All Topics / Overseas Deals / Newbie – Looking to invest in US with $120k to spend

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  • Profile photo of angelaroseangelarose
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    @angelarose
    Join Date: 2012
    Post Count: 3

    Hi everyone,

    I am a 23 year old from Sydney. I have been determined to become a property investor and create a portfolio since i was 18. I work in real estate and spend all my spare time reading up on everything related to rpoeprty and investing. I now have $120k to start me off and think i would like to look at the U.S market. I have read a lot of the topics in this forum and i have to say it is quite overwhelming as there is so much information.

    Firstly i would need a cash flow property or two with a high rental return (examples i have seen are a 3 bed house in Atlanta for $25k with return of $900 p/month, is this really possible?)

    – What are your suggestions of places that are like Atlanta with a high rental return for a low price between $20k to $40k (my problem with Atlanta is i feel that with so many people investing it may be hard to find tenants? and rental prices may decrease?)

    What are some places that you feel will appreciate over the 5 to 10 years and still have a somewhat decent rental return???

    Ideally i would like to spend the $120 on possibly 2 cash flow properties and another property that is forseen to appreciate?

    Also just to put it out there, I am very interested in working in the property investment industry so if anybody needs an experience executive assistant who has a passion for property investment, please let me know.

    Really looking forward to hearing all your thoughts.

    Profile photo of miikemiike
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    @miike
    Join Date: 2008
    Post Count: 111

    Hi,

    You seam to be jumping into the pool without being able to swim.

    If you’re asking the questions of should I invest, you have not done your due diligence.

    Your research should be done no differently to how you would invest in the area in which you live.

    Here’s some food for thought:
    – Research the area, town planning, demographics.

    – Go visit the locations, speak to the locals and find out the gross.

    – Do the maths, this isn’t about making a short term buck, it’s about long term return on your dollar and increase in wealth. e.g. You could buy a property that returns a cash flow and provides an increase of 50% in equity, but you may find purchasing a property with no cash flow may have an increase in equity of 150% which may be far superior in bringing you wealth and return on your dollar when capitalised.

    Don’t be put off, if you research gives you the ticks, be confident.

    As to if Atlanta is generally a good investment city, someone else will need to hand you some info.

    Best of luck!

    Miike

    Profile photo of EngeloRumoraEngeloRumora
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    @engelorumora
    Join Date: 2010
    Post Count: 618

    Hi angelarose.

    Every post reply you receive on this topic you will find someone pushing an area where they have invested or where they get the biggest cut. I will not mention any areas as I think the most important thing is not so much the location but the team you have in place looking after your interest and your investments. Good investments that make you money can be found in any market but good people are hard to find.

    Make sure you do lots of research and dont make any sudden decisions.

    Thanks

    EngeloRumora | Ohio Cashflow
    http://ohiocashflow.com/
    Email Me | Phone Me

    "Make a PASSION an OBSESSION and you'll never work a day in your life"

    Profile photo of Admin@atlantaallgoodrealty.com[email protected]
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    @admin-atlantaallgoodrealty.com
    Join Date: 2012
    Post Count: 5

    Hi, this is Mark. I am a realtor from Atlanta Georgia. Timing is everything. You are at the right time to invest in Atanta. It is still easy to find tenants right now in many areas in Atlanta. I have placed some tenants even during Christmas. But I also see an increasing number of investors buying properties in Atlanta. My clients used to be 100% local. Last year, over 50% are out of state, many of them are from overseas. I definitely see that you have a valid concern that with so many investors coming in, one day it will be hard to find tenants, and even harder to find quality tenants. But Now your timing is still right.

    In addition to get a good stream of rental income, you want a property with a decent appreciation potential as well. It is very important to find the right locations in Atlanta to invest. Some areas in Atlanta, the properties decreased their values even during the housing booming years. I would not recommend to buy houses in those areas, But Some areas used to be resilient to economic down turns are selling houses at prices WAY below their costs. Those areas will bounce back first. Those areas will provide you huge capital gain when you sell them in the future.

