This is a deal that is under contract with a cash buyer from Australia. So I wanted to show the exact numbers from start to finish.What we purchased it for and the sales price.With the rehab quotes for the investor. So this I don't want this to be considered advertising since I am trying to make a point here. Now the cash flow is if it is rented.With it an un-rented property the cash flow would go down
Well here it is
Property Report(Atlanta) MLS # Property Adress 841 Arbor Rd MLS Link http://www.zillow.com/homedetails/84…14482913_zpid/ List Price 33,600.00 Offered Price 33,600.00 Accepted Price $33,600.00 Rehab Amount $15,000.00 Sales Price to Investor $36,600.00 Total Beds 3 Total Baths 3 Year Built 1986 Rent Amount $950.00 Taxes (monthly) $116.42 Insurance (monthly) $45.00 Property Management $80.00 Net Cash Flow $708.58 Cash on Cash (based on 10 months) (including rehab cost) 15% video http://www.youtube.com/watch?v=iKWpw8U3jN4 Rehab to include:This is includes roof rear of home (total replacement) New HVAC, new Plumbing interior wall repair,flooring where needed , interior painting, many upgrades and improvements. Quote available upon request. Thanks
Alex
[email protected]I gutted and rebuilt a 4u for $15k – that seems very high.
lawsjs wrote:I gutted and rebuilt a 4u for $15k – that seems very high.Lawsjs go through the video and look at the video in detail ……AFTER you finish then I would be happy to revisit this .AC , roof , and replace all stolen plumbing alone….ripped out and replace through out whole house. Close to $8k just on those 3 items..
And always figure about $2k in there for what if's
Alex
Good home Alex. Do you have the finished video footage of this property? i'm interested how the rehab turned out for $15K…I'm sure it brought the inside after rehab looks almost brand new?
No A/C in LA…
Although painting the entire outside of a 4u would probably add a bit. Emma is the Oracle on rehabs – she always thinks _I_ overpay, I think I am mean…DHCP wrote:Good home Alex. Do you have the finished video footage of this property? i'm interested how the rehab turned out for $15K…I'm sure it brought the inside after rehab looks almost brand new?Guys maybe I was not clear in my writing as I said I am not the smartest guy by any means….
I am closing on this property today at 11 am, along with 4 others.Presold this property to a client.The rehab will start after they buy from us next week. After they close on this property. Just wanted to show the folks here what can be done and why…I see a similar house being sold for $83k. I know buyer purchased for $37 k and said rehab was 20k ( yes Lawsjs ) I agree that one was high for that property ) and is now selling for $83k .Again people will complain but that's his advantage being able to buy and do that. Now if I was to buy and rehab the property listed above the price would also shoot up. This is the point I am trying to show all how and why.
I would be borrowing capital for the job. Loan would be roughly $33,600,+ $15k for rehab + $1k for closing cost +1k for operation cost( yes we have to pay staff and keep lights on)so now I am in the deal for Roughly $51k ..( our private lender would fund)…So finished sales price would be $65k _ to $69k that is after rehab is finished ,and property rented. Depending on which cash lender we use( that would decide on how much interest I am paying him ).Again this is just me educating the buyer on why the price change …..Whole sale is just wholesale and flip. Turnkey is another animal ……
I will post some other deals before, and after videos for rehabs we have completed in Charlotte and Atlanta..( yes I like to brag on the job some of our rehab crews do) Also a good tool for others to go though and see what we are looking at and for …in our homes.
