heading to the States!

Actually, I think sample deal breakdowns are very helpful – not from the "model property, this is what you should be looking for" perspective, but more for the purchase/annual costs breakdowns, the details of the process involved, and the criteria used generally (aka "why we recommended this property").

We receive very positive feedbacks on the deal breakdown sample on our website – it actually paints a very clear picture for people of what they should expect, as opposed to "bottom lines".

Thanks for reminding me, time to post another deal breakdown here too

@ Jay

Not really, we just don't get the crazy amounts of people buying here like the buying frenzy that shot up AZ and Atlanta.

Kyler- you saying nothing's changed in KC in the last 2-3 years? Thought I was noticing some more wholesales popping up there, thought it had something to do with a pickup in activity, price etc…would love to hear more of your impressions when you have a minute

Dont fall into the trap of buying cheap property just because you think it is cheap. Whether you are using a line of credit or cash you still have to put the value of the money at 6% plus. So when you are buying property you have to look at the net figure not the gross figure because by the time you take off property taxes property management ect you may well find that the returns come well back into single figures. 

Many people will lose a lot of money in the US over the next few years so my advice is research the market carefully and look at other options 

WI

I do believe the stock that I have bought and I am thinking you bought will come back pretty easy to the 90 to 110k range. And most of my properties all in with my TWH model are at 40 to 65k. with an average of about 50k.. Sq FT is not a huge factor with resale,, its location and monthly payment for those buying starter homes.

builders that are in the business will build for about 50 a foot plus the lot… But lots are super cheap, I bought 7 half acre lots for under 5k each a few months back and this is in a neighborhood that had 350k houses that are now about 225 to 250k. In one of the best sections of Henry county,,, I think buying lots RIGHT NOW is one of the best investments anyone could do in Atlanta,, I would not be chasing the rentals up into the 80 to 100k range.

The houses that you and I bought are really built as cheap as possbile.. vinyl, cheapest cabinets. counter tops carpets siding etc. They look OK but thats it.

We build in Oregon for about 65 a foot.. But thats Hardyplank siding  Not vinyl, Granite counters custom cabinets upgraded flooring.. 9 foot ceilings,, Not the 7 and 8 you see in Atlanta  30 year Arch roof etc etc.. The only upgrade is Aircondioning in the south of course is standard.. ITs an option in Oregon. And our building permits cost 25 to 35k per lot.. That includes sewer and water tap park fee transportation fee plan check fee etc etc.  In the south building permits rarely run over 5k.

There is nice new construction now that is selling in ATlanta burbs in the neighborhoods that you and I invested in.  these homes are priced at 99 to 119k.. My partner there is building a few at that 119k.

I do not think these houses we are buying will peak much above the 100k for the reasons above. buyers will buy new way before they buy a house thats been used as a rental..

I think this is one thing Most Off shore investors do not realize… To sell retail you need a retail rehab not the rental rehabs that are common.. Big difference… I plan on putting about 5 to 10k into my homes if I am going to retail. them.. New cabinets granite surfaces Stainless applilances upgraded fixtures throughout  etc etc.. ( although owning the Hardwaresupercenter.com) I get all those below cost. So I save a good 1k or better per house just on hardware and plumbing and lighting.

Hope that explains my thought process.

JLH

Kyler,

Atlanta keeps going like it is and I will be selling to the herd… The hedge funds are very tough competition. but the way the auctions go there NO one can corner the market.  Now these hedge fund types they are pretty smart dudes all Ivy league trained  Wharton , Harvard Stanford etc etc… And they are concentrating on markets they think will go up in value.

1. Atlanta

2. Phoenix

3. California

4. vegas   ( not so much as an investment but they like to go their to party)

I think they will take a pretty steep learning curve in Atlanta… I don't think the houses will rise much above 100 to 125k.. new construction will compete with those and everything being equal new construciton will crush existing Stock.. This is one of the reasons I personally did not like Texas because the price point was double or triple Atlanta..No real room to move in Texas new construction does and will Keep the Texas values static for the next 5 to 10 years and maybe forever.. Too much cheap land and the least restrictive zoning codes in the US.

CA is probably the best play of all,,,, If you know exactly were to buy, Some of CA will flounder other parts could do really well on the rebound.

You will see on my salutation that I have put together a foreclosure fund… This is going well and is intended to do mezzanine financing for ist Gen wholesalers or Turnkey companies…

All my years lending to these guys based here in the states I have a stable of half dozen or so of the most successful and ones that have internal capital, we are just helping them leverage,, As prices rise and my TWH model starts to fade as I can't get the properties for a good enough price… I will find myself back in the finance game. Only I have developed a new strategy that I think is really quite beneficial to both ourselves and our clients….

JLH

So is it a pure cashflow environment, no capital gain in the last 3-4 years, and none expected? Or are there movements in different areas of the city, just not where you like to play? What are the demographics/nuances in the area growth wise? (not expecting you to crystal-ball/speculate, just interested in your opinion…)