[Texas Cash Cow Investments AustraliaParticipant@texas-cash-cow-investments-australiaJoin Date: 2011Post Count: 71]

February 14, 2012 - 11:53 pm

stu82 wrote:

great thank you guys,

One last one i forgot to ask – can anyone explain to me in layman's terms what a section 8 tenant is and what its all about ?

This link will help you understand the Section 8 Housing http://en.wikipedia.org/wiki/Section_8_%28housing%29

Basically rental assistance for low income families

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February 13, 2012 - 4:00 am

The problem I see Jay is that the scope of any FBI investigations won't involve any Australian companies ripping off Australians. I can tell you a dozen or so companies here that operate as the middle man to US wholesalers….they are just adding on whatever margin they want in addition to the wholesalers and then charging money on top of that for "set up or establishment or membership fee's"….call it what you want.
Our regulator ASIC is a toothless tiger on these issues and often act way too late to be of any use to consumers.
On another matter….Jay there was a forum posting in the last couple of weeks that got a bit heated between you and a few others…..did this get removed from the forum ??  I have a person I met that used a certain person to set up trusts to assume mortgages and has lost his investment…..would have cost many many thousands to defend the case…..this was sort of where you were heading in your posts but now I can't find it

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February 10, 2012 - 12:46 am

Alex,

I've received no email from you so perhaps send them through again.
What I was referring to (and didn't word it very well) was what percentage of the tenants you would expect to take up owner financing

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February 9, 2012 - 11:44 pm

Alex,

Some great points raised. I am sure many of the Australian investors don't fully understand or appreciate what buying in "rental neighborhoods" means or how it will impact on future appreciation. Many will no doubt say "I only purchased for the cashflow" which is fine but as you point out….that doesn't give them an exit strategy….at some point they would want to sell and get the cash back. Makes it all the more difficult when nobody will buy it because it's in a rental neighborhood.

The owner financing strategy has merits that's for sure. What sort of market would you expect to take up owner financing ?

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February 8, 2012 - 10:39 pm

worldinvestor wrote:

staceymac wrote:

I am going into San Antonio myself. I head off there next month to do some due dilligence as part of a buying group. I will look at the other markets in Texas as well whilst I am there. I'll report back my findings. For me my main concern wont be paying a bit extra for insurance or taxes or whatever ongoing expenses. That's a business/investment expense as long as all the overall numbers are right that is. It will be getting the right property in the right spot at the right time but probably for me will be having the right people on the ground as my team. I know someone personally who got ripped off buying in the USA. The yanks see us as pretty soft cashed up targets unfortunately. At some point being all the way over here you need a good team behind you if you cant do this fulltime. Fulltime is my goal though.

I would be looking at areas in US that got hammered as there will be many more opportunites for upswing/growth.
 
Why would you purchase in Texas when yields are not much better than Oz, so much risk….. by the way, if you are purchasing only 1 property, give it away… you need to be purchasing multiple properties to cover costs, legals, interest, fudge factor ….. etc.

For example you can purchase  in Atlanta a property  that sold in 2003 for $130,000 for 38,000, building costs in Atlanta currently $70-90 per sq foot, I am purchasing on average $25 per sq ft.  now you are talkin….. Buy 10 of these grossing over 21% and you will be sitting pretty

WI

Those opportunities you speak of could be many years away yet WI and the opportunities you speak of…have been/are already happening in Texas.

#1. Employment Growth in the US
# 1. Lowest Cost of Living in the US
# 1. Population Growth highest in the US

Some interesting reading in this link written by Dr Mark Dotzur. Chief Economist at Texas A&M
http://recenter.tamu.edu/pdf/1983.pdf

And yields not much better then OZ….c'mon now your really kidding yourself. If you were talking yields in California then yes we could all agree !! I am sure once staceymac starts she will continue building her US empire once she see's it work for herself and builds confidence.

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February 8, 2012 - 6:53 am

staceymac wrote:

I am going into San Antonio myself. I head off there next month to do some due dilligence as part of a buying group. I will look at the other markets in Texas as well whilst I am there. I'll report back my findings. For me my main concern wont be paying a bit extra for insurance or taxes or whatever ongoing expenses. That's a business/investment expense as long as all the overall numbers are right that is. It will be getting the right property in the right spot at the right time but probably for me will be having the right people on the ground as my team. I know someone personally who got ripped off buying in the USA. The yanks see us as pretty soft cashed up targets unfortunately. At some point being all the way over here you need a good team behind you if you cant do this fulltime. Fulltime is my goal though.

Well done staceymac,

Fully recommend to go and have a look to get some idea of the area you intend to invest in….nothing better then seeing first hand. I am sure if most people had a look where their $30K gets them….they wouldn't be able to get out quick enough !!