This house main concern and issue if you watch the video they destroyed so many walls to steal all the plumbing out of the walls, along with the Ac unit that walked off.
talk soon
Alex
lawsjs wrote:No A/C in LA… Although painting the entire outside of a 4u would probably add a bit. Emma is the Oracle on rehabs – she always thinks _I_ overpay, I think I am mean…Ac is essential in the south , my real estate partner would agree I over pay. There is a reason to madness though..I am not wanting to make every house a rental . I am wanting to owner finance some of these homes , that we own. True lease options for some of our clients homes( depends if a cash deal or loan). This is just my theory now . If I owner finance the homes ( cash deals only ) the payments would go up as no taxes and insurance( tenant now pays and raised the value of area with sales). I am truly acting as the bank. Setting it up for as many years as I want .We have been toying with this idea. I think this is the only way some renters who will want to buy again will be able to. Again toying with this idea and looking at 8 , 10 , 12 year terms for the buyers if not longer…
Just playing with an exit strategies for down the road…..
Alex
Alex good post and good rationalization for 2 different products.
You may want to add on going maintenance to acheive a more realistic snap shot of % return…..
We know there is maintenance even if others say there is not or grossly under state it.
the other factor the audience should know if the person buying this is responsible for the rehab and if anything gets pilffered during the rehab process.
whereas if Alex rehabbed this and was providing turn key any loss during constrution he would have to cover…
so there is time risk and opportunity in the mark up from Wholesale to Turn Key,
ON another note, I had a good meeting with a bank here in portland that is looking at providing us a facility for foriegn nationals.
50% LTV loans 10 years 7 or 8%… I told him last night if we could put this product out we could do Not only millions in business but BILLIONS
keep you posted. on this one.I am also working with FP's in OZ on buying an ASIC approved company in Austrialia to be co owned by the OZ FP companies and my mortgage company here in the states. The intial loan product would be for wholesalers acquisitions and would be very very competitive to what your holding cost are today,
And we might be able to do a A and D then it rolls to a ten year fully AM….
The OZ FP's are planning a trip to my Portland office end of Jan. I have passed the first round of due diligence ( background check criminal public records finanical capacity my bank references etc) with them, Very cautious lot those OZ FP's..
This OZ fund will be a great alternative also for OZ investors higher than bank rate returns with the safety of know that there investing with a ASIC approved fund and company.. could be a good deversification for owing the asset as well as regular dependable returns.
JLH
jayhinrichs wrote:Alex good post and good rationalization for 2 different products.You may want to add on going maintenance to acheive a more realistic snap shot of % return…..
We know there is maintenance even if others say there is not or grossly under state it.
the other factor the audience should know if the person buying this is responsible for the rehab and if anything gets pilffered during the rehab process.
whereas if Alex rehabbed this and was providing turn key any loss during constrution he would have to cover…
so there is time risk and opportunity in the mark up from Wholesale to Turn Key,
ON another note, I had a good meeting with a bank here in portland that is looking at providing us a facility for foriegn nationals.
50% LTV loans 10 years 7 or 8%… I told him last night if we could put this product out we could do Not only millions in business but BILLIONS
keep you posted. on this one.I am also working with FP's in OZ on buying an ASIC approved company in Austrialia to be co owned by the OZ FP companies and my mortgage company here in the states. The intial loan product would be for wholesalers acquisitions and would be very very competitive to what your holding cost are today,
And we might be able to do a A and D then it rolls to a ten year fully AM….
The OZ FP's are planning a trip to my Portland office end of Jan. I have passed the first round of due diligence ( background check criminal public records finanical capacity my bank references etc) with them, Very cautious lot those OZ FP's..
This OZ fund will be a great alternative also for OZ investors higher than bank rate returns with the safety of know that there investing with a ASIC approved fund and company.. could be a good deversification for owing the asset as well as regular dependable returns.
JLH
Look forward to you trip here.Have a happy New year and I will be picking you up from the airport..
Love the sound of possible funding options …We have 3 possible leads I will share with you when you get here ..Alex
Alright I promised a finished property with before and after. Only thing left out is the $1k cost we pay our guys to video.We pay them to oversee the contracts and before and after videos. One of my guys is a full time police officer which never helps. Our other guy is full time for our company ( our runner in Atlanta run for this run for that..) awesome guys to have on the team….
