NOT mark up the properties we source. Our client always pays the price we negotiate with the banks plus our facilitation fee which is fully disclosed. There are no hidden fees or charges.
We do not charge upfront fees or membership fees to view properties.
We do not receive any commissions or kickbacks from any of the vendors we engage.
We believe in the opportunity and personally invest in the market we recommend to our clients. We do not put forward any property we would not be prepared to buy ourselves.
We DO NOT sell LLC's to clients. All properties settle in LLC's that have been set up by our clients.
We do provide clients with video footage, photographs, comparable sales and cashflow reports.
I love what I do and am very proud of the properties we have been able to source for our clients.
Here are just a few examples of the properties we have been able to source for our clients. I think the examples below speak for themselves and show the value we bring to our clients.
These are all homes that have been recently purchased and I have provided video footage and addresses so you can view them on zillow (Just type in the addresses at http://www.zillow.com to view property details, comparable sales, rental estimates etc). Zillow is a great tool for anyone considering buying in the USA.
These properties are located in good areas and we managed to secure them at very competitive prices. (in some instances the lowest sale price in the subdivision)
1945 Lena Carter Road Buford GA
We purchased this home for our client for $86,200
You can view video footage of this home at this link:
http://www.youtube.com/watch?v=4Y5rZccSrhQ&list=UUtQZwox-2O4ZBo5XwrUGL3g&index=1&feature=plcp
201 Biltmore Way, Stockbridge GA
We purchased this home for our client for $80,200
You can view video footage of this home at this link:
http://www.youtube.com/watch?v=RRT4XwJbzYs&feature=channel&list=UL
442 Camden Woods Dallas GA
We purchased this home for our client for $56,500
You can view video footage of this home at this link:
http://www.youtube.com/watch?v=p8JnAxrPWzo
6524 Mallard Cove Flowery Branch GA
We purchased this home for our client for $48,200
You can view video footage of this home at this link:
http://www.youtube.com/watch?v=E87LcJezVm8&feature=g-upl
Tash, I don’t think anyone needs “to beware of Select American Homes”. We are not here to rip anyone off. I don’t claim to be the cheapest in the market or facilitate the cheapest renovation or cheapest management service. We do however engage reputable vendors that offer a competent service at a reasonable price. No question if you did it all yourself via the home depot route you would be able to save some money on your renovations. The reality is most international investors don’t have the time or simply don’t want to do it all themselves. We are here to help those that would like a hand.
Karina Perez Ronderos
Select American Homes LLC | Phone +61 412 900 111
Anyone should beware of anyone selling anything on the other side of the planet. I live in Avalon in Sydney and would never think of finding an agent in Atlanta to advise me about property in Avalon.
If you are buying an LLC you ARE buying a flipped property.
If you are based across the planet you are simply not able to do reno's/rehab's for anything like what a local could. Call a local agent – I do not understand why people do not do that.
How can someone possibly expect a good reno when it is managed from a different country? Bizarre:)
Then there is management. US management is not easy. I don't believe any advertised returns. All lies IMHO.
In any case – sub prime is effectively over. If you live out of town buy prime property. There is nothing wrong with San Francisco, Manhattan or Boston. Even if you buy an economy ticket and like to spend your 4 weeks holiday a year working for free it will still cost you $5k minimum just to make sure the lightbulbs are changed properly. Repair bills on sub prime will be enormous over time, especially as I suspect foreign owned properties will create ghettos of non-caring tenants.
But, if someone is silly enough to buy a sub prime property with what looks like a 15% yield (but will end up 5) and bugger all capital growth, then I guess you may as well buy through someone who lives as far away as they possibly can from their 'investment'.
The unknowing, buying through the unqualified, expecting the impossible, is likely to become the disappointed.
Or……
Buy APPL, GOOG or AMZN and check your investments on your smartphone:)
Hi Tash72
Have you purchased property in the US, if so how did you acquire your properties and where have you purchased?
Cheers WI
The new opportunity… Cheapskates need not apply….New Jersey.
