[Michael 888Participant@michael-888Join Date: 2005Post Count: 260]

August 13, 2012 - 9:33 am

Could links, hyperlinks open in a new window please.

New site looks fresh and larger font is easy on the eye. Still getting a little

used to the new layout…..haven't been on here here for a while.

[Michael 888Participant@michael-888Join Date: 2005Post Count: 260]

August 12, 2012 - 11:43 pm

Contact Karina at Select American Homes.

http://www.selectamericanhomes.com

[Michael 888Participant@michael-888Join Date: 2005Post Count: 260]

April 28, 2012 - 5:30 am

Also everyone please note that the Andrew Allen spoken of above  IS NOT THE ANDREW ALLEN who is a member of this forum and Somersoft and is a buyer's advocate/agent in Brisbane Qld, who contributes useful and worthwhile information in his posts.

https://www.propertyinvesting.com/user/waysolid

[Michael 888Participant@michael-888Join Date: 2005Post Count: 260]

April 23, 2012 - 10:03 am

bardon wrote:

Starts in 18 mins, lets hope it doesn't get Slippered.

It slipped their mind…………  

[Michael 888Participant@michael-888Join Date: 2005Post Count: 260]

March 24, 2012 - 8:59 am

Andrew and Catalyst have nailed it.
 
IMO buy slightly used properties that have not only had organic depreciation of the building but where the values are probably off by 30 % in the foothills since their peak of 2007.

  Also consider Mudgeeraba and Tallai. I believe the bottom of the market has arrived on the Gold Coast, but I am not ringing the bull rush bell just yet. It will be sideways for a while until the next upswing.

[Michael 888Participant@michael-888Join Date: 2005Post Count: 260]

March 7, 2012 - 9:55 am

I would like to buy a house from this guy:

http://www.youtube.com/watch?v=HAeprWIOQqQ

[Michael 888Participant@michael-888Join Date: 2005Post Count: 260]

January 26, 2012 - 11:20 pm

Hi ya Alex,

Not sure when I will be in the US.

I am on the (currently VERY wet) Gold Coast. Ex-Melbourne. Moved to GC last year.

I have also enjoyed the exchanges on this thread and others. The information on this forum is great for those, who like
me, are learning about the intricacies (benefits and pitfalls) of the US. There are also some Aussies (they know who
they are) who are the pioneers and the information and posting of their experiences has also been valuable.

Keep it coming guys………………

[Michael 888Participant@michael-888Join Date: 2005Post Count: 260]

January 26, 2012 - 6:09 am

jayhinrichs wrote:

Micheal you get to the states lets have a beer.. Your obvioulsy very astute. and I appreciate your feedback and allowing me the license to incorporate Pear shaped investment into my lexicon going forward

Their are REITS that just buy Notes performing and Non performing as well…

whole different level of investing than what is talked about on this forum. Or at least this subject of the forum US investing.

The SFR's are just a really un complicated simple type investment that mom and pop can understand I get that…

JLH

Hey Jay,

don't know about astute, although I am not a low maintenance person when it comes to questions. I have had many successes and a few learning experiences over the years. Fortunately the tuition from the latter hasn't been wasted…….leads me to ask better questions as I accumulate birthdays. Appreciate your comments and info.

As for the beer………..well ahead of you mate.   I am sucking on a coldie now as it Australia Day here.   

[Michael 888Participant@michael-888Join Date: 2005Post Count: 260]

January 26, 2012 - 1:51 am

jayhinrichs wrote:

Your correct the investor is the bank. and as Such its the ultimate control other wise you would not have a banking industry anywhere in the world.

In the event of default you have an assignment of rents clause were the rents come straight to the bank.. and again in a default situation you end up wiping out our equity and you get to the same place as if you bought the home, Only better as we control the rehab and tenanting to a factor far greater than most rehabbers or PM because they do not own anything they are flipping and walking away with the profit.

Just have to get your head around Note investing and Not property investments. Note business in the US is just as big if not bigger than property, and its a natural progression for most investors in the US. They tried the rental game, and then go into buyinig notes because of far greater safety, ese of management and much more consistant and realible income.

Yep, truly a mind shift is required form us (or me at least) traditional resi investors from Oz. That's why I initially though it was a managed fund type product.

In our investment you have 2 sources of repayment us and the tenant.. when you buy on your own you have 1 source tenant does not pay you do not get paid.

Our liquidity and financial strenght is substantial vis a vi these levels of investments. Our portfoliio runs 95% full at all times. as you pointed out, our rents minus payment to investor gives us positive cash flow, so in essance a management fee, although unlike a manager we stand behind all aspects of the investment.

