Buying property in the US

Blackhotel, you are onto a winner.

SF has some of the best rental metrics provided you got in prior to its most recent tech boom. Even now, I believe if you invest in the right areas of SF, you are going to do just fine. Buying into a market with such high rental demand and domestic migration via job creation is great, and whilst many owners complain about the rental control laws preventing owners from putting rents up too often, I think that has been key to sustaining its growth thus far. Pacific Heights? Great neighborhood. Had you been investing in the Tenderloin or nearby, I would tell you to think twice right now, not because its a bad area (albeit a little seedy at the best of times) it is gentrifying. The problem is, US Invest knows of 7 new buildings going up right now and word has it a lot of owners are heading for the exit due to an oversupply of new apartment stock. The great thing with where you own is the fact that development is limited, therefore so is supply.

As a business, we largely deal in the Atlanta and Texas markets, however, if Aussie investors would be a little more open to the higher end of the market, I think there is a world of opportunity investing just as you have.

Well done!

-Ryan

Ryan,  I am impressed with your knowledge of "The City"  thats what us Northern Californians call it….The Tenderloin brings back memories of the precursor to Homeless folks we called then  Wino's or Hobo's in the day….                  There is rent control in SF,, Berkely across the bay is well known for rent control.   I would think the SF penninsula is most like AU high end properties… I bought my first house in Palo Alto for 186k in 1984 and sold it in 89 for 450k and thought I was going to retire it was only 900 sq ft 3bd 1 bath little rancher… Well my home just sold a few months back for 1.5 mil  now they did add 400 sq ft to it and updated the kitchen…  With HIgh tech jobs from SF to Silicon valley the penninsula only saw modest drops in values in the worse times and has bounced back in the last 2 years… I will be down in the Napa valley next week… I lived there for 10 years in my ever it to be humble opinion Napa Valley is one of the best places to live in the entire US, nice mix of culture, country, wineries and world class dinning. Yet only 45 mintues to the City and the sports and other big venues.

Hi Dereck1,

I don't suggest such a move unless you can get a job in a major city with a big contractor.

The labor is really cheap here with very good plasterers and painters making around $15 per hr

Thanks.

I think if you are going over to set up your own renovation business you will do well. But if its to work for someone else I would not bother

Thanks Jay and I agree with you.

I thought the gentleman was looking at working for someone and not setting up a business.

Thanks and have a great day.

I would stay well away from Kyler Rice. His way of "helping" me was to place a squatter in a home that I foreclosed on and that was the last I heard of him.  Similarly, Alex Franks from Charlotte, South Carolina.  I lent this guy money and finally had to foreclose on him when he couldn't sell the property.  Not an apology, email or word from him since. Has taken off to NY now.  Probably has a lot of investors chasing him.  The only one I would trust would be Jay Hinrichs whom I have met personally and have a lot of respect for.

What a joke, this is coming from a guy that got burned by "John Patchin"  David has no real clue as what we has doing as a investor!  I never ever asked for a dime from this guy!  I try to find him a rent to own scenario, and he calls the guy a squatter when the house isn't even rentable.  John took the rehab money and split!  I'm glad i didn't help you out anymore than i had David!  

Of course your pimping Jay!  Your flogging his stuff to your "mates"

I'm going to put a lean on your house now!  What an ungrateful punk!

jayhinrichs wrote:

Kyler just to set the record straight here.. David has never referred anyone to me for any reason. And I do not sell any rental houses to any investors. Other than I sold my interest in TWH and the 350 homes we owned to my ex partner in Oct. I build new homes and sell them to homeowners and I lend money to US investors short term and I have a 5 year product that I lend to Aussie and other foreigners.

And I don’t need anyone “pimping anything for me”… I do quite well on my own thank you very much.

The reality of the situation is this is just another perfect example of investing in Crappy neighborhoods … and with less than capable Turn Key companies.

As anyone who has ever read anything I have posted here knows I strongly do not recommend these low end rentals for out of area investors… for the above reasons.

the quality of the people that work in these areas and price ranges and the tenant base just is a nightmare in so many occasions.

If you live and work in the Hood you can make it work… but thinking your going to buy these low end dogs and make them work from thousands of Kilometers away leads to a lot of heart ache and lost money.

The reality is people that work these markets last a couple years then move on leaving the investor holding a sub par asset at best.

I

Jay,

Still need to finish that call??? lollol

Are you in Hawaii yet? lol

Just moved to Toledo so you need to stop by when your on your way to NY. Found a great place for lunch to take you haha

It has a “Don Salieri” feel to it and you think an old mafiaso hitman will pop up at any moment haha

Thanks and have a great day.

jayhinrichs wrote:

Engelo ,,, I am booked through July and as Toledo is not on the top of my vacation hot spots I will in all likely hood make it there in the fall ( oct Nov when our summer here is done.) I like Columbus Ohio very much.. I have never been to Toledo.. Although one of the Aircraft brokers that sold one of my airplanes is located there.

Done,

October it is.

Get the plane serviced while your in town also haha

We are based in Toledo and Columbus :)

Thanks and have a great day.

HI John,

What markets are you in over here in the US… are you selling SFR’s or more sophisticated type investments.

Agree with you the people on the ground in the US will make or break an investment

jayhinrichs wrote:

HI John,

What markets are you in over here in the US… are you selling SFR’s or more sophisticated type investments.

Agree with you the people on the ground in the US will make or break an investment

Hi Jay,

I work with a group in Phoenix who deliver a great product for foreign buyers. Primarily SFRs. I have a regional bank that’s agreed to work with APS clients so there’s real US bank finance available. The Australians have to travel to be physically sited buy the bank so they also see the houses that they are buying or already own when they visit PHX. We have plenty of cash buyers who never make it to the US but the investors who travel always buy more.

What do you do?

Sincerely,

John