USA - Where to look/What it will rent for/How to buy

I am adding this after reading that someone bought a property and had extra bills because they couldn't have utilities on before closing. WRONG.

How to find properties in the US -
Firstly - DO contact a licensed buyers agent within the US - they ARE there to work for YOU - part of US real estate law is CLIENT ABOVE SELF. How many "buyers agents" selling US property in Australia can seriously say that they would lose their livelihood for ignoring that LAW and how many do you SERIOUSLY believe are putting YOU as a client above themselves.

Buyers Agents will send you a list of every available property in the entire market that meets your needs - which might be, younger than "x" year, minimum 3 bedrooms, 2 bathrooms, double car garage in only one zip code - but you will get EVERY property that comes out that meets that criteria! FOR FREE WITH NO OBLIGATION TO BUY...

A buyers agent is NOT someone who buys a property and resells it. That is a wholesaler or a flipper. Have a very healthy skepticism of someone selling bulk as to their ongoing concern with your property or even how likely it is your property will rent by location. SO DO YOUR RESEARCH.

www.redfin.com - without contacting any real estate agent, this is probably the best of the tools.

www.zillow.com
Sadly once you buy a property you can change the purchase price if you are the owner....so be aware of skewed prices...HOWEVER it is great for seeing how MANY properties have sold in your area in the last 6 months - if a lot, in this market under 80k? Yep, they were sold to investors - how will your enclave look in 5 years time if foreign owners have a tenant majority populated zip in an area that wasn't crash hot to start with?

www.listingbook.com - like Domain on steroids for Atlanta at least... you need a login but you are more than happy to use my random one to get a feel for it - it has random suburbs in there.....
username: selectusaproperty
password: atlanta

Go to area sales of a house you are looking at - find the same subdivision and go from there.

Never buy at the back of a enclave - if any house is at the front of the enclave for rent, they will have to drive past your house to find it... common sense - be the one at the front of the enclave and you will have free advertising!

GOOD SCHOOLS, GOOD SHOPS, TRANSPORT - be walking distance to these....you will always, but always have a tenant.

ALWAYS IGNORE WHAT A PROPERTY SOLD FOR DURING THE PEAK OF THE MARKET

How to find out what your property might rent for
www.trulia.com
Type in the address

www.redfin.com
You can use this as well

www.gosection8.com
Pretend to be a tenant looking for a house in the street of your location


CALL A HOUSE FOR RENT ON THE STREET YOU ARE BUYING - OFFER THEM $100 less and see if they will take it - if yes, maybe you don't want to to buy there!

UNDERESTIMATE INCOME OVER ESTIMATE EXPENSES
IF current rents look like you can get $1000 - do your maths off $900 a month. If you come up with $200 per month in expenses - do your maths of $300.....

Think:
Lawn Care
Gutters cleaning
A/C quarterly inspections
Roof repairs
Taxes
Insurance
Filing fees for taxes
Asset protection - LLC setup and ongoing business licenses etc
General maintenance
Pest maintenance
Vacancy
HOA Fees if applicable
Property management fees
Renewing or reletting fees for leases (most don't charge this but some do)
Utilities if you are paying sewer or trash etc

Then think again because I will have missed some from the above ... then pad it and pad it some more

IF THAT STILL MAKES SENSE THEN GREAT....

WORK BACKWARDS
Total Outlay = purchase price, plus repairs, plus closing, plus facilitation = amount you will not be divorced over.

Obviously buying a property that needs less repairs will allow you to buy a property at a higher purchase price!

Process for purchase
Any real estate agent can step you through the purchase process. Ask a million questions.

You write an offer on the property to buy it.

The offer is accepted, rejected or you are asked to submit a "highest and best" offer - ie there are multiple offers and you get a chance to revisit your offer price... (hate that - you could be the highest already)

You officially exchange contracts - ie the seller accepts your offer and you exchange contracts.

Due Diligence
Once contracts are exchanged you enter due diligence. This means that your agent will liaise with the seller and listing agent to ensure all utilities are on and you conduct your home inspection - it the utilities are NOT on, you will get an extension or have the right to back out of the deal......!!YOUR CONTRACTOR SHOULD BE THERE AS WELL TO GIVE YOU A QUOTE FOR COMPLETE REPAIRS WITH UTILITIES ON!!

