• Login:
Welcome, Register Here
follow PropertyTalk on facebook follow PropertyTalk on twitter MobilizeMail follow PropertyTalk on LinkedIn follow PropertyTalk on RSS

Latest Threads/Videos


News and Views

Most Active - Last 30 Days


Deals and What's On banner
Page 2 of 3 FirstFirst 1 2 3 LastLast
Results 11 to 20 of 24
  1. #11

    Default

    In 2005 I shut down my real estate investment company. My reasoning was quite simple.

    On paper people were "saying" they were getting 12% cap rates - but they over estimated income and under estimated expenses. The reality was they were buying at cap rates of 6% to 7% for relatively management intensive properties. People were borrowing money at 9% plus.

    At the same time people were qualifying for loans with banks for single family home purchases, that allocated 35% plus of their income to paying the artificially low interest rates that would sure adjust upward. The generally accepted underwriting guidelines is that housing expenses shouldn't exceed 25% of family income.

    These were the facts. I believe they were self apparent to anyone who was in the business. Who was at fault? Who cares. I am an entrepreneur - when the game is obviously stacked against me I sit out.

    Mark Andrew Small
    investments so consistent & profitable - they're boring...

  2. #12
    Join Date
    Sep 2009
    Posts
    90

    Default

    with growing expenses and lower return, i think it is best to stop investing and wait for thing to get better.

  3. #13
    Join Date
    May 2008
    Location
    Torbay, Auckland
    Posts
    3,176

    Default

    Sounds like a good time to be buying doesnt it.

  4. #14

    Default

    People are naturally afraid to buy when there are bargains.

    People are naturally greedy and reluctant to sell when prices are beyond inflated.

    My Dad's freshman marketing professor said in his opening address, "the masses are asses, if you get this, you can skip the rest of this class."

  5. #15
    Join Date
    Jan 2008
    Location
    North Shore, Auckland
    Posts
    1,081

    Default

    Quote Originally Posted by SilentPartner View Post
    People are naturally afraid to buy when there are bargains.
    Try "banks are naturally afraid to help out the buyers when there are bargains to be had"

  6. #16

    Default

    What many people miss are that no one can time the market perfectly. And you don't have to time the market perfectly. If you can buy at a price that allows you to hold the property long term and make a great yield - that is a great time to buy. And when someone wants to buy that property at a price that is ridiculous, you then have a choice to sell.

    But beware - at the time it is best to buy, there is always a panic/fear/naysayer/the sky is falling attitude. And the at the best time to sell there is always a greedy unrealistic expectation that the markets will go up for ever.

    If you can remove emotions and let cap rates be your "blind" instrumentation - you can then focus on buying the right properties, at the right price and managing them effectively.

  7. #17

    Default

    [QUOTE=SilentPartner;242842]What many people miss are that no one can time the market perfectly. And you don't have to time the market perfectly. If you can buy at a price that allows you to hold the property long term and make a great yield - that is a great time to buy. And when someone wants to buy that property at a price that is ridiculous, you then have a choice to sell.

    But beware - at the time it is best to buy, there is always a panic/fear/naysayer/the sky is falling attitude. And the at the best time to sell there is always a greedy unrealistic expectation that the markets will go up for ever.


    This is very true we are buying in the USA ..for cash flow right now....Appreciation is speculation if and when it comes back. I feel most are wrong. I don't see 5 years to golden days. I see a mess for a bit longer here in the USA ...I am 38 years old and I expect that when I turn 48 things should be cleaning it self up.Again this is speculation. Real estate ( leave your emotions at home again this is not a business for the faint of heart) there is alot of stress and what if's that can and will go wrong with in this business.


    At the same time a great time to buy...

    sincerely A
    Alex Franks
    alexfranks2002@yahoo.com

  8. #18
    Join Date
    Aug 2006
    Posts
    413

    Default Great Time To Buy

    All: Morgan Stanley published their report "Housing 2.0 - The New Rental Paradigm" late October. They recommended to their clients single family residential housing as the highest yielding asset class currently available.

