US foreclosures - Boholt Seminars - NO

[lawsjs]

Cashflow:
Im just out the door on a VERY long day, but basically regarding finance - explain to me HOW they are achieving a valuation. It is NOT through any legitimate valuation service I am aware of.

ROLF????? Am I wrong here?

That is a grave concern to me.

I have reno'd maybe 12 separate apartments in the last 3-5 months. replacing floors, walls, kitchens AND bathrooms (not talking poggen pohl but 'good' home depot stuff) and on average and over all we are talking about $1500 a door. Now I do have very good and fast local workers, but the numbers are true.

Reverse the question. How do you know these properties werent in tip top condition?
Lets take Emma's exaggerated reno costs. I doubt any of these things need all that but say it was (running out of time, cant find the numbers) $15000.

You paid $4000 to 'join'
You paid $49,000 to 'buy'
All up $53,000.

Their cost is $14,000 (doubt they pay - after all they boats about 'discounts' that but take it at face value)
Their reno cost is $15,000
total $29,000.

Explain why you think you need to pay $24,000 MORE than they spent to sell it to you...

gotta go

 

[bevk]

Cashflow,

the reason I put this example property out there on the forum was to try get to the bottom of why an Aussie company like 888usrealestate is advertising this property as fully restored for $49,800, whereas Zillow shows it as (quote) "This spacious 2 story home has a screened-in porch, fireplace, whirlpool tub, but it needs your special touches to make it move-in ready". Priced at $14,000 through a completely different company which re-listed it just last month.

It's all there on Zillow for anyone who cares to look.

So, I'm curious as to actually has the paperwork for this home - 888usrealestate or Realty Executives of Kansas City.

I'll put in a call to them during the week.

 

[cash flow]

The bank do the appraisal in America. yes, the Bank. Just like her in Australia. I know, I know you doubt that there is even a bank.

Did you know that we bought one of our properties here in Australia for just $42,000 and sold it for $250,000 OMG! No Zillow, no doubting people asking what did we do to increase the cost so much. We put it on the market and it sold for that price. (8 years down the track) but we didnt have anyone asking why, what did we do, why did we only pay $42,000 and what a rip off we are now selling it for $250,000.

Like I said, you need to trust what people are saying to you.

 

[Amadio]

Like I said, you need to trust what people are saying to you.

Are you actually talking about real estate companies and finance companies? And banks? Operating in the USA?

Splutter.

This thread is like watching a car crash in slow motion. I need to look elsewhere but I just can't help but take another squiz.

 

[jingo]

:

This thread is like watching a car crash in slow motion. .

I rekon it will be closed by the mods soon!

 

[exitpoll]

Ah, been a while since I checked back here. So a few pages to catch up on.

But just for now, would you all be so kind as to just name me your insurance companies please?

I'll do my own research thereafter, but a heads up on names, cost and experiences might be nice.

 

[Amadio]

I rekon it will be closed by the mods soon!

No reason for that that I can see. Yet. It was really good when Emma and Jeremy were giving fantastic advice from the ground - the only good advice that I've seen about investing in the USA market for years.

But the car crash waiting to happen is the mind boggling naivety coming aboard.

Emma and Jeremy plus those who have actually gone to LV to work it out are giving out all this great info for free - and yet suspiciously new posters are coming aboard accusing them of profiteering and being tall poppies.

 

[Emma171]

I don't know what to say beyond I buy SFR bank foreclosed properties, I charge no mark up, my clients buy their properties directly from the bank, what I do is I organise the renovations with the copies of all receipts without a CENT marked up and people pay me from those receipts. I charge a transparent 3k facilitation fee and that is from helping to find the property through to it being tenanted and I discuss the tenants with everyone. I do this because I am in Vegas anyway for my own properties and have a commitment to be there for the next 5 years - I think that makes a huge difference and I do pop around to keep an eye on everyones just as I know they would for me....I know that is HUGELY reassuring to me.

I help others buy what I would buy because I am the one that is physically doing the work and physically renting it. I am an investor first and foremost. There is a HUGE onus of responsibility that I feel to find people only what I personally would invest in and know that I have actually found BETTER deals as I too have learnt more in the market, we get purchasing power etc. What I do isn't for everyone and that is fine.

Please do NOT drag my name through mud because I, like my brother couldn't care if anyone buys through me or not - I am merely offering this to genuine people who don't want to get ripped off as an option. I am equally happy if you want to "go it alone".

I may not get on brilliantly with my brother but both he and I are the first to back people who offer a legitimate service, we have both bought "flips" we have both dealt with vendor financers and we are both just of the viewpoint of KNOW PRECISELY WHAT YOU ARE BUYING... that is it. You can rebuild a WHOLE house for 11k... so I would want to see those receipts!

That being said, I have spoken with Loans USA and if I couldn't get financing myself, 2,750 for an origination fee that may enable me to get a US based loan at fixed interest rates for 8% or less.....???? No brainer if I needed it - good for them for figuring it out and I too think there is a value to that. I haven't managed less than 12% from hard cash lenders... just save that on the purchase.

This is NOT a flipping fight - this is helping each other - well done to those who think they have done brilliantly through myusaproperty - perception is reality and zillow is awesome.... great if you think that 20k is cheap... it may well be!

Best of luck to all. Again, focus on the yachts in the Caribbean.....not how we all separately make it there!