Well here you go ( lawsjs ) yes contractor we over paid at $6500 ( just kidding but from purchase to rent ready in 6 days)
Property Report(Atlanta) MLS # Property Adress 4251 Cary Dr. Snellville GA MLS Link http://www.zillow.com/homedetails/4251-Cary-Dr-Snellville-GA-30039/14697241_zpid/ Vidoe Complete http://www.youtube.com/watch?v=9NoPwikTtfA Video before http://www.youtube.com/watch?v=Q1RO7OX5Xlc&feature=youtu.be List Price 32,000.00 Offered Price 32,000.00 Accepted Price $32,000.00 Closing Cost $1,000.00 Rehab Amount $6,500.00 Holding Cost to CL $1,000.00 Inspection Report $500.00 Points ot lender $3,850.00 Sales Price to Investor $53,000.00 Total Beds 3 Total Baths 2 Year Built 1987 Rent Amount $950.00 Taxes (monthly) $154.50 Insurance (monthly) $45.00 Property Management $80.00 Net Cash Flow $670.50 Cash on Cash (based on 10 months) 14% Rehab included • Paint interior walls and ceilings, minor sheet rock repairs, clean or replace wall plates as needed, no paint in bathrooms with wall paper
• Prime Dark trim with oil base kilz 1,700sqft x $0.25sqft = $425.00
• Blinds (10) 30"-32"
• New air filters, smoke and carbon
• 2 ceiling fans
• 11 Dome Lights
• 2 shower heads
• 2 Shower rods
• 3 door knobs
• 32” interior Door 6 panel (slab only)
• 18” interior Door 6 panel (slab only)
• 2- 5’ bi-fold interior Doors 6 panel
• 12’ wire closet shelf
• Tear out 5×4’ closet in bonus roomExterior
• Pressure wash exterior
• Clean Gutters
• Rake Back Yard
Flooring
ac unitFor got to add this was purchased by our USA investor from California that was here two weeks ago for the fly and buy tours.Which we host monthly.For clients who want to come in and check out the operation .
Alex
[email protected]Alex SC wrote:DHCP wrote:Good home Alex. Do you have the finished video footage of this property? i'm interested how the rehab turned out for $15K…I'm sure it brought the inside after rehab looks almost brand new?Guys maybe I was not clear in my writing as I said I am not the smartest guy by any means….
I am closing on this property today at 11 am, along with 4 others.Presold this property to a client.The rehab will start after they buy from us next week. After they close on this property. Just wanted to show the folks here what can be done and why…I see a similar house being sold for $83k. I know buyer purchased for $37 k and said rehab was 20k ( yes Lawsjs ) I agree that one was high for that property ) and is now selling for $83k .Again people will complain but that's his advantage being able to buy and do that. Now if I was to buy and rehab the property listed above the price would also shoot up. This is the point I am trying to show all how and why.
I would be borrowing capital for the job. Loan would be roughly $33,600,+ $15k for rehab + $1k for closing cost +1k for operation cost( yes we have to pay staff and keep lights on)so now I am in the deal for Roughly $51k ..( our private lender would fund)…So finished sales price would be $65k _ to $69k that is after rehab is finished ,and property rented. Depending on which cash lender we use( that would decide on how much interest I am paying him ).Again this is just me educating the buyer on why the price change …..Whole sale is just wholesale and flip. Turnkey is another animal ……
I will post some other deals before, and after videos for rehabs we have completed in Charlotte and Atlanta..( yes I like to brag on the job some of our rehab crews do) Also a good tool for others to go though and see what we are looking at and for …in our homes.
This house main concern and issue if you watch the video they destroyed so many walls to steal all the plumbing out of the walls, along with the Ac unit that walked off.
talk soon
Alex
Thanks Alex for posting, its refreshing that someone is actually posting figures.
What next….. now they steal plumbing, do they on sell or what?
In Australia crooks will go to building sites (new home construction) and steal everything – whitegoods, fridges, ovens, brand new carpet rolled up.
Cheers WI
jayhinrichs wrote:I am also working with FP's in OZ on buying an ASIC approved company in Austrialia to be co owned by the OZ FP companies and my mortgage company here in the states. The intial loan product would be for wholesalers acquisitions and would be very very competitive to what your holding cost are today,And we might be able to do a A and D then it rolls to a ten year fully AM….
The OZ FP's are planning a trip to my Portland office end of Jan. I have passed the first round of due diligence ( background check criminal public records finanical capacity my bank references etc) with them, Very cautious lot those OZ FP's..
This OZ fund will be a great alternative also for OZ investors higher than bank rate returns with the safety of know that there investing with a ASIC approved fund and company.. could be a good deversification for owing the asset as well as regular dependable returns.
JLH
Hi Jay
You need to be very careful quoting ASIC as ASIC doesn't as such approve anything. ASIC is a regulator and all thing company and investment related need to be registered in some way with ASIC, but in no way has ASIC given tacit approval over and above any other company or fund under its regulations.
One of the more infamous RE promoters Henry Kaye operated outside of ASIC guidelines and ended up in court with heavy fines.
Amongst other things any company or trust needs to be registered with ASIC and to continue a good standing an annual return with associated fee must be lodged with ASIC. Very similar to your state regulations regarding LLC's and C-Corp's. It would be like saying that your Secretary of state gives your LLC a recommendation – a ridiculous statement.
Regards
Dear Alex and Jay, I think you’re on the right track in looking for good loans for overseas investors in US. It influenced my decision in the end as with 50% LTV I got 2 for one and once the loan is paid I’ll have double the cashflow.
With a good loan an investor would be more interested in higher quality lower yield US properties and you might sell more of them.
regards
David
Buying OZ company that is ASIC approved
Like buying shell Corp in us
jbelmore wrote:Dear Alex and Jay, I think you're on the right track in looking for good loans for overseas investors in US. It influenced my decision in the end as with 50% LTV I got 2 for one and once the loan is paid I'll have double the cashflow. With a good loan an investor would be more interested in higher quality lower yield US properties and you might sell more of them. regards DavidDavid
Trust me we are not foolish .We see a great opportunity here as well. Our main cash lender is out of Hong Kong. So working with them and a few others to create some thing. I just don't see this loan working as a 3 year balloon.Think 5 years is going to be more realistic.
Stay in touch via email and I will keep you updated with any progress..
worldinvestor wrote:Alex SC wrote:DHCP wrote:Good home Alex. Do you have the finished video footage of this property? i'm interested how the rehab turned out for $15K…I'm sure it brought the inside after rehab looks almost brand new?Guys maybe I was not clear in my writing as I said I am not the smartest guy by any means….
I am closing on this property today at 11 am, along with 4 others.Presold this property to a client.The rehab will start after they buy from us next week. After they close on this property. Just wanted to show the folks here what can be done and why…I see a similar house being sold for $83k. I know buyer purchased for $37 k and said rehab was 20k ( yes Lawsjs ) I agree that one was high for that property ) and is now selling for $83k .Again people will complain but that's his advantage being able to buy and do that. Now if I was to buy and rehab the property listed above the price would also shoot up. This is the point I am trying to show all how and why.
I would be borrowing capital for the job. Loan would be roughly $33,600,+ $15k for rehab + $1k for closing cost +1k for operation cost( yes we have to pay staff and keep lights on)so now I am in the deal for Roughly $51k ..( our private lender would fund)…So finished sales price would be $65k _ to $69k that is after rehab is finished ,and property rented. Depending on which cash lender we use( that would decide on how much interest I am paying him ).Again this is just me educating the buyer on why the price change …..Whole sale is just wholesale and flip. Turnkey is another animal ……
I will post some other deals before, and after videos for rehabs we have completed in Charlotte and Atlanta..( yes I like to brag on the job some of our rehab crews do) Also a good tool for others to go though and see what we are looking at and for …in our homes.
