Viewing 14 posts - 21 through 34 (of 34 total)
  • Profile photo of worldinvestorworldinvestor
    Participant
    @worldinvestor
    Join Date: 2011
    Post Count: 297

    Hi Ryan

    I have one question for you/US Invest?

    Is this property in the link attached one of US Invest properties that is or has been sold to investors? 

    https://www.propertyinvesting.com/forums/overseas-deals/4345831

    WI

    Profile photo of jayhinrichsjayhinrichs
    Participant
    @jayhinrichs
    Join Date: 2011
    Post Count: 1,177

    Cheeves your a RE broker in NJ.

    Do you think the NJ Department of Real Estate would allow a bunch of college kids to be talking to clients about buying real estate, without said college students being Licensed agents.

    I know were I am a licensed RE broker CA OR WA MS.. this is clearly a violation and I would bet dollars to donuts it is in every state in the US

    Just amaze's me these sales orginations can and do these Real Estate transactions so blatantly and without RE licenses.

    I mean why have a license if anyone can bring buyer and seller together.

    Now of course if this company actually Owns these properteis which it does not sound like they do and I would bet they don't thats another kettle of fish all together.

    Whats your opinon Cheeves you worked hard for your licenses like I did pay your dues and your E and O like I do your MLS fee's etc… what do you think?

    Profile photo of CheevesFinancialCheevesFinancial
    Participant
    @cheevesfinancial
    Join Date: 2010
    Post Count: 201

    Jay:

    I'll say this with a grain of salt.  I am originally from NJ and ended up in FL accidentally in 2002 full time after playing a stint in the minor leagues for the Red Sox (why you always hear me pitching about the new stadium :-)

    I went to school all my life including all 4.5 years of college in NJ and studied Finance with full intentions on being an M&A guy on Wall Street..  Once my baseball career was finished, I decided to follow a friends lead into the FL real estate arena.  I had very little money at the time but purchased 3 vacant lots in Cape Coral.  In 5 months, tripled my money and became sold that FL was the place for me to be since that was my first real taste of money.  Ok, so I turned 8k into 22k.  Nothing to retire on but in my young 20's, I bought my first bottle of good tequila! 

    I learned and climbed quickly in FL.  Hired by a bank in 2005 to run their real estate division, a position I secured by blindly helping a developer affiliated with that bank get very difficult zoning and land entitlements on the Gulf of Mexico in Fort Myers.  A bit of skill and luck went into that but it catapulted me to high ranking positions at a bank who was eventually seized by FDIC.

    In 2005 while with the bank I became licensed in NJ.  Launced http://www.NewJerseyRealEstateGuys.com in 2008 and it has quickly grown into a lead-generating animal.  During my time in NJ, I loved it and begged the wife to relocate back.  For one reason and this will hopefully answer your question:

    Let me preface by saying that the FL qualifications for teachers is far less difficult then it is in NJ.  I JUST LEARNED THIS as my child entered kindergarten.  For years, I said to myself that business minded people are way more successful and competent up north then they are down south…For the most part at least and dealing with the people I have dealt with.  Florida leads the country in Multi-Level-Marketing.  Why?  Desperation.  What a garbage industry.  You don't see that up north.  Why?  Because its a garbage industry and we just don't buy into that crap up there.  Oh, and Florida also leads the nation in mortgage fraud, to boot.  Why?  Because mortgage fraud is easy and dummies take the short term gain with dealing with possible jail time later.  Yes, happens everywhere but way more in FL.  It's a proven stat.

    That said, unlicensed activity practically is non-existent up in NJ.  That is one of the reasons I favor the NJ economics and housing market moreso then anywhere else.  It starts with individual intelligence.  I'm sure there is unlicensed practices everywhere and I've read about them in NJ….But in area where education is less and intellect is less, your bottom feeders thrive into more unsophisticated arenas. 

