Commercial Property 2 - Atlanta

Firs time walked in to building today

 

@Be Developer

Can't wait to go back to the states, I'll probably PM you before I go

 

Great, look forward to showing you around and some of our deals.

 

Valuation came back at $1.3 Million

Our purchase price is $805k + 50K = $855K.

Paper equity = $445,000

Current Net annual income = $238,000


All Numbers are in USD!

 

That's a new record for yield from properties I've been told of. 27.8% yield on cost. 29.6% if you exclude your purchasing expenses which would be recoverable against capital gain. Amazing.

 

We also 50 States in US should improve the odds of finding some little gems

 

Hi

Congratulations on this deal.

Regards,

alicudi

 

Thanks alicudi, we just settled/closed the deal.

We have a few options up our sleeve with this one, as there is significant upside due to purchasing at 40% below market value.

Got to love the US market, its a totally different beast to Australia.

 

What the f... what's missing from the picture?

Why wasn't there a reserve / vendor bid?

Phenomenal result. Congratulations. Very jealous!

 

Absolutely incredible deal @Be Developer

What's the next best deal in terms of net yield out of the deals you've secured in the US?

 

@Be Developer

What are some of the highlights out of the 18+ property acquisitions you've done in the US?

I'd also like to hear what you consider to be a 'very good' net yield that you or others have been able to secure in the large markets such as Atlanta.

 

Prior to buying had full disclose including property/asset report, comprehensive building report.

We had this one on the radar for a while, there were 3 bidders, we did expect this property to go over $1M+ mark, from comparable sales around 1.3-1.5M and the valuation came in at $1.3M.

I guess we got lucky with this one, not always the case. We have been involved in many auctions, we set a target buy price that makes sense, otherwise we walk. Our aim with all our properties is to buy under market value.

Auctions don't work the same way as in Australia, different rules apply.

 

Appreciate the kind words.

There have been a few highlights along the way which I posted in this thread, my journey so far.

There have also been some major sacrifices made, including being away from my partner/family and friends. I am hoping to build my home/office in USA some time early next year.

Hi from Be Developer

USA:

18 Property Acquisition to the date (1 every 3 week) Mix bag of Deve site/ Commercial/Apartments/Buy n Hold

41% Return on Investment on our latest residetnal project Link here:
www.propertychat.com.au/community/threads/atlanta-ga-renovation-no-2.15785/page-5#post-397134

80% + Capital Growth on Few of our Residential Land Hold: (we have 5 block here) see link below on one of them.

Our land;
995 Farrington Pl SE, Atlanta, GA 30315 | Zillow

Next block sold for:
232 Farrington Ave Se, Atlanta, GA 30315 - Recently Sold Land & Sold Properties - realtor.com®

29% ROI per annum (set to drop at 19%mid next year) on Commercial property with 40% Below Market Valuation . Link
Commercial Property 2 - Atlanta

Latest Press Release:
Be Developer group continues its buying spree | South Carolina Magazine

Personal:

Property:
Completed both Melbourne sites. sold most of IP in Australia.

Education:
Still learning american market and industry specific lingo.

Transition:

Transition 1; AUS 2 USA

Transition from playing in to JUST Australian market to USA has been amazing and to be honest, its been an eye opener.

52 states- 104 major city to play with.

Once we settle in to US - next stop is UK.

Transition 2: Clients Vs Partners

With our USA venture - We abolished "Clients - Operator" model and streamlined into Partner model. Our partners owns piece of Be Developer Group. it keeps us on track to deliver bumper profits and it provides crystal clear transparency. .It also helps us to keep our trading margin tad bit higher.

Transition 3: from being just Property Developer 2 just Focusing on ROI for GROUP

It seems as i personally move up to the ladder of business world, my life is just becoming binary. Just being focused on numbers- rest is just a Noise that i don't want to hear but have to deal with it on daily basis. this how i see numbers now:


17% body fat
120 heart rate
16 hours work a day
100% shopping spree
Double digit ROI. for investors and partners
120% venturing in 2 new things
100% Noise cancellation on Negativity
1 Goal

All above knowing

End result could be

0 = fail

Or

1 = success

P.S Luckily it's been 1 for all above numbers so far !!



Where does Be Developer go from here?

The plan is to continue sourcing great development sites / commercial/resi deals in USA. stay on course for Investment/De Investment on our US portfolio.

Venture into acquiring established mid cap companies with view of value add or spin off!


Thank you:
Chirag

 

Hi,

Good job. One of my friends bought 76 apartments in 2 buildings for $500K. The deals in US are great compared to Australia. Just have to do the homework.

We bought 3x 3 bedroom apartments at auction for only $60K - original price rd $150K each. These deals do not happen in Oz.

 

Congratulations on your deal.

We are finding some great deals.

USA market is clawing back.

Commercial deals with the right numbers generally have lots of competition, if we place enough offers on the table we eventually secure something

 

Wondering if you could PM me and we can exchange a few emails on the topic?

 

Looks like an awesome one and still some great deals over there!
I'm curious to know aside from the sounds of it not being able to get finance and the efforts of managing the properties from Aus/tax implications etc what are the challenges you face?

As they say generally with greater returns comes greater risk or with great risk comes greater returns

 

Many challenges.

Here are a few - Sourcing good deals in competitive market

Building prices continuing to rise.

US culture a different beast to Australian way of doing things, can be far more ruthless.