How I increased my income

Discussion in 'Investment Strategy' started by MTR, 14th Dec, 2017.

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  1. MTR

    MTR Well-Known Member

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    Not quite sure what you mean by this??
     
  2. KinG3o0o

    KinG3o0o Well-Known Member

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    he means if there something that someone said its difficult to do, he sees it as an opportunity to make money.

    back to this US investing thing.. just look at MTR investment in short term since i read this post i think he/she bought 4-5 properties avg 150k each and at 8-10% return.. so total only 600k - 700k (including cost and tax etc) for 9% return on avg.. not that risky considering in australia you pay same amount for one property..

    if u look at it from a macro view.. her atlanta property investment is not bad.. infact pretty good. maybe because i am all for oversea investing hahaha.

    some of us that i know hunts in asia/sea.. same same but different. i think people need to see that aus is such a small country by economy and population. dont just concentrate in australia..

    i think is risky in both..but i wanna make a point that in both the usa and oz markets.. the shares has outshine the property market.. if u know what your doing
     
    Last edited: 1st Feb, 2018
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  3. MTR

    MTR Well-Known Member

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    Averaging around $85,000 per property purchase at the moment.
    I don't see US market I am playing in as high risk at all. As long as you buy the right product in the right location.


    Fun and games.
     
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  4. DrunkSailor

    DrunkSailor Well-Known Member

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    looking at it from a very broad perspective, 90% of people, including spruikers, are calling this the top of the Sydney/Melbourne market whilst from what I've gather, the US is at the midway point of a boom. So Sydneymelb has to be very high risk at this point when you're paying 500k for an apartment in Punchbowl when you can get a house in Miami for that. I'm not seeing the logic behind dumping large money in the Sydney/Melb market right now (which you have to do). But the US market looks like it definitely has a lot potential left in it.

    I might be wrong though, is Sydney much better than Miami and New York?
     
  5. KinG3o0o

    KinG3o0o Well-Known Member

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    nvm been to miami,, only lived in NY and LA/SF.

    tell you the truth.. NY or "NYC" & SF its as expensive as sydney.. buy a property in manhattan or hamptons etc etc ?? sorry mate not for the average joe. not even the top 1%.. more like the top 0.1%. and really NY stinks and its dirty af, uber overpopulated but. its got a great vibe/culture etc.. i like it.. but its definitely not for everyone.

    SF is much more comparison like sydney.. but again.. price price price.. if your starting your job in a big pharma.. starting pay $90k usd... big tech ? $175k usd easy.. and your renting. why ? 1bed loft apartment is $1.5m usd.. and u still think sydney is expensive ?

    so no.. sydney is not better that miami, ny or sf or america.. orange and apples.
     
  6. MTR

    MTR Well-Known Member

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    I wont speak for all markets but prices in Atlanta have lots of steam IMO, we are round 25-30% off the last boom/bust cycle 2007.

    There are around 10,000 people moving to Atlanta every month.
    There are many States in US booming, the important factor is getting entry level right, no point buying if you do not have cash flow. New York for example would be tough, and you would not want to be buying in suburbs like Rochester, we know what happened to investors here and it was not good.

    I have never seen such low inventory in Atlanta at the moment, its very difficult to source quality properties, this is a double edged sword... driving prices further north. Lets see what happens over the next few months... hoping to source a few more, patience
     
  7. Karina

    Karina Well-Known Member

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    Worst I have seen it in terms of stock availability, there is so little for sale under 100k right now. We closed on a townhome for a client a few months ago for 65k. One just listed in the same subdivision for 95k and under contract within 5 days. Prices are moving very quickly right now.
     
  8. MTR

    MTR Well-Known Member

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    Yes everything is moving fast
    Got my eye on one off market
    The last was purchased off market, if it hits market multiple offers a given

    I reckon by end of next year the current prices will be non existent
     
  9. MTR

    MTR Well-Known Member

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    Now the game has changed.

