Hi All
Just got this emailed to me by a company Vincent 888:
They have sold 450 properties promoting 'C' class properties, what does this mean, bad areas, older properties, headaches??? Too bad for these investors who snapped up so called bargains, as stated below they are not particularly good performers, now you need to buy 'A' Class…. ????really, does this mean they can no longer secure/source 'C' class.
So why recommend 'C' class in the first instance?? I certainly would not be buying these why buy them for clients??
Loans for foreigners – 50% finance, read some of Jay's post you will see that you are paying 50% more for the property in other words its a "claytons loan.
Why buy better quality homes, may be coz that's all you can secure at the moment,,,, By the way, they have stated they have lots of experience…… really, that's why they purchased so called C class.
THIS MAKES MY BLOOD BOIL, LETS SCREW AS MANY INVESTORS AS WE CAN AND NOW MOVE ON……
Why buy better quality homes?
We have lots of experience in high net yield properties now, having closed over 450 properties for our investors in the USA, and frankly some of the "C" class properties only perform as well as the tenants. One of the drawbacks is turnover and vacancy, with money spent each time to refurbish for the new tenant. Real maintenance costs can drive the yield down below our quality "B" class homes, which by and large have tenants that stay longer, pay better and look after homes better than our section 8 cash flow homes. As a result we have decided to feature more "B" and "A" rated properties for our buyers that have the following advantages:
• Quality neighborhoods with better schools and facilities.
• Working families as tenants who stay longer and pay better.
• More owner occupiers giving better resale value and growth.
• less maintenance cost and fewer turnovers of tenants.
• Sustainable net yields.
• Availability of 50% finance to lower entry cost.
• Newer properties that have more resale appeal and less maintenance.
Now that the USA has become a "Sellers Market" with rising prices across the country, it is time to look at capital growth as a major factor in your investment choices. The US home buyer has become aspirational in their choice of purchase. Once finance is available their affordability is better than ever with the $1000 per month they pay to rent a $60,000 home now affording a $225,000 mortgage. They want to live in newer, better homes in nicer neighborhoods with better schools and they can afford it. As lending opportunities increase this will drive up prices in better "B" and "A" rated homes. "C" rated homes will be valued based on rental yield and rely on rental growth for appreciation. Think about it and you can see why buying further up the market is a better idea than ever before…
These "A" class homes have a tenant who has offered to buy back the home in three years for around 50% more than your purchase price. This strategy ensures they pay regularly and look after the home as if it were their own. They have a three year lease ensuring consistent cashflow. All properties are renovated to a high standard finish and come with a 12 month home warranty.
Finance Available
These "A" class homes have a tenant who has offered to buy back the home in three years for around 50% more than your purchase price. This strategy ensures they pay regularly and look after the home as if it were their own. They have a three year lease ensuring consistent cashflow. All properties are renovated to a high standard finish and come with a 12 month home warranty.
Finance Available
All homes are eligible for a 50% home loan at 8.25% fixed rate for 3 years then adjustable for 30 years. Approval is easy and we can help you with forms and introduce you to the lender. We can also do cash out refinance of existing US homes too. Please call Vincent on 02 80057884 to find out more.
1998 Built 4 Bedroom Home With 8 Acre Lake
The Falls Boulevard , Covington , GA , 30016
A- Rated Single Family Home Available
This 1998 built 4 bedroom 2.5 bathroom home sits on 0.76 acre lot that backs on to an 8 acre beautiful lake! This home is located in leafy Oak Hill which is situated between Covington and McDonough. For…More »
Vendor : MB 888 Brand : Atlanta Cashflow Platinum
$112,000
2007 Built 4 Bedroom Home on Golf Course Community
Black Diamond Drive , Fairburn , GA , 30213
A Rated Single Family Home Available
This beautiful home is located in Fairburn and is part of the Durham Lakes Golf and Country Club Community. The property lies in a quiet cul de sac with the country club at the end of the street. Facilities…More »
Vendor : MB 888 Brand : Atlanta Cashflow Platinum Plus With Buy Option
$123,500
2007 Built 4 Bdrm Luxury Home in Country Club Community
Black Diamond Drive , Fairburn , GA , 30213
A+ Rated Single Family Home Available
This amazing home is located in Fairburn and is part of the Durham Lakes Golf and Country Club Community. The property lies in a quiet cul de sac with the country club at the end of the street. Facilities…More »
Vendor : MB 888 Brand : Atlanta Cashflow Platinum Plus With Buy Option
$118,800
..
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WI
yep, these numbers make about as much sense to me as buying in Dallas GA would or within the dump smell zone of Dekalb.
Let's face it …. seriously, VERY VERY SERIOUSLY, for those who SERIOUSLY know the market ( who aren't spruiking), would you SERIOUSLY be buying SFR Atlanta still? Maybe but MAYBE I am seeing 2 a month that I would even VAGUELY think of…MAYBE… I lie, it has been 5 weeks since I recommended a property. Seriously? Would you advise your mother to invest her last cents into ATL SFR right now?? At 80k give me Vegas or even FL … at least CG is much more likely to be higher.
