All Topics / Overseas Deals / GREAT READ FOR ANY USA PROPERTY INVESTORS

Viewing 11 posts - 1 through 11 (of 11 total)
  • Profile photo of Peter T 123Peter T 123
    Participant
    @peter-t-123
    Join Date: 2004
    Post Count: 29

    I recieved this a few days ago, It would be great to get your views on this,

    http://www.slate.com/id/2250999/?yahoo=y

    Peter T

    Profile photo of vselleckvselleck
    Member
    @vselleck
    Join Date: 2009
    Post Count: 28

    Hi Peter

    Texas is doing well economically and less affected by heavy foreclosure rates, but that may not be a good thing for property investment. Value investors such as Warren Buffet buy when stocks are low and this can be applied to property. If Texas is doing well then the relative decline in asset values are lower than areas harder hit by the GFC. As a result the value of your purchase is not going to be as high as areas harder hit with more foreclosures. The percentage decline in properties for an area is of greater interest to value investors than the economic strength.

    For instance, if you are buying a nearly new property at 15% of its actual cost to construct, you are getting leverage on a real asset, because new homes being built again nearby will still need to be built at that value. If, on the other hand you are buying properties that have weathered the storm magnificently, you may be buying them at 80% of their former vale which is a lot less leverage on the asset.

    The key to value investing is to get a return while holding, and this also better for highly devalued assets, provided you can manage them well and retain tenants. Fortunately the US Government has come to our aid with Section 8 rental assistance, providing a guaranteed rental payment to assist US citizens in financial hardship. In areas hardest hit by foreclosures, there is also an abundance of tenants with Government guaranteed rent. It takes a little bit longer to get through the paperwork and have the house inspected and passed for Section 8, but it is worthwhile when you consider the benefits.

    Once you have a steady, positive cash flow, the rewards that will come from the recovery of the US economy will be extraordinary, with highly devalued homes increasing in value by hundreds of percent. The cash flow from rent returns we are achieving is between 15-25% net on properties that are being purchased at a fraction of replacement cost, so there is little to worry about as the wheel turns again from bust to boom.

    I have made it my mission to provide an ethical, transparent and safe investment path to for Australian investors to buy US foreclosed property and we have had great success in Phoenix and Atlanta. I would invite anyone serious about US investing to contact me, as this is 24/7 passion that is expanding constantly in knowledge, experience and connections.

    Many thanks

    Vincent Selleck
    Licensed Buyers Agent
    Mortgage Broker
    888 Wealth Creation P/L
    http://www.888wealthcreation.com
    [email protected]

    Profile photo of djjkdjjk
    Participant
    @djjk
    Join Date: 2010
    Post Count: 87

    Interesting article Peter.  I have been interested in the Texas market for some cash flowing rentals.  It certainly doesnt have the bargins of Atlanta, Kansas City, Detroit and Ohio cities etc but that may not necessarily be a bad thing.  It appears that the vacancy rates arent too high there and the employment prospects are strong. 

    Vince – interested to hear more about some of the deals you have secured in Atlanta.  What sort of support do you provide as far assisting clients secure tenants on these properties? There are alot of people on this forum that offer a similar service, but I have not seen many people mention how they have gone with securing tenants for the properties.  A 15%+ yield is only valid if you can get tenants (which can be tough in places with the large supply of rental properties).  Just curious to hear how you go about this in your business and how you compare to the others doing something similar.  What service do you provide regarding buying in the us? Also, how does your fee structure work?      

    Thanks
    Josh

    Profile photo of Peter T 123Peter T 123
    Participant
    @peter-t-123
    Join Date: 2004
    Post Count: 29

    Hey Vincent,

    The truth is Phoenix and Atlanta are not places I would be investing in at the moment, I understand they have seen HUGE price declines. However they remain unaffordable relative to local peoples incomes.
    You also mentioned that (buying properties that have weathered the storm magnificently, you may be buying them at 80% of their former value). Where you refering to Texas? If this is the case I would like to clarify that my US business partner and I are buying properties for 40 cents on the dollar (or less).
    You also mentioned the US Government coming to peoples aid with Section 8 rental assistance, the section 8 tenant has been around for many many years and is not only found in Phoenix and Atlanta it is common all around the USA including Texas.

