Hi,
I would like to say hello to members on this forum and, as an investor, introduce myself.
I have joined this site because of this terrific forum, and the honest and intelligent posts I have read here (Jay, Alex, Lawjs, Texas Cash Cow, just to name the ones I immediately recall). I have experience in residential and commercial property investing in Australia, and find myself looking at the USA (I now live in Dubai).
Probably the most outstanding aspect of this forum is the heated discussions from different perspectives of the same topic, the depth of knowledge that is displayed is impressive.
I strongly believe that to get to simplicity you must go through complexity,and there is no substitute for hard work. Which means I am now a student and have a lot of learning til I graduate.
Putting actions in the place of words, I have just committed to two trips to the US (I can fly in/out of SFO, LAX or Houston),the week 22-29 April and I have another booked for 10-24 Jun (because I’d be foolish to try to get it right on the first visit). (I am looking for 4 properties but would consider up to 8, more if I looked for finance).
My aim is similar to others here cash flow and longer term growth on solid properties.
Looking forward to meeting, speaking, texting, typing and chatting you some of all of you.
Steve
Hi Steve
looking forward to hearing more, keep us all posted on your experience, and by the way Atlanta (GA…………., you mentioned cashflowWI
I too am a newbie to this site. I’m really impressed about the open sharing of information!!
I’ve done all the ‘wrong’ things in investing terms, so am looking forward to learning from other experiences.
I’m currently interested in overseas investment so will be looking forward to your findings in the US.Hi Menunes
'wrong things' investing….. can you share??Property bought in my own name, negatively geared houses… Not really knowing what I was doing, just knew I wanted to have an investment property and jumping in!
Overall they have paid off (I think more luck than good management) but looking at how to structre my investments better to get better returns or deals.worldinvestor wrote:Hi Steve
looking forward to hearing more, keep us all posted on your experience, and by the way Atlanta (GA…………., you mentioned cashflowWI
I have been taking a good look at the figures (stats) and conversations here about Atlanta. The 2011 census has the vacancy rate at 12.4% a little better than Jacksonville at 14.0%. Certainly not the 3% in Queensland Aus or the 5.3% in San Jose, but then there is no reward without risk and prices reflect that.
Just checked the flights direct Atlanta on the 21st is looking like my trip.
Cheers
Steve
Menunes wrote:I too am a newbie to this site. I’m really impressed about the open sharing of information!!
I’ve done all the ‘wrong’ things in investing terms, so am looking forward to learning from other experiences.
I’m currently interested in overseas investment so will be looking forward to your findings in the US.Will do.
Cheers
Steve
Wow, people just can't get enough of Atlanta. I'll be interested how it pans out for everybody down the road.
Never let it be said we think for ourselves Kyler:) Absolutely no room in this market for contrarian investing. I guess the more familiar a US city is familiar with Aussie foibles the better:)
ATL properties are ‘pretty’ and the place has visual similarities to bits of Oz – people also have a fetish for high headline returns so it fits the bill. My sister (emma171) said to me last night she reckons you have to buy $20-30k (thereabouts) less in ATL compared to a place like LAS to make up for the extra maintenance (lawns, termites etc). Interesting point.
As long as you stay away from HOA’s you should be fine. Then all you have to do is manage the place – and we all know how easy that is:)
It was a good looking market for a while, but as i had mentioned friends from Florida have pulled out due to competition and rents going down with so many rentals on the market.
I would be surprised if new ghettos (maybe a bit harsh) are not created in some of these areas. In the nicest possible way I can put it, some less scrupulous Aussie marketeers (and I don’t think I have come across a ‘scrupulous’ one come to think of it) are totally out of their depth and being taken for a major ride by those in the US who can smell ‘fool’ and ‘money’ a mile off. The Aussie buyers are the ones who pay and I suspect it will take them months – if not years to work out how badly they have bought. Enter a young Kyler on his way to 1000 doors who will relieve them of their worries for pennies in the dollar:)
Welcome aboard Steve,
Make sure you drop by Dallas and come visit our office. We have a busy month ahead with lots of out of town investors flying in competing with the local investors. You mentioned your interested in foreign national financing…well we have that in place already with one of the local Texas commercial banks. Rates is 5.75% with a 30% down payment. Being able to leverage certainly opens more opportunities for investors. You also mentioned vacancy…..we have well over 500 homes under management and average a vacancy of 2-3% overall.
