US foreclosures - Boholt Seminars - NO
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yeh Loans USA will help you finance properties not with MYUSA, but theres like 4k of fees their side and another 1k of fees the other side (actual lenders). And the terms can be rubbish &5 for 5 years ive seen in some places...
the best finance ive been finding are vendor deals...
the best finance ive been finding are vendor deals...
Mandy - this gets to why I DONT buy foreclosures.
Basically they are cash sales for a reason. You CAN do very very well (Emma has helped one person get almost 100% profit in a couple of weeks - I know there are more who've done as well, she only told me of one - privacy!) but you need to really be on the ball - or have someone like Emma help you.
This is my sisters thing, not mine (though I do sometimes regret it
) I do not have the knowledge to buy what and how she does. I do not live there and these types of areas need that sort of care and attention. Offering a '3 month rental guarantee' just screams RUN AWAY to me for example
Being on the other side of the planet and having dabbled badly in lower end rentals my 'niche' is buying good quality properties from people in the US who woke up one morning and through no fault of their own were told that their house was worth 50% less than it was a month ago.
For whatever reason they have to sell - lost job, divorce, whatever. (Sometimes the only hard asset they CAN sell is their 'rainy day' 20 unit invesment property. And THAT is what I really want..)
US banks are simply NOT loaning on anything. My US broker/guru would own at LEAST 100 BUILDINGS, not houses, but blocks of units. He has a holiday house that even in this market is worth $1.5m He told me it has a $400k loan on it and he wants an extra $20k to buy a new Kia Sportage. He just CANNOT get a loan - we laughed over the paperwork he got back. That is why the economy is crippled - no one can borrow anything.
Getting back to it, accept this person has to sell. But they know a buyer cannot get a loan. When real estate is hot in the US the likes of you and I cannot buy. But times like these we have cash and the sellers have to be flexible.
So, one example property (I didn't buy). It was a really nice duplex - I was specifically looking for a house that I can stay in when I am there. The list was $1,025,000. Sounds a lot, but a VERY nice neighbourhood and it had been $3.5m.
The upper unit rental value was around $3500pm and the lower around $3000. Not what I would call a 'real' investment, but again thats way better than anything you would get in Aust.
In less than five minutes we had a rough deal nutted out. I would put up $100k cash, I could assume their bank loan of (from memory) $760k at 4.8ish%, and they would 'loan' me $200k at 6% I/O for 5 years.
Cash positive, relatively high end property (no tenant issues) and massive gearing.
If you look at the Malibu properties I posted you can do the same things with them. And BOY are there some great buys up there I would guess NYC and other hi end towns would be exactly the same. It has taken me a while to get runs on the board to be able to do these types of deals, but they are NOT impossible.
This goes a long way to explaining why it grates so much that people are prepared to pay 60-80-100% more for dead beat properties than they should. Either you play it fast and hard with someone like Emma on your side (and there are no doubt others) or play a different game. You do not want to be someone else's fast and hard game
Basically they are cash sales for a reason. You CAN do very very well (Emma has helped one person get almost 100% profit in a couple of weeks - I know there are more who've done as well, she only told me of one - privacy!) but you need to really be on the ball - or have someone like Emma help you.
This is my sisters thing, not mine (though I do sometimes regret it
) I do not have the knowledge to buy what and how she does. I do not live there and these types of areas need that sort of care and attention. Offering a '3 month rental guarantee' just screams RUN AWAY to me for exampleBeing on the other side of the planet and having dabbled badly in lower end rentals my 'niche' is buying good quality properties from people in the US who woke up one morning and through no fault of their own were told that their house was worth 50% less than it was a month ago.
For whatever reason they have to sell - lost job, divorce, whatever. (Sometimes the only hard asset they CAN sell is their 'rainy day' 20 unit invesment property. And THAT is what I really want..)
US banks are simply NOT loaning on anything. My US broker/guru would own at LEAST 100 BUILDINGS, not houses, but blocks of units. He has a holiday house that even in this market is worth $1.5m He told me it has a $400k loan on it and he wants an extra $20k to buy a new Kia Sportage. He just CANNOT get a loan - we laughed over the paperwork he got back. That is why the economy is crippled - no one can borrow anything.