    <moderator: delete advertising>

    Best regards,
    Mark

    You can visit my company website at http://www.atlantaallgoodrealty.com for more information.

    Profile photo of angelaroseangelarose
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    @angelarose
    Join Date: 2012
    Post Count: 3

    Thank you all for your feedback!

    Miike – Thank i have been researching for the past 6 months and have done my due dilligence in regards to demographics/locale of certain cities. However i do not have the time to be doing several trips to the US to pick and choose which of these are the most suitable to my requirements, that is why i posted on here asking peoples opinions of different places, that way i can narrow my search down to 2 or 3 cities to visit whilst in the US. I am also definitely looking for long term investments, but curious as to what cities, suburbs etc poeple on this forum may think are going to boom in the next 5 to 1 years and why they think this.

    engelo10 – Thank you very much, I am currently doing my due dilligence in regards to the management of the properties i invest. I have worked in the real estate sector for the past 5 years and understand the importance of a superb property management department

    Looking forward to hearing more thoughts from people on this forum.

    Thanks again

    Profile photo of kylermricekylermrice
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    @kylermrice
    Join Date: 2011
    Post Count: 314

    Hey Angelarose,

    Would like to network and see what we could come up with.  I am in need of people with there feet on the ground in Australia.  I currently have a friend from the states in New Zealand that is working his way there.  As mentioned above it is hard to find good people.  It's not always what u know, it's who u know.

    There are tons of places to invest and make money here in the states.  I concentrate on Kansas City and SW Florida (Tampa, Sarasota, North Port and Naples) since i started buying fore closers back when the recession  hit in 2008.  My properties in Florida are long term for me and i do cash flow rentals in Kansas city.  I also do a renovate and resell about each quarter in Kansas city in our art district/urban area.  Which is how i gain capital for most of my houses in Florida.

    Those numbers for Atlanta also seem to optimistic.  Generally with a purchase in the 20's to 40's it is a ruff area and u have to have a really good property management company and u generally will get 8 to 10 months of rent.

    You could get four to five good properties in Kansas city compared to Atlanta.

    Email or friend me on facebook me if you are interested in networking or seeing if we can help each other

    Kyler Rice
    [email protected]

    Profile photo of Alex SCAlex SC
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    @alex-sc
    Join Date: 2011
    Post Count: 585
    kylermrice wrote:
    Hey Angelarose,

    Would like to network and see what we could come up with.  I am in need of people with there feet on the ground in Australia.  I currently have a friend from the states in New Zealand that is working his way there.  As mentioned above it is hard to find good people.  It's not always what u know, it's who u know.

    There are tons of places to invest and make money here in the states.  I concentrate on Kansas City and SW Florida (Tampa, Sarasota, North Port and Naples) since i started buying fore closers back when the recession  hit in 2008.  My properties in Florida are long term for me and i do cash flow rentals in Kansas city.  I also do a renovate and resell about each quarter in Kansas city in our art district/urban area.  Which is how i gain capital for most of my houses in Florida.

    Those numbers for Atlanta also seem to optimistic.  Generally with a purchase in the 20's to 40's it is a ruff area and u have to have a really good property management company and u generally will get 8 to 10 months of rent.

    You could get four to five good properties in Kansas city compared to Atlanta.

    Email or friend me on facebook me if you are interested in networking or seeing if we can help each other

    Kyler Rice
    [email protected]

    Kyler very strange  I am from the USA and I have not seen any one else mention Sarasota or North Port . I don't sell homes there. Just buy for my self . My brother lives in North port and is a police offer from Sarasota ( so know the area very well ). Kansas city yes good prices but some rougher areas, but numbers do make sense for cash flow. When dealing with cash flow low end just buy alot of them. I am in middle of buying 67 house package.  We are looking at selling 40 and keeping the other 27 homes.  Atlanta there is just to many people buying there and I don't see the long term rental going to hold up. We are pulling our team out of there to concentrate on Charlotte NC and surrounding area. I will buy in Atlanta but will be very picky from this point on.

