30% net yeilds at least for then first few months then it’s 30% loss,s
In reality you can buy nicer property well out of Detroit proper,,however inner city low end is in my mind only for professionals that livenand work the properties absentee landlords will have their hands full..
Also could be that I had two nice brick homes that I put 25 k into and they were trashed inside 6 months I let them go for tax,s so 100k cash loss on two props puts a pretty bad taste in your mouth for anything in Wayne County Mi.
I agree Jay
There are much better markets to invest in so why take the risk
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Alex,,,, I tried to buy the tequila rounds but Kevin would not let me…
With an emphasis on a lot of the Us turn key companies following my leed and holding instead of flipping (ya know I was the first lol)
Prices aremgoing to rise. And or those not in the know are going to be looking at the ones you and I pass on! Not too far from reality these days
Nigel Kibel wrote:I agree JayThere are much better markets to invest in so why take the risk
Too focused on high yields, blinds investors to the risk of Capitol loss….
I doubt many Aussies. Walk away from their rentals,,,, from the sound of your market it’s probably as rare as hens teeth.
Like I havw said repeatly on this site,,, these foreclosures on the low end are from us landlords that walk away…these are not home owners losing their home……
Rentals in the us from 100k down in price are by and large tougher props then say a nice garden apartment you buy on the west coast at a 6 cap….
jayhinrichs wrote:Alex,,,, I tried to buy the tequila rounds but Kevin would not let me… With an emphasis on a lot of the Us turn key companies following my leed and holding instead of flipping (ya know I was the first lol) Prices aremgoing to rise. And or those not in the know are going to be looking at the ones you and I pass on! Not too far from reality these daysJay you are correct you were the first one to talk about buying and holding more deals. Now I see the teams that can are buying and holding more deals. We are implementing that strategy as we speak. Working on putting together options to buy and hold but want longer periods 10 – 15 years if not more.
As for the tequila there are reasons I do not drink often with Kevin. For the TWH module in Charlotte we have several with Fannie mae (they just seem to take longer to accept offers.
Hope all is well and talk soon
Hey guys take a look at my comments at https://www.propertyinvesting.com/forums/property-investing/overseas-deals/4344313.
Alex SC, why do you say Fannie Mae takes longer to accept offers? You are partially right – this is the case for multiple offers situations – they set up a "higher and best offer" auction and has a dead end scheduled. It takes no more than 3 days to get the answer; in many cases not more than 24 hours.
You are right when mentioned about buying and holding. As the properties are the rock-bottom prices it makes no sense to get something today and resell it in 3-6 month for a minimum profit. Sooner or later, the old price levels will bounce back (hopefully at he 2008 level) and the equity will be a delight…
mihovi wrote:Hey guys take a look at my comments at https://www.propertyinvesting.com/forums/property-investing/overseas-deals/4344313.Alex SC, why do you say Fannie Mae takes longer to accept offers? You are partially right – this is the case for multiple offers situations – they set up a "higher and best offer" auction and has a dead end scheduled. It takes no more than 3 days to get the answer; in many cases not more than 24 hours. When ( Jay came to town THW module we specifically bid on only fannie mae being the 90 day no transfer of title seems to be taking longer there is no bid for investors . Which is 15 days then when it comes to investors it seems there is a delay in getting answers.
You are right when mentioned about buying and holding. As the properties are the rock-bottom prices it makes no sense to get something today and resell it in 3-6 month for a minimum profit. Even most of the turnkey guys are seeing to buy and hold makes more sense the problems I see with bounce back is location. USA buyers do not move to rental areas, but majority of these areas are going to be majority rentals. So one would think Value will not bounce back to old levels.
Just relying Sooner or later, the old price levels will bounce back (hopefully at he 2008 level) and the equity will be a delight…Equity the things of myths and legends.Alex,
I agree with you on values. you can look at it a few ways.
Rental areas will be sold by cap rate. With the US investors happy with a smaller cap rates..
As we all know local investors that buy in rental areas will always pay less than an out of state or area investor.
One of the main issues I see is when the OZ investor goes to sell and they have figured their returns on unsustainable vacancy rates and maintenance figures, they will either be underwater for what they paid or will be disappointed….
Anyone with any experience here in the US.. Would not use 200 or 500 a year for vacancy or maintenance and I see this common on turn key sights so they can force the yields as high as possible by giving running cost that are just a figment of ones imagination.
The other issues is home owner neighborhoods are systematically becoming rental areas just by the sheer volume of defaults. And of course you take many of the mid west cities that are already at 40 to 50% rentals city wide and you have a hard time finding those owner occ only areas… Those neighborhoods will only be the ones where the price to buy is like OZ with negative gearing….or brake even at best. Just like here on the west coast… Time will tell…
paulromeo.
oil fracking…mining boomtown lots of activity there…… Same thing in Fort mcmurray Alberta for the tar sands.
once the minning is done so is the town…. Not a lot of appeal to living in that part of the world,, other than ranching.
good luck with it….
