Header Ad Module

Collapse

Announcement

Collapse
No announcement yet.

What do you think about buying property in the US

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • #16
    Hi IP Global,

    I'm not clear on how that post adds value to this discussion, or why you copied and pasted some of your post's content from another website without siting the source...?

    http://www.cityofjerseycity.com/about.aspx -- end of the 3rd paragraph (although to your credit, you did edit it to remove Lehman Brothers, since the original content was written in 2007 before Lehman's financial collapse...)

    Michael

    http://www.kickstartcashflow.com | up to 25% Net Cash Flow - 100% Turn Key
    Last edited by CanucKiwi; 10-11-2010, 12:29 PM.

    Comment


    • #17
      Hi Michael

      My post does have relevance to the topic "What do you think about buying property in the US" as it explains which areas we view at the best in the US for property investment.

      I was not claiming the information was written by myself, I was unaware I needed to reference a source which I will do from now on.

      I hope I have not created the wrong impression as I joined this website to provide value to its members.

      IP Global

      Comment


      • #18
        There are many incredible opportunities this down market has created. That said, I think the more critical question is "how should you invest?"

        If you could pick the best two predicators of an investment's success what would they be?

        I would choose track record & incentives - give the right manager/promotor the right incentives.

        Who is the right manager/promotor? Someone who has a proven track record in a specific niche investment arena and I trust after having met them. It is that simple.

        What are the right incentives?

        If you did compensate the promotor before the investment created profits, what incentives would you be giving that promotor?

        An investment in which you pay fees, profits and costs from the initial investment (i.e. before the investment creates any profits) is called "front loading".

        How much does a "front loaded" investment have to make just so the investor can break even?

        It is my opinion, and I think just good common sense, that an investor should always evaluate:

        1) How much front loading is built into an investment? Keep in mind that promotors use very "creative" and often very deceptive names and accounting methods to hide those front loaded fees. That is one of the biggest challenges of reading and digging through legalese laden information to even get to what the real fees are.

        2) How exactly does the promotor get compensated? Taking a monthly percentage of managed funds does give the promotor the incentives to keep the investors happy over the long term but it provides an immediate incentive to sell more investments irrespective of performance.

        3) What is the promotor's track record? If you can't get direct and substantiated answers to this question, what is that telling you?

        An ideal investment would have a promotor that has a very strong proven track record and a investment structure that compensates subject to performance.

        Comment


        • #19
          Timing is everything! Everyone was investing when cap rates were 6% and they were borrowing at 9% plus!!! It was the "greater fool method of investing" - everyone thought the market would just keep going up regardless of the fundamental economics of the deal.

          Now properties can be purchased at incredible yields and most people are scared. They just witnessed a major collapse and most were no sophisticated to understand why.

          The question is not whether or not to invest. So long as the economics make sense - and they haven't made this much sense since I began investing in 1983 - the more critical question is how to invest.

          If you could pick the best two predicators of an investment's success what would they be?

          I would choose track record & incentives - give the right manager/promotor the right incentives.

          Who is the right manager/promotor? Someone who has a proven track record in a specific niche investment arena and I trust after having met them. It is that simple.

          What are the right incentives?

          If you did compensate the promotor before the investment created profits, what incentives would you be giving that promotor?

          An investment in which you pay fees, profits and costs from the initial investment (i.e. before the investment creates any profits) is called "front loading".

          How much does a "front loaded" investment have to make just so the investor can break even?

          It is my opinion, and I think just good common sense, that an investor should always evaluate:

          1) How much front loading is built into an investment? Keep in mind that promotors use very "creative" and often very deceptive names and accounting methods to hide those front loaded fees. That is one of the biggest challenges of reading and digging through legalese laden information to even get to what the real fees are.

          2) How exactly does the promotor get compensated? Taking a monthly percentage of managed funds does give the promotor the incentives to keep the investors happy over the long term but it provides an immediate incentive to sell more investments irrespective of performance.

          3) What is the promotor's track record? If you can't get direct and substantiated answers to this question, what is that telling you?

          An ideal investment would have a promotor that has a very strong proven track record and a investment structure that compensates subject to performance.

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

          Comment


          • #20
            Timing is very important when you are deciding whether to buy a house or not. I think you should strongly consider buying because sellers might be desperate to sell and to keep buyers happy.

            Comment


            • #21
              Do you get a free gun with each purchase?
              Probably more useful than usual cheap bottle of plonk from the agent...
              The three most harmful addictions are heroin, carbohydrates and a monthly salary - Fred Wilson.

              Comment


              • #22
                I agree with those who have mentioned that timing is important. If timing is not perfect, you might end up paying more for the property and get very little return.

                Comment


                • #23
                  If I had to choose two criteria to decide how and where to invest - I would choose someone to invest with someone who has a flawless long term perfect track record (that might be yourself) and I'd make very certain that person has all the incentives to perform - i.e. pay me, the investor first, before they realize any profits what-so-ever.

                  Something to think about...

                  Comment


                  • #24
                    SilentPartner is correct. Those that say they have done plenty of deals but cannot prove it with legitimate references are the first point to think about when dealing with US companies.

                    I have found being as transparent as possible and open honest communication throughout every deal is key to long term working relationships.