    I am always looking to network my self.

    Alex
    [email protected]

    Profile photo of Alex SCAlex SC
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    @alex-sc
    Join Date: 2011
    Post Count: 585
    angelarose wrote:
    Hi everyone, Angela  I would find a local mentor or some one who actively buys in the USA close by to you. To teach you what to look for and what to look out for.

    I am a 23 year old from Sydney. I have been determined to become a property investor and create a portfolio since i was 18. I work in real estate and spend all my spare time reading up on everything related to rpoeprty and investing. I now have $120k to start me off and think i would like to look at the U.S market. I have read a lot of the topics in this forum and i have to say it is quite overwhelming as there is so much information. That is how I got started reading everything I could while working at a gym . Late night no clients came in from 9 pm to 11 .So I had my head either stuck in a book or reading real estate on line.

    Firstly i would need a cash flow property or two with a high rental return (examples i have seen are a 3 bed house in Atlanta for $25k with return of $900 p/month, is this really possible?) Don"t believe everything you hear. I did just buy a 4bed room 2 bath for 19k rehab $6- 8k .  I think I can get $800 but long term not seeing any appreciation. Since the whole area is being foreclosed on.  So yes you can buy them cheap but for me Atlanta is going to be just what I see cash flow not taking appreciation into affect at all. So I want all my purchases from this point out under $40k ( for me ) . I want any house to pay for it self in 5 to 7 years with income based on 5 to 7 years.  That's just my number every one is going to be different .

    – What are your suggestions of places that are like Atlanta with a high rental return for a low price between $20k to $40k (my problem with Atlanta is i feel that with so many people investing it may be hard to find tenants? and rental prices may decrease?) Yes I have been saying for some time now I expect rental prices to drop. For example pull up Lithonia , Atlanta. basically the whole town is for sale or loaded with foreclosures. So there will be many rental properties available on the market. Which in turn will reduce the rental prices.

    What are some places that you feel will appreciate over the 5 to 10 years and still have a somewhat decent rental return??? I don"t think any being we are still in the cycle and things not getting to much better here.I am looking at 7 to 10 years . Really going to wait to see who gets in as next president here. If a Republican here in the states for investors could be a better long term play for us. ( not trying to preach politics by any means.) If  you do some research current government and president here .Started a few housing program to help and they all have failed but little coverage on the failures.  To much shadow inventory out there with banking industry a mess. So not sure how any one can really put a guess on recovery . To me they are just  hoping . So I buy today for cash flow ,and don't look at appreciation just some sales man tool. ( you would call them spruikers)

    Ideally i would like to spend the $120 on possibly 2 cash flow properties and another property that is forseen to appreciate?Why don't you put you money up for now.  Wait to see if the financing option does come available for you. Might be a better option for you. Just make sure what ever you do set up a reserve fund per deal.I like to have $3 k to $5k put back for what if"s. Better to spend a few bucks traveling to the USA and checking things out. If you do come to the USA and stop in Charlotte send us an email. We would like to meet.

    Also just to put it out there, I am very interested in working in the property investment industry so if anybody needs an experience executive assistant who has a passion for property investment, please let me know. Find a local investment group I am sure their will be plenty of people in this business who can use some one to help out.

    Hope this helps

    Sincerely
    Alex
    [email protected]

    Really looking forward to hearing all your thoughts.

    Profile photo of angelaroseangelarose
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    @angelarose
    Join Date: 2012
    Post Count: 3

    Thank you Alex, your information has been very helpful and genuine. I am planning a trip probably within the next 3 months so i will be sure to contact you if i am around Charlotte.

    Finidng a mentor in Sydney would be great, hoping this forum will help me get in contact with some experienced US investors that reside in Sydney or even other people like me looking to invest in the next 6 months in the US. So if anyone lives in Sydney and either has invested or is looking to and would like to meet up for a coffee to bounce ideas off each other then let me know.

    Thanks again!!