I seem to have read somewhere, about this fracking being somewhat contriversial, as in it can harm ground water supplies.
I also read some great articles about minning in OZ and how the minners fly hours out to their jobs each day…
I want to own the airline that fly's those miners daily probably one of he only ones in the world that can make a profit consistantly.
JLH
Does anyone know more details buying properties in America with SMSF? Things like how to transfer fund from SMSF to America? Do I have to open SMSF account in America as well? How to combine LLC and SMSF to purchase the property? Any good accountant to recommend in this area?
Hi Dansu,
I haven't sent any information to anyone on this site for a long time, but i know that many people have been given the wrong advice by so many so called experts regarding buying US Property through their SMSF.
There is heavy penalties if you have not done everything correct from the start, and I have just had clients buying safely through their SMSF using the services of one of the team I work with, who is not only a Registered Financial Planner, but also a Tax Lawyer and a Master of Accountancy, based in Melbourne. The recent client had their fund set up with others that really didn't know about setting it up properly to buy through, and this person that I use had to go over everything and set it up correctly.
And if you are looking at getting a loan ( I got my client a 50% loan to leverage his buying power) you also have to know how to set that up as well to comply.
I can't even begin to give you any help as I'm not licensed or trained in that area, that's why you need very specialized help.
But one thing I can tell you, do NOT go with anyone's advice on this or other forums that try and tell you what to do, unless they are properly licensed and trained to give that advice.
If you are serious about wanting to purchase US Property, you need to get the right professional advice right from the start.
Hope this helped you in some way.
Jeff
dansu_20004371 wrote:Does anyone know more details buying properties in America with SMSF? Things like how to transfer fund from SMSF to America? Do I have to open SMSF account in America as well? How to combine LLC and SMSF to purchase the property? Any good accountant to recommend in this area?I can refer you to a Wealth management company that includes accountants and lawyers. they are in Perth and represent a group of doctors that have invested with our company,,, the only OZ investors to date….
These are hands off passive investors that were looking for safety above all else and did not want to deal with or risk property management in any way.
John their wealth manage also made some comments about how turn key type investing may not meet the suitablity requirements and that our program which involves the investor being the bank.. did qualify for true hands off investing.
but you can check that out yourself, I am no expert… I have hard enough time, keeping up with our IRA,s 401ks solo 401ks.
private pension plans,,, defined benefits plan,,, and many more that are avalaible to be self directed here in the US> and were 90% of our investors funds come from.Do you have any good information about real estate in Memphis? My chat mate was thinking about buying an investment property there.
many Memphis folks.
Just make sure you buy in the right area I would not buy anything sub 60k in memphis pesonally
There are better places to invest
Kyler for sure,,
A few of our oz friends have sent me potential deals in Memphis and sure enough they were in Fraiser… which is the ghetto and the spruikers were probably making 20k plus per house,, the buyer will be lucky to get 3 to 5 months of rent in any one year end up doing evictions 2 times a year and rehabs at every tenant turn over… will get frustrated and walk away…
The next wave in 3 to 5 years is not going to be Foreclosures its going to be tax sales… See you at the tax sale post 2015.
jayhinrichs wrote:many Memphis folks.Just make sure you buy in the right area I would not buy anything sub 60k in memphis pesonally
The big boys in Memphis you know who I am talking about say nothing but 2k square ft or bigger and homes priced $100k or less.
So we felt that was the way to go as well. Had the investors UK guy from London and he is sold on the 20% returns from Detroit and some Florida and Memphis areas.
Just not understanding the International buyer any more. Even the USA buyers rational is changing.
Your thoughts on this ?
Alex my thoughts are the same as they always have been//
The majority not all but the majority of the marketing companies selling off shore investments in SFR's are only in the business for one thing and that is to maximize thier profits period.
They do not take the clients interest first… If they did they would never market 3/4's of these ghetto properties that they market.
And or its a combination of the above and the fact that they just do not know any better and beleive that the tenant pool in these areas are going to pay as agreed… which we know is anything but reality.
jayhinrichs wrote:Alex my thoughts are the same as they always have been//The majority not all but the majority of the marketing companies selling off shore investments in SFR's are only in the business for one thing and that is to maximize thier profits period.
They do not take the clients interest first… If they did they would never market 3/4's of these ghetto properties that they market.
And or its a combination of the above and the fact that they just do not know any better and beleive that the tenant pool in these areas are going to pay as agreed… which we know is anything but reality.
Kevin took this client to the newer nicer homes in Charlotte. Nothing rented below $900 dollars,instead his focus and mind set is on lower end. Not sure why , really last two weeks have been crazy. We are seeing the need to have multiple properties in different price ranges. Then again this is been hard to pin point exactly what to invest more dollars into the last few months. We have played with numbers on different areas in our little 60 mile buying radius. Still not sure which direction to go into. Now for the fund I mentioned to you we are going to take both lower end _ along with higher end homes if the numbers make sense.
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