My property journey – USA property

So, I welcome another property to my USA portfolio, a few more on the horizon, so watch this space.

I am continuing on with the same strategy, a mix of some high positive cash flow with some potential good capital growth options.

This is another Memphis one; market has moved in the last 6 months, around 20%.  Lots of demand amongst investors for this area. So, not quite as sharp as my first 2, but still coming in at 20% Gross yield.

By using leverage (I have a P&I 7 year loan), in year 7 I will be returning 28% cash on cash return excluding purchase fees and 21% including all fees, plus I will own the house outright. In the meantime, it will be returning 6.5% cash flow + principal pay off approx 11% return) per year.

Short video below for you to see the property:

Click here to start your own US Property Portfolio

About Mark Taylor….

My property journey – USA Property

USA Property Spruikers

As is expected with any emerging market with good opportunities, you are going to get your share of spruikers and fly by nighters.

SMH article on USA property Spruikers

So, my advice is to tread carefully.  You need to build a team around you who can help you enter this market whilst minimising risk.

Have a good look into who you are dealing with the and their values.  Make sure you have someone looking out for your needs and your money!!

Of course, you need to be aware that the media does like to make a fanfare of things, but in my experience there are some sketchy operators.  Having said this, don’t let the media hype stop you exploring this opportunity, but tread carefully.

Mark

• To start your own USA property portfolio, go to:

http://www.keystosuccessclub.com/property/usa-property

About Mark Taylor….

USA Property Spruikers

Positive Cashflow Properties – Latest Memphis Deals

To start your own USA property portfolio, go to:

http://www.keystosuccessclub.com/property/usa-property

About Mark Taylor….

Positive Cashflow Properties – Latest Memphis Deals

The Cons of Investing in Residential Property

By Stephen McClatchie

At times during the economic cycle there is pressure on rental yields especially during times of tightening rental markets. Rental yields may be as low as 2 or 3% and you may end up with a serious cashflow deficit. It may take some time (sometimes many years) for the rent to increase.

In some instances, where minimal equity is available the residential property is illiquid. This means that if you need cash fast, you cannot sell off a bedroom or two. A house or a unit may be slow to sell if the market is sluggish.

The turnover of tenants in your residential property may be higher than you desire 

About Stephen McClatchie….

 The Cons of Investing in Residential Property

The Pros of Investing in Residential Property

By Stephen McClatchie

For most Real Estate investors, residential is the natural place to begin investing.

Historically, the residential property market is more stable than the share or bond markets. Owner occupiers and investors are less likely to panic and rush off and sell their property as equity investors would do in the share market.

Stability in the market provides SECURITY to the investor.

With the right choice, a property can provide solid capital growth. If you can gain solid capital growth, you can only continue to grow as a great Real Estate Investor.

Not only that, there is constant demand for quality rental properties, providing you have invested in the right areas.

The residential property market is one most people can relate to, understand and readily access information about. If Real Estate Investors buy rental property in the area in which they live, again, they can physically monitor the local market knowledge and they can decide/determine which is the best up-and-coming street or suburb in which to buy.

If you decide to buy an investment property interstate or in a regional area your reliance on a quality property manager becomes more important to ensure that you are maximising your properties potential.

An OUTSTANDING benefit to buying residential property is that some financial institutions will let you borrow the FULL amount and even add the cost of the purchase onto the loan depending on your current financial situation. At the very least you will be able to borrow a large percentage of the properties purchase price compared to other asset classes such as commercial or industrial real estate.

What this means to you is that less money is required from your own pocket while you get to use more of other people’s money to use as leverage to create wealth.

About Stephen McClatchie….

The Pros of Investing in Residential Property