ex Somersoft newbie to Prop Chat

Hi, I'm Mark from Sydney. Been around a while from the old days on Somersoft and amazed to still see some of the names are still very active like Rolf.

Been out of the Syd market for more than 10 years and have concentrated on Qld (Brisbane, Mackay and Toowoomba).

Brisbane property did virtually nothing for years, missed out on rezoning by just one house but completed a subdivision and managed to make it worthwhile in the end.

Still holding the place in Toowoomba which was a new property build.

Looking to get back into NSW (or maybe Perth) as can see the cheap money around is about to fuel another silly season.

My lessons learnt over the past 20 years.

- No Meriton
- No Navra
- No US Property

 

Hi, a few people here have done well over the years with US property.

How did it not work for you?

 

US has been a gravy train for me, I started buying in 2011, I still hold properties in this market.
Have had 500% growth, still rising and cash flow positive

 

Those who invested in the US and got in when the news was darkest have done very well. Many deals being spruiked a decade ago in Atlanta & Las Vegas have gone up ten-fold or even more when you consider the currency fluctuations in that time. I made decent gains in LA - more than I would had I put the money in Australia. But it wasn't always easy. I imagine those who invested in Buffalo or Detroit would be ahead....but not by much. The important thing to remember is the horse has bolted, can't do the same now. Nothing in the US is cheap these days.

As for the very charismatic Steve Navra - he was a favourite on Somersoft, as was Nathan Birch. Glad I gave them a miss. Navra is bankrupt, and protested to the bitter end he acted in good faith. Some say he has changed his name and moved on. Unsure about Birch who was promising 30% perannum back in 2009. I lost track of him when he was assaulted by Trump's security personnel back in the day. (It's all in the Somersoft archives). Never a dull moment.

 

You are very modest MTR. Your moves were masterful and you should be very proud. Just wondering...how many trips did you make to the US?. For me it's been four trips. A total of one year in the US.

 

Yes, US property had the potential for great returns with the currency fluctuation and capital gains (was around 1-1 when I bought in Atlanta). Unfortunately had a dud of a managing agent who let the tenants run wild riding motorbikes into the house for example, all the while telling me things were fine !

Managed to get out of it, but the hassle and stress of dealing with that was my lesson not to go too far outside your knowledge and comfort zones, especially when you have to trust an unknown on the other side of the world.

Steve was an amazing sales person and managed to con people way smarter than myself.

 

Thx
Its been a while, I think all up 6 trips now

 

I think Steve was promoting Florida

 

Yes, good point there. A few of us were conned by that charismatic person...

 

Wow, I just looked up my old US property... estimated value is around US$180K, bought it at US$60K in 2011 . ..... if it weren't for those crappy tenants with no respect for peoples property.

 

I have held upto 20 properties and I have seen it all the good, the bad and the ugly
My properties in Atlanta, larger homes hitting $230,000, I can see these will hit $300,000 - 2022

However cashflow only works if you can keep good tenants for 2 years minimum

Also when I was buying in 2011 I had more issues with tenants paying due to the crisis. Fast forward Many headquarters Fortune 500 have moved to Atlanta. similar stories happening in other states.. Arizona, Texas, Florida, Birmingham, Seattle, Kansas to name a few

 

Congratulations @MTR , show's what come be done by not throwing in the towel when it gets a bit tough. Did you buy through Top Rental Returns that were on Somersoft by any chance ?