Forum Replies Created
When I saw Dominique Grubisa's asset protection product I ran it past our lawyer and his feedback was just the same as Terry's: not gonna work. At best it might mildly discourage a creditor because they have to jump through an extra hoop, but if they want their money it will be easy enough to past it. He also referred to "uncommercial transaction" and "scheme designed to defeat creditors" etc.
It's surprising to see Stuart Zadel promoting a product like this when expert opinion is so clear that it won't work.
Catalyst wrote:If you get the chance go to a Chris Howard weekend. VERY motivational and free. They do have extra courses you can sign up for but there is no hard sell.Hi Catalyst,
Unfortunately we do not have any further Chris Howard events planned. The closest program to that which we currently offer is this one: http://www.releaseyourinnerrockstar.com.au . It’s also free.
RYIR is primarily for people who have their own business or who want to start one, even if it’s only part time while you work a full time job. So, Bear, if that’s something currently on your mind then this event may give you some useful strategies as well as a dose of added motivation.
[Yes, some of the client income results reported are quite remarkable. Please be assured that we do not quote them lightly – we’ve spoken at length with the client to verify them and in many cases we also have longer videos from these clients explaining the steps they took to produce those results in more detail. We also do not claim these results are typical.]
Regards,
Kenjayhinrichs wrote:This is a tremendos product, Is it only for REO's that are owned by this intitution. most sweet heart loans are to sell their own REO's. If not best I have seen rate wise for sure.Nope, this is arms-length lending. The bank does care about the property being financed: generally they want to stick to Phoenix only, good quality stuff where the valuation stacks up and in most cases only properties worth $100k or more.
Cheers,
KenHi Alex,
I don’t think you meant to write $3.96 billion, so could you please clarify the value for us?
Thanks,
Kenmmandbean wrote:There is a $995 joining fee which is refundable on purchase of your first property. Their website: http://www.usinvest.com.au/
They have quite a high handling fee for their properties – over $3K.
Although I am not familiar with these guys, $3k is a reasonably typical sourcing fee per property, I have seen figures as high as $5500.
In our case we charge a membership fee of $6k which includes sourcing for the first 2 properties.
IMHO one key thing to watch is your end buy price on the properties. How well has the company bought when they acquired them? How much markup have they then put on top of their costs before selling them to you?
Sometimes a lower sourcing fee may be more than absorbed through a very steep markup on property prices, hence the need to be careful about that.
Hope that helps.
Regards,
Kenbrent.spooner wrote:is there anywhere that will lend finance at low interest rates with a 50% deposit ????
ive herd of vendor finance over there is this common??Coupla things (including some big news):
I’ve only seen 1 vendor finance deal recently: a guy had 16x 2 and 3 BR condos that he was selling and would finance 50% at 8% per annum. It may be that we don’t see many because we work with a local (Phoenix) sourcing partner who buys bank foreclosures almost exclusively.
We also work with a local finance broker who sources hard money loans, and as a general rule he can get you all the finance you want at 50% LVR and 12% annual interest. On a case-by-case basis he can very often get finance at 50% LVR and annual interest as low as 8%, it depends on the property you’re buying and who is lending in that space that particular month. In each case these are 2 or 3 years loans, at the end of that time you’d need to refinance.
But the really exciting news, hot off the press this month is:
We now have bank finance available for Australians!
After banging on doors without success for over a year, our team in Phoenix has worked with one of the local banks to develop a loan product specifically for Australians and we now have finance available as follows:
50% LVR, non-recourse, interest-only, 6.5% interest per annum fixed for 30 years
There are a couple of restrictions of course, the type of properties being financed is one but the main limitation is that the bank only wants clients who intend to borrow at least US$250k in, say, the first 6-12 months. It is a fair bit of admin effort for them to set up to lend to Australians who don’t have a FICO score and thus are outside their credit checking system, so they want to make sure it will be worth their while to do so.
We’re pretty excited about this, as no doubt you can imagine. Personally I’m going to be buying a LOT more property this year…
brent.spooner wrote:hi im a 26 year old from perth. my goal it to get enough property over the us, over the next so many years to try to get a rental income of 100k plus . i work 2 days 2 nights 4 days off in the mines and i also sell realestate on my days offHi Brent,
One of our members who came on the tour to Phoenix last week is also a real estate agent from Perth, though some years older than you. He bought his first couple of US properties on the tour and has said he’s planning to buy another 10 or so this year. Given your interest in that city I can introduce you to him if you like?
