Any Aussie Memphis investors out there?

[dagford]

Hi Guys

I attended a property seminar over the weekend in N.Z at which a presentation was given by a U.S company based in Memphis are selling properties cheaply to foreign investors.

The company currently do not have any clients here in NZ but the presenter mentioned to me that they do have some in Australia.

The offer involved buying properties for around US50k and then paying them off over just 5years.

Does anyone have any experiences on this they woiuld be willing to share?

(or even email me)

Thanks v much!

[Jumpin]

Does it sound too good to be true? (Then it probably is)

Why are they selling overseas? (Cos the local buyers can see the pitfalls)

How can you control an investment in the US? They know you can't so they hold all the aces.

Rule No.1 of property investment:

Avoid spruikers.

[Marc]

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Someone left a comment on the thread.

Cheers

Marc

[SwissTony]

Hey Jumpin,

No, it wasn't a clear case of a 'too good to be true deal'. The guy came across very well in fact. And I got the impression others thought so too.
What I should have mentioned was that this particular deal requires you to come up with a 50% deposit. So its not for everyone...

Why are they selling overseas? (Cos the local buyers can see the pitfalls)

from what I understand they are certainly also selling within the US also.

How can you control an investment in the US?

if you lost your tenants, then yes you would be feeling a little powerless.

But I'm still planning to investigate this further. I expect that the continuation of foreclosures over there means that there no immediate urgency to get in on this.

[Jumpin]

I wasn't specifically stating anything - just asking some pointed questions. If you believe you can answer those to your satisfaction then go ahead.
I would add though that buying cheap does not guarantee profit. We see all the time how various sectors of the US market are down, but what are the prospects of a revival in the next few years? Also what is cheap - what is the true current market value of the property? A 50% discount means it was selling at twice the price 3 years ago, so the cheap price could actually be current market. I wouldn't mind betting you could do some homework on the internet, travel to the the US for a few days and buy a place all cheaper than going through a company. My knowledge of the rental market in the US is non-existant, so I would be doing a whole heap of research there as well if it were me (and I'm sure you will).

Losing tenants is only one aspect which presumably could be dealt with by employing a good PM.

What are the fees - does the company get a finders fee or ongoing management fee?
Good luck anyhow