Hi all, I haven't started my investing career as yet but just getting some facts together first. I've seen an add in a magazine for positive cash flow investing in the US and was wondering if this would be a good start. I know they are having a lot of trouble over there at the moment but it looks very affordable for me. Has anyone done this or is anybody doing this? Any advice please….. karen
Hi Karen
I have invested in th US property market. I am now assisting other Australian Investors do the same.
What questoins doyou have?
neplusultra.com.au
Karen,
I only had a very brief look at the US market but decided I had my hands full with what I was doing in Oz so took a step back without doing a great amount of research. I did notice though that the scene is full of dodgy operators who try and flip vacant property in not so nice areas of the US and they often aim at foreign investors. Be very careful if you go for the lower end of the market !!
I do think that there are good deals to be had there but you need to do your research carefully and I would strongly suggest you go and see before you commit and personally I would probably aim at good quality properties in well established suburbs with good reputation (i.e. the not so cheap stuff!) As far as I understand financing as an overseas investor can be done but takes some time especially in the current climate (and watch the exchange rates and check what thier moement can do to your loan balance and/or your monthly repayments).
Search the web and you'l find plenty of articles on investing in US property, the good, the bad and the ugly.
Good luck!
Karen,
PLEASE, PLEASE, PLEASE conduct you DD very very carefully.
There are so many stories of people thinking grass is greener only to find that they have been legally conned. Buffulo is a very good example of this. So much so that the city mayor is actively discouraging overseas investors. Cheap place bought buy "clever buisiness man" advertised offshore as exceptional deal. Aussie buys, middle man gets a premium. Rent falls over as too much maintenance, or too many buildings for rent, property sits empty/abandoned, city has to foot the cost for demolition or vagarent removal. I know this sounds extreme and my purpose for posting is to highlight that the other side of the coin is far from rosey. Search this site and you will find many posts regarding this.
Proceed with caution
Mcik
Hi guys and gals,
some really wise words from other members.After having a few years experience investing in the states from oz i would also say take care.
If you havent invested anywhere yet it would be much smarter to stay local and get a feel for things first.
It is much harder doing things from over here !
The systems are very different too and there are alot of hidden costs .Then you have the problem of finding people to work with that you can trust and rely on. This takes time and is much better done face to face .
So if yr living in the states and learning the ropes and actually spending time in the area before you step out,
i would say go for it ,
as now is a great time for exceptional deals in the usa.But
Remember talk is cheap and many people give you what you want to hear .(whether its the truth or not)
If yr dealing with people assisting you to buy over there ,be very careful. Make sure they have many years experience and
have had long term investments themselves.
Also speak to people who have used them in the same areas.
double and triple check everything yr told before acting on it also.Personally, i reckon yr better doing yr own leg work "on the ground"
Luke Taylor | Hope Property Investing
http://hopepropertyinvesting.com
Email MeProperty Support,Strategist and Buyers Agent
Last July my wife and I purchased a property in Texas which fit the profile of a good investment. Good area, rents would cover the mortgage plus extra every month, etc. What I did not expect was the poor job the real estate agent did to get this place rented. Scratch that, make that the poor job 2 different agents did. Granted we live in Tokyo, but it took the agent a week to return calls (when they did call), and 2 months before any pictures were on the website of the interior! Mind you we were told only a handful of people had seen the property over the course of these couple months. Correct me if I'm wrong but isn't it the agents job to market the property in order to get the most people to see it? That's really the the only reason why I'm staying away from investing there again. We have a property in the northern suburbs of Melbourne as well that we are very happy with the service and attention that the property gets. In fact that is where we are looking to invest again.
BTW – that place in Texas – we did finally get it rented after we enlisted some family to be the property managers.
In short, make sure you can find good re agents that will get your property rented out and managed to your liking.
Rob
Hi Rob
Don't be afraid to change property managers. There is no shortage to choose from and you will find a good one.
Hi Karen,
Stick with good quality markets like Dallas, Austin, Houston and San Antonio and definitely stay away from Buffalo, Detroit and Western New York State.
Hi Rob,
Can I ask why you say stay away from Detroit? I was actually talking to a company (I'm happy with their reputation) about buying in detroit earlier tonight. I have read articles on the net about detroit going backways population wise and there being a lot of empty houses, however 30% yield is pretty good, and these guys have any renovations required and the houses rented withing 6 weeks as they have an aussie over there managing the 3 US agents they have working. It is wefindhouses that I'm talking about.
So yeah, any information on why to stay away from Detroit would be greatly appreciated!
