Exciting WPIA event - US Properties

[donna]

It's a shame there's just a 'salesman' turning up. It would be more worthwhile to the WPIA members and visitors if there could a balance of views rather than a one horse race.

It's easy as a sales person to present some 'downside' and counter it with lots of 'upside' - only as Dean has said - he does not own any of these US properties - so it's hardly showing he has confidence in the product. His motivation is his fee.

cheers,

Donna

[essence]

I'm always very wary of these "Let me tell you how good this deal is" - whatever that deal may be.

If these deals in America are so good, why aren't fellow American's buying them???

It sounds like the Queensland Apartment Scam all over again ie, we can't sell them to Aussies, so we'll off-load them to Kiwis.

Why are the Property Associations allowing themselves to be dragged into this sales pitch?? Shouldn't they be keeping a neutral stance???

If one is so keen on buying these deals, shouldn't one be going to U.S.A. and researching them yourself??

BE CAREFUL PEOPLE, BE VERY CAREFUL.

[halfempty]

I wouldn't want to be seen as pro Letfus or pro US property in any way......but

I know a few people taking advantage of the US dollar to buy cars and boats from the US because they are cheap and the locals just can't afford to keep them.

And if the PIA's are going to stop anyone speaking who has a vested interest or a product to sell the meetings are going to get lonely and the fees will be thousands per year.
Don't we have face the fact that theres an industry here that makes sales and it's up to us as free, democratic and over 18 to decide if want to be a part of it?

[donna]

I'd rather see the PIA meetings like Q & A where there are representatives from different viewpoints and that way the value to the meeting attendees is a more balanced discussion - not a free sales fest.

cheers,

Donna

[halfempty]

Good idea Donna, and I've been involved in doing just that for investors in my local PIA.

But what do we do with the other 11 meetings?

The Admittedly not Apples for Apples comparison would be keeping this website going year after year without advertising revenue.

[speights boy]

But Halfempty.... where would I then learn the secrets of how to become a Forex Millionaire, for only 1 hour per day?

[Rosco]

Brief feedback from event

Hi Dean,

Just wanted to say thank you for your presentation last night.

For other's, here is a few quick points.

Great to see why it is worth having a look at this market, and why it is worthwhile for investors to investigate further. Main difference with US is the purchase price (where would you buy a rental in NZ for $60k?), and the yields are good so it can actually be cashflow positive and pay itself off over a reasonable time(under 10 years).

Seems investors would need $30k cash approximately to give this a go, which would pay for half of property and then there is different options to organise finance (not as simple as you would think!).

One of the really interesting points I got from the seminar was that US banks and lenders are non recourse. So if you run away and don't pay, they don't have a guarantee and can't chase you. They just take over the property and ruin your US credit rating! Not sure if this would affect your NZ rating too, but very different to NZ where guarantee's are compulsory.

Sorry I'm a bit short of time and might try to post some more later

Ross

[donna]

One of the really interesting points I got from the seminar was that US banks and lenders are non recourse. So if you run away and don't pay, they don't have a guarantee and can't chase you. They just take over the property and ruin your US credit rating! Not sure if this would affect your NZ rating too, but very different to NZ where guarantee's are compulsory.



Ross

Hi Ross,

You actually make that sound like its an attractive option - shame on you mate and shame on Dean too.

Cheers,

Donna

[Rosco]

Hi Ross,

You actually make that sound like its an attractive option - shame on you mate and shame on Dean too.

Cheers,

Donna

What I said was "Great to see why it is worth having a look at this market, and why it is worthwhile for investors to investigate further"

Also that one of the really interesting points was .........

How is this shame on me? I found this point interesting, and I think a lot of other investors would too. I didn't say that investors should run away from their debts.

Ross

[donna]

Yep you're just the messenger and I shouldn't shoot the messenger my apologies to you.

Have you thought how communication like that may be taken on board by people viewing your posts given your status as a professional Ross?

cheers,

Donna

[PeterEmpowerEd]

Wake up and smell the coffee

Have you thought how communication like that may be taken on board by people viewing your posts given your status as a professional Ross?

Well, given this earlier comment from (ahem) me:

Smells like get-rich-quick to me, Ross.
Your enthusiastic epithets ('really helpful information', 'great benefit to investors', etc) are part of the sales machine for those USA 'bargain' properties in my opinion.
If you honestly don't see that, you're being naive, with respect.

I'd say it's a conscious choice, Donna.

- P

[kapitibeanman]

I think you are showing symptoms of being a sly dog, Rosco, and I agree with Donna and PeterEmpowerEd.

Your contributions to this particular thread are causing me to reassess posts you made on the thread about Flatfee.

[Rosco]

I give up. I'm obviously not getting my point or information across very well, or get my point across as I intended. This will be my final post on this thread or the other US Property thread.

I'm not suggesting that investors rush out to buy US Properties. I'm not suggesting that anyone buys a US Property through Massive Action or any other promotor.

In my personal opinion, if investors are looking at buying investment properties in the future and they are looking for cashflow, then they should investigate and gather some more knowledge and information about US Properties as it is possible to obtain a much better yield. It is also possible to obtain a US Property that can repay your cash input and your loan in under 10 years, leaving you with a debt free investment.

I would advise any investor to be extremely careful about investing away from area's that they know well. I know of investors from the North Island who purchased in Invercargill without seeing the property, and it ended up being right next to the sewerage ponds or plant. Obviously the US is a lot further away than Invercargill, so it is very difficult to become familiar with the area's, and these kind of risks are very real.
The US also has different rules and regulations, different common practices, different currency and different terms that make investing in property in the US different to NZ.

Two of the major risks as I see them are
1) rent - making sure there is a tenant, they actually pay and that the rent is realistic and sustainable
2) The US housing market/econonmy - What will happen to US house prices, the US dollar, unemployment and the general ecomony is a big guessing game. It is possible that the US dollar continues to devalue, and it is possible that the US house prices continue to decrease. If the US dollar was to devalue obviously any return coming back to NZ could be a lot smaller!

If I was personally going to invest in the US, it would be with $30,000 that I could afford to lose. I also wouldn't try to "get rich quick", or "get rich overnight", instead I would only look at 1-3 properties and maybe be able to build up to an investment in the US over 10 years that was giving me $20k passive income per year. At this stage I'm still sitting on the fence and learning more.

As previously stated I have never spoken to Dean (on phone or in person - including last night, where I didn't get a chance to talk to him). I'm not promoting Dean, Massive Action or their product. I'm merely interested in learning more about the US property market and rental investment opportunities. I have never received, (or are due to receive) any commissions or fees from Dean or Massive Action. I do not have any relationship with Dean (apart from a PM today asking for his email address so that I can get some more information), so I don't think I am biased, or in favour of Dean/Massive Action. I have nothing to gain from suggesting that property investors find out more about US Properties, except for small accounting fees (note US tax return would normally be done by US accountant, so only small work required to bring in US details into NZ tax return) if a client of ours was to purchase a US Property, and to my knowledge we have never been referred a client from Dean/Massive Action.


I hope this clarrifies my position

Ross

[kapitibeanman]

Ross, I think you are a very good communicator.