CheevesFinancial | Cushman & Wakefield - Commercial Property SW FL
http://www.CommercialRealEstateVoice.com
Email Me | Phone MeAs much as I can understand the advice about eliminating the middle man (when you can) I still can't see how Atlanta market opportunity is over, any explanation would be highly appreciated.
I am hoping it is not just one spruiker bashing other spruiker's market, I personally find Atlanta appealing so far.
Some of the properties shown above by SAH are outside of Atlanta (around 55 min drive to downtown) is this where it is recommended to look?
Cheekos,
Some of the outer suburban areas offer attractive newer constructed homes, good schooling and lifestyle choices and are popular with families. I much prefer them to the downtown area that has older homes and is a very rough part of town.
There are opportunities throughout many of the counties surrounding Atlanta. Obviously the more you are prepared to spend the better home/area you can buy into. I would not be tempted to go for the absolute bottom of the market (lower priced older) properties chasing the highest returns as these come with more risk in my opinion.
Prices are definitely on the increase and the deals that we were able to secure last year are no longer available at the same prices. There are still however some gems out there but you need to look hard for them and they are not that easy to secure with multiple bids on just about all good quality properties.
If you are after 20% gross yields then you are probably too late for that. If on the other hand you are after a more realistic yield the deals are still out there. My personal view is that we have a limited window of opportunity to buy at these prices.
Newer constructed homes can still be purchased for well below replacement value. With the cost to build at around $90 square foot, homes at around $30 square foot still represent tremendous value. This of course is if you are buying a good quality product. Properties in neighbourhoods that people just don’t want to live in are worth next to nothing regardless of the cost to build.
In regards to spruiker bashing, well its a shame that many come on here with an underlying agenda. Read between the lines and make up your own mind. There is a lot of scaremongering going on and all it does is confuses people and adds no value to the forums.
The best thing you can do is educate yourself on US investing so you can tell the difference between a “real deal” and a “dud deal.” Once you are able to recognise the difference for yourself all the noise being posted becomes insignificant.
Karina Perez Ronderos
Select American Homes LLC | Phone +61 412 900 111
NIgel
Agreed… New construction in the right markets is finally coming back.
Even Atlanta..
this has always been my issue with Texas used stock.
The question is it better to buy TExas were values by and large held, ( although there are still deals in foreclosures other wise you would not have turnkey guys offering them as we all know there are profit layers involved so not all TExas property held value any of the turnkey stuff comes from foreclosures and then is marked up)…And because new construction can be built so cheap it competes with used stock and buyers will buy new over used all day long.. Especially since they will not be neighborhoods full of rentals… Just simple logic that one.
Or is it better to buy markets like Atlanta Vegas Pheniox California in areas were values dropped 50% and more and we hope that values will return to somewhat of a norm.
In Texas values have to Appreciate above the Highs Since most cash flow Texas homes are 75 to 125k at least once bought through the rehabber and marketing companies were these other markets got into the 30's to 50's. With the same rents…
Then the other issue with Texas and your correct you can build new there very cheap and new sells…
Now not saying people should run out and buy new construction for rentals… But if your talking about helping builders that could be a good play as long as the builders can be run through a very exhaustive credit background and banking critera.
Is very common in the states for builders to bankrupt one company and just start up another LLC and move on down the road. VEry common. And a lot of them could not help it they got caught with inventory in 08 that could not be sold.
Lots of issues to work through when your helping finance builders. And I am an expert having done so many thousand of rehab and NEW construction loans.
You have to fully under stand the mechanics lien laws of each state. So many builders are using draws from new projects to pay for homes already built and sold.. Bad investment in new construction scheme is a fast ticket to loose all your money guaranteed. So investors must do an amount of Due Diligence far and away more in depth than just buying a rental be it cheap or costly.
Google Dan Doyle Honolulu Hawaii he raised money from investors for Texas and Mississippi new construction. And ended up being arrested by the FBI.. And this is just one of hundreds.
Good luck with the new construction,
here is what has happened in Atlanta in my ever it to be humble opinion
1. Values plummeted to un reasonably low prices in the panic.. Those like WI who jumped in are going to benefit. My company TWH is going to benefit and so will all those who pulled the trigger earlier and saw value and moved to purchase as long as they bought the right properties in the right areas and did not get ripped off on the purchase., I was shouting from the roof tops 18 months ago… And at that I purchased just at 45 homes at the incredible prices so my TWH clients are very pleased as we start in a year or so to sell and take profit.