    Jay:  I hate unlicensed activity.  The crappy part is, you deal with it in FL.  In NJ, you either have a license or you don't bring anything to the table.  To Floridians, this is a way of life.  To those up north, it's a slap in the fact to all of the hard earned education and accolades we have earned as a result of our education. 

    Still love Florida for what it offers, but we just don't deal with that crap up north.  This I know from tons of experience, not guess and bias.

    CheevesFinancial | Cushman & Wakefield - Commercial Property SW FL
    http://www.CommercialRealEstateVoice.com
    Email Me | Phone Me

    Profile photo of jayhinrichsjayhinrichs
    Participant
    @jayhinrichs
    Join Date: 2011
    Post Count: 1,177

    So Cheeves do you agree with me..

    that bringing Buyers and Sellers together and earning a fee is what Licensed REAL ESTATE Agents do?

    To our OZ friends do you need a license to SELL real estate you do not own in OZ.. I have to think there is a big REal Estate industry there with how Real Estate crazed the average OZ citizen is. so why would it be different in the states and why would you trust non licensed marketing people who do not own the property to put yor deals together for you.This activity leads to al sorts of fraud. Not saying Ryans company is not the best they probably are.

    Here's one company in the US to check out.

    MYREOSTORE.com

    Now these guys are based in Utah.. Like you mention MLM is Florida  ( although 5 linx is in Rochester) its a black ACN

    This company is the sales arm for Premier marketing group, Premier is really really good at what they do, they and companies like them ( there are about 10 of them in and about salt lake and provo) are the back end boiler room operations for all the name brand gurus.. Like Robert Kiyosaki, Robert "Allen, and the list goes on and on.

    The difference here is that MYREOSTORE.com actually buys the inventory before they flip it to the Guru's students.

    Big difference they are selling properties they own…I know because they have asked me to finance deals for them.

    Their  boiler rooms are full of BYU students ( 100 plus in the facility I toured) doing the exact same thing Ryan's company does coming in after college sitting in cube drinking red bull and Mtn. dew and reading from scrips on how to get people to sign up for boot camps and mentoring programs and buying turnkey properties from them.  this is a multi million dollar business… They have a corporate jet Premier does, And they sell 50 properties a month plus and bring in untold millions in mentoring and boot camp fee's.. Its an education service.

    I have seen a little bit of advertising for boot camps and mentoring services in OZ  of course we lead the world in it invented it and others just copy it.

    So based on Ryan's description it sounds like the same type of operation,, College kids who are interns that will work for minimum wage, being taught scripts and hard selling clients.  The Princeton analogy is just smoke and mirrors in my mind. there are many fine colleges all over the world and brilliant young people. Steve Jobs went to Lewis and Clark in Portland Oregon my home town. And grew up and went to the exact same High school I did in the bay area. And look how brilliant he was.

    Hiring college interns is a fabulous way to cut overhead because these students can only work part time as they are going to school so as long as you cater to their class schedule you get some nice kids that are thankful for the Job.  My daughter interned, and then got hired by Intel for example.. She was doing hi level analysis for 9 dollars an hour as a college intern.

    So it would be interesting to check county records on the inventory that US invest puts up and see who actually owns it.

    And or for US invest to let the public know that they own every property they market. And ergo their employees can legally talk to clients as an employee of the owner. But the employees in most states have to be full time. At least thats the way it is in the states I am licensed in.

    Cheeves are you buying up Lehigh and Coral lots at 5k..again? I know they peaked in 07 at 70 to 90 then quickly dropped back to historic norms.

    Thanks for the back ground and I am glad you are doing well.

    JLH

    Profile photo of USInvest-RyanUSInvest-Ryan
    Member
    @usinvest-ryan
    Join Date: 2012
    Post Count: 13

    Hi Jay and Cheeves,

    Thanks for your post, however I would appreciate you letting me answer your question without assumptions regarding licensed or un-licensed brokers. We are aware that the majority of the Australian and other International marketing firms operate without a license, however US Invest does hold an active Real Estate brokerage license. Again, this practice is something which many Australian operators tread a very thin line and we totally agree is in need of stricter regulation. We fully grasp the hard work it takes to do the right thing.

