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March 21, 2014 - 4:12 am

Nigel now we are on the same page its the same reason I owned all aspects of my company….

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March 9, 2014 - 5:50 pm

Its called the Dodd Frank laws.. With very few exceptions all banks have to run under the same rules.. You have the Patriot act, and Dodd Frank.. It used to be commerical and portfolio banks were exempt for most of the rules. But this year they are having to conform. I got my first letter from my commerical bank I have been dealing with for 2 years letting me know that I had made a loan request and have the right to the copy of the apprasial.. Had lunch with my banker last week and he said now he can only do 6 loans a year to OWNER Occuppied properties.. Otherwise they have to adhere to the full Safe act and NMLS licensing structure.. Thankfully I am getting one of the 6exempt owner occ loans. I reserved mine early this year !!

You will get your deal done sounds like your dealing with a small regional bank and they are portfolioing the loan..

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March 3, 2014 - 12:01 am

I like Kokomo In as one… but 30k homes will rent for 500 to 600 not 750. and they will always be the same value.  

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March 2, 2014 - 11:01 pm

Kyler just to set the record straight here.. David  has never referred anyone to me for any reason.  And I do not sell any rental houses to any investors. Other than I sold my interest in TWH and the 350 homes we owned to my ex partner in Oct.  I build new homes and sell them to homeowners and I lend money to US investors short term and I have a 5 year product that I lend to Aussie and other foreigners.

And I don't need anyone "pimping anything for me"…   I do quite well on my own thank you very much.

The reality of the situation is this is just another perfect example of investing in Crappy neighborhoods … and with less than capable Turn Key companies.

As anyone who has ever read anything I have posted here knows I strongly do not recommend these low end rentals for out of area investors… for the above reasons.

the quality of the people that work in these areas and price ranges and the tenant base just is a nightmare in so many occasions.

If you live and work in the Hood you can make it work… but thinking your going to buy these low end dogs and make them work from thousands of Kilometers away leads to a lot of heart ache and lost money.

The reality is people that work these markets last a couple years then move on leaving the investor holding a sub par asset at best.

I

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March 2, 2014 - 7:27 pm

In theory I can see why you would do this.. However I can absolutely 100% guarantee that your cash flow will not be what you think it will be. And you will NOT find good quality tenants that WANT to live in 30k houses.. Plain and simple end of discussion.

Now with that said… You could find those types of homes possibly in smaller cities in the mid west.. ones that are 1 hour from a major population base and are about 20 to 30k in population. there will be absolutely no capital growth. and rents will be better and more consistent than inner city homes at those prices. Also running costs on these homes after the honeymoon period  ( recent rehab ) will run 50% of rent ….Having owned hundreds of these over the years in this asset class this is what you will experience.  If you do better than 50% running costs then your very happy 

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February 25, 2014 - 1:48 am

tommy,, has

nothing to do with options.  as I surmise the note bizz is just not well known in AU.and or understood as an investment vehicle.

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February 23, 2014 - 4:46 am

Engelo  not sure where i read that. But I just watch a HBO special on China and holy Shit

entire towns of 10 to 20 thousand vacant high rise apartmetns units. the developers in jail ( soon to be shot) in the US we just put them in club fed.

At the end of the day Au is a different animal it wont feed on its self like the US..

and why is that. .because in the US virtually everyone who walked away from a property did with impunity.. from what I hear in AU walking away from a mortgage is not Ollie Ollie oxen free on to the next deal.

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February 23, 2014 - 4:41 am

Engelo, call

me before you buy notes in Ohio….there are things you need to know that states is not as simple as others

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February 22, 2014 - 6:21 pm

Erik

I brought a note model to the AU audiance a few years ago. and it is not well recieveds in AU and NZ from what I have seen they do not trade in Notes and think of them as investments like we do in the US.. AU investors are far more interested in the highest possible % return and Capital growth.. they are going on what they know.  And what they know is that if you bought a SFR 20 years ago for 50k its now worth 700k   just like many parts of California and Seattle. I think the AU investor is looking for the same thing in the US buy a home for 50k then sell it for 100k 5 years later all the while collecting 10 to 15% cash on cash.. Of course some will do that and many will not.. It really depends on what markets they went into.

When in fact Note investing done safetly and properly at the end of the day will out perform most low end rentals in the US of that I know this for a fact.