    Peter T

    Profile photo of djjkdjjk
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    @djjk
    Join Date: 2010
    Post Count: 87

    Peter
    I have to disagree with you in relation to the affordability of Atlanta and Phoenix sorry.  These two cities are some of the most affordable in the US right now.  With median prices under $150k (and plenty of foreclosure bargins to be had), they are up there with Detroit and Cleveland.  See this link for detailed affordability stats.  Im not saying that  comparing to Detroit is a good thing with 16% unemployment, just trying to show that regular people can buy in Atlanta!

    http://www.realestateconsulting.com/Intelligence.aspx?quicklaunch=true&region=local

    Also, what do you mean about buying at 40cents in the dollar.  Are you referring to against current prices? Please clarify this for me?  Do you act as a broker in Texas?  Im interested to hear more about your business.  The Texas market seems to have strong fundamentals – good employment situation, low(ish) prices and still reasonable yields.  

    Thanks
    Josh

    Profile photo of Peter T 123Peter T 123
    Participant
    @peter-t-123
    Join Date: 2004
    Post Count: 29

    Hey Josh,
    Thanks for the link, it has some great information. You make a very good point on why you disagree with me on housing affordability and I should have explained in more detail, ( sorry).
    Phoenix has a great deal of foreclosures on the market at the moment, and is still getting flooded with foreclosures on a daily basis. This is where I ask myself why is this happening?
    Phoenix is number 3 State in the whole of America where people are migrating OUT OF!!!!!!! (Texas is the number 1 state people are migrating INTO!!!!!).
    The main industry for Phoenix is THE BANKING INDUSTRY (150 Banks have folded in the US).
    In my opinion Phoenix has an Economy it can not sustain.
    I also believe Atlanta is a hot and humid version of BUFFALO, the crime rate and demographics are much the same as BUFFALO!
     When I mentioned my business partner and I buy propertys at 40 cents on the dollar (or less) I was refering to buying propertys at 40% of there true value, this percentage also varys depeding on what you are trying to achieve with your investment.
    Vincent I am open to hear your views on this as well, and any contructive criticism you may have, I believe you are running a profesional business but I hope you understand where I am comming from as well, I would be happy to hear from anyone who may agree or disagree.
    Also Josh I would be more than happy to help you or anyone interested in getting involved in the Texas market, or even to just have a chat and share experiences!

    Peter T

    Profile photo of Marilyn LMarilyn L
    Member
    @marilyn-l
    Join Date: 2010
    Post Count: 1

    Hi Peter
    I am very interested in finding out more information about getting into the Texas market. Any help you can give me would be appreciated.

    Marilyn L

    Profile photo of Nigel KibelNigel Kibel
    Participant
    @nigel-kibel
    Join Date: 2005
    Post Count: 1,425

    You should also looking at the video on youtube

    http://www.Texaplex.com

    I have been dealing in Texas for 5 years unlike many other parts of America you will not hear bad things about Texas. Yes you have to be careful and you do need to do your due diligence. I will also be conducting a number of tours there later in the year.

    Nigel Kibel | Property Know How
    http://propertyknowhow.com.au
    Email Me | Phone Me

    We have just launched a new website join our membership today

    Profile photo of Peter T 123Peter T 123
    Participant
    @peter-t-123
    Join Date: 2004
    Post Count: 29

    Hi Marilyn,

    I would be happy to help, assist or just simply have a chat with you. Please feel free to call me (0407 227 602) email [email protected] or just post any questions you may have on this forum and I would be more than happy to help.

    Peter T

    Profile photo of Tamuna DolidzeTamuna Dolidze
    Member
    @tamuna-dolidze
    Join Date: 2010
    Post Count: 1

    Hi all,

    I am currently working for a company that has placed a significant investment into the infrastructure of Georgia with the management contract of a shipping port, developing and operating a free one and theme park and ownership of a significant volume of real estate development starting with the build to operate first shopping mall / retail-led mixed use commercial property in Tbilisi with over 50,000Sqm of retail GLA. The shopping center is currently funded by a UAE government investment authority and the IFC and designed and built to international code. The shopping center component is projected to open in Q1 of 2011. We have now opened the opportunity for private institution / corporate investors to purchase up to 20% of the retail component.   The sale of the 20% has no direct impact on the completion of the project. Should you group be interested in more information on the investment please let me know as I would be delighted to send over more information before we move to a telephone conversation. 

    Profile photo of sparky59sparky59
    Member
    @sparky59
    Join Date: 2010
    Post Count: 15

    Hello,

    I am currently providing foreclosures in Orlando, Florida. Prices are great, but it can take sometime to rent out. I bought a 3-bed townhouse for $65K (Originally $300K) and now rented out for $800 per month. I love Orlando due to nice weather, no state income tax and all the attractions eg Universal Studio.

    The process of buying in the US is straightforward and I believe Florida is a good long term bet.

    Steve

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