    Jay, you’ve actually spoken on the phone one of our owners, Reid Stewart. I understand you were looking to set-up a fund to finance people looking to flip houses. How did you go with that?

    I’m very familiar with the organizations you speak of in Utah and surrounds. –Boiler room set-ups with a focus on selling rather than quality of information and the good of the buyer. To be honest, that sort of thing is far more prevalent in this market with companies operating out of Australia. –There’s no need to put all the hard work into having an American presence if all you aim to do is sell smoke and mirrors without any form of rapport building, relationships and repeat business. Anyone who, like both of us, wants to build a career as an Investment/Real Estate  professional needs to do so on longevity, quality and above all, value. Princeton is the ideal location to house a professional environment.

    You both seem like hard-working and intelligent individuals, therefore I’m sure you appreciate the reward that hard-work and service based offerings bring to the long-term strength of a business. To answer your question, our Princeton based team is focused on research and economic analysis for the areas we invest as well as memberships. These guys are not hired to sell on the phone in a boiler room setting like you described. Research should form the basis of any investment, whether its real estate, shares or even buying stamps. Unfortunately, from my experience, this is where too many investors fall short and is a major part of the service US Invest provides for our members. So yes, like many companies, we do hire intelligent graduates to assist in our research department, these are not interns and are not paid minimum wage. They are an asset to our team and in many ways, the future leaders of our industries. Similar to your daughter, Jay, (Congrats on her job at intel by the way!) they gain invaluable experience and skills which they can take throughout their career with the aim to move into roles with many fortune 500 corporations.

    Cheeves, what are the main markets you operate in? Is it just NJ? I can see that http://www.NewJerseyRealEstateGuys.com  was founded by Scott Allen. That’s you right?

    P.S. to answer your question regarding out markets and that being the "acid test", at this stage, our select market areas are within Dallas, Atlanta, South Florida, Memphis. Jay I see you also play an active role in Memphis and Atlanta. Are there any other markets you have your eye on?

    Kudos

    Ryan

    Profile photo of jayhinrichsjayhinrichs
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    @jayhinrichs
    Join Date: 2011
    Post Count: 1,177

    Ryan

    Good reply. Doesit frustrate you competing with non licensed companies

    My fund is up and running concentrating on west coast

    Ried  introduced me to a  so called money raiser  in new York or Boston and this guy was just out to make a few biucks providing an off the shelf  ppm.

    Keep up the good work… Inventory is going to be an ongoing issue for marketing companies in oz

    Oz investors have pretty hi expectations of returns and in certain markets these are eroding fast.

    You ever been to premiers operation they are really good at what they do:)

    Profile photo of USInvest-RyanUSInvest-Ryan
    Member
    @usinvest-ryan
    Join Date: 2012
    Post Count: 13

    Hi Jay,

    It absolutely does frustrate us. Its an unfortunate grey area, and I wish the majority of the Aus companies would do the right thing and take it to the next level and get licensed.

    With the Aussie expectations.. It sucks that their are companies out there offering yields of 20%-40%+ in areas like Detroit etc. A lot of unsuspecting investors buy into it and get burned. It's destroying the industry and the name of good companies selling realistic investments. Our members are educated to expect between 9-12% and can go higher to the likes of 16% cash on cash when using finance.

    What people just don't get, is no matter how good the returns look, it means nothing if you cant get a tenant to pay the rent. These property spruikers are pushing homes in areas that you wouldn't feel comfortable walking down the street without wearing a bullet proof vest, let alone living there and paying the type of rent they claim you could get!! Its crazy! If it's too good to be true it usually is.. 9-12% is safe and real, and in some cases a little higher.

    Haven't been to Premiers operation yet, but keen to take a look. We aspire to be the best, so if you recommend them, I'm sure we can take some good from what they do and further strengthen our own business.

