Forum Replies Created
Hi jman,
I am considering doing something similar (maybe) in the near future and have asked myself the same question. I think the key would be to purchase under market value, then add value. This will give you a bit of breathing space when it comes to selling.
You say you want to acquire 2 more IPs next year. Why are you thinking of selling them after reno? Why not just refinance and NOT pay any GCT? For example, you could purchase one under market value. Renovate it. Then refinance after 6 months and use the equity to fund the next one. I see this as a good way to raise some capital to help purchase more property quicker.
I wouldn’t mind hearing from people who have used this strategy successfully.
Regards,
OziI agree, last night’s meeting was superb. Thanks to Danny and Tony, and the attendees. I am ready to put my newly acquired negotiation skills to the test now
See you all at the next one.
Regards,
OziTools,
If thats the case, you should consider pitching a tent up in the backyard and maybe renting the house out to some tourists? [biggrin]
regards,
OziA while back some guy was telling me that after the games there will be glut of inner city apartments on the market, including the significant number of apartments they have built purposely for the games. I don’t have any sources to back this up, but if true, I would think that it will affect inner-city prices in a negative way.
Regards,
OziHi Mad-Cat,
I have known Westan for around a year now. I went over to NZ earlier this and spent a whole day with him inspecting properties. He truely is an ethical guy and you can be sure his knowledge and experience is superior! He has always been helpful when I’ve had questions and really knows his stuff. His honesty and openness will put you at ease, I’m sure.
Just have a read though his posts over the years, you should be able to determine his worthiness from his contribution. He has been around for a long time and I’m sure many will agree with what I have said.
Regards,
OziHi nathywally,
The numbers look great! Can you tell us a bit more about the property? I’m guessing its a commercial property?
Regards,
OziHey Marky,
In the menu, under Forum Boards, click on “Subscriptions”. Or go here https://www.propertyinvesting.com/forum/subscription_list.asp
Regards,
OziDanny, Tony, Cameron, Alistair and everyone else who attended,
Thanks for the meeting last night! It was great to meet up and chat with you all. I look forward to the next one.
Regards,
OziHi Steven,
I don’t use VET, nor do I have wireless broadband, but I would suggest you have a read of this:
http://www.pcmag.com/article2/0,1895,1821787,00.asp
http://www.eweek.com/article2/0,1895,1819425,00.asp
This probably won’t solve your problem, but just make sure you have all of the ‘latest’ security patches installed.
It may be a problem with the settings in your firewall configuration, or maybe the router? I would also check the VET Antivirus settings. If you can’t resolve it, you can call the ‘IT Guy’ and get him to fix it. Was it working after he installed VET?
Good luck.
Regards,
OziHi Westan,
Thanks again for sharing your insight and experience. I think now I have some sort of idea on what to expect while over there, no big shocks.
Thanks to everyone else who has contributed. It has been an interesting read.
Regards,
OziI would speak to the the Realtors and property managers in the area. There are two main offices:
Lamberton’s Realty
Swanston Street, Tokoroa
07 886 8229 – speak with Jenny Lamberton, she is great!Harveys – Realty Waikato Ltd
Leith Pl Tokoroa
07 886 8064
Speak to Linda Churchill & Kath ChapellThey will tell you the good/bad areas of Tokaroa. They went out of their way to show me around when I was visiting and were very helpful. From memory, the ‘Wai’ area, with streets beginning with ‘Wai’ were the good streets. But there were many areas where vacancy rates were high, so you need to be careful.
Regards,
OziI might try this at work one day. Actually, I might try it now [smiling]
Regards,
OziThanks for the advice quiggles. I guess going through these areas isn’t such a great idea. I’ll see if Mike’s free when I’m up there… maybe he can show me around [biggrin]
Regards,
OziHi bardon,
Thanks for your insight on Ajay. Up until looking at Ajay’s website, I had never heard of him before. I may have been a little quick to judge him, but then again I don’t know him. At a first glance of his website, there is clearly some misleading information there. The deal he advertises which I spoke about in my last post is a clear example of this. I guess it’s a good way to lure new investors in to find out more about what he is offering.
Regards,
OziHi Westan,
I’ll make sure I check out these rough areas, I’m curious to see how bad they really are. Playing it safe is good advice. I’d be far more comfortable with a lower return in a better area, as opposed to a higher return in worse area.