For us to go pear shaped ( love that term and will use it in the future) it would take a mass default from our tenants.. As we live breath and work these our abiliy to control income is far greater than anyone living 6 thousand miles away  just is. In our model you have myself my partner, our staff here in Oregon of 3.. Then you have our partners on the ground in the markets we work that all have 3 to 6 people on their staff. So there is literally 7 to 10 people working on each house to make sure it is the right property from the start.  Gets rehabbed to OUR standard not a property flipper….And tenanted with tenants we Want in the house..

Thanks for elaborating on that.

And the bottom line really is here in the US there are no 7 to 9% returns that are liquid… Banks pay .05% for pass book savings CD's are 2% or so… Corporate bonds ( junk Bonds) 3 to 5% thats about it.

Oh, I wasn't talking about bank products, rather A-REIT's (listed) and REIT's (unlisted) similar to a managed fund for the product it represents however with liquidity. I have actually taken part in an offering of retail shopping centres that gives 9 % net as a minimum with 75-85 tax deferred. This asset was purchased from the trust administratot on a 18 % gross yield, when similar sell-offs were yielding 8-10 % gross. It is non-discretionary retail anchored by Coles supermarket and the remainder are all food, grog, smokes, chemists, etc., etc.

So if you can put money in a bank in OZ at 9% with no risk and 100% liquidity there is absolutly no reason to risk buying anything in the US. Unless you percieve capital growth.. And or get in  the flipping business..

Nah, not possible @ 9 %. I still have funds at circa sixes and whilst cash in the bank does not constitutue a long term investment play for me, it is at present, SAFE as we are entering a short/medium term deflation here, hence the value of my currency isn't inflating away. Still looking for a home for those funds and hence my follow up questions Jay. Not saying your product is or isn't for me, I need further consideration and a mind shift to cope with this NOTE focus rather than physical property focus.

I do appreciate you taking the time to acknowledge these questions and answers as I am sure others might be thinking along similar lines.

Wishing you every success with this product/process you offer thru your biz. I look forward to reading some more about it in future posts as I undertake further due diligence…..shall navigate your website further.

great feedback thank you

No worries, everyone is here to learn and share. Again, thanks for your insights.

OK, I grant thee permission to utilise said catastrophic terminology of "things going pear shaped"   

Cheers for now

[Michael 888Participant@michael-888Join Date: 2005Post Count: 260]

January 26, 2012 - 1:18 am

Thanks Jay.

Had a look at the video and it's a little clearer now.

Basically we become the bank.

What control is there over your organisation going belly up?

What recourse do we (as the lender) have?
 
Am I correct in assuming that as we own the note that we take title of the property should things go pear shaped……and also the risk of litigation from tenants.?

I appreciate you act as the hedge by defering your capital cut until a 50 % capital gain is achieved, however as the yields achieved should be higher than 9 % to your organisation and you havee obvious economies of scale due to the number purchased, rehabed, and your property management process, there is also profit for you in the yield. Not saying this wrong by the way. Of course you should be covering your expenses/overheads and still have a little profit, whilst you wait for your gain. My concern as a traditional investment property owner is the lack of control. Perhaps that is what some of your time poor investors seek.

On that basis 9 % isn't that high for the currency risk as similar returns are achievable here with product that don't offer any control to the individual investor either, however they are liquid; and I mean SOLD with the click of a mouse………………. perhaps not with the potential capital growth upside of the slaughtered US product, although that is no guarantee in 3-5 years anyway.

Still, an interesting concept nevertheless. If you are able to assist with my questions above, that would be great as in the spiritt of learning and sharing, you may also be helping others (possibly potential investors/customers) with your answers.

This type of process is a little foreign to me (and I would presume other Aussie investing folk). I appreciate your sharing and understanding these questions are all part of diligence.

[Michael 888Participant@michael-888Join Date: 2005Post Count: 260]

January 25, 2012 - 9:52 pm

Thank you for the info Jay.
 
Is there a PDS (Product Disclosure Statement) or similar formal document that is lodged with your fiduciary authorities there (similar to Australian Securities and Investments Commission -ASIC, here in Oz)?  If so, can it be emailed?

Shall also navigate your site and have a look around.

Thanks again

[Michael 888Participant@michael-888Join Date: 2005Post Count: 260]

January 24, 2012 - 9:00 am

Hi Jay,

do you have a website or other link to this investment you allude to above?

Also is that circa 9 % return a net figure of all fees and expenses?

What is the liquidity of this managed investment? Is capital locked up for a certain period till the exit strategy is exercised?

Would be keen to hear a little more about the flexibility and liquidity of this product/vehicle.

Thanks

[Michael 888Participant@michael-888Join Date: 2005Post Count: 260]

January 23, 2012 - 2:09 am

Wirsz makes Steve Keen look like Pollyana.  