Heck go Jay or Ziv etc….
How many are bidding on those 1 or 2 SFR's worth it in ATL….?? 40 bare min.
BULK SELLERS HAVE TO KEEP SELLING SOMETHING AND THEY WILL BID ON VIRTUALLY ANYTHING…. – slowly the standards drop… who cares, they are out of the deal after sale – so slowly it becomes a deterioration of standards – whether that be yield, quality, age or location.
Greed dictates it – 100 people want to buy 200 properties at 4k odd a pop but there are only 2 properties a month you or I would buy as an investor…. what do you do??? People are willing to throw money at you just to get a foot in the door??? Who cares?? Seriously… buyer happy for now, spruiker happy, who cares or should?
For anyone who has ever said "I would only recommend what I would buy myself" they are NOT recommending ATL SFR. Not for yield, not for CG (go FL for CG go Vegas DEFINITELY for CG)…..definitely not for location. The exception proves the rule.
I love how the spiel has to change to justify still selling properties that make ZERO sense to an investor thinking of entry level USA……
Take a VERY close look at these properties that you are getting emailed at the moment… SERIOUSLY?????
I am leaving the forums to pursue "next" but I remember a long long time ago when I was thrown out of a Dymphna Boholt Seminar (for mentioning the unheard of name Zillow back then)…..and I spent months upon months going through how to use zillow and trulia and redfin etc and SWEARING that I would never ever ever even VAGUELY recommend anything that I wouldn't personally buy.
I have stuck to that. I don't get turned on by selling, I get turned on by the gems that are out there and the game of fixing it, getting H&B use and the hunt. Still know every property, every tenant and every faucet within every property…. I LOVE it. HATE selling and couldn't quite frankly… doesn't do it for me… finding a gem?
Now is the time in the US market to make serious money but short of good flips (my favourite, favourite part but for those being screwed on repairs, don't even attempt it unless you are on the ground) it sure as HECK isn't in SFR ATL – if that changes so be it……. So I will leave it – MOVE ON EVERYONE… Get to the next phase…
THESE NUMBERS DON'T MAKE SENSE TO ME.
Find the GEMS for YOU – they are NOT what these people are selling…. have HUGE fun and make a BINT….and find the niche in real estate that you love – and I mean LOVE and don't compromise.
I would rather help 20 people in every phase though than 200 people flounder in random SFR purchases….
Just me I guess.
WI,
I would venture to guess that these are the reasons for change in Tactics
1. these C class properties by and large are not performing anywhere near the representations that were made and I would bet quite a few are just total losers vacant trashed and no hope.
2. As has been well documented the better inventory in Atlanta the wholesale prices have just about doubled and their is fierce competition now from US investment companies with virtually unlimited resources and happy to make 6 to 8% yields and are banking on CG. Even 12% gross yields are going to be a thing of the past on houses you want to own..
3. To get inventory this company needs to go to the other end of the spectrum.. However I have no doubt there is still significant mark up in the properties you mentioned, the Nicer properties in ATL like these that you list are bidding at 60 to 70k at auction.. most take 15 to 25k to make rent ready. So probably 40 to 60k in profits to be split between all the parties, Auction Buyer, the next generation wholesaler, then the OZ marketing company and if there is a US counter part.
In Atlanta you can still find the diamond in the rough if your off shore investor.. And guys like us that buy at court house steps can buy our 3 to 4 a month However it takes a team of people and a lot of work to buy at the court house steps. YOu have 6 different attorney firms Crying sales at the same time and 40 to 60 people all milling about wanting to bid. YOu have private investors. YOu have bidding services that bid for the Marketing companies, YOu have Marketing companies that bid for themselves. You have the hedge funds. I saw one Chinese group spend I would say 1.5 million in one county last Tuesday..
Keeps going like this I am going to be a seller far sooner than the 3 to 5 years I had previously thought.
JLH
Wow,
Wouldn't make you happy if you were one of Vince's clients. Kind of sounds like sorry but my previous advice was a bit off mark so trust me and we'll give this a go instead. And to think it only took 450 duped buyers for him to figure things out.
Yep, that's about right.
So I think there will be many of the 'C' class properties off loaded again.
These companies will take back the lemons and on-sell for the client as they just want 'out' and these companies will continue to take their commission, so I would be very careful if you happen to see some of the lower end or recognise a property that sold within the last 12 months ago or so.
I have actually recognised some properties that hit the market by the some companies sold a couple of times, nice earner, they take more than one bite of the apple and pass on the headache, nothing like sharing and caring.
WI
Amazing: is all I can say…
I guess it show how tenuous it can be to own property from that far away then have it not live up to your expectations.. One just gravitates back to the only contact they know.
Jay
I think it is really a matter of desperation, when foreign investors purchase duds and I know a few, they that just want to off load as soon as possible, they don't understand the system, they don't know who to turn to and they know that if they have a tenant in place the company can off load as soon as they send the property out to their data base, usually have lots of keen investors because of the yield.
Cheers WI
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