Getting back to it, accept this person has to sell. But they know a buyer cannot get a loan. When real estate is hot in the US the likes of you and I cannot buy. But times like these we have cash and the sellers have to be flexible.
So, one example property (I didn't buy). It was a really nice duplex - I was specifically looking for a house that I can stay in when I am there. The list was $1,025,000. Sounds a lot, but a VERY nice neighbourhood and it had been $3.5m.
The upper unit rental value was around $3500pm and the lower around $3000. Not what I would call a 'real' investment, but again thats way better than anything you would get in Aust.
In less than five minutes we had a rough deal nutted out. I would put up $100k cash, I could assume their bank loan of (from memory) $760k at 4.8ish%, and they would 'loan' me $200k at 6% I/O for 5 years.
Cash positive, relatively high end property (no tenant issues) and massive gearing.
If you look at the Malibu properties I posted you can do the same things with them. And BOY are there some great buys up there
I would guess NYC and other hi end towns would be exactly the same. It has taken me a while to get runs on the board to be able to do these types of deals, but they are NOT impossible.This goes a long way to explaining why it grates so much that people are prepared to pay 60-80-100% more for dead beat properties than they should. Either you play it fast and hard with someone like Emma on your side (and there are no doubt others) or play a different game. You do not want to be someone else's fast and hard game
I sent Emma an email 1/2 an hour ago to see when we can meet
I really am taking everything that is written in here very seriously and I love that I have had some much fantastic advice and support.
I really do appreciate you all.
In a nut shell for me, I have equity. I will be using it, I just need to know that I have talked out, explored and considered all possibilities.
I really am taking everything that is written in here very seriously and I love that I have had some much fantastic advice and support.
I really do appreciate you all.
In a nut shell for me, I have equity. I will be using it, I just need to know that I have talked out, explored and considered all possibilities.
That was a very appreciated comment Mandy.
There comes a time when you need to stop asking questions and actually do something (there are many examples of analysis paralysis) but ESPECIALLY when you are dealing with a very foreign market a long way away you need as much knowledge as you can get.
Never stop learning and if something 'smells' as whitegoodman, Chui, Aaron, Reeco and others have said - then leave it alone. In time you do almost get a sixth sense about it.
This can be great fun, and very profitable. But stay away from smelly things!!
There comes a time when you need to stop asking questions and actually do something (there are many examples of analysis paralysis) but ESPECIALLY when you are dealing with a very foreign market a long way away you need as much knowledge as you can get.
Never stop learning and if something 'smells' as whitegoodman, Chui, Aaron, Reeco and others have said - then leave it alone. In time you do almost get a sixth sense about it.
This can be great fun, and very profitable. But stay away from smelly things!!
Such sage advice, I am glad that I read 63 pages and 900 posts to get to the crux of the matter!
My agent just sent me this:
Double-digit rent rise is coming to the housing market.
Les Christie, staff writer, On Thursday March 17, 2011, 11:05 am EDT
Renters beware: Double-digit rent hikes may be coming soon.
Already, rental vacancy rates have dipped below the 10% mark, where they had been lodged for most of the past three years.
"The demand for rental housing has already started to increase," said Peggy Alford, president of Rent.com. "Young people are starting to get rid of their roommates and move out of their parent's basements."
By 2012, she predicts the vacancy rate will hover at a mere 5%. And with fewer units on the market, prices will explode.
Rent hikes have averaged less than 1% a year over the past decade, according to Commerce Department statistics, adjusted for inflation. Now, Alford expects rents to spike 7% or so in each of the next two years -- to a national average that will top $800 per month.
In the hottest rental markets, the increases will likely top the 10% mark annually for the next couple of years, according to Lesley Deutch of John Burns Real Estate Consulting. In San Diego, she anticipates rents will rise more than 31% by 2015. In Seattle rents will climb 29% over that period; and in Boston, they may jump between 25% and 30%.
This is a sharp change from the recession, when many Americans couldn't afford to live on their own. More than 1.2 million young adults moved back in with their parents from 2005 to 2010, said Deutch. Many others doubled up together.
As a result, landlords had to reduce prices and offer big incentives to snag renters.
Now that the recession is easing, many of these young people are ready to find new digs, mostly as renters, not owners. Plus, the foreclosure crisis continues unabated, and the millions losing their homes are looking for new places to live.
Apartment developers many not be able to keep up with this heightened demand, which will force prices upwards, according to Chris Macke, a real estate analyst with CoStar, which tracks multi-family housing trends.
"There will be an envelope of two or three years," said Macke, "when the rise in demand for rentals will exceed the industry's ability to meet it."
Plus, Alford added, "there's been a shift in the American Dream. We're learning from our surveys that a huge proportion of people are choosing to rent."
They've experienced the downsides of homeownership -- or seen friends and family suffer -- and don't want to take the risks or pay the higher costs of homeownership.
Where homeownership costs are particularly high, there are many more renters than owners. In Manhattan, for example, only about 20% own their homes; in San Francisco, about of third of the population does; in Los Angeles, less than 40%; and in Chicago, about 44%.
There's one factor that could rein in rent increases: the huge number of foreclosed homes that could hit the market over the next few years.
In many markets, like Phoenix and Las Vegas, there are neighborhoods filled with recently built, single-family homes going for fire-sale prices. When the cost of owning homes falls well below the costs of renting them, more people will buy, raising prices.
"That's always been the biggest competition for rentals," said Deutch.
Double-digit rent rise is coming to the housing market.
Les Christie, staff writer, On Thursday March 17, 2011, 11:05 am EDT
Renters beware: Double-digit rent hikes may be coming soon.
Already, rental vacancy rates have dipped below the 10% mark, where they had been lodged for most of the past three years.
"The demand for rental housing has already started to increase," said Peggy Alford, president of Rent.com. "Young people are starting to get rid of their roommates and move out of their parent's basements."
By 2012, she predicts the vacancy rate will hover at a mere 5%. And with fewer units on the market, prices will explode.
Rent hikes have averaged less than 1% a year over the past decade, according to Commerce Department statistics, adjusted for inflation. Now, Alford expects rents to spike 7% or so in each of the next two years -- to a national average that will top $800 per month.
In the hottest rental markets, the increases will likely top the 10% mark annually for the next couple of years, according to Lesley Deutch of John Burns Real Estate Consulting. In San Diego, she anticipates rents will rise more than 31% by 2015. In Seattle rents will climb 29% over that period; and in Boston, they may jump between 25% and 30%.
This is a sharp change from the recession, when many Americans couldn't afford to live on their own. More than 1.2 million young adults moved back in with their parents from 2005 to 2010, said Deutch. Many others doubled up together.
As a result, landlords had to reduce prices and offer big incentives to snag renters.
Now that the recession is easing, many of these young people are ready to find new digs, mostly as renters, not owners. Plus, the foreclosure crisis continues unabated, and the millions losing their homes are looking for new places to live.
Apartment developers many not be able to keep up with this heightened demand, which will force prices upwards, according to Chris Macke, a real estate analyst with CoStar, which tracks multi-family housing trends.
"There will be an envelope of two or three years," said Macke, "when the rise in demand for rentals will exceed the industry's ability to meet it."
Plus, Alford added, "there's been a shift in the American Dream. We're learning from our surveys that a huge proportion of people are choosing to rent."
They've experienced the downsides of homeownership -- or seen friends and family suffer -- and don't want to take the risks or pay the higher costs of homeownership.
Where homeownership costs are particularly high, there are many more renters than owners. In Manhattan, for example, only about 20% own their homes; in San Francisco, about of third of the population does; in Los Angeles, less than 40%; and in Chicago, about 44%.
There's one factor that could rein in rent increases: the huge number of foreclosed homes that could hit the market over the next few years.
In many markets, like Phoenix and Las Vegas, there are neighborhoods filled with recently built, single-family homes going for fire-sale prices. When the cost of owning homes falls well below the costs of renting them, more people will buy, raising prices.
"That's always been the biggest competition for rentals," said Deutch.
Hi Handyandy
Steve McKnight has nailed this, currency issues and ways to not pay double tax, he is a very smart cookie and has the contacts to get u on the right track.
Can I suggest you pay a small fee and go to his Syd conference in June, as u mentioned u are looking at buying big.
It will cost about $800 chicken feed in the scheme of things, for valuable info that will save u time, money.
Some property gurus fees are obsence $, but Steve is cheap in comparison and worth every $ in my opinion.