We also offer a few choices for accommodation where you get our corporate discount.kylermrice wrote:Wow, people just can't get enough of Atlanta. I'll be interested how it pans out for everybody down the road.Me too, we know the lemons will be flipped to the uneducated investor, this is already happening.
Its yield driven.
WI
My aim is similar to others here cash flow and longer term growth on solid properties.
Good Aim
Probably the most outstanding aspect of this forum is the heated discussions from different perspectives of the same topic, the depth of knowledge that is displayed is impressive.
You should have seen some of our past heated discussions, lol.
Enter a young Kyler on his way to 1000 doors who will relieve them of their worries for pennies in the dollar:)
I'm probably one of the youngest investors on here (that is doing well, no comment on the 23 year old with the horror stories in AZ) and I'll gladly keep taking the pennies on the dollar deals.
kylermrice wrote:Enter a young Kyler on his way to 1000 doors who will relieve them of their worries for pennies in the dollar:)I'm probably one of the youngest investors on here (that is doing well, no comment on the 23 year old with the horror stories in AZ) and I'll gladly keep taking the pennies on the dollar deals.I am sure she has horror stories in the myriad of other places she has ‘invested’ in as well – just doesn’t know about them yet:)
Right place, right age, right attitude, right skills – you are going to kill it Kyler, keep it up!!
Last time I invested in what other people called “high risk” property was in 2002 when I bought industrial and commercial in Brisbane, just about everyone I knew at the time said I was foolish , there was no capital growth on commercial and “I’ll loose my money”.
So I did my research, identified all the risk areas and asked myself how can I manage them, I bought general usage properties in fringe CBD locations, and tripled my money in eight years, as well as having strong positive cash flows from day one.
There was no substitute for research and footwork on the ground.
This is my plan macro to micro data, manage the risk by identifying it and thinking outside the box.
Obviously the main risks here are…
Vacancy
Vandalism
Tenant management
Asset value protection
Urban economics
Laws and bylaws including HOA’s
Foreclosure rates
Communication
Ability to act
My ignorance
Trust and litigation
Insurance
Oh… And let me add crime rate was just looking at East St Louis and wow not a place to go after dark!Just as I did on my commercials I intend to manage the obvious risks above in light of the expected returns.
Right now I am asking myself why single dwellings when owning a whole building of 19-20 apartments would address some of the issues… Any how it is case by case.
Steve
Lot's of places not to go to at night in the States. E St. Louie is one of the worst, but i would say any major US city has an area that u shouldn't go at night. I would consider apartments when the price of building is cheaper than buying for closers, but till then i keep adding SF to the portfolio. Was a post talking about land a while back, i have been buying lots with the intention of building cheap plexs.
I stay with if it makes good money and it's worth the risk, why not? I make 25 to 30 percent ROI on this problem areas, CASH FLOW BABY! I'll gladly take the ghetto
kylermrice wrote:I stay with if it makes good money and it's worth the risk, why not?kyler do think people don’t asses the risk properly and shy away from these areas without thinking, leaving them as investments for people who are prepared to look at them realistically and put some work in?
Have you had many issues with unpaid rent / eviction / property damage. If so how was it dealt with?
Steve
pc9: Keep asking questions – you are doing the right things. Your question above seems so innocent and so well meaning. In an Aussie sense its normal – But there is no way Kyler could answer it without telling you a lifetime of stories. The market is just soooo different. If you really want to learn the answer I would suggest you travel and meet up with Kyler and spend a fortnight with him dealing with the issues he deals with on a day to day basis. If it were me I would say something like ‘I’ll be your apprentice for 10 days unpaid and in return I will send you and your partner to LAS for a weekend as thank you’. That would be like getting a real estate masters degree in record time and an experience that has cost me millions and 10 years to learn….JMHO:) I don’t care if Kyler is 17yo – what he knows is stuff that Australians just do not and will never see. If you can watch an ‘expert’ deal with that – I promise you that nothing you come across in Oz will ever be a problem…
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