US foreclosures #2 (aka the Emma171 thread)

[reeco]

You're pulling my leg. 17%. In Australia?

Chui...what happens when you have no mortgage to pay?

That's what I'm getting at.

But like it's been said before. There are a plathoria of reason to invest in LV.

- Quite possibly the most Landlord friendly state in the entire US.
- Vegas is very very active as a city right now. I would absolute hate to see it when the market picks up in the US. The tide of people you have to walk with or against on the strip now is an experience in itself. Bugger if I'd do it when theres more disposable income floating around.
- Below replacement cost for new houses currently for sale.
- Even though there are a lot of empty houses, they are largely banked owned. Meaning banks arent into the landlord biz. Which means the rental stock, while still highish, is low enough that you can be choosey with your tenants.
- and the cost to maintain or upgrade your property is pretty spectacular. Due largely to a influx of south americans, price for quality fit outs and quality repairs is so low it's actually hard to believe. I "Meet" a lady friend while I was out one nite. Long story short her carpenter father itemized some imaginary repairs I dreamed up. Gobsmacked at the prices he was quoting. Easily 1/4 of what folks from Perth put up with.
- Vegas in general is a very cheap city to live in. As a rule of thumb price wise, half everything sold in AU and youl get some idea


And list goes on


I work on barrow island considered to be doing very well. But after conversations with locals it seems they can achieve similar amounts also...I was like huh? Liar! What about your minimum wage etc we keep hearing about? What about inflation etc. How can you have high wages and a low cost of living. Oxymoron I tell ya.

Meet a doorman who told me he earnt 100k last financial. Of which most was tax free(tips)
A freaking doorman for petes sake.

The key word is achieve. Granted they have to try a lot harder then you and i, but the foundations to earn a fistful being a simple blue collar worker still exist...it's just a matter of time before its again realized.

Only an opinion but as a person who been on the ground and studied LV heavily that's my take away from it all.

 

[reeco]

cant sell on the weekend

Can book on a Friday though and pay on Monday. Was much better then thurs morn. Dang spot price! Glad im not a forex trader. Wouldn't last very long being the emotional and impatient SOB that i am! Grrr

 

[USFL]

Hi

This guy is dealing with a few Australian based investors. Doubt if he's cheap but seems to know his subject.

Here is a series of You tube clips featuring Skip Swany

(posted this earlier but you may have missed it)

http://www.youtube.com/watch?v=iT0QkUVbXMU

His email is [email protected]

Cheers

Thanks, great help and link very informative.

 

[reeco]

Combined Resources

Crowd sourcing...

I've come up with the idea(im so smart dontcha ya know ) for ensuring our investment properties are doing well. If your an investor who has brought into LV...I'm willing to help you by inspecting your property. Drive by, walk through, take photos, whatever the deal maybe...if it sounds like something your interested in PM me and well try nut something out.

Here's the low down. You in turn would do the same. Me kasa su kasa or however it is you say it ha!

I thought It may be of value to others since they can only visit so often, like myself. Inspecting my house once a year doesn't bode well with me (even with prop management) so there's an opportunity for folks to come together in that respect.
If we were successful I would suggest a list of things to tick and/or make note of. Since were not seasoned inspectors(I think) a well researched list should suffice for all involved. Wel start with the small stuff(no meth lab...tick) and work our way up ...i jest i jest

Just the thought of having someone drive past is enough to help me sleep so having the option to do more is a positive.

There's an opportunity to pool resources here as well folks. Lawns & gardening etc(if you have one of course) but I can see other areas too.

Emmas way to busy to be driving past so im taking the initiative and making plans.

Email [email protected] if you think it's worth pursuing.


Regards

 

[Emma171]

A few brilliant articles at the moment....

HOA FEES... CAUTIONARY TALE FROM Las Vegas Review Journal (SMH for LAS)


QUOTE - READ THE LAST LINE!!!
The Las Vegas Democrat made that comment after a three-hour Senate Judiciary Committee hearing, during which a long line of homeowners, association board members and lawyers argued about the proposed $1,800 limit in her Senate Bill 243.

She noted the Commission on Common-Interest Communities and Condominium Hotels has drawn up a tentative regulation with its slightly higher limit, but which could go in effect more quickly than her bill. The commission also could make changes to its regulations more rapidly than the Legislature, which meets every two years, Copening said.