If something comes up at due diligence during the home inspection and your home inspector makes "strong recommendation" for further evaluation by a licensed and certified technician, you can have your HVAC tested, your roof tested, your plumbing inspected further.... (plumbing is never that expensive - but a new roof can be a few thousand)

IF YOU SEE ANYTHING DURING THIS TIME FRAME YOU DON'T LIKE OR THE QUOTE FOR REPAIRS IS GOING TO BE OVER THE ??5k YOU BUDGETED.... BACK OUT AND GET YOUR EMD BACK - you will still have had to pay for your home inspections but that is all....

Assuming you proceed to closing... you then have anywhere from 10 days - ?? a month before closing occurs - title is cleared, liens are cleared, your title insurance is put in place and then YAY, closing - and you get sent the wonderful title deed for your hot little hand!

VERY ROUGH OUTLINE OF AVERAGE CLOSING WITH 5k OF REPAIRS....

Please be very aware that many wholesalers and flippers use this area to "rape" you.... if you are receiving a quote at over 10k, be dubious -ask for a breakdown and get a breakdown by line item....if very suspicious - get 2 quotes from any other contractor in town.

Why do I include project management and renting the property in my fees? Because every cent counts to me as an investor and every second counts and this area is where we are most open to being completely ripped off on. If your property manager is trying to rent 30 properties at once - what are they doing to promote YOURS ahead of everyone else's.

5 days before closing = order utilities (they will be switched off after due diligence), line up the tradesmen
2 days before closing = walkthrough verification of all supplies (you're making a list and checking it twice!)
Day before closing = buy all supplies - love the shopping trip
Yay......Closing.....for rent signs up put up around neighborhood, advertising in full swing...
Day 1 - morning = carpet rip out, floor prep, new tacks laid as needed, doors hung that need hanging, anything that needs removing before painting needs removing - faceplates, light fixtures being replaced etc...sheetrock patching occurs whole day as needed. Afternoon = tape off and prep for painting
Day 2 - painting (yard work/roof work outside)
Day 3 - finish painting/garage door installed if replacing
Day 4 - finish fit off/carpet laid/appliances delivered
Day 5 - cleaning - Quality control
Day 6 - pest control

... and on the 7th day.....lol....

Day 8 is quality control and haul back of anything that might even vaguely have issues.

BE VERY VERY VERY AWARE THAT TIME IS MONEY - just like Australia - if your property doesn't photo well at move in, you HAVE to have this work done as quickly as possible.

Move in date is the 1st in the States pretty much across the board so you do try if you can to strategically close properties when possible around best rental dates...however realistically if you close on the 25th - the 1st of a month, you are probably not looking at a move in until the 1st of the next month...you can fluke it... but rarely. Most make their mind up to move by the 18th of each month for a move in on the 1st.
 
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I am adding this after reading that someone bought a property and had extra bills because they couldn't have utilities on before closing. WRONG.

How to find properties in the US -
Firstly - DO contact a licensed buyers agent within the US - they ARE there to work for YOU - part of US real estate law is CLIENT ABOVE SELF. How many "buyers agents" selling US property in Australia can seriously say that they would lose their livelihood for ignoring that LAW and how many do you SERIOUSLY believe are putting YOU as a client above themselves.

Buyers Agents will send you a list of every available property in the entire market that meets your needs - which might be, younger than "x" year, minimum 3 bedrooms, 2 bathrooms, double car garage in only one zip code - but you will get EVERY property that comes out that meets that criteria! FOR FREE WITH NO OBLIGATION TO BUY...

A buyers agent is NOT someone who buys a property and resells it. That is a wholesaler or a flipper. Have a very healthy skepticism of someone selling bulk as to their ongoing concern with your property or even how likely it is your property will rent by location. SO DO YOUR RESEARCH.

www.redfin.com - without contacting any real estate agent, this is probably the best of the tools.

www.zillow.com
Sadly once you buy a property you can change the purchase price if you are the owner....so be aware of skewed prices...HOWEVER it is great for seeing how MANY properties have sold in your area in the last 6 months - if a lot, in this market under 80k? Yep, they were sold to investors - how will your enclave look in 5 years time if foreign owners have a tenant majority populated zip in an area that wasn't crash hot to start with?

www.listingbook.com - like Domain on steroids for Atlanta at least... you need a login but you are more than happy to use my random one to get a feel for it - it has random suburbs in there.....
username: selectusaproperty
password: atlanta

Go to area sales of a house you are looking at - find the same subdivision and go from there.