    Profile photo of kylermricekylermrice
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    @kylermrice
    Join Date: 2011
    Post Count: 314

    @ Alex

    Like i had said they they are long term investments in those areas and like u i don't really plan on selling them.   I used to leave in Florida and know the gulf coast well.  Most people won't mention those areas cause cape coral and ft myers are the areas being pimped for investors.  I am looking for Port Charlotte and Naples for this year, for me it's all about location for fishing, lol.  I'm the guy buying them on the water for 100 grand and hoping they come back to the half a million they used to be valued at.  If could get a house on Boca Grande that would be the awesome.  Have caught my fair share of 100 plus pound tarpon there.

    As far as Kansas city i have this place down to a money making science.  I don't do it on as big a scale as you do, but i do well with my properties with either flipping or keeping for cash flow.  There are lots of options  here, just like for you with Charlotte.  For example (i'm not lieing <moderator: delete language> on these numbers either) i bought a house for 5 grand the other day and it will maybe put another 4 grand in it.  My favorite thing is if i can get them with a newer roof on them, this one did. It might be a ruffer area but i do my own property management on my rentals.  When i sell to investors i generally continue doing property management and give them a full year warranty on the rental.  With the renter in it, i don't know of anybody else really offering this type of package.  I'm not trying to advertise either i am just putting it out there for my own purposes for how much i believe in Kansas City.  It bothers me when we get lumped in with Detroit and Memphis

    Regards
    Kyler Rice
    [email protected]

    Profile photo of EngeloRumoraEngeloRumora
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    @engelorumora
    Join Date: 2010
    Post Count: 618

    Hi angelarose,

    We are having a meeting this Sunday with a group of people that have invested or are intersted in investing in the US. Please email me on [email protected] and I will let you know of the time and place. I dont wish to post it on here as most people have expressed they dont want any spruikers or buyers agents attending.

    Engelo

    EngeloRumora | Ohio Cashflow
    http://ohiocashflow.com/
    Email Me | Phone Me

    "Make a PASSION an OBSESSION and you'll never work a day in your life"

    Profile photo of Alex SCAlex SC
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    @alex-sc
    Join Date: 2011
    Post Count: 585
    angelarose wrote:
    Thank you Alex, your information has been very helpful and genuine. I am planning a trip probably within the next 3 months so i will be sure to contact you if i am around Charlotte.

    Finidng a mentor in Sydney would be great, hoping this forum will help me get in contact with some experienced US investors that reside in Sydney or even other people like me looking to invest in the next 6 months in the US. So if anyone lives in Sydney and either has invested or is looking to and would like to meet up for a coffee to bounce ideas off each other then let me know.

    Thanks again!!

    I actually been in contact with some of your fellow aussies. That have taken the time to come to the USA and are making some great decisions on buying properties. Send out a post with your email. Asking for any Australians who have purchased properties in the USA for  a short conference call or email contact. This would be good  list for any international clients to have at their disposal. Funny thing this world is alot smaller then we all think. With the information age some much information at the click of a button.

    Feel free to email me if you have any questions.

    Sincerely
    Alex Franks

    Profile photo of Alex SCAlex SC
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    kylermrice wrote:
    @ Alex Kyler sounds good sent you a private email.

    Like I had said they they are long term investments in those areas and like u i don't really plan on selling them ( for my own personal investment strategy. Before the international buying frenzy. We tried to purchase 12 homes at a time. Selling 8 to 10 of those and keeping the others free and clear.  They are for long term holding . I  only sell if I run out of properties or need to raise capital.

     I used to leave in Florida and know the gulf coast well.  Most people won't mention those areas cause cape coral and ft myers are the areas being pimped for investors.  I am looking for Port Charlotte  ( yes those areas you mentioned are always being sold by some one . Only  reason I know about this  market is  my brother being he lives. Yes for florida I am buying for the same purpose I see those homes coming back down the road.  and Naples for this year, for me it's all about location for fishing, lol.  I'm the guy buying them on the water for 100 grand and hoping they come back to the half a million they used to be valued at.  If could get a house on Boca Grande that would be the awesome.  Have caught my fair share of 100 plus pound tarpon there. Fishing I went 30 miles of coast we caught a 48 pound cobia good eating fish. Wound up catching 26 grouper and snappers. 3 were keepers may is good month there for fishing not to hot yet.