"It is a complicated issue," she said. "But the whole point is to prevent collection agencies from taking advantage of homeowners. Collection agencies are crafty. They will look for ways to get around this bill."

Copening said the whole point of her bill and the tentative regulation is to prevent collection agencies from collecting $5,000 or more when a resident in a homeowners association fails to pay required monthly fees for landscaping, upkeep, swimming pool maintenance and other costs.

"What they charge is ridiculous," she said. "There is nothing in the statutes or regulations now to prevent them from doing it."

...

In addition, Assembly Majority Leader Marcus Conklin, D-Las Vegas, will hold an emergency meeting of the Committee on Regulations to approve the regulation with its $1,950 collection fee limit, Copening said.

But the caps in the regulation and in Copening's bill also would allow for "reasonable attorneys' fees" absorbed by a homeowners association on collecting on debts. That prompted complaints from several witnesses who questioned how "reasonable" would be interpreted.

"What is reasonable to me may not be reasonable to the collection agency," testified homeowner Jonathan Friedrich of Las Vegas.

Besides attorneys' fees, there are about 20 other costs that homeowners associations can charge for performing services. Some of these costs are on top of the $1,800 maximum in her bill, Copening said.

For example, they can charge $75 for writing a letter to a homeowner stating they intend to record a notice of a delinquent assessment.

This charge upset Sen. Ruben Kihuen, D-Las Vegas. He contended the association can send out the same form letter to numerous delinquent homeowners and merely change the name and address.

"I want to know where this $75 came from," he said. "This is just a template letter. How do you justify a letter for $75 when all you do is take the name off and just insert a new name?"

But Chris Yergensen, corporate counsel for RMI Management and Red Rock Financial Services, called Kihuen's question "disconcerting."

"There are many things we have to do. We have insurance and payroll costs. We have many costs going into operating a business. It is not as simple as pushing a button."

He said his company has 10 employees who do nothing but answer calls from homeowners and eight who just receive payments.

Stephanie Cooper Herdman, an attorney and licensed collection manager, said the costs charged by collection agencies are exorbitant. She noted they could collect $1,800 when the homeowner has just missed a $20-a-month assessment.

Homeowner Ronna Goodman said association boards and collection agencies don't bother contacting homeowners by phone of their delinquencies. She said she was president of one association whose management company sent letters to a delinquent homeowner who was out of the country. Eventually they foreclosed on him for being $112 behind on his required assessments.

The owner never knew he was delinquent because his renter received the letters and never told him of the problem, she said.

SCARY...

 

[Emma171]

I am TOO busy... massages, private jets... no seriously, it actually was one of the great things that has eventuated about this forum that I LOVE - a little expat community here in Vegas keeping an eye out for each other... good concept Reeco....OMG... HOLD ON... devoid of anonymity??????

NOTE.... Reformed Sceptic DO NOT FOLLOW SUIT.... this should after all be ANONYMOUS....oh, except where you think full names should be revealed but won't reveal your own

 

[whitegoodman]

email sent reeco

 

[lawsjs]

I trust this won't be deleted for upsetting anyone's delicate ego or possibly upsetting someone charging a king's ransom for the same service, but...

Brilliant idea Reeco. Brilliant. 12 people and you have a 'local' investors perspective on how your property is doing every month.

That idea should go straight to the pool room...

Might I suggest (falling short of a more formal $5 or $10 fee to cover car hire/time/gas??) a grateful recipient of a fellow investors 'report' on their property might be willing to send in return a small gift as thanks..

 

[reeco]

I am TOO busy

You are...your just a freak of nature and with No arms and legs you'd probably still be doin all this!

I hope I can bring some kind of economies of scale for AU investors. Say getting fixed prices on repairs etc should the need ever arise. Prop management is another. Power in numbers they say. Collective bargaining the CFMEU like to call it here on the island.

There is definately merit in binding together rather then stand alone. Each to there own but I personally don't mind driving past and checking a fellow investors IP if they were to return the gesture.

KISS. Core fundamentals can be agreed on rather easily Id say. Go from there for all other minors. Im going back in 3months. So there's a chance there for folks to come up with a few ideas.