Never buy at the back of a enclave - if any house is at the front of the enclave for rent, they will have to drive past your house to find it... common sense - be the one at the front of the enclave and you will have free advertising!

GOOD SCHOOLS, GOOD SHOPS, TRANSPORT - be walking distance to these....you will always, but always have a tenant.

ALWAYS IGNORE WHAT A PROPERTY SOLD FOR DURING THE PEAK OF THE MARKET

How to find out what your property might rent for
www.trulia.com
Type in the address

www.redfin.com
You can use this as well

www.gosection8.com
Pretend to be a tenant looking for a house in the street of your location


CALL A HOUSE FOR RENT ON THE STREET YOU ARE BUYING - OFFER THEM $100 less and see if they will take it - if yes, maybe you don't want to to buy there!

UNDERESTIMATE INCOME OVER ESTIMATE EXPENSES
IF current rents look like you can get $1000 - do your maths off $900 a month. If you come up with $200 per month in expenses - do your maths of $300.....

Think:
Lawn Care
Gutters cleaning
A/C quarterly inspections
Roof repairs
Taxes
Insurance
Filing fees for taxes
Asset protection - LLC setup and ongoing business licenses etc
General maintenance
Pest maintenance
Vacancy
HOA Fees if applicable
Property management fees
Renewing or reletting fees for leases (most don't charge this but some do)
Utilities if you are paying sewer or trash etc

Then think again because I will have missed some from the above ... then pad it and pad it some more

IF THAT STILL MAKES SENSE THEN GREAT....

WORK BACKWARDS
Total Outlay = purchase price, plus repairs, plus closing, plus facilitation = amount you will not be divorced over.

Obviously buying a property that needs less repairs will allow you to buy a property at a higher purchase price!

Process for purchase
Any real estate agent can step you through the purchase process. Ask a million questions.

You write an offer on the property to buy it.

The offer is accepted, rejected or you are asked to submit a "highest and best" offer - ie there are multiple offers and you get a chance to revisit your offer price... (hate that - you could be the highest already)

You officially exchange contracts - ie the seller accepts your offer and you exchange contracts.

Due Diligence
Once contracts are exchanged you enter due diligence. This means that your agent will liaise with the seller and listing agent to ensure all utilities are on and you conduct your home inspection - it the utilities are NOT on, you will get an extension or have the right to back out of the deal......!!YOUR CONTRACTOR SHOULD BE THERE AS WELL TO GIVE YOU A QUOTE FOR COMPLETE REPAIRS WITH UTILITIES ON!!

If something comes up at due diligence during the home inspection and your home inspector makes "strong recommendation" for further evaluation by a licensed and certified technician, you can have your HVAC tested, your roof tested, your plumbing inspected further.... (plumbing is never that expensive - but a new roof can be a few thousand)

IF YOU SEE ANYTHING DURING THIS TIME FRAME YOU DON'T LIKE OR THE QUOTE FOR REPAIRS IS GOING TO BE OVER THE ??5k YOU BUDGETED.... BACK OUT AND GET YOUR EMD BACK - you will still have had to pay for your home inspections but that is all....

Assuming you proceed to closing... you then have anywhere from 10 days - ?? a month before closing occurs - title is cleared, liens are cleared, your title insurance is put in place and then YAY, closing - and you get sent the wonderful title deed for your hot little hand!

VERY ROUGH OUTLINE OF AVERAGE CLOSING WITH 5k OF REPAIRS....

Please be very aware that many wholesalers and flippers use this area to "rape" you.... if you are receiving a quote at over 10k, be dubious -ask for a breakdown and get a breakdown by line item....if very suspicious - get 2 quotes from any other contractor in town.