    They were not afraid to talk about appreciation ON TOP OF good cash flow at true net yields between 8 and 12%. That is not an income capitalization rate but a true net yield. Morgan Stanley points out that if you buy at wholesale and the current wholesale sales price is decoupled from the retail rent rates, so there is a significant appreciation opportunity in price normalization when it occurs estimated at between 30 and 60% over the next five years on top of positive cash flow.

    Already in cash flow markets like Memphis, Phoenix and Atlanta well located A grade wholesale rentals are nearly impossible to find at less than retail sales prices. Now B grade rentals are beginning to appreciate.

    This is a story of two markets: Retail house sales are not seeing much appreciation although Five Star neighborhoods (as scored by Where To Live Books USA, in cooperation with Barbican Publishing Auckland) are seeing some single digit appreciation. Wholesale homes that are being bought between 40 and 60% of retail as performing rentals are as valuable as a retail house. The house does not care! However the next buyer, (another investor or future owner occupier) will pay considerably more. This is very reasonable and predictable appreciation considering that because of relatively unusual circumstances this home was bought well off the market price.

    The danger with foreigners buying US property are the shonky operators that add a 20,000 to 50,000 bump to the sales price. We have seen others sell at customary rates and full disclosure. Guaranteed, if the Australian or NZ (*or anywhere for that matter) sales operation does not disclose the property address for available properties they are "bumping the price" and screwing the investors. Asking price and real rent rates for any specific American house address are readily available on the internet. RentRange.com.

    We publish Personal Real Estate Investor Magazine as the largest newsstand publication in the US. We have many responsible clients who understand foreign portfolio management, and we understand who many of the bad guys are who hurt our industry.

    God Bless and Great Investing
    Andrew Waite
    Publisher
    Last edited by cube; 18-12-2011 at 12:20 PM. Reason: Remove links

  9. #19

    Default

    There is a fair post. Curious but why would you all buy with out seeing the properties or visiting the USA..I am at a loss when I hear the words .Don't rely on rent range not always that accurate. Zillow is more up to date.Also has the sold homes in the area. Rentals and properties for sale. Better to get an idea of current market.

    Don't care for Phoenix , to far for me .Love Memphis but don't invest in that market. Atlanta and Charlotte for me.

    Love to see you magazine..


    Alex

    PS I will say one thing people need to keep in mind most of these house require rehab any where from $5k to $15k ( in my markets)so do take that in mind. Then add in these are turnkey properties ...Fixed and ready to go..
    Last edited by Perry; 18-12-2011 at 02:25 PM.

  10. #20

    Default

    We have personally invested and continue to invest in Memphis and Atlanta. At the moment, we are focusing more on the Atlanta market though as we see more upsides with this market in the near term. Inventory have been depleting (short sales, foreclosed, ROE properties, etc). Investors (large and small) are bidding up prices of these homes. There are still some great deals to be bought but it's getting harder to find. Once the window of opportunity to invest in Atlanta is gone, we can always go back to buy more in Memphis. Also, have been doing some serious research in Texas and Florida, but will not make any move until perhaps next year.


 

Thread Information

Users Browsing this Thread

There are currently 1 users browsing this thread. (0 members and 1 guests)

Similar Threads

  1. Replies: 9
    Last Post: 28-09-2011, 06:13 PM
  2. Is the real estate boom cooling off?
    By muppet in forum Regions News (Euro)
    Replies: 1
    Last Post: 03-03-2009, 02:12 PM
  3. Akira Mori's Real Estate Riches Retreat in Japan Credit Squeeze
    By muppet in forum Property Investment (Asia)
    Replies: 0
    Last Post: 10-04-2008, 12:23 AM
  4. China's building boom becomes a frenzy
    By muppet in forum Regions News (Asia)
    Replies: 1
    Last Post: 19-10-2005, 10:13 PM
  5. Kiyosaki turns cautious on buying real estate
    By sarahk in forum Property Investment (USA)
    Replies: 0
    Last Post: 05-08-2005, 01:17 PM

Tags for this Thread

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •