US foreclosures - Boholt Seminars - NO

[CostaInVegas]

Hi Costa. How is your progress going? You have an asset...may i ask is it generating an income? Been chatting with folks from Vegas. They concluded you "might" get a 10% yield...interesting to see how good there opinion is

I got title of Baffy on 29-dec. Two different people have taken a look at the property and it was too small for their liking. It's 1200sqft for reference. The holiday period is apparently a very slow time for getting renters. I'm optimistic, it will rent at the right price.

New carpet is being installed early next week and appliances to follow. After all expenses, I expect 15% p.a net return = approx 900/m, and closer to 10% after 30% income tax. I am expecting/hoping that the average capital appreciation to be 7-10% p.a, i.e. prices to double in 7 years, with the bulk of this growth not to occur for the first 2-3 years.

 

[RightValue]

Two different people have taken a look at the property and it was too small for their liking. It's 1200sqft for reference.

A 12 square house is considered pretty small in Australia as well. (111.5sqm)

Posted in case people don't realise that 100sqft is a building square or 9.3sqm.


good luck with it.

 

[Perp]

If there is one thing I know about the States is that there is always a way around everything... Just dig further and always ask..."so how can we make this work? Can you offer me any recommendations?". The only way to negotiate is a win win and banks, WANT to lend money, they just have to meet their guidelines... Which are evil and stringent but doable.

Agreed. But I think the "about the States" is somewhat superfluous; it's largely true everywhere. I constantly see people achieving things that are impossible.

But I suspect your point was that private enterprise in the USA is more entrepreneurial, less bureaucratic, and thus more flexible than equivalent organisations than in Australia, and I'd have to agree.

 

[Emma171]

http://smh.domain.com.au/real-estat...risks-in-bargain-us-homes-20110101-19ciy.html

Caveat emptor. Wonder what year the woman bought in?

Walking distance if at all possible to shops, schools and transport in a safe location.

 

[on the move]

Wonder what year the woman bought in?

Sydney woman Kathy Graffiti bought three properties in upstate New York in 2005 and estimates she has lost between $300,000 and $400,000 on her investment.

 

[lawsjs]

She said 2005. Those are pretty big numbers for the Buffalo buyers. She spent a LOT, or she is exaggerating.. Quiggles did HEAPS of research, hope he did better. I spoke to him in '05 or '06 and he was doing inspiringly well then... Anyone know how to get in touch with him? He would be well worth talking to.. Quiggles was the first Aussie in Buffalo to my knowledge, and started a bit of a rush through this site - even Steve McKnight jumped on the bandwagon. I am pretty certain (about 99.9%) Steve did NOT do that well (IMHO they mostly bought junk) which surprised me especially in Steve's case with his extensive seminar/personal contacts in the US. Suggests to me that the seminar guys there, as they do here rarely invest heavily in the stuff they are selling. They are selling the selling, not the product.

Perp: My experience of the US is that they are far MORE bureaucratic than Aus agencies, though we are depressingly going down the same road. There are very few things I disagree with Jeremy Clarkson on. One of his great comments about the US (with which we share an almost identical view)is that 'If you live in the MidWest and eat grits for breakfast America is custom built for you and probably makes perfect sense - unfortunately I do not'

It is the easiest thing in the world in the US to find someone to say 'How can I help you?'. It is the hardest thing in the world to find someone who _will_ help you.

I agree 100% with Neil Jenman on this. A lot of people are going to get hurt. I sincerely hope the guys investing SMSF's know what they are doing. There will be a lot of GR's out there investing on Australians behalf who have no concept of what they are involving themselves with. On balance I have done very well, but I had been going to the US regularly for 10 years before I bought, I was very careful where I bought and I have now owned there for 12 years. I consider myself lucky.

 

[Emma171]

Yep, read quickly... As suspected though at the peak of the bubble.... Buy high, sink quickly? I also agree, from what we have all seen, there are a lot who will lose and tell their tales.

 

[karina]

I think you will find kathy´s story here

http://www.jenman.com.au/news_item.php?id=397

 

[Token Funder]

Anyone want to get a book going on how long before the Current Affair/Today Tonight series of shows on "Aussie battlers ripped off/do their dough" and "Why someone should have stopped me buying US property" ?

