US foreclosures #3 (aka the Emma171 thread)

Hmmm. Been a while since my last visit...

Just to let everyone know...As a person who's been involved from the start...I still dont have my own piece of US dirt.

Why? Well for one im not all too fussed about a US recovery in the short term(12months) My internal voice tells me that a recovery will be a U shaped one if there lucky. ..Not a V...

Also Emma's alot busier then she use to be...ah the good ol days...sigh...As such im competing for her time on par with everyone else. Guess it doesnt help that im procrastinating too..

In conclusion...to all those rushing in...Take your time...There are literally 1000s of deals to be had in Vegas. Even if there was a V shaped recovery it would more than likely be a dead cat bounce. The way things are shaping up in US politics, Its gonna be a long and battered road to recovery. Poor sods. I can only imagine
 
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saxnix said:
Interesting article here, about the breakdown of foreign sales in Vegas in May. Looks like Australian's made up 8% of the market.

Edit: 8% of the foreign buyers
Click to expand...

After having a gander at the article...i wouldnt be surprised if Emma's words factored heavily in the calculation of that 8%...i reckon 80% of 8% so ....6% of the total. Directly or indirectly.

Deserves a medal this woman does.

#starts a slow clap# #looks around for the whole room to clap aswell# .....#nothing...oh well...still gonna keep clapping# :)
 
thought i put my opinion out here.
i signed up with emma 4months ago.put offers on properties,but still didnt get property.
meanwhile emma has been very helpful,with videos of properties,info for rent,area rehab etc.
emma has been very much to the point.
very supportive.
i booked my flight to LA 5th august and then ll be in vegas 8th to catch up with emma and yolanda and try to speed up things.
i ll let you guys know.

currency exchange.
up?down? well if the experts dont know,even buffett said that he doesnt know where the dollar is heading,i wont even try.
to me is more important if properties makes money or not.
in melbourne peoples ip make an average of $40 000 loss/year(includes depreciation etc) and people still buy here!

jenmann!
guys i met him few times at seminars!
he is actually very nice and what he wrote about usa properties was to warn people about companies who rip aussies off.
he mentioned a woman who got taken all of her money by some bad people and he tries everything to get her money back.
come on guys,give the man some credit.he received dead threats because he exposed agents in australia etc

some of you here are experienced and smart like jeremy(i love to read your threads,so spot on and honest and funny)
but like myself,even i read all the books about properties by kyosaki,de roos etc, after reading threads here,omg so many things i still dont know.

want to thank u all for your input.
and reeco,let me know where u want to drive around in vegas,i ll do,can take pics and email to u.

not a prob at all.
your idea of all of us helping each other is great

keep up the great work :)
 
Thanks Bernie - I'm not one to blow my own trumpet, but it is at least nice to know people think you have one:)

Others have successfully posted links on this site without Yossarian Catch-22 hospital-like censorship, so I will post this link from the Age in the hope that others gain something from it:

http://smh.domain.com.au/home-investor-centre/overseas-deals-come-with-danger-20110729-1i31i.html

I have made several approaches to ASIC on this issue. I spoke at some length on the phone to them, but did not think anyone really listened who understood what I was explaining. Maybe they were just being very careful.

It seems I may have been one of a chorus, I would like to think the information people helped dig up on this site made a big difference and some of the information I provided to ASIC (based on great posts) did get through to the powers that be.

The key for me was the zillow research done by Bevk on one particular example. It was exact, simple and (at least on the surface) irrefutable. I made it the centrepiece of my ASIC emails and phone calls.

As it happens I am in LA on another (probably last for the time being) buying trip. Im out of cash and feeling time strapped between AU and LA. Why is it you never get one problem or opportunity at once - but always many across the globe at the same time....???... I have just bought ALL the hardware (down to toilet roll holders) including tiles, kitchen bathrooms and all labour to repair one of the most disugsting properties I have ever walked into. Its one of an 8u 2br 2bth in a reasonable area in Long Beach. Including labour charges at $12 per hour the cost to get the thing from completely disgusting (you could smell it with the door open down the street) to tenantable at $1250pm (up from $800) it took 2 days and $6k. I stress it was vile.