    As far as Kansas city i have this place down to a money making science.  I don't do it on as big a scale as you do, but i do well with my properties with either flipping or keeping for cash flow.  There are lots of options  here, just like for you with Charlotte.  For example (i'm not lieing <moderator: delete language> on these numbers either) i bought a house for 5 grand the other day and it will maybe put another 4 grand in it.  My favorite thing is if i can get them with a newer roof on them, this one did. It might be a ruffer area but i do my own property management on my rentals.  When i sell to investors i generally continue doing property management and give them a full year warranty on the rental.  With the renter in it, i don't know of anybody else really offering this type of package.  I'm not trying to advertise either i am just putting it out there for my own purposes for how much i believe in Kansas City.  It bothers me when we get lumped in with Detroit and Memphis. Numbers yes We are in middle of taking down a 67 house package that will be resold down the road. So some times large numbers , still love the cheap deals. Did pick one up in Atlanta for $19k rehab $8k should rent about $850. Slowly working my way out of Atlanta and staying focused on my back yard.

    Stay in touch and if you over this way look me up..

    Sincerely
    Alex

    Regards
    Kyler Rice
    [email protected]

    Kyler sounds good sent you a private email.

    Profile photo of Nigel KibelNigel Kibel
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    frankly research is everything and without going to the states and seeing it for yourself you are playing with fire. I have been involved in the Texas market since 2005 and am based in Australia. I work with a very experienced operator who has been working on the ground for more than 5 years. When I first met him 3 years ago I took more than 6 months before we did a deal.

    So if you are going to invest in America while where is very important what is critical is who you are working with on the ground. Without dealing with experienced people you are wasting your time.

    Although I understand people not wanting to deal with people who charge for there services, consider will they save you time and money. Most local agents cannot sell to a lot of locals because of credit rating issues, so they see Australians as easy targets. Other companies deal with a couple of wholesalers who in many cases have not even been to the cities in which you are buying.

    So it is critical that you work with experienced people. I always try and push people to travel to Texas at least once and experience the market. Afterall its your money not mine.

    Nigel Kibel | Property Know How
    http://propertyknowhow.com.au
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    We have just launched a new website join our membership today

    Profile photo of jayhinrichsjayhinrichs
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    Biggest question here is:

    How does a 23 year old amass 120k in cash a that young of age…. 99% of 23 year olds in the US have NO money and or are up to their eye balls in student loans.   Save the few Interenet gurus who start the next Google, And those folks are all concentrated in California.

    In addition if most US kids at that age had that kind of Money they would have spent it on cars, Girls or Boys, clothes and trips. Anything but cash flow real estate :)

    So good for you your getting ahead of the game.

    Just be very careful in the US the grass is not always greener.

    One thing I think anyone with any integrity can tell you on this site, is that an all in ( completely renovated house) in Atlanta for 20k that rents for 900.00 per month just does not exist, or if it does you will certianly only get the rent sporadially.

    Its going to be very interesting to see how Atlanta plays out for sure. I am not of the mind of Alex to completely pull out. However we like our 2 to 4 homes a month strategy in very select neighborhoods. And a price point more in the 40 to 60k plus rehab range. Better locations mean best tenants. buy in the hood at your own peril.

    Kyler's discription of 4k houses with 5k rehab in KC are only suitable for those that live there and manage the homes for a living, who cares about a 1 year warrenty, its the following years that you need to ready for. Plus the average Aussie is not going to be able to source these properties, these types of deals are no better than Detroit or Memphis in my opinion same renter pool, same issues. And by the time the Aussie buys this 9k all in Home they are paying 30 to 40k for it, not 9k.

    Best of luck and keep on saving,,, your an inspiration to the younger generation!!!!