Alternatively, I can give you some contacts which I will pm you.
Cheers, MTR
This is my first time to actually post on the forum, I too have been reading your comments and must also speak up as a member of My USA Property. We have now purchased several Memphis properties. All with finance through Loans USA. We too deal with Melinda there.
We opted to take a 5 year fixed interest rate p&i. We have no exit fees if we pay out early and our properties are still cash flow positive. My partner and I have a 5 year plan, so this fits in really well with us. We have in two of our properties tennants that have been in place for the past 9 & 7 years, the other 2 properties have new tenants who have signed a 1 year contract. In one property we used our rental guarantee after closing for approximatley 2 days. In total our rental guarantee was 60 days for each property. We deal directly with the Memphis office, that is by choice though. We have spoken several times with the staff in the Orlando office who have been helpful and well informed.
We are now looking at purchasing again through My USA a Florida property, a duplex valued at 89990. The rental return is 1200 per month for both sides. Taxes are approx 1000 per year, insurance is 700 per year and property management 10 per cent. We can gain finance for this property at 70 percent Lvr with a term of thirty years and an interest rate of 4.99 percent.
Melinda at Loans USA has let us know that they close deals every day of the week with banks in the states. They have quite a few lenders on the books. We have a discounted finance rate using My USA, but the amount of tooing and froing they do with the banks, appraisers, ect its worth every penny. If we choose to go out an find our own property the fee would be $3300 then a discount for the second. They have a lot more work to do if we dont use a buyers advocate group they have approved. The owner Steven McClaskie goes to the States it seems regularly to confirm their dealings with the banks and make sure deals are getting better for finance clients. I did read a comment or two saying that the finance would be dodgy, in no way has it been. We deal directly witht he bank if we have any issues at all. they have an Australian Mortgage brokerage too which has been around for the past 15 years. I did go to a seminar in Melbourne and listened to all of the people talk, Steven is very knowledgable. He is happy to chat at any seminars. You do deal with Melinda on a daily basis though- which isnt a bad thing
I must say though, from my experience, the My USA properties are pretty well rehabbed and controlled. They have a buying tour too which I am considering going on so we can see first hand the areas and meet the wholesalers ourselves.
If anyone is interested in my advise? I would call them. Even call Loans USA, they are all happy to share information.
We opted to take a 5 year fixed interest rate p&i. We have no exit fees if we pay out early and our properties are still cash flow positive. My partner and I have a 5 year plan, so this fits in really well with us. We have in two of our properties tennants that have been in place for the past 9 & 7 years, the other 2 properties have new tenants who have signed a 1 year contract. In one property we used our rental guarantee after closing for approximatley 2 days. In total our rental guarantee was 60 days for each property. We deal directly with the Memphis office, that is by choice though. We have spoken several times with the staff in the Orlando office who have been helpful and well informed.
We are now looking at purchasing again through My USA a Florida property, a duplex valued at 89990. The rental return is 1200 per month for both sides. Taxes are approx 1000 per year, insurance is 700 per year and property management 10 per cent. We can gain finance for this property at 70 percent Lvr with a term of thirty years and an interest rate of 4.99 percent.
Melinda at Loans USA has let us know that they close deals every day of the week with banks in the states. They have quite a few lenders on the books. We have a discounted finance rate using My USA, but the amount of tooing and froing they do with the banks, appraisers, ect its worth every penny. If we choose to go out an find our own property the fee would be $3300 then a discount for the second. They have a lot more work to do if we dont use a buyers advocate group they have approved. The owner Steven McClaskie goes to the States it seems regularly to confirm their dealings with the banks and make sure deals are getting better for finance clients. I did read a comment or two saying that the finance would be dodgy, in no way has it been. We deal directly witht he bank if we have any issues at all. they have an Australian Mortgage brokerage too which has been around for the past 15 years. I did go to a seminar in Melbourne and listened to all of the people talk, Steven is very knowledgable. He is happy to chat at any seminars. You do deal with Melinda on a daily basis though- which isnt a bad thing
I must say though, from my experience, the My USA properties are pretty well rehabbed and controlled. They have a buying tour too which I am considering going on so we can see first hand the areas and meet the wholesalers ourselves.