 

[whitegoodman]

WG:So your hard saved $45k (bloody good effort BTW!) is magically not $45k anymore, but USD$150k. Emma's properties (I do try not to push her, but I know she's real) should 'qualify' for a loan in a heartbeat if any do as there are no layers of extra 'marketing' in the price. So you get 2x70k properties right there. Thats pretty good in itself, but here is where I am going. Can you use THAT $150k for a deposit on a vendor financed deal? My suspicions being correct, I don't think they would give a toss - as long as you can prove you have a better than even chance of paying their bills with the rental income. Even then, I don't think they would look too hard.

Now, Mr 23yo WG. How would you feel if someone like Emma managed to dig you up a nice little cashflow+ property for US$1m? I know there are owners trying to sell all over the country who would carry that paper for you. Thats not a bad way to start your property career off is it?

mate where do i put my credit card details, love to get a $1miller with +cf.

But yeh i think im gonna have to keep saving till after financial year, bout 1k saving a week should get me to 70k in 6 months. Then off to Vegas and/or Florida. Or if I miraculously find finance without a "10% of loan value fee attached".

The most annoying thing is with savings and salary I could easily get a $500k home, yet I cant afford something worth $70k. Which is just strange saying it.

knowing my luck exchange rate will go to 60cents...

as a former pro trader I feel ashamed to ask, is there anyway I can lock in the current exchange rate (forward contracts? or something)

 

[whitegoodman]

just from an outsiders perspective, those that kick up a fuss regarding myUSA have bought through them and dont want to hear that they were possibly ripped off, if i were them and came onto the board I would argue against the notion too because agreeing with it would essentially be admitting to myself i made a silly mistake with a large amount of money.

Then again I guess we will all find out in 3-7 years time how successful or unsuccessful it has proven to be

 

[MTR]

At the end of the day everyone has a choice.

This thread has been excellent, we should not let emotion get in the way.

Without doing your own DD you can easily get burnt even in your own backyard.

I live in Perth and initially used a buyers agent to purchase in Melb, they lost a deal for me, coz they absolutely had not a clue about the particular value of an area, can you believe this? I went in way to low and to make matters worse found out they lived in my own State (WA) buying in Melb.....
This is a hugh company, not someone operating in their backyard.

I know you say what's that got to do with buying in US... same principle whatever you are buying needs to be backed up with evidence and facts and if they do not provide this you need to do it yourself. Only way you can make sure you are not paying too much and after all cashflow is what everyone is chasing in US, paying too much is a killer. We are not seeing any growth US at moment and have no idea when this will happen.

Cheers, MTR

 

[patwxz]

The bank do the appraisal in America. yes, the Bank. Just like her in Australia. I know, I know you doubt that there is even a bank.

Did you know that we bought one of our properties here in Australia for just $42,000 and sold it for $250,000 OMG! No Zillow, no doubting people asking what did we do to increase the cost so much. We put it on the market and it sold for that price. (8 years down the track) but we didnt have anyone asking why, what did we do, why did we only pay $42,000 and what a rip off we are now selling it for $250,000.

Like I said, you need to trust what people are saying to you.

Would you mind telling us what city that was in and what you did to increase the value of the property ? What renovations and additions did you do ? What did you spend on it before you sold it ?
Just because that happened in Australia doesn't mean that it will happen in the US. We are fuelled by a commodity boom and we have nearly full employment. That translates into higher house prices. The unemployment rate in the US is so much higher and they have few commodities of their own so whilst commodities are going up, they have to shell out more money for them. That is not to say that house prices won't go up in the US eventually but you can't compare it with your experience in Australia.

 

[patwxz]

I just wanted to thank Emma and Jeremy and all the other contributors too many to mention. This is really great reading and very imformative. Have been following you for a while so apologies that I haven't said hello sooner.

 

[karina]

I was just looking at some property on zillow and noticed the rent estimate. I think this is new feature.

just type in any address in zillow and it will give you the approx rent.

 

[patwxz]

I was just looking at some property on zillow and noticed the rent estimate. I think this is new feature.

just type in any address in zillow and it will give you the approx rent.

Yes, great isn't it ? Chui mentioned it earlier.

 

[RightValue]

as a former pro trader I feel ashamed to ask, is there anyway I can lock in the current exchange rate (forward contracts? or something)

A forward contract would be hard to find for small amoounts like $70k.

What if you did a couple of CFD's (Contracts for difference) taking each side, that is sell USD on one contract and buy USD on another contract. The losses for one side should balance out the other side, less holding costs and fees.

Alternatively since you are really only worried by downside risk buy a USD CFD, if the USD goes up you gain by the loss amount on the AUD/USD exchange rate. If the USD goes down you will have a loss on the contract/depreciation which will be offest by the gain on your physical holding of AUD. You will however not gain from any appreciation in the AUD against the USD.

Cash match the amount of the CFD to your anticipated AUD holding.

Just a thought.

cheers

RightValue

 

[long88]

how about a call option for audusd. but you need to take in the purchase cost of the call as well. and i dont know which bank/broker offer it for the real account that you can send money to us. (although i am using for speculating only).

A forward contract would be hard to find for small amoounts like $70k.

What if you did a couple of CFD's (Contracts for difference) taking each side, that is sell USD on one contract and buy USD on another contract. The losses for one side should balance out the other side, less holding costs and fees.

Alternatively since you are really only worried by downside risk sell a USD CFD, if the USD goes down you gain by the loss amount. If the USD goes up you will have a loss on the contract/appreciation which will be offest by the gain on your physical holding of AUD. You will however not gain from any appreciation in the AUD against the USD.

Cash match the amount of the CFD to your anticipated AUD holding.

Just a thought.

cheers

RightValue

 

[whitegoodman]

CFD's are heavy on interest costs going short AUDUSD... i might see if it breaks out of this range to the downside


{Edit - thread continues here: US foreclosures #2 (aka the Emma171 thread) }