Your also spot on….the team on the ground you leave behind to look after your investment is paramount…..anybody can buy a property…it's managing it thereafter which brings success. It is always disappointing to hear about us Aussies getting ripped off in the US market….happened around 5 years ago in Rochester NY and is happening again today in the normal bad foreclosure markets of AZ, NV, FL etc etc….. Funny thing is a lot of the companies flogging off these properties also have a past of selling overpriced Qld investment properties a few years back…you know what they say about a leopards spots !! Point is….you can be scammed in real estate in ANY country….comes down to doing your due diligence to make sure you don't get caught

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February 8, 2012 - 12:04 am

Investing Novice,

I can't comment on Atlanta although many posters seem to be having success there…a matter of the right contacts. We operate in the Dallas metroplex and when you consider Dallas versus Houston….one thing to consider is the cost of insurance. It will cost you at least $100 a month more to insure in Houston compared to Dallas. Houston being down on the Gulf they get hurricanes and that brings lots of rain (in Houston when it rains I mean it really rains !!) and resulting flooding which is why the insurance costs more. In Dallas our biggest insurance events are wind and hail. So taking into account cashflow…Dallas comes out better then Houston

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May 9, 2011 - 11:23 pm

dandyinvestor wrote:

Texas Cash Cow Investments and Cash Flow Kings wrote:

mattnz wrote:

Thanks for this, very interesting reading. I find the fact that Texas has had the highest growth since 1991 and hasn't crashed to be very telling. Texas has survived the GFC very well, with reasonable house prices that didn't go through the boom-crash cycle that many other states went through. I have read that Texas has a law that the minimum deposit for a house is 20%. This has stopped the huge credit growth that has occurred elsewhere, because people have had to save for a deposit before purchasing. The saved deposit also ensures that they can afford to pay off the house. This should be a key learning for Australia and other countries to ensure that their housing market remains affordable and doesn't crash in the future. The availability of 95%, 100% and even up to 110% lending is a common theme in the markets that have crashed, not only in USA but internationally.

<moderator: delete advertising>

Population Growth. Is it increasing or decreasing ? Today 1 in 12 Americans call Texas home. The current rate of migration to Texas from the rest of the US is larger then the migration to New York in the 30's. Dallas is increasing more then any other area in the US and this year expects 1, 069,000 new residents and an additional 6,500,000 in the next 10 years.

Cost of Living Index. Dallas sits at 28% of gross income which is the 2nd lowest in the US. Houston TX is the lowest in the US.

Jobs's Growth & New Jobs Creation. Is it increasing or decreasing ? Over 70% of jobs created in the last 5 years were in Texas. Dallas is again leading the way in jobs growth.

Property Values. Are prices appreciating or still depreciating ? The medium home price in Dallas increased 7% last year.

Market Motivators. What is driving the market. (i.e. low supply and high demand)

Inventory of existing homes on the market. Not new home sales…what is the average days on the market

Medium Income V Medium Home Price. Dallas went from an average income of $90,000-00 to $98,000-00 and homes prices went from an average $137,000 to $150,100 last year

So what does Texas have that makes it so different ?? At it's simplest….don't overtax, don't overspend (state budgets), keep regulations to a minimum, avoid letting unions and trial lawyers run riot and display a huge neon sign saying "Open for Business"  Explains why DFW has more corporate and regional headquarters then any other US city including New York.

Texas Cash Cow, your information is very helpful. Where did you find this information from? I am looking at buying an investment property in Texas. Do you know where I can get information about the rental market i.e vacancy rate?

Hi dandyinvestor.

Those figures came from a Professor Jim Gaines from the Real Estate Centre @ Texas A&M. The figures for the Q1 2011 will be available this month. This is by far the best source of information available on all the Texas markets see http://www.recenter.tamu.edu
 

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April 29, 2011 - 1:41 am

mattnz wrote:

Thanks for this, very interesting reading. I find the fact that Texas has had the highest growth since 1991 and hasn't crashed to be very telling. Texas has survived the GFC very well, with reasonable house prices that didn't go through the boom-crash cycle that many other states went through. I have read that Texas has a law that the minimum deposit for a house is 20%. This has stopped the huge credit growth that has occurred elsewhere, because people have had to save for a deposit before purchasing. The saved deposit also ensures that they can afford to pay off the house. This should be a key learning for Australia and other countries to ensure that their housing market remains affordable and doesn't crash in the future. The availability of 95%, 100% and even up to 110% lending is a common theme in the markets that have crashed, not only in USA but internationally.

<moderator: delete advertising>

Population Growth. Is it increasing or decreasing ? Today 1 in 12 Americans call Texas home. The current rate of migration to Texas from the rest of the US is larger then the migration to New York in the 30's. Dallas is increasing more then any other area in the US and this year expects 1, 069,000 new residents and an additional 6,500,000 in the next 10 years.

Cost of Living Index. Dallas sits at 28% of gross income which is the 2nd lowest in the US. Houston TX is the lowest in the US.

Jobs's Growth & New Jobs Creation. Is it increasing or decreasing ? Over 70% of jobs created in the last 5 years were in Texas. Dallas is again leading the way in jobs growth.

Property Values. Are prices appreciating or still depreciating ? The medium home price in Dallas increased 7% last year.

Market Motivators. What is driving the market. (i.e. low supply and high demand)

Inventory of existing homes on the market. Not new home sales…what is the average days on the market

Medium Income V Medium Home Price. Dallas went from an average income of $90,000-00 to $98,000-00 and homes prices went from an average $137,000 to $150,100 last year

So what does Texas have that makes it so different ?? At it's simplest….don't overtax, don't overspend (state budgets), keep regulations to a minimum, avoid letting unions and trial lawyers run riot and display a huge neon sign saying "Open for Business"  Explains why DFW has more corporate and regional headquarters then any other US city including New York.