                    I wanted to share the latest list of most affordable cities by a great US economist Harry Dent Jr. He identified 10 markets right now that are considered the most affordable communities in the US right now:
                    #1. Atlanta
                    #2. Indianapolis
                    #3. Rochester
                    #4. Cincinnati
                    #5. Cleveland
                    #6. Detroit
                    #7. Buffalo
                    #8. Las Vegas
                    #9. St. Louis
                    #10. Dallas

                    Just food for thought when considering US investing cities.

                    Comment


                    • #25
                      Investing in to the USA

                      I Hope you find this helpful and informative:



                      Its the downturns and fluctuations in the global economy that produce such great opportunities for investors.


                      Florida’s real estate decline has fuelled a “Mini Boom” for international investors. Foreign buyers are now thought to account for as much as 70% of transactions on the distressed markets which has been flooded with foreclosures and discounted developments over the past 2 years.
                      Personally I have seen many buyers from Canada, South Africa, UK, Argentina, UAE, Hong Kong, Singapore and most recently Australia taking advantage of the weak US Dollar and 70% pricing reduction. It is thought that the market has hit rock bottom and the international property buyers will revive the Florida housing market for the current year.


                      For all those with an investment budget, now is the prime time to move your monies offshore and in to this distressed markets of the USA to capitalise not just from rental income but capital appreciation in 5 to 10 years.



                      There are less and less bank owned properties now as consortium groups and hedge funds are taking advantage of the distressed market that sustain the pricing in Florida. Sales are closing on a day to day basis and the demand for property in Florida is pretty much limitless.
                      A House or a Condominium?


                      I get asked this question on a daily basis and it really comes down to what type of investor you are. From a personal perspective, I prefer Condominiums as they are easily managed, rented, maintained and often they come with plentiful amenities including pools, tennis courts, gyms which add to long term investment value.


                      As an overseas investor, security and returns should be at the forefront of your criteria, with condominiums, the entrance to the developments are often gated and guarded and the returns (Assuming you’ve done your homework) should be around the 9 to 11% area NET.



                      Houses are a good alternative, some as cheap as condominiums but with increased area mass comes increased maintenance costs. Yields can be in the region of 14%+ NET but if the roof cracks and needs major repair (for example) this could see your entire years yield absorbed by maintenance costs and in my view the risk of owning a house overseas that isn’t managed, secured and maintained is far greater than owning a condominium.


                      Owning a condo in the USA is fairly straight forward, there are no stipulations or implications on Title, property in the USA can be purchased 100% freehold. Keys can be exchanged in a month and typically you would look to hold these for 5 to 10 years.



                      Currently the foreclosed market is a cash buyers market but that isn’t to say that the banks won’t regain confidence to lend against these again because when they do, house prices will rise and investors will be inundated with options. Refinancing pulling out equity in to another investment, capitalising from appreciated rents, gaining from the increased USD strength or simply selling on for 3 times as much as you paid for it.


                      In time, I feel investors will kick themselves for not owning when the market was prime in one of the best markets in the world.


                      Source and more USA Related articles are available on:



                      http://www.property-investors.co.nz/...-in-to-the-usa

                      I hope you find this helpful.
                      New Zealand's #1 Marketplace for Property Investors & Sellers!
                      FREE Access to HOT Property Deals
                      CLICK HERE FOR MORE INFO.

                      Comment


                      • #26
                        Most US cities are affordable. It is the big 5 you need to watch out for.
                        1. Diverse and strong Employment
                        2. Positive Population Growth
                        3. Quality long standing Property Management
                        4. No Weather extreme areas
                        5. Buy well under current valuation

                        Comment


                        • #27
                          So how is Phoenix holding up to these Dean (that name always scares me- I think of Phoenix companies)
                          I noticed it was missing from the post from SDIR expert.
                          I guess their #6 Detroit is not a good fit !
                          Last edited by Keithw; 19-03-2011, 01:56 PM.
                          Food.Gems.ILS

                          Comment


                          • #28
                            Phoenix is a huge market with up to 1800 foreclosures a day so you have to be an expert to survive in there. Plenty of people making good money in there but far more variable than Memphis or Pittsburg.
                            LOT of institutional investors on the ground there so stiff competition too.
                            The affordability stat is a bit of a red herring in the USA, there are cheap properties everywhere. Based on my research and local experts advice only 2 out of the ten on the above list would fit my criteria as "safe" investment markets.

                            Comment


                            • #29
                              The Devil is in the Details...

                              sdiraexpert, thanks for your comment. Interesting list of the most affordable communities. That said, choosing a good investment possibly within one of those communities requires a lot more work. Honestly, I don't know how it could be done from afar.

                              My partner and I just spent a week evaluating 3 different communities in Michigan. We've narrowed it down to one of those three communities and now we'll be spending another week evaluating specific neighborhoods, properties, school systems, rental agents, contractors, etc.

                              And then, once an investment is chosen and made, the details of properly managing it is where the rubber again meets to road.

                              The devil is in the details...

                              Comment


                              • #30
                                Why Michigan Silent, terrible weather, declining population and no employment. Why is it even on your list??

                                Comment

                                Working...
                                X