This house main concern and issue if you watch the video they destroyed so many walls to steal all the plumbing out of the walls, along with the Ac unit that walked off.
talk soon
Alex
Thanks Alex for posting, its refreshing that someone is actually posting figures.
What next….. now they steal plumbing, do they on sell or what?
In Australia crooks will go to building sites (new home construction) and steal everything – whitegoods, fridges, ovens, brand new carpet rolled up.
Cheers WI
Yes, crooks take everything, contractors soon learn to back their trucks in and lock up the tools even when there working inside the houses coming and going….
On the west Coast especially So Cal… Farmers have been hit hard with their irrigation pipes and submersible pumps one farmer got clocked for 300k plus..
So in CAL. its mandatory 5 year sentance if your caught selling stolen metals.
jayhinrichs wrote:Buying OZ company that is ASIC approved Like buying shell Corp in usJay – fantastic you are going that route. I believe technically what you are doing is buying an AU company. ALL Au companies are considered compliant (therefore ASIC approved) until they do something wrong. From my discussions with them over some of the more (shall we say) 'aggressive' AU/US RE operators out there, it is pretty hard to fall foul of them. US securities laws seem far easier to breech.
World Investor – To qualify for the nomenclature I would experience the US and hi cap properties first hand over a few years at least. Without wishing in anyway to appear rude, you seem to have only a vague grasp of US realities. In general I find it very funny when people compare AU criminals to US criminals… On a scale of 1 to 10,000, our criminals would be a 1 and any enterprising US criminal would be 10,000+. I know a Police Officer in LAPD. If they are in a pursuit and hit the South Gate border before they get the guy, they just turn around – if they keep going they WILL be shot at by people from their houses, as well as the bad guys they are chasing. Bloods and Crips hate each other, but they both hate the police. How many Australian police cars have bullet holes in them?
Hermosa Beach and Manhattan Beach in LA are ultra premium suburbs, where Baywatch was set and $10m houses are not unusual – even in todays market. Less than 15 minutes drive away on the coast side of PCH (Pacific Coast Highway) the property manager occasionally (as in more than a couple of times) got shot collecting rent, a supposedly 'good' area, nothing like a high crime area. The 'inland' area of PCH is the 'wild west' (or east I guess, to be geographically accurate:) )
I know for US readers that is saying 'suck eggs' but Australians just do not understand how bad things can be in the US. Stealing white goods from a building site in the 'lesser' areas of the US probably wouldn't even count as crime – unless there is a body count involved the paperwork wouldn't be worth it:)
lawsjs wrote:jayhinrichs wrote:Buying OZ company that is ASIC approved Like buying shell Corp in usJay – fantastic you are going that route. I believe technically what you are doing is buying an AU company. ALL Au companies are considered compliant (therefore ASIC approved) until they do something wrong. From my discussions with them over some of the more (shall we say) 'aggressive' AU/US RE operators out there, it is pretty hard to fall foul of them. US securities laws seem far easier to breech.
World Investor – To qualify for the nomenclature I would experience the US and hi cap properties first hand over a few years at least. Without wishing in anyway to appear rude, you seem to have only a vague grasp of US realities. In general I find it very funny when people compare AU criminals to US criminals… On a scale of 1 to 10,000, our criminals would be a 1 and any enterprising US criminal would be 10,000+. I know a Police Officer in LAPD. If they are in a pursuit and hit the South Gate border before they get the guy, they just turn around – if they keep going they WILL be shot at by people from their houses, as well as the bad guys they are chasing. Bloods and Crips hate each other, but they both hate the police. How many Australian police cars have bullet holes in them?