 

[sonic]

Financing US property using HSBC Premier

Hey guys great thread on US property! I'm seriously considering buying a few US properties in the near future... I'm trying to do some work on what options there are on financing US property.

I'm an Australian national residing in HK working for the past 4 years and I came across this with HSBC premier . They basically offer 70% LVR for US properties (1 per city) for foreign nationals.

I was wondering if anyone has come across this and also with HSBC premier in Australia? I know it exists as I use HSBC premier to wire money home...

Any thoughts/ comments on financing US please share would definitely be interested!


HSBC Premier Fannie Mae Mortgage Program – Foreign National (Highlight):

Eligible borrower: US Citizen, Valid US Visa holder (B-1, B-2, H-3, I, J-1, J-2 and R-1) or from country participates in the Visa Waiver Program and must be HSBC Premier Customer. 

Max. Loan amounts: $417,000.00

Occupancy: Second home / Vacation home 

Maximum loan-to-value (LTV): 70% 

Eligible property: Single unit (Single-family house, Condominium)

Terms: 3/1 ARM, 5/1 ARM, 7/1 ARM, 10/1 ARM (ARM = Adjustable Rate Program, 30 years amortization period for all ARM programs); 15 or 30 years fixed interest rate options available.

Prepayment penalty: No

Rates as of Feb 25, 2011 (interest rates are subject to change daily):
3/1 ARM: 3.50%
5/1 ARM: 3.75%
7/1 ARM: 5%
10/1 ARM: 5.5%
15 Years Fixed: 4.5%
30 Years Fixed: 5.25%

Required documents: 
(1) Income verification -
For Non-US based employment and paid in foreign currency:

Salaried borrower: a letter from the borrower's employer printed on company letterhead is required. The letter must indicate the start date, position/title, annual salary and year-to-date earnings. All foreign currencies need to be converted into USD. Most recent 30 days pay slips/stubs if applicable. The most recent 2 years US Personal Tax Returns (Form 1040) with all schedules and signed required for US Citizens. Most recent 2 years W-2 if applicable.

Self-employed borrower: must have minimum of two (2) years of continuous self-employment in the same industry/business. Employment letter (printed on company letterhead) from Certified Public Accountant (C.P.A.) to indicate the borrower's start date, current position, percentage of ownership, current yearly/monthly salary, current year-to-date income (salary, bonus, commission, allowance etc.). The most recent 2 years US Personal Tax Returns (Form 1040) with all schedules and signed required for US Citizens. Most recent 2 years W-2 if applicable.



(2) Assets verification:
Most recent 2 months bank statements or investment statements to evidence the assets

(3) Identification:
Copy of the borrower's unexpired passport, and/or valid US VISA if applicable

Processing time: 
The entire process may take about 30 to 60 days depends on the property location and type of the property

 

[USFL]

The only way to "lock in" is to do what a lot of people I know are doing - forego interim interest rates Australia side and whack the funds into a US bank account now - if you don't have a US bank account and are seriously buying property, dial a friend.... there are ways around everything but you aren't alone with your thoughts and many are thus making a bit of a rush on this.

Emma,

Not sure what difference that makes. You "lock in" $100K AUD into a US account say at par. AUD goes to USD $1.50 your asset value has reduced 33% as has the value of your rent income.

I would think the opposite would make sense so at least your are averaging your purchases over time as the dollar moves up or down.

Or have I misunderstood?

 

[reeco]

Emma,

Not sure what difference that makes. You "lock in" $100K AUD into a US account say at par. AUD goes to USD $1.50 your asset value has reduced 33% as has the value of your rent income.

I would think the opposite would make sense so at least your are averaging your purchases over time as the dollar moves up or down.

Or have I misunderstood?

33% ? your assuming the AU will go to 1.50? Give me some of what your smoking puhleaze..

Lock in now for when the AU goes BACK to it's historical average...make no mistake it will go back. It will go up more for sure but fiscal gravity will kickin eventually. By how much is the real debate. Common knowledge is that the US fed/gubment is supressing the Greenback to draw in outside dollars.. amoung other things.

 

[lawsjs]

This is a property forum.

Want to play with the big boys?

Open a 4x trading account and get 1000:1 gearing if you want.

It is addictive.