Cheers,
Kenkrefter wrote:Very difficult getting correct info on ATO compliance on whether a SMSF can borrow money overseas. We have formed a company and an LLC with the SMSF, but info is hazy. Non compliance will cut right across ALL SMSF investments not just the US ones. Anyone done this and feel comfortable?I received advice from a SMSF specialist that a fund cannot currently borrow overseas and remain compliant. Borrowing for the purchase of Australian property is OK, paying cash for an overseas property is OK, but borrowing overseas is not.
There is a change to superannuation law currently being mooted that would make borrowing OK in this situation, but no guarantee of when or even if it will be passed.
Get your own advice, I am not a licensed financial planner or legal expert, etc etc.
Alex SC wrote:Now this is just my preference but do the resellers or teams,. actually own any properties in those areas. Now if they are just reselling with a team from the area. That to me ,we be just as bad . I would think if these markets are so good. We would be seeing them keeping some one sell deals.I think this is a great point and I strongly agree.
I just got back from taking a tour group to Phoenix for a week. For various reasons we surprised our local sourcing partner with late notice that we had a much bigger group coming than they expected. This was only 2 weeks out from year end (which is also financial year end in the US) and they’d been letting their inventory run down for tax reasons, so we wouldn’t have had enough properties available for our members.
Although the short notice was entirely our fault (long story), the owners of our sourcing partner added about 15 properties from their personal portfolios to the inventory offered to our group – which really helped us out of a jam. These were properties that they’d rented out and been holding for 12 to 18 months, which is reassuring for an Australian thinking of buying them. And they set the sell prices at their usual cost + standard percentage margin, even though the market has moved up in the last year, so some of our members got especially good deals!
As you say: good to see the people doing the sourcing participating in the market themselves.
Cheers,
KenQlds007 wrote:Catalyst Yes very observant of you.My thoughts exactly. Very well timed to join up the day a comment about the Company you partner with has been mentioned in a post.
I’m not sure if this was directed at me, but I’ll answer as if it was. Two things:
1. Actually neither Phil nor ourselves were mentioned in this thread until I did so. I was putting forward a suggestion in response to the OP, and I think my reply was reasonable given the questions posed.
2. I’ve read this forum semi-regularly for quite some time, but never bothered signing up until I wanted to post a reply. Other new posters may have joined for similar reasons.
Regards,
KenHi Richard,
Qlds007 wrote:Hi KenPlease can you tell me why Phil only recommends new property (and by the way i am fully aware of the Capital Allowance / Depreciation argurment) when since the Doomsday book land is what has increased value and not the property itself.
Buyers Agents often recommend a property that is a year old or older and do it for it a number of reasons.
Can you tell me why your group doesnt do this?
Ok, I want to be wary of drilling into this too far because at the end of the day it’s Phil’s strategy and he is the expert rather than me. I’ll answer as best I can and will go to Phil for more info if required.
Phil has a specific formula which he likes to stick to very closely. He wants his model to be repeatable and low risk for his group members, and also not require a lot of time commitment on their part. Hence he will only present a development to the members after he’s reached the end of a long process and checklist of requirements – if it doesn’t stack up in any area then that development is discarded and the members will never hear about it.
His system is built around “affordable” new standalone single family homes (you want the land component for capital growth, as you point out), at the moment typically priced around $300k to $400k, in strong growth areas with multiple “legs” to the local economy (mining towns are usually ruled out for this reason) and in neighbourhoods/larger developments with no more than 20% of the properties used for rental (i.e. at least 80% owner occupiers). Those type of properties should have minimum vacancies and strong rental growth over time.
Apart from depreciation, one reason why he goes with new houses is because he will tell the developer that he wants the properties built with certain specific floorings, appliances, fittings etc to make it optimal for renting rather than for an owner occupier. This will have an extra cost which the developer must absorb. He will also ask the developer to pay the buyer’s interest on the loan during construction, so that the investor only incurs interest costs once they are able to put a tenant in and offset the cost with rental income.
A couple of other requirements are that the developer must pay the investor a rebate on settlement out of his budget for marketing & sales for that property, since he will avoid many of those costs if it’s sold through Phil’s group. The purchase price must also be below a valuation of the property from a completely independent, bank approved valuer.
Qlds007 wrote:What commission do you receive on the successful settle of each property?If your question is directed to us (i.e. Universal Events) then we receive no commission on property sales. We make our revenue from enrolment sales in Phil’s advanced training courses and membership fees for his group.
If you were asking about Phil, then his group receives a few thousand dollars per property from the developer. He says, “much less than a real estate agent’s commission on the same property would be, but I make it up in volume”.
Regards,
Ken