I’ll let you know how I go.
Regards,
OziHi bardon,
I guess more demand can’t be a bad thing!
Thanks for the link. I had a bit of a chuckle looking at this guy’s website. You can’t blame him from taking advantage of the opportunities available, but I wonder how many brits have been sucked in. Look at one of the deals he is advertising, a 102% gross yield – quite impressive!
http://www.hotspotsintheusa.com/page/page/1754675.htm
Here’s a 3 bed detached property at $5,000, yes $5,000. Its not the best part of town but hey who cares! We’re talking about a total purchase price of £3,000. If you got a mortgage on it your initial investment would be around £700 to £1,000 depending on your circumstances. In other words this is an EXTREMELY LOW RISK investment. Have a look at the details of the property but more importantly the figures.
I find this hillarious!! Sure it’s only $5,000, who cares if the house is located in the middle of a war zone? As long as the rent is coming in, who cares? This is an EXTREMELY LOW RISK investment, so you can’t go wrong! I think I’ll buy 10 of these right now, given his projected returns I should be able to quit my day job by the end of the year [specool]. I wonder if he allows for maintenance costs, i.e. replacement windows from the daily drive-by shootings, petrol bombs, break-and-enters, etc..?
Is this guy for real? Forget the property, what about finance? Does he seriously think a lender in their right mind would provide finance for something like this? The mortgage setup fees will probably be more expensive that the property itself.
Regards,
OziHi all,
Thanks to everyone who has responded, your input is valuable and appreciated! I agree with Quiggles in that there is an upside here, in that more federal and state funding will poor into these areas. There are changes being made to help restore these cities, but I still think it will be a few years before both Buffalo and Rochester are standing on their own two feet again. Nonetheless, the governments have realised the trouble they are in and are making amends – a step in the right direction.
Quiggles, consider your misfires a valuable learning experience [grad]. You have dived in head first, well before any other Aussie entered these waters and you really have put in the hard yards! I’m glad to see you have ironed out any problems and built a team which you can rely on, because this is untimately what will make or break you. Anyone who thinks they can enter these markets and have everything handed to them on a gold platter, where they can just kick back and watch the money roll in is highly delusional. You really need to be on top of things, or you’ll more than likely get burnt.
grossrealisation, I used to think like you. If these deals are so good, why isn’t the guy down the road buying them? Well for some, investing just isn’t a priority. Especially in low income areas as such, many just can’t afford to buy. From what I hear, most Americans are more concerned about lifestyle, i.e. driving flash cars, owning plasma tv’s, holidays, etc… instead of securing their financial future. But as Westan stated, many locals are too blind to even see what is available to them in their own backyards. Investors from interstate and overseas can see the opportunities which are available here and are flocking there like a bunch of sheep.
The main reason for my trip is to go over and see the place for myself. Sure, I plan to buy while up there, but only if I feel I am comfortable with the risk and effort required to make this work for me. The numbers look great on paper, but you will only be successful if you make it work for you. While over there, I plan to focus more on building relationships with the contacts I have made and only then I will be able to decide if the USA is for me [strum]
I’ll be sure to give you and update on how things pan out when I return. Even if I don’t buy up there, its no big loss to me. It should be a great learning experience to say the least and one which I am looking forward to [biggrin]
Regards,
OziHi Rick,
You’ve gotta love those engineers!! I happen to be one myself [biggrin] I think it’s important to consider all factors, whether they be positive or negative. However, you don’t want to fall in the trap of analysis paralysis, because then you will never buy anything.
Anyway, I just thought those of you who have bought or are planning to buy in Buffalo may find the Comptroller’s review an intersting read. Oh, there was also a more recent audit done on the Erie County:
http://www.osc.state.ny.us/localgov/muni/audits/2005/counties/eriebr.pdf
Please share you thougts if you have any.
Regards,
OziHi Richard,
I have considered Tax Liens, but from what I hear competition for tax lien certificates is extremely fierce, especially in markets such as Texas where you have really high returns (i.e. ~25%) with redemption periods as short as 6 months. Often the liens get bid far too high.
I look forward to reading your publication.
Regards,
OziHi Liz,
I find that with most banks, writing isn’t a good form of communication as they never respond. I would either phone them, or visit in person.
Regards,
Ozi
