US Detroit - turning the bend

what about lawyers???

 

Who does a buyer see ?

We need a lawyer to buy to go thru the paperwork and conveyancing

Maybe better to get a Lawyer in Detroit who has property experience

Maybe even a Real Estate valuer to go over it too, is that ok

 

don't feed.

 

Well Brady if u read the forum MTR was saying in another thread that some buyers arent doing DD with buying from another company without even knowing the address of the IP
So some arent doing their DD are they .?

 

@Brady this is a brilliant question by Darlo, well thought out and worded. The answer is not obvious at all, stop being a troll.

 

Interesting way to look at it, and agreed that if you could find a way to keep the vacancy low and the tenants paying, then the cashflow will pay off the capital invested in the property pretty quickly.

I guess my question to Gentlechief would be, how successful he has been with this strategy on most of his 40+ detroit properties?

Out of curiousity, what price ranges are you buying in the other markets Karina given the yields are lower than Detroit?

The US is certainly a market worthwhile looking at given the yields, though it seems that having a trusted team on the ground is make or break.

 

Lots of these one-stop shops hope you don’t !!

They do it all for you - sourcing, maintenance, management etc.

No finance so no 3rd opinions - you just need the cash.

 

I know silly but would you believe some silly people paying silly money and no address... true... as I said imagine buying a property in Oz and BA not disclosing address unless you pay BA fee. ... omg... hook line and sinker

Thanks Darlo

 

@Brady - I am only working with sophisticated investors who understand Property investing well and those with the desire for the best Yields & CG.

Secured this beauty @ 37K for one of our investor clients.
Great location. Safely, the rental should be about 750 - 800 per month.

 

Hi GC
Looks great
Can you share numbers?

MTR

 

Interesting how dark it is inside and yet they still chose dark carpets / flooring! Opportunity to fix though.

 

I'd say @ 5.5K before taxes, meaning @ 3.3K after taxes. so @8.25% net , based on 40K spent (37K + closing costs)

Post the numbers.....

 

I have it at 14% net, you dont have the experience, or understand the US tax systems and structures

You are niavely misleading this forum

my conclusion perhaps you are trying to poo poo this product as you are selling a product to your own US properties to your client base.

You should post your product? Are you feeling lucky

 

Dont try and insult me. You are wrong. It's that simple. And your own words prove it - see below.

The man himself claims that it looks like this...




You say 14% NET . I say "********" 5.5K "profits" from 40K spent will give you 14% GROSS, but it wont give you 14% NET unless you spend thousands setting up and running a complex legal and taxation structure and have enough children or family members with no other taxable income, to distribute 18.2K to, each.

So unless these are being presented as part of a legal and taxation structure, and all the costs and disclaimers around that are also being addressed, they need to be measured as stand alone vanilla properties, at least as a base/starting point. What individuals are able to do to improve their taxable outcomes thereafter is at their discretion. But surely you concede that at the most basic level there is a gaping 40% plus missing? ie 37% federal tax payable here ( or there) plus 4% + state taxes payable there.

Before you answer...






So take 40% + off the 5.5K profits- which are pre tax- and what does it leave you with? 3.3K

3.3K against 40K spent = 8.25%

My conclusion - the US cool aid brigade is still promoting a product with GROSS numbers rather than NET..... and its crazy...because 8% + is still a really good result ...so why all the BS and smoke and mirrors?

 

I'm interested to see how much these 'base level' structures cost to set up. I mean if the costs of having an LLC is $1k per year in the US, the US accountant charges $1k/year for your tax return etc, it starts to add up fast.

Super keen to learn more.

 

You underquoted the rent and it should actually be 12% net. hehe
not 8%.
I only buy in US with at least 10% net returns, I have been doing this successfully since 2011.

Whats your track record in US? Sorry Euro you may be a gun broker? I don't know, but you don't have the notches or track record in the US market. You just don't have the experience.

After you have purchased 20+ US properties and held them for a few years come back and give us your thoughts

I had a strong black coffee today....hehe

 

your numbers are way out
Set up $500-1000 set up first year only, and $100 per year after this

 

I dont care if its Istanbul or Beijing or Zurich. Anyone trying to pass off GROSS as NET is presenting misleading numbers

 

Thanks, they weren't intended to be real world estimates...

What about accounting fees etc?

Generally - Given that land is so cheap in the US, is there much higher risk of having a volatile market than say, in Australia (I'm generalising here, as there are so many markets within markets)

What's the best place to start learning? Biggerpockets?