I certainly don't see it that bad, however it will be some time before we can call Gidee Up here in Oz. The market pricing needs to reach some type of equilibrium again. Some more softening likely or sideways at best for BHP strategy (Buy Hope Pray).

Passive caapital growth will be rare in Oz for a while. Those pursing more active strategies with value adding, subdivision, etc, will hedge themselves somewhat.

[Michael 888Participant@michael-888Join Date: 2005Post Count: 260]

January 17, 2012 - 9:13 am

Jamie M wrote:

Chris89 wrote:

With that said im not necessarily in the best posituion to invest, so im not too phased as to whether I putr an offer in or someone else purchases.

Perhaps it's best to wait until your situation improves before purchasing your first IP. If cashflow is the issue – you really don't want to overstretch yourself early on. It won't be a nice experience.

Cheers

Jamie

^
^
^
^
What he said. Don't rush. Leave yoursself enough buffer and breathing room if your finances struggle for any reason.

Also a (potential) six and a half per cent gross yield in a town not even in Launceston itself is hardly a great investment IMHO.

[Michael 888Participant@michael-888Join Date: 2005Post Count: 260]

January 15, 2012 - 8:45 am

DHCP wrote:

He Brent,

You can certainly use your SMSF to buy property in the US which I've done with my super.  ………………………………………………………………………………………………………..Good luck

Hi DHCP,

what was the set up you used for the SMSF investment? Did you use C-Corp or LLC to hold your US investment properties?
I am also keen to go down this path with a straight forward cash purchase for our SMSF, however read conflicting things when entertaining the US entity.

Keen to hear your experience.

[Michael 888Participant@michael-888Join Date: 2005Post Count: 260]

January 11, 2012 - 12:21 am

HouseweetItIs wrote:

also, what about people with US properties that are NOT performing, or who have a horror story?  this seems to be a growing group from what I hear…email me at [email protected].

Hi House,

you raise a valid question. In the spirit of sharing and learning are you able to post some examples please? Maybe by starting a new thread that perhaps others can add to.

I would be keen to hear of the types problems that may present after the purchase and not whether the buyers agents or facilitators are ripping Aussies off. Clearly there are some that do and also some that provide a terrific honest service.

Keen to hear some examples and what remedies/solutions were taken to address the problems.

[Michael 888Participant@michael-888Join Date: 2005Post Count: 260]

January 9, 2012 - 9:12 am

For those old enough to recall…..it's 1991………………..sideways she goes. There are markets within markets so I am talking in a generic sense (as every one else is) with some mining regionals to likely outperform for a while.

Oz has been living high on the hog for quite some time. I do not believe the China story will suddenly end, however in the event of a likely slow down and hiatus of resource hyper-consumption, wait for unemployment to surface. We will not be immune from the credit squeeze that may ensue from Eurozone fallout  either.

I am not a bear, but a realist. I still have significant holdings of property however yields are not enticing for me to purchase more. Right now have offsets poised and ca$h in the bank. Folding stuff isn't a long term investment play however right now my dollars aren't inflating away. If further cash rate cuts ensue we face a period of deflation. It's our debt that will rise in relative terms for a medium time frame. I do feel that we will be in significantly higher interest rates (over eight's) in 18 months time or so. Now is the time to have skinny LVR's. It isn't yipee kayay yet…………….those days will come however it will be a few years before we can call gidee up IMHO.

[Michael 888Participant@michael-888Join Date: 2005Post Count: 260]

January 5, 2012 - 6:24 am

Patrick van lieshout wrote:

hello can any experienced investor ring me,I have found a positive cash flow property 16.8% cash on cash return potential for 25.1 cash on cash return don,t have a trust set up yet need to know my options though i have a vague idea,will give $$$ for right advice,advice needed urgently,call Patrick 0437288863 posted 1020 hours 30/12/12 WA time

   Help me please

So how's it going Patrick? How about the courtesy of thanking all the posters who have contributed above with their opinion.

Some eight days hence……………….not a peep……………………

[Michael 888Participant@michael-888Join Date: 2005Post Count: 260]

September 13, 2011 - 6:44 am

Inspiration for novice and veteran alike.

Good stuff Mr. Birch. I celebrate you.   

[Michael 888Participant@michael-888Join Date: 2005Post Count: 260]

July 15, 2011 - 6:01 am

Hey there Angel,

only just came across this thread now. I have enjoyed your property related contributions here since you only recently  joined us in March and now  you have put your pain and loss here for us to reflect upon and learn from.
 
Certainly we can (most of us) get caught up in the " more game " with bigger and better, when the perspecctive you have now introduced is the most enduring and relevant.

So sorry to read about your loss. In Greek we say "zoe seh sas" which translates to " long life to you all."  I know many faiths and customs have similar long life salutations. May Tim rest in peace and your memory of him be eternal.

Take care and look after the living, especially yourself.