Clever or Crackers - INVESTMENT IN USA

[Sally-Ann]

My mum (Freedom 49) and I have something really exciting that we just cant keep to ourselves and where better to share than here with our fellow TLFers!

Being in the property business ourselves we are pretty well informed of the potential of the Turkish buy to let market. At the moment the best return anyone can hope for is 10% net. So what if I told you we have just come up with a deal which nets a 37% return...Yes, thats right, no typo...37% after tax and expenses!

However, this is not in Turkey, it's over in grand ol' USA. I have been doing some research for a good while on what to do with my savings. Mum normally puts hers in a high interest account here in Turkey and I was considering doing the same thing. Then I stumbled over some property listings for American homes and realised that I could easily afford to buy one there and rent it out for a decent profit.

So, in a nutshell, I have found a fabulous company who I trust for various reasons, and they have found me an amazing opportunity to buy not one, but two detached houses in New York State USA. I was originally planning on just buying one but then I told mum and she thought it was a good idea so we upped our budget a little and went in together.

No more worrying about the falling interest rates here in Turkey, now we can sit back, relax and watch the rent come in from our two detached houses! The tenants have been in their homes two and eight years and are settled with no plans to move. The properties are fully managed and well maintained, located on a pretty tree-lined avenue just a twenty minute drive from Lake Ontario. And after all our fees, taxes and other costs we are genuinely looking at a 37% net ROI! It's gobsmacking and I'm so excited I could squeal!!!!:95im:

 

[beachhhhhhh]

Re: Clever or crackers???

No snags?
Is anything in life that easy?
I don't think so; but the best of luck to you!

Mel.

 

[funlife]

Re: Clever or crackers???

Good luck to you ! But keep us informed of how it goes

 

[val2661]

Re: Clever or crackers???

Have you actually visited the USA and seen these properties? How did you go about the purchasing procedure? You could have been sold a picture! Like Mel I think there has to be a snag somewhere. Good luck with your new venture and please let us know how it goes.

Val

 

[Isa]

Re: Clever or crackers???

When something looks too good to be true normally is bcause it's not...
But hoppe this is not the case for u...
Good luck

 

[altinkum kev]

Re: Clever or crackers???

And along comes the hurricane and blows your dreams away.

 

[Yogi]

Re: Clever or crackers???

Potentially both clever and crackers.

Over the past few years property prices have plumetted in the States, since the beginning of the sub-prime mortgages debacle. A lot of American property has been repossesed and those that haven't have lost a lot of value.
I know a couple of people who have bought property in the States over the past few years with exactly the same intention as you, one of which it has all worked out for the other has lost a lot of money. I also know one person who bought a Villa in Florida 10 years ago and it is now worth substanstially less than what they paid for it in 2001!

As with any overseas property purchase you really need to do your homework and ideally visit the place. Beware, there are a lot of scammers out there! (in every Country). Hopefully, you won't have to worry though and it'll be a very clever move.

To be honest if I currently had the cash I would be looking at doing something similar.

In my opinion, there's only 2 things to do with money. Either spend it and enjoy it or use it to make more money. Having it sat in the bank earning single digit interest is pointless IMO. Your a long time dead!

 

[Sally-Ann]

Re: Clever or crackers???

Have you actually visited the USA and seen these properties? How did you go about the purchasing procedure? You could have been sold a picture! Like Mel I think there has to be a snag somewhere. Good luck with your new venture and please let us know how it goes.

Val

No Val, the whole point of doing this through the company I chose is that they deal specifically with foreign investors like me who have no interest (or time!) to go to the State in person.
The process works a lot like Turkey, you dont pay your money untill you have your deeds so I feel safe in that respect.

And along comes the hurricane and blows your dreams away.

Don't worry Kev, I was carefull not to invest more than I can afford to lose! I have plumped for an area where property prices over the last decade or so have pretty much flat-lined, I'm not expecting capital growth. The houses are just cash-cows.
I have bought at well under the market value so I can very easily sell them overnight at the same price next week or next year if necessary.
And yes, I have researched the housing market in my chosen area to within an inch of its life...I'm a New York State postcode officionado now!
As for it being too good to be true, a lot of investors are doing the same. You have to speculate to accumulate and I think you just have to be brave enough to believe!

 

[Duke]

Re: Clever or crackers???