 

[Rob Williams]

Anyone want to get a book going on how long before the Current Affair/Today Tonight series of shows on "Aussie battlers ripped off/do their dough" and "Why someone should have stopped me buying US property" ?

Scott Pape has already started that ball rolling with a variety of "horror stories" in his newsletter.

 

[Token Funder]

Scott Pape has already started that ball rolling with a variety of "horror stories" in his newsletter.

Not surprising. It's going to be a bloodbath for most.

 

[lawsjs]

And there always seems to be a 'deeply religious Christian' involved somewhere in these scams - ESPECIALLY in the US... The marketing is very similar for a start.

It seemed to me she paid a lot to buy in Buffalo.... Funny, I was correct. Unnecessary to do that. People can't help themselves. There is enough money to be genuine, why does everyone of these 'spruikers' have to be so damn greedy.

Good on Neil Jenman.

And thank you very much Karina for posting. Quite a sickening story.

 

[BayView]

Anyone want to get a book going on how long before the Current Affair/Today Tonight series of shows on "Aussie battlers ripped off/do their dough" and "Why someone should have stopped me buying US property" ?

LOL!

yeah; I'm a VICTIM I tell ya....someone else's fault.

Back to Buffalo...when we first moved the the USA, I was looking at various places to maybe buy something.

It was starting to look too hard due to no credit history and whatnot, so I did nothing. We had recently purchased our block anyway, so my cup was pretty full at that time.

Anyway, one of the places that crossed my radar was Buffalo, and the returns were in the order of 25% and more.

Sounds great until you dig deeper.

 

[Player]

LOL!.............Sounds great until you dig deeper.

This time of the year, one would need a snow shovel

 

[reeco]

And there always seems to be a 'deeply religious Christian' involved somewhere in these scams - ESPECIALLY in the US... The marketing is very similar for a start.

It seemed to me she paid a lot to buy in Buffalo.... Funny, I was correct. Unnecessary to do that. People can't help themselves. There is enough money to be genuine, why does everyone of these 'spruikers' have to be so damn greedy.

Good on Neil Jenman.

And thank you very much Karina for posting. Quite a sickening story.

Buffalo. i remember reading that article a few years ago. Couldnt quite pin it so thanks karina.

The old "Im a christian/family man" trick. Oldy but a goody. Pollys invented the trick...spruikers merely took it to the next level. That said it would be nigh impossible to beat a republican on a good day.

A good bloke but unfortunately for S. McKnight he fits the bill.

Jenman comes through with the goods again...I love it when the word "passionate" is used to phrase a persons attitude, Coz i tell ya... when i did Steves RESULTS course, there were some mighty passionate folks in regard to Jenman! ha!

 

[karina]

Since we are on the subject of Buffalo and Steve McNight. I thought I would dig up this article,

http://www.somersoft.com/forums/gallery/showphoto.php?photo=1287

Steve did buy 30 properties in Buffalo in 2005 according to the article, and if my memory serves me correctly he got out of that position and sold them to Quiggles.

I hear he is now buying up an entire town in Florida, seriously, he is targeting a low socio economic suburb picking up properties for about 20k and working with a church group of some sort to rent out the properties and improve the quality of people living in the suburb.

 

[chief wigam]

Buyer's agents

I apologise if this has been asked already but can't seem to find it here.

Are there any strong opinions on which buyer's agents to use for purchasing US property?

There are a couple advertising in the Australian Property Investor Magazine January 2011 and October 2010 editions and these have been advertising for some time. i.e. www.888realestate.com.au and www.myusaproperty.com.au

I have heard the usual stories that some buy and flip to Aussie investors at inflated prices?

Any advice on which to use would be most appreciated. It's an important decision, as I will not be travelling to the US to inspect the property myself.

 

[reeco]

I apologise if this has been asked already but can't seem to find it here.

Are there any strong opinions on which buyer's agents to use for purchasing US property?

There are a couple advertising in the Australian Property Investor Magazine January 2011 and October 2010 editions and these have been advertising for some time. i.e. www.888realestate.com.au and www.myusaproperty.com.au

I have heard the usual stories that some buy and flip to Aussie investors at inflated prices?