    Lets chat soon, as we have plenty going on in the institutional side of things. I will be in Atlanta on a buying tour with investors this week. Let me know if you're around to catch-up!

    -Ryan

    Profile photo of jayhinrichsjayhinrichs
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    @jayhinrichs
    Join Date: 2011
    Post Count: 1,177

    Ryan 

    Just missed you in Atlanta I was there at the auction on tuesday. What a zoo.

    On the nicer inventory the hedge fund buyers were bidding properties up 20 to 40k per property higher than we paid for thom 6 months ago just like Pheniox, actually one of the Pheniox bidding services was at one of the counties I visited.

    Premier is a  high pressure boiler room operation, that is very good not sure it's good for the retail client though they sell mentoring packages for up to 40k and that's just to mentor a person on how to buy a rental.

    Profile photo of USInvest-RyanUSInvest-Ryan
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    @usinvest-ryan
    Join Date: 2012
    Post Count: 13

    Yes, it seems commonplace at the auctions these days to see prices driven way above what those of us who have been in this market a while are used to paying. Its a fine line between acquiring quality property and still maintaining solid rental yields at the other end… Much of the stuff we're seeing go out the door doesn't meet our buy criteria so happy to let the seagulls squabble over it…

    As for Premier, sounds like another over-priced 'wealth-building' course. I won't pre-judge without seeing the operation but 40k to learn how to buy a rental? Unless its Warren Buffett himself, sounds like a stretch to me!!

    Hope you did ok at the auction yesterday. I'll be touching down in Atlanta this evening for a busy few days ahead!

    Profile photo of MCH_51MCH_51
    Member
    @mch_51
    Join Date: 2012
    Post Count: 1

    Hi all,

    I am new to this forum and would like to thank everyone who posted on US Invest. I am also thinking of investing in US properties and visited 'US Invest' website. However, I was not impressed neither by their website content nor by a phone call from one of US Invest staff by the name of Glen. he called me from USA and talked for about an hour trying to explain what his company is all about.

    I still not 100% sure about the authenticity of this company and need more time to search it more and read more posts like these here before decide on buying in USA.

    I will appreciate if anyone can recommend any other company that he/she worked with and baught investment property (s) in USA through them.

    Thanks

    Profile photo of USInvest-RyanUSInvest-Ryan
    Member
    @usinvest-ryan
    Join Date: 2012
    Post Count: 13

    MCH_51,

    Thanks for your post. Its unfortunate that you spoke to one of our membership consultants for an hour but still do not feel you have all the answers you were looking for. Please Private Message me your name and I will gladly have one of our managers call you to answer any questions you still have outstanding about the US Property market.

    Regarding other questions, if you are concerned as to US Invest’s authenticity, you can view a recent client testimonial as we regularly post them to our home page: http://www.usinvest.com.au/ (Feel free to sign up to our newsletter while you’re at it!!)

    Good luck in your search and if our team can help you in any way, please feel free to contact me. These forums aren’t about pushing product, they are about helping others so please feel free to reach out.

    Regards,

    Ryan

    Profile photo of FacilitatorFacilitator
    Member
    @facilitator
    Join Date: 2012
    Post Count: 14

    First disclosure: my company is a US property facilitator.

    I have been am still currently a US Invest member. Very slick operation but you have to wonder how do all the staff get paid ?

    I looked at many properties they offer and still do. I have never bought because i cannot see the upside in purchasing what looks to be property bought, rehabed and on sold at a substantial mark-up. If you do buy this stuff, two things happen…

    1. yield or rental return is diluted and

    2. You sell at a loss unless you hold it for long-term.

    Find yourself a good agent in the US you can trust OR stick to companies that do not buy the property themselves, why ? Ask yourself why someone would bother to outlay cash to buy a property and refurbish it if they are not making some extra cash on the deal ? Why not just arrange buyer and seller and charge a fee. Common sense really…

    Apart from our group who are mainly in Texas and Florida, Karina at Select American homes operates in Georgia, with no purchase and markup, just a transparent facilitation fee, easy. The slicker and easier the deal looks the more you lose out of your pocket…. save yourself a packet, get a better return.