You need good 'active' management to make this work and have people you 'really' trust on the ground to buy high yield properties (same, I guess with stocks). It is very specialised work and whilst I have proved over time it works well, please don't think it is 'easy'.

The difficulty is always sorting wheat from chaff with assistance. No-one is more skilled than the Americans at talking the talk. This is not rocket science, but it requires something few people are prepared to do - hard work. Especially (as I consider myself) for an ignorant foreignor.

Make it work, and it works spectacularly. The possibilities for growth are huge. Like everything it takes effort.

My wonderful Mexican project manager suggested today that I should go with her to LV to look at properties as there are some 'very very good' deals there - but you have to be careful. If I told you her name was also Emma I am sure you would understand why I thought it was so funny....
 
Dilemmas

I struggle everyday with whether my recommendations to buy are too low or miserly for those waiting for their first baby... But that is it... Just recommendations there to be overridden? On all these properties if people overbid of course they would get them but the game is to not overbid.. Even if I do spend a lot of time with a million videos of a million properties... The ones I love are the ones that drop out of escrow and I can resend the videos from 4 months earlier! Well, at least check the property is in the same condition. However... Please consider that whether you make 16% net or 14% net if the AUD has increased from 101 to 110, you are making it on currency and please, bid up! I would still rather waste my time than have someone overspend beyond their means or budget on any property and I think that is all I ever could say... Stick to your investment guns, stick to your budg and stand firm... No matter what state, region etc. No one has a crystal ball for the rest.
 
Emma171 said:
I struggle everyday with whether my recommendations to buy are too low or miserly for those waiting for their first baby... But that is it... Just recommendations there to be overridden? On all these properties if people overbid of course they would get them but the game is to not overbid.. Even if I do spend a lot of time with a million videos of a million properties... The ones I love are the ones that drop out of escrow and I can resend the videos from 4 months earlier! Well, at least check the property is in the same condition. However... Please consider that whether you make 16% net or 14% net if the AUD has increased from 101 to 110, you are making it on currency and please, bid up! I would still rather waste my time than have someone overspend beyond their means or budget on any property and I think that is all I ever could say... Stick to your investment guns, stick to your budg and stand firm... No matter what state, region etc. No one has a crystal ball for the rest.
Click to expand...

Emmas Dilemmas :)
 
Lol....ha...yep, only word in the English language with my name in it and yes, Jeremy you could potentially word it that shortened way but I prefer the more verbose...


PS it takes TWO Emma's for you to consider Vegas???????? There is an Emma Scale of Worthiness now??? Now THAT is funny. I wish I could add some clever acronym but it fails me.......

REECO? There HAS to be a BRILLIANT retort here ??
 
Let us know how you go Bernie! Really eager to see how you fare.

Thanks again to everyone who has contributed over the last 80 pages or so - I have really got a lot out of it, as I'm sure many others have, and am now looking to put theory into practice and buy a property of my own.

We have definitely established that Emma is legit and seems to be the woman to go to for all your Vegas foreclosure buying needs (if she has time!) - We have also established that there are a lot of dodgy companies out there who will rob you blind whilst convincing you that you are getting a great deal.

What about other companies in other locations, however? For example, has anyone taken a serious look at these guys for Arizona?

http://foreclosedamericanhomes.com.au/1600-coal-shovel-trail-conyers-ga/

Checked the last sales data on zillow for that property and it all seems pretty legit to me - I don't think they are buying, renovating, then selling at an 80% markup like some offenders... Just seems to be a fairly straightforward buyer's agent for Atlanta foreclosed properties where you pay nothing until they find you a property you like. Low purchase price + high yield seems pretty appealing, but I must admit I don't know the first thing about Atlanta, so would need a lot of due diligence to feel as comfortable investing there as Vegas after these threads =P

Update - Submitted an email enquiry to them and got a call who explained some of the broad overview to me & agreed to email me a more detailed information pack. On the surface it seems similar to Emma's deal but with some noticeable disadvantages. They basically get a list of newly foreclosed properties and purchase 10-15 of them themselves, then find Australian buyers for each of the properties to take over the contract directly and step aside for a $3,750 fee. They then quote you on any repairs and renovations, have them completed, find you a tenant & hand you over to a property manager who charges 10%.

