Singing Pig

I have been checking this out, its New York..... buffalo, rochester and niagara
there are a few companies offering houses claiming rental yields of 30% gross and 20% net
ajay ahuja's americas sourcing at http://www.ahuja.co.uk/home2  

and check http://www.cashflowandequity.com/property/index.cfm
and http://www.westernnewyorkpropertyinvestment.co.uk/property-i nvestments/property-for-sale.php

Love to hear from investors that have invested
Regards Yoda

Anyone got an opinion on this?

i'm really interested in these and have had a brief conversation with westernnewyork. The deals seem really good, apparently they used to work with various property clubs but now don't need to.......................

Hi,

I have just started investing in the USA but have decided to stay away from Buffalo, New York and the likes, due to advice received from a friend of mine in the USA. There are many other areas in the USA that offer BMV properties.

The way to get the best out of the USA IMHO, is through repossessed properties, which tend to be BMV for a start & in need of some refurbishment....also in better areas than Buffalo and New York!

When bought with cash, (need to be fast acting to get the deals) refurbished & then re-mortgaged at 80% LTV (I do not have a SSN - otherwise 85%) a tidy sum can be released to start over again.

But of course its a matter of having the cash up front, which I managed to do by releasing equity built up from my BTL's in U.K.

I am just in the process of buying a 2 unit duplex for $37.5K, with around $7K refurb costs, it is looking at being valued up to around $92k...proof will be in the pudding but if I get anywhere near that I will be happy.

Like properties in the same street having had refurbs already carried out are in that range.

Anyone else bought foreclosed properties in the USA before or is actually doing this right now? Would be interested in hearing from your experiences...I am still just starting out, but I'm hopeful it succeeds.

Cheers

Simon


 

Simes,

Thanks for sharing your experiences in the US market. Will be interested to hear how it proceeds.

How much are you able to do 'remotely' (I'm assuming that you are in the UK!), and how often do you need to visit the US? Are you able to find reliable traders, etc, remotely?

Thanks in advance. 

 

 

Simon

 Im interested in the USA from a cashflow point of view.

As discussed AJAY and others are promoting this strategy... and (for a tidy fee) they will show you how...

Ive always bought repo properties in the UK..... and would be interested to know how best to go about doing the same in the US and in which state...

 Can you offer any pointers?

 

Cheers

Paul

07970 572365

Hi,

I work with a colleague who has purchased two properties in Rochester, NY State. The first thing to say is, yes there is an opportunity to be had in NY State however.............please be very careful!!!!

The reason I say this is that investing in NY State (every state in the USA is different so I can't generalise for USA property investment) is very different to property investment in the UK. Whereas in the UK we would look at gross yield and then subtract costs such as letting agents, gas safety certs, insurance etc... there are different costs which a landlord is liable for in NY State that we are not liable for in England. The main cost is local taxes. In NY State, whether the property is let or not the landlord pays the local taxes. There are 3 local taxes and these can add up to $2,000+ per year. This can change a potential gross yield into a much lower net yield.

Another major issue in NY State is the letting agents or 'Property Management'. It is very difficult to find a good Property Manager. I have heard stories of repairs being undertaken that never happened and agents going AWOL and not returning calls etc.... As we are a long way away it is hard to just pop round to have a chat. However, saying that there are good Property Managers but they do have be found.

Please also be aware of other unusual things. These are things like roofs. In the UK we generally have tile or slate roofs that last for a long time. In NY State they tend to be roofs like you would have on your garden shed - i.e. sheets. Why, I hear you shout am I bothering to tell you about this? The reason is that they only last about 10 years and then have to be changed - this costs quite a lot and can wipe all of your profit out. Then there is shared utilites on duplexes etc..........

I'll stop now as I don't want to paint a totally negative picture. There are decent investments and ways of operating in NY State but 'Buyer Beware' has never been so important.

Regards, Fraser

Hi all,

Sorry I have taken so long to reply.

As I am just starting out in this I feel any experience I have is really minimal. 

The Duplex I have secured is taking a while to close which is a pain as it means my plan has slowed down dramatically, but I am hopeful within the next few weeks this will close and I can then proceed with the refurbishments.

The figure I have been quoted after refurb is quite astonishing, but as I said before if its anywhere near that figure I will be very happy.

When I get more details as to how things are moving on I can come back with some hints or tips that I pick up.

Cheers

Simon