YokoTsuno
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Is This Bogus

Mon Oct 08, 2012 11:02 am

A while ago we had these commercials on TV here selling USA properties. These stopped for several months but are back again. These links are related to it.

http://m.youtube.com/#/watch?v=viI5K...top_uri=%2Fwatch%3Fv%3DviI5KsvV7p8
http://www.directpropertygroup.com/usa/

5 or 6 properties for just $200.000. For that price you get your interior done here if you're not to fussy that is.

Is this bogus?
 
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casinterest
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RE: Is This Bogus

Mon Oct 08, 2012 12:44 pm

Quoting YokoTsuno (Thread starter):

Is this bogus?

The fact that my virus checker flags the site.... Yes.
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hOMSaR
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RE: Is This Bogus

Mon Oct 08, 2012 12:45 pm

The properties probably aren't all that great, but depending on where you go, you probably could get five or six "properties" for $200K.

In Detroit, during the absolute nadir of the financial crisis a few years ago, some houses could be had for under $1000.

I don't know where in New York State these properties are located, but if they're in a depressed area, I could definitely see it. Odds are they don't look as nice as those in the photos on the Youtube video (couldn't access the other link).
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falstaff
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RE: Is This Bogus

Mon Oct 08, 2012 2:58 pm

Quoting HOMsAR (Reply 2):
In Detroit, during the absolute nadir of the financial crisis a few years ago, some houses could be had for under $1000.

I have seen houses sell for $400 in Detroit. There is an upcoming auction for tax foreclosed properties in Wayne County and the bidding starts at $500. There will likely be hundreds of houses selling for that much and some won't even get the minimum bid.

I live over by DTW and I have seen houses in my neighborhood go for less than $5000 with some ready to move in to houses going for $15,000. The house across the street from me sold for $135,000 in 2003, but sold in 2010 for $21,000. My house is would likely bring around $20,000, which is up from a year ago.

Quoting YokoTsuno (Thread starter):
A while ago we had these commercials on TV here selling USA properties. These stopped for several months but are back again. These links are related to it.

I know a couple of years ago there were bus tours around the Detroit area filled with foreign investors looking at vacant property. I even saw a few advertised in multiple languages.
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PHX787
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RE: Is This Bogus

Mon Oct 08, 2012 5:32 pm

Quoting YokoTsuno (Thread starter):
5 or 6 properties for just $200.000. For that price you get your interior done here if you're not to fussy that is.

Well depends on what the property entails. In Ohio, where I'm from, a lot costs about $70,000 a piece depending on the location of the lot. It can be higher or lower. My house is probably worth about $240,000 because of the school district, what my house actually is, and our location. If they're selling these properties en masse for 200K that sounds too good to be true....and........

Quoting casinterest (Reply 1):
The fact that my virus checker flags the site.... Yes.

Yup fake
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YokoTsuno
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RE: Is This Bogus

Mon Oct 08, 2012 7:51 pm

Quoting falstaff (Reply 3):
The house across the street from me sold for $135,000 in 2003, but sold in 2010 for $21,000.

That's only $120,000 for 6. So we're overcharged here .

If they are so cheap how come the rent is so high? In this website they claim all these properties are tenanted for $600 -800.
 
txjim
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RE: Is This Bogus

Mon Oct 08, 2012 8:27 pm

If you want to see real estate information, try www.zillow.com , it lists homes for sale, recent sales and other transation information. As a test prior to listing here, I tried Detroit, MI as the location and the first 6 listings displayed were for under $10,000 each. All depends on the neighborhood, plenty of properties available in Detroit that are much nicer and higher.

For $600 rent, I would expect the house to be worth $70,000 or so and probably not in a great area.
 
Geezer
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RE: Is This Bogus

Mon Oct 08, 2012 9:44 pm

I rarely open up links that contain videos, (because they "eat up" my monthly "allotment" of band-width), and where I live, satellite internet is the "lesser of three evils";

You're discussing real estate values here..........(which is far too big a topic to tackle on a forum)

Having said that......TV advertising is ALSO a BIG subject, (and it is ALWAYS very expensive), but unfortunately, it's also just as prone to "pie-in-the-sky" investment schemes as any other form of advertising. The old adage about "location" is true in many kinds of investing, but it's probably more critical in real estate than in any other form of investing.

But as important as "location" is........it's only part of the story; "Location" is probably one of the easier things to determine, relative to whether "such & such" property is a "great deal" or not; the "killer" to determine.....is "timing";

The absolute BEST time to "buy" investment property, is when everyone else is "selling".........(but that's only half of that story); sure, you can always find "great prices" on property to buy, (like right now, while "times" are "tough"), but you will also need to have the ability to "hang on" (think: make mortgage payments and pay property taxes) until "times" improve, and prices go UP, and THEN you can make your "killing" ! ( as long as you have the ability to "hang on" till times improve) (most people don't have that ability)

About TV advertising of real estate............of all the different ways to "find" property to buy (for investment), TV adverts are at the very bottom of the list ! Don't even get excited about "deals" advertised on TV ! ( If I tried to explain "why", I'd have to write a book, and right now, I'm reading several books and I don't have time to write one.)