Why do I include project management and renting the property in my fees? Because every cent counts to me as an investor and every second counts and this area is where we are most open to being completely ripped off on. If your property manager is trying to rent 30 properties at once - what are they doing to promote YOURS ahead of everyone else's.

5 days before closing = order utilities (they will be switched off after due diligence), line up the tradesmen
2 days before closing = walkthrough verification of all supplies (you're making a list and checking it twice!)
Day before closing = buy all supplies - love the shopping trip
Yay......Closing.....for rent signs up put up around neighborhood, advertising in full swing...
Day 1 - morning = carpet rip out, floor prep, new tacks laid as needed, doors hung that need hanging, anything that needs removing before painting needs removing - faceplates, light fixtures being replaced etc...sheetrock patching occurs whole day as needed. Afternoon = tape off and prep for painting
Day 2 - painting (yard work/roof work outside)
Day 3 - finish painting/garage door installed if replacing
Day 4 - finish fit off/carpet laid/appliances delivered
Day 5 - cleaning - Quality control
Day 6 - pest control

... and on the 7th day.....lol....

Day 8 is quality control and haul back of anything that might even vaguely have issues.

BE VERY VERY VERY AWARE THAT TIME IS MONEY - just like Australia - if your property doesn't photo well at move in, you HAVE to have this work done as quickly as possible.

Move in date is the 1st in the States pretty much across the board so you do try if you can to strategically close properties when possible around best rental dates...however realistically if you close on the 25th - the 1st of a month, you are probably not looking at a move in until the 1st of the next month...you can fluke it... but rarely. Most make their mind up to move by the 18th of each month for a move in on the 1st.


Yep, this is good advice, understate income, overestimate expenses. Keep those figures real.


MTR
 
Two other fun websites:

www.spotcrime.com
(I ALWAYS seem to forget to put that one in)... I love the little icons for theft and burglary!

www.rentometer.com
I am looking forward to hearing how it might go once they allow you to post directly - another FAB resource..

HUGE NEWS
If you are renting your own properties (or "helping" in the rent - do remember in many states if you have multiple rentals you require a licensed agent to rent your property).... gosection8.com now has an automatic link to Craigslist... remember that you need a US phone with text abilities...NOT IF YOU LIST THROUGH GO SECTION 8.... I thought that was a GEM to learn!
 
Hi Emma

Thanks for the guide.
I went o a home show in Sydney and there were half a dozen agents helping Australians buy properties in the US.

Have you used one of those buyers agents or do you know someone who has?

cheers
 
Bill,

I just looked up the list of exhibitors at the Sydney Home Show.

1. Cash Flow Gold
2. Global Property Specialists
3. House Buyers USA
4. Loans USA
5. Select American Homes
6 US AUS Property Invest

I'll leave it up to Emma to reply but NONE of these I believe are licensed in the US so as per Emma's point.....you have no recourse. Most of these are just wholesalers or companies that deal with wholesalers or flippers. Most I see charge some sort of membership fee to get a list of properties. Most don't list the property address on the website and their is a good reason for that....they don't want you to see what they paid for it and added their profit margin before selling it to you. One that made me shudder was one of the websites that had a rental guarantee !!!! Ummmm unless you have been living under a rock you MUST realise that you pay for this in the purchase price
 
I really wasn't going to write again on this forum but speedy, what you wrote is just scary.

PLEASE. PLEASE don't kid yourself.

If you are paying $4k on top of handing over half your life savings you had DARN well better get a flip load more than an unlicensed tourist to America selling you a property they have never seen, entered or have a clue about who they themselves have purchased from another source - be that open market or wholesaler.... The same sources you have as equal access to. These people AT BEST have spent in THEIR ENTIRE LIVES what? 6-9 months in the states in 2-3 month stints?

What are you seriously paying for that you couldn't find on google? Tradesmen? Ha, no spruiker would have a clue on renovations and most property managers get screwed themselves! they aren't agents so they can't even market your property for rent so seriously WHAT are you paying for? Local knowledge? You have to be kidding right?