Seems more ethical than most companies in that there is no apparrant markup and they say they try to negotiate a better deal than list price from the bank owned properties. They have really just focused on SFR's as well... However the fact that they buy 10-15 regularly and have 2 weeks to shift them onto buyers seems to create a small conflict of interest in that they would have to find buyers for stock that may be less than ideal or forfeit their reputation and/or earnest money deposit. Furthermore, the 10% ongoing property manager fees is quite a bit higher than the 7% that Yolanda offers.

Update 2 - Got the email... $3,700 fee is just for Atlanta, for Phoenix and Orlando it is $5,000. Seems ok but a couple of the example properties they sent had rehab costs of $12k and $21k respectively, which seems a bit much... The guy reckons there is an average of 6 weeks between settlement and getting a tenant in, but sometimes can take up to 10 weeks (but blamed this mostly on time to refurbish the home) - but the returns in the example properties are all estimates, despite the fact that they are actual sales for buyers. I would think that if they were actual sales, they would have "actual monthly rent" instead of "estimate based on trade and property professionals in Atlanta at time of listing".

The third property had refurb costs of only $675, though, so I guess if you were interested in buying in any of the places they service, this seems like a much better option than the "buy, renovate, sell to aussie investor at +80% and charge them $4k for the privelege" companies... Would still rather buy through Emma in Vegas, though =P
 
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I've just spent the last four days reading through the last 80 odd pages when I got a spare few minutes, and I like some others I just want to say a big thankyou to Emma and Jeremy (and to the other guys who have shared their experience) for sharing all of the information! It seems you both have different target markets and getting the perspective from both points of view really helps!

I have attended a couple of seminars in Sydney by some of the 'experts' and I've learnt way more by reading through these threads than I have in any of the seminars. The experts are very good at talking about all these great returns you can get but most are short on details when you start asking questions....

I don't have $50 to $70k on hand to be able to buy a property outright so I'm going to have to start hunting for finance. I do have a SSN as I spent a few months working in the US a couple of years ago, so I'm hoping that this may help in trying to get finance in the US. Emma, if I can get this sorted, I'll be in touch to see if I can get the ball rolling!
 
Marc 280,
Emma and I do have very different markets. I appreciate the fact people understand that. There are many cats out there and even more knives:)

I just received this as an email:

Take advantage of the first hand expertise we have on offer.
USA realtors on hand and able to answer your questions!

Next workshop Monday August 29th 2011, Melbourne.


Stephen McClatchie would like to invite you to his upcoming Melbourne Workshop to meet our special guests who are visiting from Memphis, Tennesee and Atlanta, Georgia.

Over the last 6 months we have developed even better contacts with USA lenders and understand with pinpoint accuracy what they are looking for when approving finance for Australians wanting to purchase USA property.

But why would you even consider buying USA property?

Having financed over $650 million dollars in finance over the last 14 years (including many of my own) Stephen knows that there are two huge hurdles to acquiring property in Australia.

Firstly, the huge deposit that needs to be saved plus the associated costs incurred such as stamp duty.
Secondly, finding the ongoing cashflow to pay down the loan, or if it’s an investment property covering the shortfall between the rent received and the ongoing loan repayments and outgoings.
With the GFC the property market in the USA has crashed. As a result there are phenomenal buying opportunities for Australian property investors. The opportunities have been magnified with the Australian dollar sitting above parity. There are numerous cash flow positive property investments (cash flowing to you every month, not from you) some of which are great and some not so great. The key to success, is knowing the difference.

Having visited many USA cities over the last 18 months, Stephen has seen firsthand the incredible opportunities available as well as some of the potential traps that investors can fall into. As with any investment you must absolutely do your homework.

Now purchasing property overseas is a strategy that needs to be contemplated with your eyes wide open. Initially Stephen teamed up with a buyers advocate to ensure that every aspect of the purchase and ongoing management was covered. However this system does not suit everyone – some people like to do things their own way and choose their own property.

Stephen wants to let you, in particular, know that if you are keen to identify your own property to purchase, we now have multiple USA lenders lined up and willing to finance them.

But please read on. There are a few things we need you to know before you rush out and buy anything, expecting to finance the purchase.

The beauty of financing property is that it creates leverage. You use less of your own cash to secure the property which means you can either buy more property or keep your cash so that you can do other things.