If anyone is interested in my advise? I would call them. Even call Loans USA, they are all happy to share information.
Hmmm. A sudden flurry of one-time posters gung ho about usaproperty.
What - pray tell - is a wholesaler? (Mandy - I lived in the USA for over 20 years buying and selling and have never met a "wholesaler" in my life.). This is just another name for middleman and that's where the cream of the profits goes.
If I was investing in the USA I'd aim to be the middleman.
8-9% SPLUTTER! I REALLY want to be a "wholesaler" .
Be careful Mandy - the USA is a snake pit full of nice ladies called Melinda.
What - pray tell - is a wholesaler? (Mandy - I lived in the USA for over 20 years buying and selling and have never met a "wholesaler" in my life.). This is just another name for middleman and that's where the cream of the profits goes.
If I was investing in the USA I'd aim to be the middleman.
8-9% SPLUTTER!
I REALLY want to be a "wholesaler" .Be careful Mandy - the USA is a snake pit full of nice ladies called Melinda.
I think that it is quite clear that what we have all said ages earlier in the thread is accurate. Find out how much a wholesaler paid, PRECISELY the $$ value of the renovations that they put into your property - it is probably an AMAZING deal with 6k worth of renos and 3k of liens cleared and they are only making about 2k on top of the 3.75k you are paying in facilitation (it costs nothing for the US bank account and total of $350 for an LLC) but check...transparency is just key and YES, there is a VALUE to what people do.
The only issue I personally have is that I am having the same discussions with NV wholesalers who want me to buy through them and I just personally can't see the value... maybe on one in 100 of the lot that they buy that is great but I HAVE TO BUY AT LEAST 20 and I WANT TO CHERRY PICK - who on earth am I going to recommend the CRAP to?????? FURTHER - the ultimate savings when I add it up is 10%??? I would rather deal at my level but keep talking to anyone!
So, did you get the crap or the good of the lot!!!???? I think anyone doing what i do should refuse to recommend anything they wouldn't buy themselves, and I am the one that ultimately renovates and tenants a property... I get so mad when I personally sit opposite wholesalers who won't let me choose my own properties from the bulk of crap they buy....( thanks Mandy they are "pretty little head people too" ... grrr).
Bottom line - what was your house worth in 2001 - less, or more than it is now and if you paid at least 20k below current foreclosed properties on the same street then I would say you have got a good bargain.
Be VERY wary of Floridian properties that may have sat vacant for 1 year - think termites and mould and do due diligence.
ALL OF THIS IS FREE INFORMATION!
Who owns the street your property is on - who are your neighbors, how much did THEY pay for their properties - are they investors who couldn't give a toss about the street being handed over to tenants and potentially turned into a ghetto?
What does your street rent for now - I am sure everyone gives rental comps, sales comps and people who buy through myusaproperty aren't stupid and have all used zillow as well etc....
Wholesalers will have cleared liens, done repairs etc the only caution is to just get receipts or a breakdown to check you major systems were done by licensed and bonded tradesmen - you don't want someone being shocked by a wayward A/C that was repaired by a NON licensed a/c dude.... litigious...
Check AGAIN my property - 5345 Hammond Court, 89110 on zillow - go to the 10 year graph.... compare... you are all welcome to use that as a litmus paper test etc
I always say to anyone that at WORST case scenario, if you HAD to resell your property tomorrow could you make a profit even if you bought it last month... a good buy in the states is a yes, absolutely.
AUCTION caution again per above - yes, they buy a "LOT" - ie 100 properties - are you getting their top properties or the ones they couldn't sell...? What liens did they clear on the properties - were any mechanical?
I love Florida, but it is full of retirees and I drove the streets a lot were talking about for vacancy upon vacancy and for sale upon for sale - I just didn't see a quick recovery happening and the retiree market is DECIMATED - there ARE no funds for retirees and just be careful - who is your FUTURE tenant going to be... what income pool are they coming from.... that is all I have to say on that - other than 5 properties I inspected all had termite and mold issues and having dealt with wayward tenants in Alaska, just make sure your property manager isn't over worked, underpaid and does do quarterly inspections. Pay for the inspections and termite control yourself.
I haven't seen any misinformation on this site... I haven 't seen anything other than genuine potential investors asking for specific information.