    Profile photo of Alex SCAlex SC
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    @alex-sc
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    jayhinrichs wrote:
    Biggest question here is:

    How does a 23 year old amass 120k in cash a that young of age…. 99% of 23 year olds in the US have NO money and or are up to their eye balls in student loans.   Save the few Interenet gurus who start the next Google, And those folks are all concentrated in California.

    In addition if most US kids at that age had that kind of Money they would have spent it on cars, Girls or Boys, clothes and trips. Anything but cash flow real estate :)

    So good for you your getting ahead of the game.

     
    Just be very careful in the US the grass is not always greener.

    One thing I think anyone with any integrity can tell you on this site, is that an all in ( completely renovated house) in Atlanta for 20k that rents for 900.00 per month just does not exist, or if it does you will certianly only get the rent sporadially.

    Its going to be very interesting to see how Atlanta plays out for sure. I am not of the mind of Alex to completely pull out. However we like our 2 to 4 homes a month strategy in very select neighborhoods. And a price point more in the 40 to 60k plus rehab range. Better locations mean best tenants. buy in the hood at your own peril.

    Kyler's discription of 4k houses with 5k rehab in KC are only suitable for those that live there and manage the homes for a living, who cares about a 1 year warrenty, its the following years that you need to ready for. Plus the average Aussie is not going to be able to source these properties, these types of deals are no better than Detroit or Memphis in my opinion same renter pool, same issues. And by the time the Aussie buys this 9k all in Home they are paying 30 to 40k for it, not 9k.

    Best of luck and keep on saving,,, your an inspiration to the younger generation!!!!

    Jay

    Yes to be 23 for me at that age. I was bar tending at hard Rock cafe living in myrtle beach going to school.Life was good and spent every dollar  I made. Not completely pulling out of Atlanta but going to be few and far in between deals. I just rather put all my effort into the market  I know better.  Being I am here in Charlotte and office here just makes more sense for us.

    Our Atlanta team told them to just keep doing what  they are doing. If I like the houses and makes financial sense I would revisit the market .

    Well this coming week my Giants will play your 49ers. Care to put a nice bottle of wine on it.

    Talk soon
    Alex

    Profile photo of jayhinrichsjayhinrichs
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    @jayhinrichs
    Join Date: 2011
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    In honor of our Aussie buddies,

    bottle of Penfolds Shiraz would be in order

    Profile photo of kylermricekylermrice
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    @kylermrice
    Join Date: 2011
    Post Count: 314

    Lol, gotta love these forums

    If your not from here or really know what i have established all u can do is speculate.  Have u been to Kansas City?  Well i have been to Detroit and  Memphis and there is a major difference in the rental markets.  If i was like everybody else spruiking on this forum i would sell it for 30 to 40K.  I do the same deal as i  do for people in California, about 20,000 to 25,000.  Why be greedy when u can  set up repeat business and everybody is happy.  These cash flowing properties are great and in the end i make more in the long run with them  then renovate and flips. Yes, flipping is still something u can do if you know your market well.  You can say all u want about problems down the road, but if your tenant proof your house from the beginning u won't have these problems.  If they are tearing your house up that much then u didn't screen them that good to begin with. For example section 8 tenants tear a house up they wont be able to ever get in another.  That on it's own is enough to keep tenants from wanting to go back to the projects.

    I don't see any other turnkey groups that  offer what i do, especially with a tenant and a service warranty on the homes.

    Profile photo of Alex SCAlex SC
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    jayhinrichs wrote:
    In honor of our Aussie buddies,

    bottle of Penfolds Shiraz would be in order

    With the Giants defense you should have that bottle ready for me…and yes had to look it up and see that it  is a wine from Australia, South Eastern Australia region.

    Alex

    Profile photo of jayhinrichsjayhinrichs
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    @jayhinrichs
    Join Date: 2011
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    Alex I am born and raised in the Bay Area and Lived in the Napa Valley for many years… So we have a little heads up on the vino world :)

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