However, obtaining finance in the USA is a privilege, not a right. That sounds strange doesn’t it? You see, it all comes down to the GFC. Australians overall were only mildly effected (although the Banks continue their banter about how tough times are, despite their billion dollar profits) the United States are still suffering badly and will for many years to come. The lenders have less cash to lend and they are very wary as to who they lend it to.

In fact, ask anyone even mildly associated with the USA property market and they will tell you that finance is just not an option.

We are here to tell you that it is an option. A viable option! Is there a catch? Yes – you must have specific insider’s knowledge before you take ANY action. There is a list of key ingredients that you must follow to ensure you can secure finance in the USA.

--------------------------------
To find out more, register for our USA Finance and Property Workshop being held in Brighton, Melbourne on Monday the 29th of August.

http://loansusa.com.au/workshop-registration
-----------------------------------


The first key ingredient is all about the property. Lenders have to take the property as their security for the loan. During the GFC lenders in the USA were burnt and burnt badly. As a result if the property does not meet their particular criteria (and this changes from lender to lender) the application for finance will be rejected each and every time.

We will be displaying a variety of properties that lenders are 100% willing to finance at our USA Property Financing Workshop on 29th of August at Milanos, Brighton Beach.

--------------------------------
Register for our Melbourne USA Finance and Property Workshop being held in Brighton, Melbourne on Monday the 29th August.
http://loansusa.com.au/workshop-registration
-----------------------------------

Come along and learn:
Why now is the greatest buying opportunity seen in the last 20 years.
How the USA can create you multiple streams of income or capital growth – your choice.
How to create rental returns of greater than 20%.
Where are the HOT SPOTS and where are the NO GO zones.
Should I obtain USA Finance?
How much can I borrow from a USA lender?
What are the keys to success for obtaining finance in the USA?
How do I get my money to and from the USA for the lowest cost?
Why the insurance companies will want to insure your house for over 3 times what you paid for it.


By attending this workshop you will be one of the few people to find out the secret key ingredients to financing property and have first hand access to a handful of properties that lenders have said yes, these are of the quality and standard that we accept and therefore will finance.

Stephen understands that there are many kinds of people in the world. Some, like to ‘do it themselves’ whilst others prefer to have the process managed from start to finish. Buying property in the United States is not overly difficult but comes with many and varied pitfalls if you don’t know what you are doing. As a result he has created packages for both the DIYs and those that prefer to have assistance from the experts.

Having just returned from leading a VIP tour to the States, Stephen has gained a wealth of new knowledge on hot spot areas, what makes an excellent USA cash flow positive investment and most importantly what it takes to finance these remarkable opportunities.

We have limited seating as we are assuming many people are already busy on Monday the 29th of August, so if you intend on coming along I suggest you register straight away.
Please join me to find out all the information that makes purchasing property and financing in the USA possible, and more.


Date: Monday the 29th August, 2011

Location: Milanos Brighton Beach Hotel
4 The Esplanade Brighton Beach

Time: Registration starts from 6.30pm for a 7pm workshop start.
Finish time will be approximately 8.30pm.

Refreshments: Tea and Coffee provided

--------------------------------
Register for our Melbourne USA Finance and Property Workshop being held in Brighton, Melbourne
on Monday the 29th August, 2011.

http://loansusa.com.au/workshop-registration
-----------------------------------

I look forward to meeting you soon.


Rachel Browning

Loans USA

P: 1300 767 986
F: 1300 767 984
W: www.LoansUSA.com.au
Click to expand...

I just purchased a $1m 4 plex (net 8%) with just under 10% down - assumed loan and VF, however all loans under 6%. Whilst I may not be able to match 'Stephens' detailed research over the last 18 months, I have been buying there for more than 12 years so I feel I have some idea as well.

I am just refi'ing an 8u I have had for the last 5 years. Interestingly the offer I have is at 4.45% fixed 30y - through a bank. Naturally the place (and another 3 I am considering) has gone up in value enough in that time to make the cash out quite attractive.

My returns do not match Emma's in LV, but I can get the gearing. I have no doubt on this recent purchase I will need to spend 10-20k to get things running properly and of course you have the whole buildings expenses to cover. It is not for the feint of heart but it does work.