    Sorry Rehabbers but we all know what the deal is…

    Profile photo of USInvest-RyanUSInvest-Ryan
    Member
    @usinvest-ryan
    Join Date: 2012
    Post Count: 13

    Mark,

    Why would you want to buy through US Invest if you do this business for a living and your on the ground in America? If your an expert why did you become our member? Most likely you paid for membership to get hold of our marketing material. If you have received no value from our company we will happily refund your membership and part ways.

    I appreciate your comments on saying we are a slick operation. I hope it was meant in a kind way, because its true that we are a very well oiled machine and work very hard to be on top of our game.

    Regarding your other comments, they are way off the mark.

    We sell property below its appraised value, just like you claim to do on your website. You also say we have substantial mark-up’s. I urge you to show me how that is possible. Our margins are extremely tight, in fact our fee's are below what you charge and we are a full service operation with everything in-house.

    From what I can see from your website, you charge $5000 to provide a property which you didn’t front the cash for, you didn’t research the area, you didn’t evict the tenants or manage the refurbishment. In the meantime, every one of these parties that is required to get a foreclosed home rent-ready, is making money in the transaction. Somewhere along the line this money is getting made. Just like Jay said, lots of middle-men in your model. So you might not be making this money, but its getting made, and at a substantially higher amount then the like's of a company who does it all in-house and can afford to make smaller margins over the whole process.

    You facilitating (or being the buyers agent) for an Aussie investor with one single renovation will cost a bucket load more then our own construction company doing 70 renovations in the same area, using the same type of paint, carpet etc. The builder you use is doing a one off renovation and would need to buy carpet by the square footage and we buy it by the Kilometer. Big difference on price and what type of quality we can afford to put into each job. We have a streamlined approach.

    I’m dumb founded that you can offer advice to people to not use companies like ourselves and TCCI who buy the property themselves and streamline the whole approach.

    Even when you facilitate, all you’re doing is pairing off a seller with a buyer. Do you not think the seller who bought the home in foreclosure and renovated it has also made a profit? Come on. Any property you facilitate has already got the profit built in by the seller. Unless you are taking Aussies to the auctions to buy wholesale houses on the courthouse steps. And if you are doing this (which I highly doubt) the home will still need at minimum a renovation and it brings me back to the original point. No construction company on the planet works for free Mark, nor do lawyers, or property agents so how can you suggest your way is any better…It's absolutely not.

    It seems to me that all your doing is creating relationships with US turnkey suppliers, then pointing your clients in the direction of those suppliers with your $5,000 fee attached.

    I’m sorry but in most cases, you get what you pay for. Paying your company for no more than ‘facilitating’ or introducing me to multiple parties, hardly sounds like adding value to me when clients will inevitably pay more, and deal with many more people for a product which has not been managed with a fine-tooth comb from start to finish. Too many hands in the pot which will lead to headaches for the investor when an issue occurs, (which can and will happen). You get passed from pillar to post, which is a nightmare when dealing on a different time zone in a foreign land. Using a large company with everything in-house that will stay the test of time avoids this drama. 

    Best of luck with your business. Feel free to call and chat to myself or one of our affiliate team members. We can help your clients avoid a lot of heartache and also help you streamline everything you’re trying to do. I’m sure I’m not the only one who disagrees with your business model…

    Profile photo of ModeratorModerator
    Moderator
    @moderator
    Join Date: 2010
    Post Count: 39

    I have deleted several posts from this thread. I think parts of the discussion were beginning to go in circles and weren't adding value to the thread or the forums.  Please ensure any new comments add real value to the discussion and even more importantly further it in a respectful manner. In this instance I think we can do more to leave a footprint on this site that we can be proud of as an online community.

    Sincerely,

    Moderator

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