US Detroit

Lol, Seems like it aye?!

 

I suppose my perspective is that there are multiple investors on this very forum that, 9ff the back of reading through threads on the US generally and then also on US states/cities specifically, I have reached out to, one on one via private messages. Through these exchanges I have learned that there are multiple Pchat members experiencing solid success in pockets of the continental United States.

 

Just be honest with answers, you seem to avoid the difficult questions.

That is the majority of criticism. I believe that Ms Clinton had the same problem and hid behind those words.

 

Unfortunately, I am not licensed to give advise on Taxation, Legal structure setup or Financial planning scenario for individual investor's cases. That is where the panel of experts come in.

Our network team of licensed affiliates (US Tax Accountant, AUS Tax accountant and AUS Financial Planner) whom I can introduce, can individually give advise and specific information to an investor's circumstances and whether it is a right fit to their financial goal.

I am just an investor (since 2007 in AU and 2011 in US) leading other investors to the US property Investment journey & cash flow positive scenarios.

All views/opinions are of general in nature only.
Please do your own Due Diligence and see if US property investing is a right fit for you and your cash flow. And speak to experts in the field where you need specific advice.
And we can help you with introductions.

 

I just got a quote today on the Detroit lending scenario on a 10-pack of mine:



Impressed with the LTV. All the previous Loans have been on the 65% basis.
Not too happy with the 6 months to break Yield Maintenance though.
But I can live with this I suppose.

Any thoughts from other US investors...

 

That's a great rate from what I have seen. The best I have secured in the past is 7.25% for foreign buyers.
@GentleChief, can you explain what the yield maintenance is, I am not familiar with that term or what it means. thanks

 

@GentleChief
Bala what is the (S + 3.4% ) on 5 year or 10 year swaps. Not familiar with this either. Is this an additional rate charged on a 5 or 10 year loan?

 

Hi Karina it is the current 5year and 10year money market USD swap rate.
5year swap rate is at 3.11%
The spread quoted on the swap rate is 3.40%
So 6.51% is the 5 year rate.
The amortization is over 360 months.
I am leaning towards a 5 year term to be able to refinance with higher vals?

 

6.51% sounds good Bala. I recently did a 5 year loan but at 7.25%. 50% lend with a private lender. My aim was to actually pay out the loan in the 5 years so I took a P&I loan on that one. Have about 4 years left on it and I will own the home outright with the last repayment.

 

Hi Karina,

P&I payments over 5 years with full amortization over 60 months would be quite heavy on the cash flow.
Good if you are managing it.

That is why I chose 360 month amortization.
Though the term is only 5 years.
Which means, I will still have 80-85% owing on the Principal.

 

Detroit the come back kid...… for those interested

It’s Not Too Late to Invest in Detroit, Say Entrepreneurs Dan Gilbert, Chris Ilitch – REBusinessOnline

 

You realise that foreclosures barely slowed while we leave in historically low interest environment. I can only imagine the numbers once interest rates climb up.

 

Is there anything decent for ~$40k? It would be a 1031 exchange, hence the low figure.

 

Yes @Gaka , there are properties in the 30-40k range. And they are fast disappearing in decent neighborhoods. Brick homes. 3 beds 2 baths. Most of the investors are keen on these ranges as they have the highest Yield impact to a portfolio.

You may wish to check out the inventory on Redfin, Zillow, Roofstock, Realwealth network or on my site below (in my signature).

 

Cheers,. thanks @GentleChief