Hermosa Beach and Manhattan Beach in LA are ultra premium suburbs, where Baywatch was set and $10m houses are not unusual – even in todays market. Less than 15 minutes drive away on the coast side of PCH (Pacific Coast Highway) the property manager occasionally (as in more than a couple of times) got shot collecting rent, a supposedly 'good' area, nothing like a high crime area. The 'inland' area of PCH is the 'wild west' (or east I guess, to be geographically accurate:) )
I know for US readers that is saying 'suck eggs' but Australians just do not understand how bad things can be in the US. Stealing white goods from a building site in the 'lesser' areas of the US probably wouldn't even count as crime – unless there is a body count involved the paperwork wouldn't be worth it:)
You are right I strongly disagree, but my words would be much stronger then go suck eggs. Guess you will have to meet me and then get a better understanding..Again strongly disagree , but being born and raised in America. Guess I would know it way better then some one who owns some property here in the states and has come over a a few months here and there yearly.
Alex
lawsjs wrote:jayhinrichs wrote:Buying OZ company that is ASIC approved Like buying shell Corp in usJay – fantastic you are going that route. I believe technically what you are doing is buying an AU company. ALL Au companies are considered compliant (therefore ASIC approved) until they do something wrong. From my discussions with them over some of the more (shall we say) 'aggressive' AU/US RE operators out there, it is pretty hard to fall foul of them. US securities laws seem far easier to breech.
World Investor – To qualify for the nomenclature I would experience the US and hi cap properties first hand over a few years at least. Without wishing in anyway to appear rude, you seem to have only a vague grasp of US realities. In general I find it very funny when people compare AU criminals to US criminals… On a scale of 1 to 10,000, our criminals would be a 1 and any enterprising US criminal would be 10,000+. I know a Police Officer in LAPD. If they are in a pursuit and hit the South Gate border before they get the guy, they just turn around – if they keep going they WILL be shot at by people from their houses, as well as the bad guys they are chasing. Bloods and Crips hate each other, but they both hate the police. How many Australian police cars have bullet holes in them?
Hermosa Beach and Manhattan Beach in LA are ultra premium suburbs, where Baywatch was set and $10m houses are not unusual – even in todays market. Less than 15 minutes drive away on the coast side of PCH (Pacific Coast Highway) the property manager occasionally (as in more than a couple of times) got shot collecting rent, a supposedly 'good' area, nothing like a high crime area. The 'inland' area of PCH is the 'wild west' (or east I guess, to be geographically accurate:) )
I know for US readers that is saying 'suck eggs' but Australians just do not understand how bad things can be in the US. Stealing white goods from a building site in the 'lesser' areas of the US probably wouldn't even count as crime – unless there is a body count involved the paperwork wouldn't be worth it:)
Lawsjs, thanks for your tips, I lived in US (Washington DC) for a number of years.
Cheers, WI
So it seems very strange (read impossible) to have someone who lived in DC be incredulous about plumbing being ripped out and then to mention whitegoods being stolen in Aus…. DC hi cap property means you should be able to mix it Dirty Harry style with the homies:)
Alex: Your double negatives make little sense to me. Can you elaborate? Im not sure if you think hi cap can be ‘awkward’ or if you are saying you disagree and think I’m a fool… I don’t care either way so you won’t upset me but I understand the Aus property market extremely well, yet am heavily weighted on the US side (and have been for more than a decade) so have a reasonable view of my bit of the US. I have been able to assist in a very small way (again over a number of years) aussies who have been royally (presidentially?
) ripped off so I get a little feedback from around the traps. I am also the first to say that I find the US very difficult to deal with – the cultural differences are great and as far as language goes, often extreme. I work out of an office with a bunch of guys in LA who help me out with this stuff -This time they were confused too!My point was simply this: Hi cap stuff makes me nervous. Especially when quoted by aussies who by their posts have little to no experience in the market. It is very easy to quote numbers but very hard to put them into practice long term. Especially from across the globe – and that IS something I have far more experience in than anyone else I have met or heard of so far… And I spent a decade searching for someone to help me – so I would like to be wrong:) One example is my particular taxation issues have been tabled in Canberra – at my expense – because I am apparently highly unique. I am astounded that is the case and sincerely wished it werent so.
Although painting the entire outside of a 4u would probably add a bit. Emma is the Oracle on rehabs – she always thinks _I_ overpay, I think I am mean…
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