Rather than discuss pip movement, lets take a long term property view. The $Aus is seriously unlikely to go much higher. Unless you are trading and looking for falling stars or doji's lets say you tx $100k AU to your USD acct. The likelyhood is that in the medium term the $Aus goes to .80c. Your $100k is then worth $Au125k.

I think that for this forum and discussion the 4x issue need only be appreciated on that level.

I humbly apologise lest some 4x marketer gets upset with my comments and this may have to be deleted. I meant no offence to anyone...

 

[reeco]

Hsbc

Hi Sonic,

I checked with HSBC AU and they said to first get through the door you must hold either 200k in cash with them or 500k+ in property etc. This is for the Premier account only.

Awesome if your assets are with HSBC already. If your really keen you could drag over the required amount just to become a premier...what's to stop you from pulling 200k back out? You lose the premier account but big deal. You got what you come for and they got to use your 200k to leveradge more funds for there coffers.

Great find Sonic!

 

[bigfire]

Emma,

Not sure what difference that makes. You "lock in" $100K AUD into a US account say at par. AUD goes to USD $1.50 your asset value has reduced 33% as has the value of your rent income.

I would think the opposite would make sense so at least your are averaging your purchases over time as the dollar moves up or down.

Or have I misunderstood?

I'm a bit dirty that I locked in at parity and now its gone to 1.03

If you think AU$ is going to 1.50 then perhaps locking in would not be your best move

 

[reeco]

I'm a bit dirty that I locked in at parity and now its gone to 1.03

If you think AU$ is going to 1.50 then perhaps locking in would not be your best move

Dirty..I'm absolutely filthy about it. 1100 on my transfer. Ah well....thems the breaks. Countings pennies when I should be counting dollars lol...

 

[whitegoodman]

well AUD is arguable, most of the big bank economists have targets from parity to like 1.10 for the year end, means its going down ha.

its wrong to think the old equilibrium of circa 80cents will always be it, the emergence of China has provided a new normal as it were for demand for AUD.

Due to our heavy reliance on mining/energy we are very much a ToT economy/currency and I can see us having quite a volatile currency as things get 'out of whack'.

things i can see in the mid term for it to go down

- our own sovereign wealth fund
- RBA intervention ( have a look at tourism and non mining exporters)
- US rate rises

Also if it gets too cheap (the exchange rate) I can see a lot of REIT's/businesses setting up vulture funds and the like to diversify income, Australia is way to saturated in the commercial space.

i reckon the best approach is just to average in, either by buying property as it goes up or sending funds over to a US account as it goes up and or down, itd be **** if you had say 100k to send over, you do it all at the one rate and then it goes up another 10cents.

 

[sonic]

Hi Sonic,

I checked with HSBC AU and they said to first get through the door you must hold either 200k in cash with them or 500k+ in property etc. This is for the Premier account only.

Awesome if your assets are with HSBC already. If your really keen you could drag over the required amount just to become a premier...what's to stop you from pulling 200k back out? You lose the premier account but big deal. You got what you come for and they got to use your 200k to leveradge more funds for there coffers.

Great find Sonic!

In HK you can join with no fee for 1 year so even if you have minimal assets it appears worth it.

Can anyone shed any light on how stringent HSBC is with financing property in US? I've been reading some threads on other property forums which says they are a bit more an*l when it comes to approving loans and valuations.

Has anyone had any concrete experience?

- Tim

(Again I'm based out in Hong Kong so HSBC Premier info may not be valid for HSBC in Australia).

 

[exitpoll]

Just getting some quotes for insurance on my 1st prop and it seems a bit high to me.

Can I ask others what they are paying per house pls?

 

[Emma171]

Insurance about $431 - $500 p.a. in LV....but in FL you face every known threat including floods, alligators, rising damp etc... I remember I wasn't even able to get a quote for one coastal prop I was looking at there because of hurricanes...

Just got this as a listing... WHY LISTING AGENTS MAY NOT BE THE BEST TO BUY THROUGH....

Check out the price this listing agent thought this foreclosure should be worth... I think conservatively we should offer 10k more....

http://las.mlxchange.com/EmailView.asp?r=105913095&s=LAS&t=LAS

Mmmmmm, can anyone say "MY NEW HOME"... I'm packing already...