Modus operandi? They bid on every property that comes on the market and flog it to some poor unsuspecting person, hand over to some overcharging contractor for dubious repairs who will then hand you over to a charging property manager to rent and they moved on to the next sale before they even remembered what property you had bought..... Kerching. Caveat emptor... Who gives a toss what happens... You KNEW it was a risky investment, right? At best they have a general idea of the neighborhood you are buying in... Drove through it once - maybe even went through a different property etc... That's good enough, right? Its not like one house could have been impeccably lived in and another totally trashed, right?

I am deadly serious when I say anyone reading this with an investment property in Australia is as qualified as most of these people. If you also have one overseas, why wouldn't you have a booth too? Hook others up with your connections for $$?


I am a licensed real estate agent in 2 states (Nevada and Georgia). There are 300 million Americans and of those maybe ??? 25 million of those have an investment property... Of those, maybe 100,000 would deal with wholesalers...but i can PROMISE you not a single person would not understand they are relinquishing EVERY right to deal with a wholesaler.. Those that do are professionals and know how to play hardball. They are not people putting their life savings and blood and sweat into a single dream. This is swimming with the sharks and those going down that path know it. You and me? What would we do? We would ask our local real estate agent if they have any recommendations of a good agent within that market... We would contact them as a starting point.

wouldnt you?
If you were buying an investment property in Australia would you contact an unlicensed wholesaler operating without any legal recourse? It flummoxes me... Surely, but surely, if you were making a hugely risky investment on the opposite side of the planet you would look for MORE protection Versus waiving every consumer protection law there is????

Every month as a Realtor I get the public criminal activity notice... Licensees who have been reported to the real estate division and police...from today's.....Here is one..

"admits he misrepresented the sales price of a property; engaged in gross negligence or incompetent conduct with respect to his representation of the seller; failed to do his utmost in protecting the public from fraud, misrepresentations or unethical practices, and acted in a deceitful, fraudulent of dishonest manner by increasing the list price..."

Felony and criminal actions beyond the $6k fine and revocation of license pursuing... Note, name is published. In full. With license number.

Next;

"The State alleged that the sales price on a property included a disbursement through escrow to a third party (spruiker?) and the respondent (ie the agent) did not make sufficient enquiry to verify the nature, existence and validity of the contractual relationship that had been represented to exist between the buyer and an entity identified in the contract documents."....... License suspended, $5k fine and 18 hours continuing education not prohibiting other disciplinary action.

ABSOLUTE CLIENT ABOVE SELF WITHOUT ANY SELF MOTIVATION IS A LAW IN REAL ESTATE IN THE US......right there the home show starts and stops.

IT IS ILLEGAL TO CONVEY THE PRETENSE OF SELLING OR MARKETING REAL ESTATE WITHIN THE US WITHOUT A LICENSE...

These people are SO far outside the US law of agency..... Why are people buying through them??? They are, even if they do it within a day, or set up an LLC for you... They are selling you THEIR property (even if it is only on paper) FOR PROFIT without recourse or legal protection. Dont get me wrong...That is perfectly legal, it is called a flip..l but it is not having them act as your AGENT. They are NOT an agent... They are a WHOLESALER... They are purchasing or securing a property for profit. Their profit. Pure and simple and don't forget it. Look for words like "we secured".. If they secured, they wrote an offer on a property with their name against it....even if they are "only" marking it up by $4k, that makes them a wholesaler. Most wholsalers mark up by 3 - 5k.. I would go straight to them.. You would save an additional 4k!

I spent a long time and about 10k to study, get licensed, do the courses, have a million character references testify to my integrity and suitability to perform the duties owed and I can be sued, I can be jailed, ON THE TRANSACTION if i misrepresent the facts .. And every other agent can be as well. It doesnt make me amazing, or even good, i could be the WORST agent ever but you have recourse.....Even "fabulous buy" could get me jailed.... Ever heard that?? "lowest price in the neighborhood"... What if next week there was one lower and you bought thinking it was lowest? Yep, potential suing..... Misrepresentation is something they can throw the book and more at me for...

All I can say is that if you are buying from someone who does NOT afford you those rights, you are relinquishing every safety net the US has built in......and it scares the heck out of me.

This is NOT Australia. People are NOT by nature out there to do anything other than seriously rip you off. Trust me because i have seen it all... It is battleground central over here...... EVERY day we lament the battles of handymen, contractors, quotes.... I spent 13 years putting together a rate sheet for repairs... I fight and argue it every day.. Plumber going to show up?? Is your Australian sales person there to check?????? PROTECT YOURSELF.