    I will be leveraging in USA, finance at 5.5% interest/principal 30 year loan. Penalties apply if I pay off account within 4 years. I am currently sourcing finance so it has not yet been approved, but I am confident I will meet the criteria.
    I will start with leveraging a few properties and see how it pans out.

    This is the first time I have considered leveraging in US, probably should have done this much earlier. This will give me the ability to buy up, lender will also finance new property purchase, all I need to do is provide deposit.

    I think a very good strategy when markets are strong/rising.

    Have now bedded the last 3 purchases.... now to keep sourcing and perhaps look at other markets. Atlanta is proving to be a tough gig, as supply shrinks and property prices continue to rise.

    MTR:)
     
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  10. Lacrim

    Lacrim Well-Known Member

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    So why are major cities like say, Atlanta so cheap in comparison? I mean its not even remotely in the ballpark. I know its not on the East/West Coast but still, people talking about houses < $100K etc?
     
  11. MTR

    MTR Well-Known Member

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    You can buy multi million dollar homes in Atlanta
    Same in Florida, NY
     
    Last edited: 9th Feb, 2018
  12. virhlpool

    virhlpool Well-Known Member

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    It is only for someone who has a lot of cash, who can travel to the US with/without current job, who can have a trustworthy international accountant and who has already some properties in Aussie land OR some new investor with only a couple of properties but decent loan eligibility with Australian banks can also think of this route?
     
  13. MTR

    MTR Well-Known Member

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    Yes, in part you are correct.
    You need to access equity in Oz to start with or have the cash. There are many markets in USA at lower entry levels that are rising.

    Finding suitable accountant, PM etc. comes down to networking and lots of homework. Its taken some tweaking to get this right.

    Travelling to US to view markets is very important.

    MTR:)
     
  14. Ardi

    Ardi Well-Known Member

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    Is the US travel deductible?
     
  15. Indifference

    Indifference Well-Known Member

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    Really? Only US citizens can source loans? Hmmm....

    I'm not a US citizen, but have a US credit rating, bank account, credit card etc....
     
  16. MTR

    MTR Well-Known Member

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    yes
     
  17. MTR

    MTR Well-Known Member

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    Perhaps 2 years ago? I was not too keen on product available, things have changed, new product on the table.

    As a foreigner I can source finance at attractive rates, but it is an equity release so they access equity from my properties in US.

    Also when I buy new properties they will refinance these at 65% LVR

    Also Gentle Chief posted something on 80 lenders in USA. You may want to view this.
     
  18. RajP

    RajP Member

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    @MTR , its been great reading about your success in the US. Well done!
    I am in the initial stages of my research in looking to buy an investment property in the US.
    What are your thoughts on using a buyers agent to purchase for those that are unable to travel to the US & inspect the property directly. I have a looked at one in Sydney (WhereGroup) that source positive cash flow properties for their clients. Their fees is based on the indicative returns (16-20% pa) & starts with $16,500 aud. I have emailed Karina from select american properties (you had mentioned her in another forum) as well & waiting for a response. I am wondering whether to play it safe & use an agent or go about it myself
     
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  19. Excalibur1

    Excalibur1 Well-Known Member

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    Wowwww that is huge fee when you consider the value of the property!!!
    So if they get you 100k property you pay them 16k?? Is this standard?? Might as well book 8 return trips for that and do inspections yourself and build networks there!

    Just saw their website and it looks like they are wholesalers.... personally stayed away from them here in Aus and if I was investing overseas i would do the same...

    Keep to hear what @MTR thinks of these?
     
  20. RajP

    RajP Member

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    Their fees are based on the potential gross returns on the property rather than the price. So, for returns between 14-20%, the fee is $16,500 aud & for anything above 20%, it is $19,800. It did sound quite steep to me but I wasn't sure if it was the norm as I haven't engaged a buyer's agent before.