2. With the prices so low some of the larger Wholesalers pulled out of the market they were able to secure institutional investments which allows them to keep the properties and not have to flip them to regenerate cash.. So supply side went way down. One of the largest foreclosure buyers in Atlanta cut off all their on shore and off shore marketing folks last June.. I was in their office in meetings with the head of that department and he was retooling himself. I brought one of my buddies down from Portland and he is averaging 6 to 10 homes a month at auction in 7 counties and keeping them all.
3. US hedgefunds and other very wealthy types have moved into the market and are bidding properties way up.. they set a 6 to 8% Cap rate.. and at that they can pay far more than we all enjoyed a year ago. this started in Vegas and Phoenix about 6 to 8 months ago.
4. Foreclosures and subprime have had 3 to 4 years to move through the market and it had to slow sometime. that sometime is upon us in certain markets… Atlanta does not have the same Robo signing issues as West coast. so foreclosures get prosecuted fairly quickly. 60 days start to finish.
So yes if you have the mind set of 15% net returns in Atlanta that ship has sailed, and if you still want to buy there and get sucked into as Karina kindly calls older inner Atlanta ( which is really just a Ghetto like Detroit) you will find yourself with a house that will be a money pit..
I started buying building lots, These are shovel ready last year… And got some really smokin deals… I think this is a great play.. NOtice how your seeing guys LIke Nigel all of a sudden talk about new construction, well its going to come back and its starting a little sooner than one might have thought. And that will be my next play in Atlanta is building new homes.
So for me once I can lock in a nice profit and that is coming real quick in Atlanta if not already here I am selling, can;t make a profit without selling… Once new construction starts in Atlanta the used stock will not be nearly as saleable as it is today.
Remember you heard it here first. lesson learned if you can take profit take it.
JLH
5.
Tash,
I think your missing Karina's point she does live and work in Atlanta, but is Australian I believe.. Same with the TRR folks.
There are far worse characters out there than these 2… No one is perfect in this business my self included.
I do agree with you whole heartily about buying prime over sub prime…
And to many West Coast investors ( of which I am one) anything not West Coast or NY or Boston is Sub prime no matter were it is.. Just because the prices are so low. Those top shelf markets you describe above though are worse than OZ for cash flow… one must put 50% or more down just to be neutral Geared.. Average sale price in SF is probably in the 750k range. In silicon valley cities like Cupertino its 1 mil.. Palo Alto 1.2 to 1.5 and so on and so forth.. But rents do not go up exponentially with the price of the property.. Its a completely different kettle of fish.
And I defiantly agree with you on Projected returns that are represented by every turnkey company… These are all projections and not actuals so there is no way to predict ones return.. And key elements are left out or grossly under stated.
This is Where Cheeves and I have a meeting of the minds. Once you have a history of owning these properties for many years you get to know the numbers.. And for the OZ investor if they have to travel to the states just to over see there property heck that is half of a years income on one property..
We had this discussion before buying one or 2 props in US and having to travel there and check on them you will never even get to 10% return. because of travel costs.
Atlanta is nice but it would not be a travel destination more than once for me if I was coming to the US for holiday… Much nicer places to visit and a lot of variety, And Texas you can just forget that god forsaken place.. its flat hot humid and there is monster storms there LOL>
JLH
Karina and jayhinrichs thanks for your time and detailed responses.
Happy Hunting:
Try to follow Karina's advice and buy as new as you can afford.
As a rule I have not bought anything older than 1990 in Atlanta and 75% or more are 2000 and newer.
55 miles out of Atlanta is a pretty long way way and in most instances is probably not considered Metro Atlanta.
thats an awful long commute for anyone working in Town.. 100 miles a day or so.. So please keep that in mind as well.
I think the sweet spot is 20 to 30 miles out of down town.
JLH
SAH wrote:In regards to spruiker bashing, well its a shame that many come on here with an underlying agenda. Read between the lines and make up your own mind. There is a lot of scaremongering going on and all it does is confuses people and adds no value to the forums.