BE VERY REAL... S^%# happens.... Any real estate agent can sell you a good deal ... It is the repair, the rental, the 2 years down the line you need to worry about.

I spend about 6 hours of every week just trying to help people who have been dumped in this market with no protection. Real Estate agents and property managers over here, by nature SUCK...... Learn how to deal with it...(. Love red beacon.com.)

Can I, in good conscience, recommend anyone spend 4k odd to buy an asset on the opposite side of the planet from an unlicensed person who ultimately wouldn't even know how many laws they may even be breaking and can only visit the country they are spruiking property in as a tourist?? That is 4k you could save right there.

Q. Are you licensed?

Transparency. ask it, demand it. If they say it is peaches and cream over here.... It isn't.

Speedy, thank you for highlighting the point. Tomorrow I am picking up the keys to inspect a property for a fellow countryman who has been raped over here..... I will be doing what I do way too much of... Trying my best to help too late.

If you invest in the US, just protect yourself.
 
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Emma,

Sorry, but you seem to be scaring people towards your service as a "Licensed" Realtor...

Others may not be a Licensed, but they are not breaking any law by acting as a Buyer's representative. The Buyer's representative in-turn uses a "Licensed Agent" to transact.

Yes, there is an additional party to the transaction. Who charges a fixed fee.
If I get a good deal through them, I use them...

P.S: I have bought 5 properties in Atlanta, 2 more are 'under contract' at the moment... never have used a Buyer's Agent although I have spoken to a few.
 
If I was to look at investing in good arable farm land in the USA what areas would one be best to look at ?

I have seen all the news about the drought conditions out in the grain belt and wonder that there may be great opportunities to be had . Any ideas ?

Shawn
 
GC
Sorry you feel that way and it is precisely why I haven't posted. The integrity of this site SHOULD be above self promotion and I am so anti it that it isn't funny. Also, as tough as it is to say no, most know i deal only with those I can actually deliver my personal promises to - not just today but for the next 5 years. In this tight market that is tough enough. I am thus writing and hoping this is general in nature. I refer people wherever possible to reputable sources.

The second you are using a buyers agent VIA a third party, that agent is representing one person and one person ONLY.....the person who secured your property whose name is on the contract of offer. It is NOT you. NOT. You must understand that the licensed agent is thus NOT affording you ANY rights beyond honesty if asked a direct question... Their fiduciary responsibility starts and stops with your spruiker. Further, if your spruiker is using a real estate agent ... Um....has it occurred to you that you might as well just cut out the middle person if all they are offering is an introductory service?

I don't care what market you are in, I don't care where you buy... I desperately care that you know though WHO you are buying through and that you have learnt enough to find the right buy FOR YOU and to survive in this market. If that post makes even one person pick up the phone and learn a bit about consumer rights in the US then I am delighted. If you memorize the websites above, you don't need these people. You don't need me and pretty frankly you SHOULD learn how to survive on your own two feet.

Can you get good deals? Absolutely but just KNOW what rights you are giving up for that pleasure and be VERY aware of it....Buy from the open market through a licensed real estate agent, get comp rents, get comp sales, interview 6 property managers, ask for referrals, ask for rate sheets, get 3 quotes for a repair over $200.....Right there you will have saved $4k.

Learn and go and use Red Beacon by Home Depot for repairs... Be very very specific.

This isn't hard to do (if it was you wouldnt have 2000 spruikers sitting in Oz selling US real estate they themselves have never seen) but please don't get ripped off. These people mostly disappear after the buy anyway. What have you REALLY paid money for?

If you are in Atlanta then you know that there are spruikers leaping on properties on top of the dump in DeKalb... they either have such little clue or are that greedy. Which is fine if, as a buyer you know that, are waiving future capital gain for yield and are aware of it....Stucco faced houses being snapped up etc etc... There is an enclave around the corner from my home in Atlanta and I counted 19 houses up for rent and sale in it..... OUCH. 19. 4 months ago there wasnt one. Can you say rental fight? These are NOT owner occupied. Are you seriously saying to me you couldn't do just as well yourself?