Any advice on which to use would be most appreciated. It's an important decision, as I will not be travelling to the US to inspect the property myself.

Its been mentioned a couple times CW. If your anything like me and you couldnt be bothered, Then you wouldve started your first post with an apology followed by a question(which is what i believe you did)...I suggest you look back for the answers. If its important youl read the entire thread. IMHO Theres more to it then letting the folks you mentioned do the hard work for you...

No-one has yet mentioned the use of those you mentioned. They are however well-known(in the media)

Advice = Read thread completely + Own due dilligence

Wish you luck

 

[lawsjs]

Chief: I'll make it easier and cheaper for you by giving you my bank account to give the money to me. I will appreciate it more and it will be less painful in the long run. I have made the offer before, I am a man of my word and stand by it.

Karina: Do you know how Quiggles faired since then? He's a really nice guy... Steve M is someone I would have credited with more sense than that. His cashflow philosophy always draws him to junk, I argued with him about it years ago on this site.... Cashflow has a place, but exclusive pursuit of it is misguided......

The happy clappies in Castle Hill (sydney) buy up large chunks of RE in the area and rent out rooms at something like $100 per night to 'bible study' students - semi illegal and certainly (IMHO) unethical but it is definitely profitable and much safer than garbage areas of the US... A wonderful tax free and brilliantly vertically integrated business is that style of business model/church... Eternal life costs a fortune and needs a vast army of well paid senior management (pastors etc) to achieve.

It would be easier to buy a town and fix it than a couple of buildings but I am still surprised. Playing that trick in NZ is one thing, the US is another. I wish him well, but US RE deca-millionaires I know personally wouldnt touch that stuff in million years. With or without the assistance of the Lords' highly paid earthly representatives. Steve is neither an idiot nor naive and shares my 'cautious optimism' regarding the US so it wont be ill considered. Regardless of the real outcome I am sure the sugar coated results will make a great book.

 

[Perp]

She said 2005. Those are pretty big numbers for the Buffalo buyers. She spent a LOT, or she is exaggerating..

I know a few people who got burned in Buffalo. They:

1) overpaid, and/or

2) used the "recommended" property management company who ripped them off, and/or

3) didn't do due diligence and had prolonged vacancies.

Perp: My experience of the US is that they are far MORE bureaucratic than Aus agencies, though we are depressingly going down the same road.

I agree with you vis-a-vis government agencies and big organisations, I was trying - obviously poorly LOL - to make the point that there's much more flexibility allowed in how individuals can make a deal with each other. eg assumable mortgages, easier to do wraps and lease options, vendor finance much more common, etc. But if I'm mistaken even on that limited point, I defer to your superior experience; I'm just a frequent visitor to the in-laws for 15 years.

There are very few things I disagree with Jeremy Clarkson on. One of his great comments about the US (with which we share an almost identical view)is that 'If you live in the MidWest and eat grits for breakfast America is custom built for you and probably makes perfect sense - unfortunately I do not'

LMAO I'd add:

"If you live in California and think borrowing for cosmetic surgery is a sensible investment in your self-esteem"

and

"If you live in Texas and think that the Bushes were the state's greatest contribution to the nation"

and a few others... but I confess, I crack myself up... I'm a self-entertaining unit (SEU).

It is the easiest thing in the world in the US to find someone to say 'How can I help you?'. It is the hardest thing in the world to find someone who _will_ help you.

Yes, this dichotomy is quite confusing for Aussies who are unaccustomed to hearing "yes", when the answer is really "no". I had a mortgage broker a couple of years back - a Texan who always called me ma'am - and he spent months insisting that he could finance for a deal, whilst simultaneously failing to "pony up" said finance. I even said to him "I get that it's a difficult deal to finance, and it wouldn't surprise me if you can't finance it, but if that's the case just tell me so that I stop wasting time trying to make this deal work". But it seemed he was pathologically incapable of saying "no", even when I made it so easy for him!

For other Aussies, beware that this is one among many cultural differences that you may not expect. In the scope of the 160-ish nations on this planet, our cultures are very similar; but there are still some real kicker differences that you need to be aware of. The superficial similarities can sometimes lull you into assuming that our cultures are the same, especially if you've only been there as a tourist, but you need be aware that in daily life and business, those differences will be brought into sharp focus!