Exciting WPIA event - US Properties

[speights boy]

Howdy Orkibi;

I notice on your website ..." Due to customer demand I have negotiated a number of house packages...."
These ones are in Ohio.

Did you negotiate these through Dean, or do you have your own separate contacts in the States?

[donna]

Watch out for 'property syndicates' flogging shares in US properties. A great way to scam $$ out of folk by selling shares so you can get a slice of the pie so to speak even if you can not afford a whole house! In my opinion this is just another way to scam Kiwis out of their $$ with smooth talk etc. Many of the newer properties (that look great up on the screen at a 'seminar') are falling apart. When left untenanted for a while they rot between the walls (nice!).

Basically I say do not trust anyone trying to flog US properties to you! If you want to give your $$ away - buy lottery tickets! Disclaimer.....I am not providing any financial advice of course.

Cheers,

Donna

[cube]

Basically I say do not trust anyone trying to flog US properties to you! If you want to give your $$ away - buy lottery tickets!

Cheers,

Donna

Sounds like financial advice to me Donna.

Are you appropriately registered?

[donna]

You mean it sounds like commonsense.

[speights boy]

I was interested in just how many people are clipping the ticket between the investor and the actual property.
Also, just what value each person is adding to the investment in order to justify their fee.

Perhaps Ross could ask in his quest "to learn a little more".


Another Warren Buffettism

"If you've been playing poker for half an hour and you still don't know who the patsy is,you're the patsy."

[Dean@Massiveaction]

Depends on the company Speights. With a genuine turnkey provider there is only them between the investor and the property. They buy in foreclosure, reno themselves and sell to investor. They all have to be licensed agents in the US to onsell so have a 3% fee built in to their price which they pay to a sales agent or other marketer.

There are different models where people are in my opinion shafting investors by adding huge margins onto cheap deals by actually buying the properties themselves and then onselling. They are common in Aussie and several are currently being investigated by ASIC. The most common areas for this nonsense that I have observed in Oz and Asia are Florida and Michigan.

A true cost plus turnkey provider should put a property into an investors hands at anything from 20 to 50% below current retail.

[speights boy]

There are different models where people are in my opinion shafting investors by adding huge margins onto cheap deals by actually buying the properties themselves and then onselling. They are common in Aussie and several are currently being investigated by ASIC.

Thanks Dean.

It will be interesting to see what type of companies the SFO has in their sights here.


SFO faces finco maze

McArley signalled the "direct property" sector would be the next hunting ground for investigators.

http://www.stuff.co.nz/business/industries/5036930/SFO-faces-finco-maze

[outspoken]

Depends on the company Speights. With a genuine turnkey provider there is only them between the investor and the property. They buy in foreclosure, reno themselves and sell to investor. They all have to be licensed agents in the US to onsell so have a 3% fee built in to their price which they pay to a sales agent or other marketer.

Dean, Do alot of these 'direct' guys add a margin as well as the 3% fee they have to pay to a sales agent or other marketer?

I realise that each situation will be differentb ut can you give us an example of what is a "huge" margin?

[Dean@Massiveaction]

Outspoken, in some markets like Florida where there are so many foreclosures I am aware of people buying condos for let's say 20K and selling them on at 50K. Plus in some cases charging large fees to teach people how to invest in the USA on top.

[donna]

So how did the event go Ross or another attendee? Was there lots of interest from the local PIs?

Cheers,

Donna

[Dean@Massiveaction]

it's not till later in the month Donna :-)

[komalley]

Hi there,
I am interested to know a bit more about investing in the US.
Is the speaker coming to Auckland by any chance?

Warmest regards,
Katherine

[donna]

read this thread Katherine for starters

Cheers,

Donna

[Rosco]

Looking forward to tomorrow night

I'm looking forward to hearing what Dean has to say about US properties.

In my opinion business and property is all about gathering information, and this is a great opportunity to gain some more knowledge on this topic.

I think it is good to be open minded and listen to a range of people about the topic, but also not to get sucked in to the hype and glammer of something.

Waikato Property Investors Association have Dean Letfus talking to us about the US residential property market. Dean will talk about the whys and hows of investing in the US residential property market, what he is investing in & some valuable information for anyone wanting to start investing here. Meet Wednesday night 15th June 7:00pm for a 7:30pm start at the Hamilton Workingmen's Club at The Pavillion.
Extra: This will cost $30.00 to enter for Non WPIA members
www.waikatopia.org.nz

[Rosco]

Hi Katherine,

As I mentioned in my email, it is probably best to PM Dean direct about Auckland events.

I would suggest you read the thread Donna has linked, and any other information you can get about US properties. I think it is important to gather information from a variety of sources, then make your own informed decision.

I personally don't know enough about the US property market to go either way, so I'm currently sitting on the fence and watching with interest!

Good luck

Ross