Not sure what you mean by scaremongering. While I too find the bad mouthing towards particular suppliers or fields of expertise distasteful, there's something to be said for providing sober information. Unfortunately there are quite a few slick sales folk who portray the process of purchasing overseas as unrealistically smooth, mega-profitable, or hassle and management free which, particularly in the lower end us market, is very far from the truth. People get stung, and badly, following this kind of spiel, and anyone who presents a clear and unblemished picture is doing potential investors a great service in my opinion.
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
Jay,
I own in San Fran, not a lot but I bought a while ago. Small potatoes and while I was living there:) SAH' (Karina?) post implied (+61) that she lives in Australia. I don't get that. There was a time when I was visiting Pacific Heights so much it was almost a second home, but those days are long gone. Now, I add up travel bills.
I think I can agree with you that subprime is basically over. My wholehearted advice for any Aussie is bite the bullet and buy prime. It is exactly what it says.
Quality pays:) It has certainly paid me…
Indeed.
The US is NOT easy. Just because a comment does not fit into the picture someone paints should not alter the facts. If it was that easy then a million US residents would be doing exactly the same … And they probably are:)
tash72 wrote:Indeed.The US is NOT easy. Just because a comment does not fit into the picture someone paints should not alter the facts. If it was that easy then a million US residents would be doing exactly the same … And they probably are:)
So what the picture you are painting is for?
Las Vegas?
jayhinrichs wrote:Happy Hunting:Try to follow Karina's advice and buy as new as you can afford.
As a rule I have not bought anything older than 1990 in Atlanta and 75% or more are 2000 and newer.
55 miles out of Atlanta is a pretty long way way and in most instances is probably not considered Metro Atlanta.
thats an awful long commute for anyone working in Town.. 100 miles a day or so.. So please keep that in mind as well.
I think the sweet spot is 20 to 30 miles out of down town.
JLH
This is exactly what I am looking for, Thanks
BMH – use XE.com – you can wire funds out of the US account. Obviously just having your property manager wire would be another way – quarterly or so – the fees would amount to less than you pay with Wells!
Personally I am out of the SFR market especially in ATL unless something LEAPT… MFR's, commercial in general and other fun projects to get waaaay more excited about right now ….. Especially as I love the rehab and turning things around (businesses generally but properties count!) – I love the estimating and my brain absolutely needs to be excited or it just isn't worth it for me. I will be in ATL and Vegas, LA etc for the next 5 years so if yummy happens, it could look like anything (lol – yes, the addiction grows)….yum being only prerequisite.
Then again, I only got into this to help others, have never posted an "example property" etc because it will come down to WHAT IS RIGHT FOR YOU. I have always used the "would I buy this" as my mandate and that makes it tough because right now, the answer is 99% HELL NO and a vast number of just LMAO responses. Not when you factor in EVERYTHING that you need to.
ATL under 90k that are live open properties in half decent areas (aka not too far out)? Shortsales, HUD and Dump zone could about sum it up – at least in Vegas there is better cap growth potential. That being said, each to their own.
Tash – I think the term maybe wholesaler technically per Jay's earlier definition and my only concern on wholesaling (or buying a flip) is that people are aware that that is what they are doing (most haven't a clue until the deal turns sour) and that they are relinquishing certain rights they would otherwise be afforded if buying directly through a real estate agent representing them…..which has been my point all along with the Oz wholesaling concept.
By the sounds of things above though congrats go out to Karina if she has finally managed to get a visa and/or permanent residency…. it is a HUGE effort to get into the States permanently and she has fought hard for that. Visa runs are NOT fun. R/E license next ??
Gaz,
Re your comments below
"I would like to know how Karina from http://www.selectamericanhomes.com makes her money. I assume she is not in the business of providing charity and would be looking to make a dollar somewhere as anyone is in business."
We are fully transparent and have full disclosure of our fee structure. We get paid by charging a facilitation fee if a client ends up using our service. We do not mark up any of the properties and charge no upfront fees or membership fees.
Karina Perez Ronderos
Select American Homes LLC | Phone +61 412 900 111
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