The spruikers sell the fear that you couldn't do this alone. I have maintained that a) you probably could and ultimately should and b) for those that don't know where to start, a spruiker who is focussed on sales and not YOU is NOT the place to start. A real estate agent can sell you a property. This forum can help you with where to buy and what to buy. GC sounds like you have done well and avoided "buyers agents". Help each other NOT have to spend $4k for an introduction to a real estate agent, a general contractor and a property manager. Google does that for free without charge. 20 hours of research would be a better investment.

Again, my utter apologies GC if that did not come across.
 
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Thanks Amadio... I think for me it goes like this.

What are these people actually selling NOW??? 18%-25% gross? LMAO... Not in volume (I have never done volume..volume = dire x 90%). It is getting pretty hopeless in Atlanta for the SFR bargains and that was one of the last markets in my humble estimation. It certainly wasn't a market I leapt to at GFC to enter given its higher issues and Vegas still doing well but for about 6 months it made a lot of sense. What worries me is NOW and tomorrow. I can hear the sales pitch but I have to question it.... If I was able to afford only 2 properties right now at 80k, would I rush to purchase? Is Atlanta still worth a potential entry price of 80k done and dusted with its higher maintenance costs etc? Is Vegas worth an entry price on SFR at $100k (that has always been the disparaty). The answer for most is individual but there is a finite point at which the answer will and should be be "no". The US market is INCREDIBLE for property as an asset field but my gut says this phase is almost done and it will be the time to move into the next area and next phase and I can't wait!! For me personally it wont be SFR's in ATL though.... But if it is for you...choose your own area, choose your own house, avoid the spruikers and you can do well still.

At 80k cash you are putting a LOT of your eggs into one market on the other side of the planet and beyond that into one basket and rents haven't increased to justify... Nor will they in Atlanta for a while. In Vegas we have definitely seen an increase in rents but it is a much, much tighter market.

In Atlanta, to use a yard stick, a 3bedroom Section 8 voucher in Dekalb County is $1025 and a 4 bedroom voucher is $1118 ... This amount has to INCLUDE utilities....they are big houses in ATL...

80k? That is a TON of hard cash ... Leveraged money makes sense at higher levels... We have all done very, very well over the last few years in the US and most who are on the buy and hold are now here for the hold. What if you weren't? What if you were still buying? If i was at the home show today? Am i being sold a concept from 3 months ago?? Would there be a great buy at 12-14% yield....that is a tough question but 14% gross becomes 8-10% nett in ATL and these are the questions I constantly pose. The answer maywell be yes... Or do you put all your money in one basket and have a nightmare tenant issue....

So, again, what are the spruikers selling? A concept of investments that were there 4 months ago?

I don't dispute that there are great deals out there still (i dispute in volume) and heck, I pounce like we all do on them but would I, or could I, turn to my mothers retired friend who has no other money in the world and recommend an entry point into a house via a spruiker at 60k - 80k........???????

Sadly the more success stories people espouse the more time lag there is. We can all show properties ranging from 20k and 30% nett yields through to behemoth 2 storey properties purchased under 50k but what is happening today?

I still say no more than yes and not in ANY market that I have been in in the
US have I EVER seen more than 3 great properties a day at the peak.... In Vegas I have seen 8 properties in 4 months worth even putting a bid in on and in Atlanta maybe 5 a week. I refuse to bid on anything that doesn't make really, really good sense and even that doesn't bring guarantees....

If you are out there and you have done well, KUDOS, help others...if you are starting out, be aware this market is tight....... Be VERY aware....

Be equally aware that 90% is being bought by foreigners willing to slash rents to get tenants in and next year everyone will be starting their first rent renewals.... (most ridiculously will have to pay a couple of hundred even just for their tenant to sign a new lease)

To give you an idea, I was with a guy on Saturday in ATL who is needing, NEEDING USD10 mill in inventory for himself with a follow up 10mill if the first goes well....minimum yield is 8% nett...running his numbers of very reasonable figures.... Do you have ANY idea how many people are out there with that sort of order.... TONS.... Demand so far outstrips supply it isn't funny.