All this starts and ends with ....What did you buy, what is it worth, what did you repair it for, what did you rent it for and how much did you pay for facilitation....?
Same questions from page 1 until now and all I think any reasonable investor should be getting answers to. I don't care who people buy through - just buy WELL and don't be ripped off...
There are, I am sure a LOT of GREAT people out there..... so YAY, we have two people delighted with myusaproperty.... so now we can get those answers and look at zillow etc..
No repairs in the US are over 5k..... let's start with that.... and if you have good tradies, no where are they over:
3k for new roof (tiled)
3.9k for a/c
1 k for 1200 sq ft carpeted
1 k for painting of 1200 sq ft house
1.5 k for ALL new appliances (including fridge, stove, dishwasher, washer & dryer)
1.5k for 1200 sq ft house tiled
This isn't hard and congrats to you guys who are stepping up. I am calling Loans USA today - someone contacted me and for heavens sakes, I am ecstatic to talk to them ( they DO lend NV apparently).....
Rental yield, purchase price etc....
3.7k with a 1 year tenanted and repaired property purchased at good market value in a great neighborhood isn't wrong, it is a good buy...
Ultimate answer - due diligence.
Thanks again guys for leaping in.
Jeremy and I are investors who have worked and lived in the States investment world for over 10 years a piece... I am doing this professionally for a fairly nominal amount only because of the frustration that I had for others who just couldn't quite get the answers they wanted.
This isn't difficult - good for anyone who goes out there and "does" it.....wherever and however you find it....
You WIN if you are even out there without being ripped off. If you think 5k, 10k, 20k mark up is worth it, it IS, if you think it is too much, it IS.
Would love to see some property examples from new markets.... welcome to the forum, guys.
The only issue I personally have is that I am having the same discussions with NV wholesalers who want me to buy through them and I just personally can't see the value... maybe on one in 100 of the lot that they buy that is great but I HAVE TO BUY AT LEAST 20 and I WANT TO CHERRY PICK - who on earth am I going to recommend the CRAP to?????? FURTHER - the ultimate savings when I add it up is 10%??? I would rather deal at my level but keep talking to anyone!
So, did you get the crap or the good of the lot!!!???? I think anyone doing what i do should refuse to recommend anything they wouldn't buy themselves, and I am the one that ultimately renovates and tenants a property... I get so mad when I personally sit opposite wholesalers who won't let me choose my own properties from the bulk of crap they buy....( thanks Mandy they are "pretty little head people too" ... grrr).
Bottom line - what was your house worth in 2001 - less, or more than it is now and if you paid at least 20k below current foreclosed properties on the same street then I would say you have got a good bargain.
Be VERY wary of Floridian properties that may have sat vacant for 1 year - think termites and mould and do due diligence.
ALL OF THIS IS FREE INFORMATION!
Who owns the street your property is on - who are your neighbors, how much did THEY pay for their properties - are they investors who couldn't give a toss about the street being handed over to tenants and potentially turned into a ghetto?
What does your street rent for now - I am sure everyone gives rental comps, sales comps and people who buy through myusaproperty aren't stupid and have all used zillow as well etc....
Wholesalers will have cleared liens, done repairs etc the only caution is to just get receipts or a breakdown to check you major systems were done by licensed and bonded tradesmen - you don't want someone being shocked by a wayward A/C that was repaired by a NON licensed a/c dude.... litigious...
Check AGAIN my property - 5345 Hammond Court, 89110 on zillow - go to the 10 year graph.... compare... you are all welcome to use that as a litmus paper test etc
I always say to anyone that at WORST case scenario, if you HAD to resell your property tomorrow could you make a profit even if you bought it last month... a good buy in the states is a yes, absolutely.
AUCTION caution again per above - yes, they buy a "LOT" - ie 100 properties - are you getting their top properties or the ones they couldn't sell...? What liens did they clear on the properties - were any mechanical?
I love Florida, but it is full of retirees and I drove the streets a lot were talking about for vacancy upon vacancy and for sale upon for sale - I just didn't see a quick recovery happening and the retiree market is DECIMATED - there ARE no funds for retirees and just be careful - who is your FUTURE tenant going to be... what income pool are they coming from.... that is all I have to say on that - other than 5 properties I inspected all had termite and mold issues and having dealt with wayward tenants in Alaska, just make sure your property manager isn't over worked, underpaid and does do quarterly inspections. Pay for the inspections and termite control yourself.