Cheers
Karen
Best to do your own homework, be sure of what you are doing and don't be afraid to travel over and look at the city / state you are interested in.
All the best
The Detroit economy relys heavily on the car industry. I used to work in Automotive Design and have seen over the 12 years that I worked in it, more and more of the work going to China. In my view the major auto manufacturers in Detroit and elsewhere will continue to downsize significantly. I am sure there are better areas in Detroit as well, but unless investors are willing to travel there and research fully, they are in danger of making expensive mistakes. The fact is if you compare the net inward migration figures and unemployement figures of Detroit against any of the big Texas cities, Texas is much stronger and will provide a more stable rental income and long-term capital growth.
Current figures in Detroit
Unemployment 29%
Property vacancy 19%Is currently rated as the most dangerous city to live in the United States
I am sure that like anywhere there are opportunities there. However if you are not in the group you can get into trouble very quickly. Their are must better and safer places to invest in the United States
Nigel Kibel | Property Know How
http://propertyknowhow.com.au
Email Me | Phone MeWe have just launched a new website join our membership today
Nigel
let me guess?
Is it where you have your business?
lolwe will be dealing in many parts of the united states. the figures above are what is reported. are they wrong?
Nigel Kibel | Property Know How
http://propertyknowhow.com.au
Email Me | Phone MeWe have just launched a new website join our membership today
Nigel
What I suggest is just directly promote your business as apposed to what you are doing which is indirectly promoting your business which by using scare tactics over and over again investors see through you rubbish, I know they tell me!
just stick to what you know
as apposed to what you think you knowInvestors aren't stupid running people like me down all the time every chance you get isn't making you look good mate have a rest, take a day off and catch your breath.
A professional would focus on what he or she knows and not act like yourself that's why you are the only one acting in this way, like i have said before if you like Texas or where ever great talk about that and let investors do the same homework where ever they want to go.
Jason
I do not care. If you have information about Texas please post it. I do not comment on Detroit to score points. I do it because I believe it is not a good place to invest. I do not rely on this forum to get clients. However if you make statements that lead investors to put there money into Detroit they should also look at the down side. If you do not like that then thats to bad.
Even with your comments about scare tactics if the information I am suggesting is wrong please put your point of view. If people disagree with my point of view thats great as well. People should question what is being said because it is there money. This topic is about positive cash flow in the USA. You are also pushing your point of view to sell your business. I do not see you pointing out the risks of investing in Detroit.
I have also been contacted by people who have lost money by buying in Detroit and also in Texas.If people wish to make comments on a public forum I will also respond. If no one from this forum wants to deal with me but at least consider what I am saying I will consider that a far trade off.
Nigel Kibel | Property Know How
http://propertyknowhow.com.au
Email Me | Phone MeWe have just launched a new website join our membership today
If you wish to do this for yourself then you need to do your own extensive research. You also need to invest a great deal of time to research the markets on the ground and locate the right people to manage your investments. If you are not prepared to do this you should rethink your investment strategies.
I realize that some people think that I comment to be negative. I do not. I comment because people need to be aware of what they are doing. If I make a suggestion here then people should question that suggestion. As I said it is your money.
Nigel Kibel | Property Know How
http://propertyknowhow.com.au
Email Me | Phone MeWe have just launched a new website join our membership today
Nigel
Mate you just don't give up!
Don't you think it is getting a bit embarrassing?
All investors should do their homework investing any where just don't be an expert on everything and everywhere it is a bit hard to swallow and you will do fine.Nigel
Mate you just don't give up!
Don't you think it is getting a bit embarrassing?
All investors should do their homework investing any where just don't be an expert on everything and everywhere it is a bit hard to swallow and you will do fine.So let me get this straight. You can write on any forum you like effectively promoting what you do. If I respond its a problem. I do not go on this forum a lot because I am dealing with property everyday. If I feel like making a comment I will if you do not like it to bad.
Nigel Kibel | Property Know How
http://propertyknowhow.com.au
Email Me | Phone MeWe have just launched a new website join our membership today
Nigel
How much do you know?
Do you know a company you represent refer their clients to a 3rd party who sell overpriced property in DETROIT?
Oh you forgot that or have no idea what they do?
With significant commissions!
Property checked by me when asked was advertised by this third party purchased for $2,000 advertised at $18,000 + rehab it is no wonder you are concerned about Detroit it is you, do your homework!
Give Spiro a call and ask him how many homes he has had a commission in from Detroit! and referrals to this third party broker.
LOL no idea!
Stick to what you know and no more!
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