Good Luck & I hope it turns out ok
Duke

 

[Tracey3]

Re: Clever or crackers???

I would be a little wary, but sounds like you have done your research, so all the best to you and your Mum.

 

[Expat2008]

Re: Clever or crackers???

Yes, as Sally is in the real estate business she would know about these things and I hope it works out!

 

[Tommie]

Re: Clever or crackers???

I have had a look at some of these deals for a while and I'm just a bit suspicious about them.

I just don't know enough about HUD to go ahead with them.
In my opinion, and I know nothing about the US, is that if the HUD program is withdrawn or cut down then you are in queer street.


Sally, if you are interested in 20% ROI in the UK then do PM me.

 

[alva5763]

Re: Clever or crackers???

Think a lot of people would be interested in 20% ROI. Can you tell?

 

[Tommie]

Re: Clever or crackers???

Think a lot of people would be interested in 20% ROI. Can you tell?

Please PM me.

 

[Sally-Ann]

Re: Clever or crackers???

I have had a look at some of these deals for a while and I'm just a bit suspicious about them.

I just don't know enough about HIPS to go ahead with them.
In my opinion, and I know nothing about the US, is that if the HIPS program is withdrawn or cut down then you are in queer street.


Sally, if you are interested in 20% ROI in the UK then do PM me.

But thats the problem Tommie, I dont have enough to buy in the UK. I have a flat in the UK which is bringing in about 15%.

For what we're buying these two houses for you couldn't get a garage in Britain!:wow:

 

[Peaceplant]

Re: Clever or crackers???

Why not? You only live once as they say.

I wouldn't knock anyone investing as long as they have protected themselves - unlike me and my hubby who still don't know if we have seen the last of the life savings we invested in Turkish property

If I had some capital I would take a trip over to Canada myself.

 

[Yogi]

Re: Clever or crackers???

if you are interested in 20% ROI in the UK then do PM me.

That's all very well but the initial investment in the UK would be huge compared to the initial investment in other parts of the World, as Sally-Ann has pointed out.

Property in the UK is massively overvalued, actually in most of Western Europe. That's one the reasons Turkey is/was so attractive to people, it's affordable. Likewise the US.

 

[Freedom 49]

Re: Clever or crackers???

And along comes the hurricane and blows your dreams away.

I think it's time 'Mum' put her two penneth in here.
This has once again brought out my 'No risk no fun', or 'No fun if it's too easy' attitude to life.
Early Sept. is when I go see my guy at YapıKredi and reinvest any cash that I feel I'm not going to need during the following 12 months.
Having been a TLF member since early this year it's been interesting to learn how other people make investments, and consequently I'm looking a little further affield than the 'Safety net' of YapıKredi.

Sally's done endless research, we're both extremely happy with what we've decided to do, and more importantly, happy with the agents that we are using.

I've never sold 'dreams' and I would never expect anyone to sell me one. I have no dreams. I'm a very down to earth, upfront person as anyone that knows me well would qualify.

Natural disasters happen everywhere.
Michael Fish in 1987. There will be no strong winds in that area tonight. Really??
Istanbul August 1999. 30.000 dead or unaccounted for after earthquake?
New Orleans, horrendous floods not too long ago? etc.

Money comes and money goes. If at the end of the day we've backed a rank outsider that falls at the first fence, neither Sally nor myself are going to die. If it goes according to plan, we'll see our outlay returned (after tax) by the end of 2014, in the meantime carrying on our regular work and lifestyle.

Meanwhile, back at the ranch, better get back to selling another property and feeding the street cats. :hippie:

 

[Pete&Mag]

Re: Clever or crackers???

But thats the problem Tommie, I dont have enough to buy in the UK. I have a flat in the UK which is bringing in about 15%.

For what we're buying these two houses for you couldn't get a garage in Britain!:wow:

You are doing very well at 15%. The average on property is 6%. I wish I could find something at 10%.

 

[Terry the Celt]

Re: Clever or crackers???

Good luck to you both
I looked at some properties in Detroit under a buy/rental scheme a year or two ago but properties are so depressed there following the collapse of its motor industry,I decided against it as they needed total refurbishment too.
Your properties sound in a far better area and better condition so give it a punt!!
Nothing ventured,nothing gained.
All the best