PS: I am sure that if you took the time to read this entire post you would (even more so than the uber-experienced Stephen) be able to pick up much more detailed knowledge on how to tackle the US - for free. Please don't waste the opportunity....
 
I don't really like Las Vegas as a choice in the US. Unemployment is over 16%, rental vacancy rates 14.3%, and there are still worrying market trends and research coming out showing a projected negative growth of the housing market in the next couple of years.

Emma's "Why Las Vegas?" page is a little bit random. E.g. Points such as "if you're from NSW... no stamp duty!". Well, every state in Australia has stamp duty and most, if not all, states in the US have no where near the level or purchase tax that we pay in Australia. Again, most states in the US are "pro landlord" when comparing to Australia so it is not an advantage to Las Vegas.

I don't see gambling as stable business and with Vegas almost solely relying on this, I don't see the city or state as a good, stable economy that supports job growth. The returns from rentals in Vegas is drawing a lot of international investors - but the fragile economy coupled with an oversupply of housing and high vacancy rates when compared to other states - makes Vegas much more risker for your money. I think over the long term, investor's would be better off paying a little more money to buy a better property, in a better county with a stable state economy and accept a slightly lower rental yield.
 
Since before the Bible was written gambling and prostitution have been probably the most stable businesses in the world.

No state tax is a good place to start as well....

The guys I know who are heavy buyers in LA are ALL actively looking (or buying) in LV.

Its not the only place, but it is a pretty good place to start!
 
One of the guys at work recently paid 73k (inc renos) for $1200pm gross in Conroe/Houston through a Texan (friend of his wife?) buyers agent on the GC. Hasnt had it long but Houston did not suffer as much as some through subprime.

I like getting on a jet and in one hop being where you want to go. Dallas and LA fit the bill on that front:)
 
morpheusbushy said:
I don't see gambling as stable business and with Vegas almost solely relying on this, I don't see the city or state as a good, stable economy that supports job growth.
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Although gambling may be the largest industry in Vegas - and gambling revenue may be down, you also need to take into account the hotels and convention side of things. From what I have learned/experienced first hand, and from what others have told me, all through the GFC, the occupancy rate in Vegas was still up over 80%. Yes, the room rates decreased, but visitors still came. With occupancy rates so high, you need to retain the workforce to service the hotels - and these workers are your potential renters.

Add to this the sheer size and number of convention halls in the town, it is sometimes the only, if not the best option for large companies to host conventions. Remember, cheaper room rates in quality resorts makes it more attractive for delegates to attend.

I was there a bit over a year ago and needed to stay 1 night at the old Hilton (prior to my timeshare starting the following day elsewhere). I was surprised to find that there was a month long, Bikram Yoga course being hosted there. The attendees (350) were staying at the hotel for the entire time. It didn't even occur to me that this sort of thing happened in addition to normal conferences/conventions.

So even though Gambling revenue may be down, from what I experienced and was told while I was there, the extended industry is still employing many people. Obviously construction has tanked and will be one of the last industries there to recover, but as previously pointed out, Vegas is, and will always be a magnet for domestic and international tourists.
 
Rolf Latham said:
Cool

what do those numbers look like in unemployment, industry, entry costs rtns etc ?

Im off to Phoenix in a week for some biz so will have a look around there

ta

rolf
Click to expand...

In a very quick summary of Dallas....

*Unemployment rate at 7.9%

*Average house prices up 12.5% year-on-year (recent article on CNBC)

*Industry is huge - oil, gas, tech/telecommunication companies, Dallas alone is home to 12 Fortune 500 companies. What is known as the "Telecom Corridor" on a major highway in Dallas is home to over 5,500 companies alone.
More businesses are moving to Dallas & Texas than any other state - like Vegas, it has no income tax.

*Entry prices are higher than a lot of other cities, Dallas did not suffer the huge 'drop' that many other markets did. You can of course still find incredibly cheap housing in bad areas like any other city.

*Returns are less than many other housing markets - vacancy rates are around 8.5% for rentals although I've seen many varying figures for Dallas so it's hard to be sure. -My $87k property returns 15.4% gross which I am happy with for Dallas, took less than 2 weeks to rent.
 
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