I haven't seen any misinformation on this site... I haven 't seen anything other than genuine potential investors asking for specific information.
All this starts and ends with ....What did you buy, what is it worth, what did you repair it for, what did you rent it for and how much did you pay for facilitation....?
Same questions from page 1 until now and all I think any reasonable investor should be getting answers to. I don't care who people buy through - just buy WELL and don't be ripped off...
There are, I am sure a LOT of GREAT people out there..... so YAY, we have two people delighted with myusaproperty.... so now we can get those answers and look at zillow etc..
No repairs in the US are over 5k..... let's start with that.... and if you have good tradies, no where are they over:
3k for new roof (tiled)
3.9k for a/c
1 k for 1200 sq ft carpeted
1 k for painting of 1200 sq ft house
1.5 k for ALL new appliances (including fridge, stove, dishwasher, washer & dryer)
1.5k for 1200 sq ft house tiled
This isn't hard and congrats to you guys who are stepping up. I am calling Loans USA today - someone contacted me and for heavens sakes, I am ecstatic to talk to them ( they DO lend NV apparently).....
Rental yield, purchase price etc....
3.7k with a 1 year tenanted and repaired property purchased at good market value in a great neighborhood isn't wrong, it is a good buy...
Ultimate answer - due diligence.
Thanks again guys for leaping in.
Jeremy and I are investors who have worked and lived in the States investment world for over 10 years a piece... I am doing this professionally for a fairly nominal amount only because of the frustration that I had for others who just couldn't quite get the answers they wanted.
This isn't difficult - good for anyone who goes out there and "does" it.....wherever and however you find it....
You WIN if you are even out there without being ripped off. If you think 5k, 10k, 20k mark up is worth it, it IS, if you think it is too much, it IS.
Would love to see some property examples from new markets.... welcome to the forum, guys.
In fairness to MandyH, that is a commonly used term over there. They are middle men; they're cashed-up (or "credited up"
) and are able to negotiate absolutely amazing deals by paying cash for dozens to hundreds of distressed properties, which they then sell off individually (or smaller parcels) at a higher price to people who don't have the cash to get that amazing price.Whilst I totally agree that one has to do a large amount of due diligence, I find it interesting that some people seem to think that nobody else who's making a profit is legitimate. Wholesalers, whilst not common here, are a common, established participant in the US market. Just because a wholesaler bought a house for $10K, and then sells it to an individual for $30K, doesn't mean that the person's been "ripped off", because the $10K price was never available to individual purchasers (unless they had $5M cash to buy 500 of them.
) The only thing that's relevant is whether you could sell it again to another individual for $30K, and if so, then it's a reasonable price.The other thing is that the wholesaler takes an enormous risk; they don't even get to see the property and have little/no idea as to the condition. They factor into their offer that a certain % will be totally trashed, another % will need some rehabbing, and so on, so they need to leave a good margin. When you buy an individual property from a wholesaler, you have less risk because you're able to know what you're buying.
I'm not a wholesaler, nor have I purchased from one; I'm just emphasising - if it's not blindingly obvious yet - that the US real estate market is a very different market, and just because something's different, or somebody's making a profit, doesn't mean that it isn't legitimate.
Hi Perp and Emma
both raise some good points. I guess its different strokes for different folks.
I personally would prefer to make as much profit as possible when purchasing and organise my own team as I am aiming for best yield possible.
Also Perp, US values could also continue to fall, there are absolutely no guarantees that it will rebound in the immediate future though at the moment the Aus $ makes US a very attractive proposition.
I also read an interesting story about a guy buying in Kansas, which he believes is a great area for investors to jump into. Apparently many houses for sale are vendor finance. That could be something worth looking at.
Cheers, MTR
both raise some good points. I guess its different strokes for different folks.
I personally would prefer to make as much profit as possible when purchasing and organise my own team as I am aiming for best yield possible.
Also Perp, US values could also continue to fall, there are absolutely no guarantees that it will rebound in the immediate future though at the moment the Aus $ makes US a very attractive proposition.