Send me a PM and let me know how your doing I would be curious

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February 22, 2014 - 6:17 pm

Rosa, is what we are

reading over here in the US about a potential RE bubble in AU  starting to happen in your mind?

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February 22, 2014 - 6:12 pm

Streamline your just now finally going through the underwriting process. your loan will NOT be approved until all of the conditions or Stips have been met. Your in pre approval limbo right now… forge on everyone is waiting for you to land this financing.

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February 16, 2014 - 12:41 am

Use the LLC so you can get a checking account in the US… And the LLC does provide asset protection. However like I said lawsuits from tenants is far down the list of worries one would have.

Very hard for Foreighner to get loans in the US unless they are larger commercial type loans.. very hard for SFR's. Unless its a primary residence or second home.

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February 15, 2014 - 12:41 am

Streamline,,sounds like your still in  underwriting  ( loan approval mode)… once they verify everythng to meet thier guidelines then you will have a true approved loan up until then your still just moving through the process.. I would be shocked if you got a 3.75% fix rate loaned on a non owner occ property… You may get an adjustable though.

fixed rates are about 5 to 6 % nowa days.

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February 1, 2014 - 4:27 am

Nigel will be interesting to see if banks step into doing financing on SFR's for out of country,, I still think it will be regional and very limited.

But time will tell..

I have closed deals here in Oregon with clients from Denmark and Germany they had no problems getting a loan for owner occuppied. No tougher than doing one for a us citizen.

Man the new construction is red hot in most markets… I need to go buy some more standing timber….

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January 29, 2014 - 1:21 am

Saturday that is sound thinking.. Unless you have 100% confidence in who your doing business with then your best to keep your marbles in your yard.

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January 28, 2014 - 2:25 pm

Saturday.. In MY opinion there has been growth in the wholesale prices that is indisputable. When you talk about capital growth for those that bought turn key ( which is what I think your asking me)  the answer is simple  IT all DEPENDS.. It depends on how much you paid for your property.. Some who bought very well have definatly seen some capital growth.

If some investors paid far more than the property was worth 2 years ago then NO they have not seen any capital growth but what they have seen is the market has caught up to them ( hopefully) and now the home is worth about what they overpaid for it 2 years ago…

These markets are so hard to track its not like anything we do on the west coast… West Coast everything by and large is sold on the MLS so its really easy to see what and were values are. there is NO turn key operators on the west coast per se' thats why you never see them advertised.

In the mid west and South east and Rust belt there are hundreds of turn key guys.. And you take a market like Atlanta that was FlOODED with foreclosures. And you have many layers to the profit Onion by the time it gets to a off shore investor. 

I do know the lady that used to post on this site got some deals that were pretty close to wholesale so I suspect as long as the properties ran OK she has done well.

So if you entered atlanta in one of the suburbs and bought decent homes 1990 and newer 3 and 2 with garage and paid 3 to 50k for it wholesale and put 10 to 20k into reno then yes you made capital growth… If you bought turn key 2 years ago for 80k then NO you have not seen any growth to speak of … Does that make sense?

 

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January 28, 2014 - 2:04 am

Shoot Freckle I  thought I would throw out some big words there and impress you

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January 28, 2014 - 2:03 am

I bought houses in Alanta suburbs for an average of 40k each.. I spent between 5k and 20k on reno depending on the house.. I exited at 77k per door we made 20k Per door net

Holding time 18 months from the first bought to 6 months for the last bought plus cash flow while we held them…. Hedge's were buying them for 60 to 70 pre rehab… so prices are about 75 to 100k now a days I would think… Just depends on your rent.. US investors like about 8% return Net on rentals.So have to back into them.

Atlanta is a big place though,, 5 million folks.. and about 1500 to 2000 homes get sold at auction on the first Tuesday of each month.. and each month is different of course.

Hope that helps

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January 27, 2014 - 1:27 am

Engelo,,, My view point in Macro  Frekle tends to go micro and get into more base economics.. Whats driving wholesale prices in the US has nothing to do with the US economy by and large.. not when 61% of all homes bought last year were for Cash.. Lots of cash world wide chasing the american RE dream.. Some wiser than others of course

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January 26, 2014 - 6:59 pm

agreed on the costs to set up vanilla LLC's  1k max  wells fargo has been closing accounts as well. We had quite of few of our borrowers get their accounts closed on them in the last 6 months and it is a royal pain.. we have them all set up on electronic transfers to pay their payments to us only to have to go through the exercise all over again.