Enjoy the US for property, it is a smorgasbord of opportunity... Just be cautious and please, go by TODAY... Not what the market was doing last month.
 
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Atlanta Today.

To wit... assuming there are currently ?? 200 global "facilitators" selling properties in Atlanta representing maybe 2000 investors all currently wanting about 10 properties a piece??

Today's offerings from the FMLS within my broad criteria (up to 90k, younger than 1990, minimum 3 bedroom, generally all over Atlanta bar a few select areas... such as below the I20 within the beltway).

http://fmls.fusionmls.com/DotNet/Pub/EmailView.aspx?r=1653768824&s=FML&t=FML

These are live properties so if any meet your fancy, google a real estate agent and go for it.... you will need proof of funds, earnest money deposit and a contract of offer....

Let's go through them (my humble opinion):

1.Flakes Mill - potential short sale at 70k and well within the dump smell zone of Dekalb - no go for anything but bold yield. (Remember a potential short sale doesn't mean anything beyond the seller hoping the bank will accept less than the mortgage is worth and the list price is completely different from what the sales price will be - my last short sale started at 42k and finished at 55k... that was a preapproved one... great buy but you see the point)

2. Breeze - a short sale at 90k .. I have actually seen this one - has issues.

3. Minkslide - hysterical "if you have ever dreamed of finishing a house" with an entry point list of 90k ...

4. Registry - starts with "Sorry agents, under contract"...however also a hike to the world and near Clayton dump

5. Durham Ridge - lilburn and 82k... HUD home at 82k?? HUD?? Great for an owner occupier but but but...

6. Pattillo - 79k but not atrocious area (crazy high list though) but it is contingent - namely they have accepted an offer and it is in due diligence

7. Staunton - potential short sale at 32k.... have you SEEN it?

8. Stonecreek way - list at 89k

9. Springgrove - potential short shale in Austell at 65k... thrown in 1k and wait 6 months and there is a chance this might be got at 75k....POTENTIAL short sale - not even approved....half of Austell floods at the best of times.

10. Walter Trail - 43k -HUD home so probably go Owner Occupied time frame only - would watch this one - an older subdivision but the back houses are really well maintained - very close to Stone Mountain so Radon might be an issue.... I woud put in a note in the calendar but you must have EIN or ITIN to offer

11. Grey Birch... HUD and I am sure OO (Owner Occupied) - haven't checked yet but still.... the HUGE bummer on this is the proximity to the dump... even if this pops out of OO I would be so so so so reticent - it is a pretty house but I would be cautioning anyone on this property

12. Wolfcreek - maybe, just maybe... but 74k list...with a gross rent potential around max of $1050 - $1100... I would be lowballing....tough. It is TINY for Atlanta at 1850 - doesn't leap but might be worth a looksie only because the last 11 aren't...! This subdivision though is just a little "not quite there" for me - nestled behind industrial cusp of some not great areas etc...

13. 804 Kilkenny.... now I like this subdivision but it is only a potential short sale....

Realistically at 80 - 90k, I would be buying in Vegas - far greater upswing and far, far less hassles. However - that IS the plus side to the US... when one door shuts, another is ALWAYS there to open.


So, to sum it up... these were today's offerings....... I still say the best bargains are those that have slipped through the cracks but if you were in the position of recommending a property, would you recommend any of these?

Now if I said, you get paid $4k to sell any of these, how many would change their mind? Caveat emptor, right?
 
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Hi emma,

Enjoy the contributions, it's a different world

Thanks. It is - but it is a fun one and a journey. Just don't get caught up with yesterday's news. It may not be the same game you are currently playing but the game is to learn this market, as any other and enjoy it - for all the phases.
 
Just got a bill from my plumber in Alaska.

Labor per hour = $125.

Right there is why I learnt plumbing. Right there. Fixed? OH HECK NO....

Unfortunately redbeacon.com doesn't exist in Alaska and given tradesmen rule there etc....

Redbeacon: gets you up to 4 quotes for any repair. ANY. specify you want before and after photos and specify everything.... backed by Home Depot, it is fabulous. My new bestie... if I have a no-show from my regulars or (gasp) they want a day off???? .... just amazing. References given, backed up to 1k... LOVE it.
 
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