I also read an interesting story about a guy buying in Kansas, which he believes is a great area for investors to jump into. Apparently many houses for sale are vendor finance. That could be something worth looking at.
Cheers, MTR
Perp,
The percentage markups are undoubtedly massive. Truly massive. And as Emma said (exactly like sub prime) in the 100 properties, who gets the Aaa tranche and who gets the Bbb? In fact that is incorrect because by definition all these places are the Bbb MAXIMUM properties.
So even the best of the best are actually the worst These properties are the 30-40% BB- ones that were scattered through the 'good' tranches to make the Aaa AAA MBS's look less offensive.
I like the debate (and started it) because I want to know... Don't blame these guys btw - I deliberately invited them here to debate this. I want to understand why people are happy 'en masse' to pay what I see as a lot.
I still go back to the point that agents in Australia do not charge more than 6% (WA) - yet all of a sudden people are very happy to accept that as soon as you buy in the US it is 'fair' to pay 60+% to the original buyer. And not just on one specific property, but on hundreds. My agents in Australia are aghast My US agents think Australians are crazy as they read about them in trade mags and believe we don't have clue about anything - they just keep asking me for these types of clients
My one cash 'flip' was $265k for which I paid $60k to the flipper. So I do understand the 'value' attraction and I have done what these guys have done as well. The place had been held by a wholesaler for 200 days. I got a B&O sound system, Mies van de Rohe furniture and the bells and whistles thrown in - even got a better transformer in the electric sunroof.. I like B&O, I hope they are making a killing selling systems to all these flipped houses
Can we get a specific verifiable example of what someone paid in total, and what the finance is exactly?
So far everyone says 'I'm really happy and we have a great tenant'. As a US buyer (as Emma said) for 15 years, I can assure anyone that almost the WORST property you get in the states is better from a rental perspective than an Australian one - especially in the first year. It will be telling to see what goes on in these areas in the next 5 or so, I know no one has a crystal ball..
So far I still see 60 - 80% markups. And 'Joining Fees' - just like Ray White and Mgraths charge??
I guess I would be very defensive of too if I had paid that much....
The percentage markups are undoubtedly massive. Truly massive. And as Emma said (exactly like sub prime) in the 100 properties, who gets the Aaa tranche and who gets the Bbb? In fact that is incorrect because by definition all these places are the Bbb MAXIMUM properties.
So even the best of the best are actually the worst
These properties are the 30-40% BB- ones that were scattered through the 'good' tranches to make the Aaa AAA MBS's look less offensive.I like the debate (and started it) because I want to know... Don't blame these guys btw - I deliberately invited them here to debate this. I want to understand why people are happy 'en masse' to pay what I see as a lot.
I still go back to the point that agents in Australia do not charge more than 6% (WA) - yet all of a sudden people are very happy to accept that as soon as you buy in the US it is 'fair' to pay 60+% to the original buyer. And not just on one specific property, but on hundreds. My agents in Australia are aghast
My US agents think Australians are crazy as they read about them in trade mags and believe we don't have clue about anything - they just keep asking me for these types of clientsMy one cash 'flip' was $265k for which I paid $60k to the flipper. So I do understand the 'value' attraction and I have done what these guys have done as well. The place had been held by a wholesaler for 200 days. I got a B&O sound system, Mies van de Rohe furniture and the bells and whistles thrown in - even got a better transformer in the electric sunroof.. I like B&O, I hope they are making a killing selling systems to all these flipped houses
Can we get a specific verifiable example of what someone paid in total, and what the finance is exactly?
So far everyone says 'I'm really happy and we have a great tenant'. As a US buyer (as Emma said) for 15 years, I can assure anyone that almost the WORST property you get in the states is better from a rental perspective than an Australian one - especially in the first year. It will be telling to see what goes on in these areas in the next 5 or so, I know no one has a crystal ball..
So far I still see 60 - 80% markups. And 'Joining Fees' - just like Ray White and Mgraths charge??
I guess I would be very defensive of too if I had paid that much....
has anyone got a view with regard to Vegas and shadow foreclosure inventory?
how much long will people be able to buy them, I know the banks are drip feeding them on the market.
Anyone have a view? timeframe?
how much long will people be able to buy them, I know the banks are drip feeding them on the market.
Anyone have a view? timeframe?
