USA Property – Hold or Sell

I suppose it depends on where your properties are. My view is nothing much will happen in the US market til at least 2015. What will determine the housing market is finance. Currently the view is that the finance ,markets in the United States will continue to tightened. Have you thought about on selling the properties with you providing vendor finance.

WI

happy to say after 7 1/2 yrs in the USA market the pain is finally over as just this month we have closed on our last property.

we quit because;
when you are 1/2 way around the world it is hard to find people with integrity,
it is hard enough managing IP's let alone be a FOREX dealer too, and
there are easier ways to make money in my own backyard.

My advice for those investing or looking to invest in the USA is to ensure you have a strategy to preserve your capital as unlike IP's in Australia over there you can face a total loss.

Good luck

Tony

From my experince.

One that positions themselves like Kyler is doing in the C grade KC market or any other big mid western town be it Memphis, St. Luis, Indy, Columbus, Detroit,,, chicago  etc etc.  And remember there was another poster on this site I have not seen post in a while.. he got excited when he drove down a block that had less than 30% of the houses boarded !!!!

There are millions of these homes to be bought rehabbed and resold throughout the US… never ending inventory and cycle..Will you get to pick them up like has been happening for 5k a door to 10K a door… Now competition will come in and that wholesale price could easily double… Remember the US investor is waking up.

This business is perpetual.. If I was guessing I would say Kyler your young 30's…. In those markets you can keep doing what your doing and make cash flow the rest of your life.. Simple reason is there are always those like the Lady you mentioned that try to buy 1 or 2 houses and think that a PM is going to handle all their issues. NO PM can handle eveyones issues even the best have houses get hit when they are vacant or tenant moves in crappy boyfriend and house gets thrashed…These investors give up walk away and thats were the inventory come from in these markets its not the Homeowner who lost the house. Were WI is investing in Atlanta those were predomiantly homeowners… Although there is a far amount of rental stock in the new construction there are builders in Texas and GA and MS that have sold entire subdivisions of new construction to out of area investors and the houses are basically 100% rentals.  The trick in these markets is stearing clear of this type of area. These investor maybe paid 120 to 140k for their new construction 7 years ago and now its worth half or less and they get tired of the rental game and walk as well.  but back to KC and C grade and lower rentals.

So this stock cycles over and over and over,,, I know one investor in Indy that has 800 doors he is 85 been doing it 50 years. Thats you Kyler at 85 you will have 800 to 1000 doors you keep at it and in the same sand box….

There is nothing wrong with providing this type of housing its just real intense and dealing with this tenant base is a lot of work lots of fibbing and story telling about the dog that eat the rent.. Or " what do you mean my husband has not paid you"" .. And when you have a single mom with 4 kids and a few baby dadys coming and going your house is not going to get much love on the maintenance side.

JLH

http://www.hardwaresupercenter.com

All mid western cities will have many individuals or families that own 100 plus homes… they do it as a business quite common.

Not as common here on the west coast. although I know of 2 off the top that have over 300 homes each, and thats here in Portland were average prices are 200k a door. I had my portland portfolio up to almost 50 single families at one time. and then a bunch of other properties like  storage, office ( which I wish I did not own now:( )…

Even had a client in the bay area had 165 houses in Alameda which is a nice area right across the bay from SF…

JLH

I’ve always been a kind of go for the Gusto guy…

So we have closed on 76 homes since May and have another 20 some in escrow…. If I am going to do this I want 1,000 plus doors.

going to start looking at some multi to help with those numbers.

Jay

http://www.hardwaresupercenter.com

I guess if you build up to 100 doors just pay someone a salary to manage it all or a few poeple if needed. Systemize the business, sit back, relax and enjoy the Bahamas hahahaha

Quick note  I am beating your prices. Looking at opening up a supply company myself with my brothers help the one who works for Corporate lowes.

Jay just bid on  35  properties here in Charlotte. Out of those, only 4 or 5  would fit your program. So we are looking to hit that 4 homes a month mark with your company. The other batch, we are  looking  to pick up 15  or more homes before the end of march.   For me, a real estate month is actually about  60 days in my mind. From when we buy  a home, which then  includes rehab , and getting the property rented. So you know our goal is changing with the market changing. More capital coming in then ever before just not wanting to grow any bigger then we are. For me it is a common sense approach. If we can do 20 to 25 homes every 60 – 90 days and every one is happy . Why change things? There will always be the guys who own 1000s of units, which is great, but so is a nice simple system that works.  Greed  + stress seem to go hand and hand in this business.

"Jay  "  you and I  having a similar mindset on partnering .  For us, lately partnering with our over seas clients, long term seems to be  better for all. I have cleaned the rehab system up with some of your advice, being I took over the rehabs completely from Kevin ( for all of you who do not know that is  my Real Estate Partner) Jay has some great advice on rehabs, and I  am not foolish. If something works for someone else, and I can add it to my system  to make things better and it helps us and  our clients. Well that is a no brainer. Also fired two crews and one handyman, so cleaned house. Running the rehab is a lot of work but to me, that is the fun part of this business.

Now on the other hand, I am not seeing the competition like  you guys  are feeling in Atlanta and other markets. Charlotte is just getting the recognition it deserves with investment homes.  In the last three months, we have had some heavy hitters in the USA Real Estate  industry come to us . Jay, being one of them, to work out some form of partnership with my company here in Charlotte. Which Jay is again correct,  the USA buyers are now jumping back in and don't look for the super high return. ( side note Jay new client from Charlotte I met him on flight back from LA and after speaking on the plane .He is now buying and lending with us ) Inside Joke between Jay and I.

Now on a different note, the holding of homes. My personal goal is 100 units, which will be a mix of commercial and single family homes. With me I can take the risk and buy some properties like Kyler and Engelo speak about, while mixing in the homes that Jay and I like to deal with. Since I own the company and live here the risk is less for me when dealing with lower end stuff.

I will agree to disagree with most about lower end homes. For me cash flow is everything. Unlike some others I am not here to sell  the properties I keep. These are long term investments for myself, my family, and hopefully for future generations to come.

Sleep in this business is rare. Lol.

It's all relative. If you were Tamara or Petra Ecclestone then Jay's own home would be the 'hood:)