Charley
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compensateme
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RE: Is This Bogus

Mon Oct 08, 2012 9:54 pm

Quoting YokoTsuno (Reply 5):
If they are so cheap how come the rent is so high? In this website they claim all these properties are tenanted for $600 -800.

Because in addition to purchasing the house, you're responsible for maintaining it, paying property taxes and select utilities associated with it (for example, water & sewage). In the city of Detroit, non-homestead taxes (in Michigan and elsewhere in the USA, you receive a tax break on a property you own & reside in, called the homestead tax) run $3000-$5000 a year, even on properties selling for a few dollars. Thus, in order to break even, you need to get your rental established as Section 8 (government subsidy for low-income residents) and charge $600 or more, even on a dirt-cheap house. You also have to hope that LaKisha pays her rent - it likely won't be on-time as owning the latest iPhone from Sprint -- or, more commonly, the latest smartphone from MetroPCS -- will probably supersede paying rent.

That said, if one were to purchase these properties and endure the hassles of ownership, the investment will undoubtedly pay off in the future. Property values are on the rise, and even a few thousand will add up if you buy in bulk (which many investors are doing).

[Edited 2012-10-08 14:54:51]
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fat-g4
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RE: Is This Bogus

Mon Oct 08, 2012 11:29 pm

Quoting txjim (Reply 6):

For $600 in California you can't even rent a box!
 
compensateme
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RE: Is This Bogus

Mon Oct 08, 2012 11:42 pm

Quoting fat-g4 (Reply 9):
For $600 in California you can't even rent a box!

Well, when you allow 100 illegal immigrants to share the same, small apartment...
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crj900lr
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RE: Is This Bogus

Tue Oct 09, 2012 1:29 am

Let me guess Eric Estrada is the spoksperson for this?
 
YokoTsuno
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RE: Is This Bogus

Tue Oct 09, 2012 2:52 am

Quoting CompensateMe (Reply 8):
In the city of Detroit, non-homestead taxes (in Michigan and elsewhere in the USA, you receive a tax break on a property you own & reside in, called the homestead tax) run $3000-$5000 a year, even on properties selling for a few dollars.

I didn't know property tax was that high in the US. That's almost half the rent  
 
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casinterest
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RE: Is This Bogus

Tue Oct 09, 2012 3:09 am

Quoting YokoTsuno (Reply 12):
I didn't know property tax was that high in the US. That's almost half the rent

Rules will vary as these are subject to county and city rates .

Here in NC, the taxes vary by county and city. Raleigh NC, currently runs around .92% in the city. (.53 county, .38 city) .

So a 200,000 dollar home will run you $1840 in taxes.

Just make sure you actually visit the properties and familrize yourself with all local laws on taxes . Investing from afar will leave you in a bit of limbo. I can easily see 200,000 in properties for 6 in the right place. However you need to be comfortable with the investments.
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compensateme
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RE: Is This Bogus

Tue Oct 09, 2012 4:19 am

Quoting YokoTsuno (Reply 12):
I didn't know property tax was that high in the US. That's almost half the rent  

Property taxes vary from city to city in the USA. People pay higher taxes on a home worth $20K-$40K in the city of Detroit than many do for a $200K-$400K home in the suburbs.
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YokoTsuno
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RE: Is This Bogus

Tue Oct 09, 2012 6:22 am

Quoting CompensateMe (Reply 14):
Property taxes vary from city to city in the USA. People pay higher taxes on a home worth $20K-$40K in the city of Detroit than many do for a $200K-$400K home in the suburbs.

I am beginning to get the full picture.

If I could convince my sugar dad to buy this condominium at the advertised rip-off price   of US$ 12,000 (Estimated value 2.8m$) according to what I can find on the NYC website, the annual property tax would be US$33,000. (14.5% of 8% of taxable value) excluding a one-off title deed registration fee I presume?

No wonder nobody is queuing up to get these.

http://www.zillow.com/homedetails/60...New-York-NY-10069/2128726594_zpid/
 
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falstaff
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RE: Is This Bogus

Tue Oct 09, 2012 3:12 pm

Quoting txjim (Reply 6):
For $600 rent, I would expect the house to be worth $70,000 or so and probably not in a great area

You can live in a decent suburb of Detroit for that kind of money.

Quoting YokoTsuno (Reply 12):
I didn't know property tax was that high in the US. That's almost half the rent

Depends were you are. My taxes are $1200 a year on a house that is worth about $20,000. I bought the house for $87,000 and the taxes were higher at time.

Quoting CompensateMe (Reply 14):
Property taxes vary from city to city in the USA. People pay higher taxes on a home worth $20K-$40K in the city of Detroit than many do for a $200K-$400K home in the suburbs

That is very true. Detroit has the highest property tax rate in the state and the least amount of services.

Regardless of how cheap the property was you need to charge enough rent to cover the expenses and to make money. A buddy of mine recently sold a house in Detroit for the above average sum of $7000. The guy he sold it to planed to rent it out. Just because it was cheap doesn't mean the guy will rent it for $100 a month because that won't even pay the tax bill and the upkeep on the building. Likely the renter will not pay the water bill either and that will end up on the tax bill.
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falstaff
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RE: Is This Bogus

Tue Oct 09, 2012 3:21 pm

Here is the link for Wayne County tax forclosure auction. As you will see most of the properties start with a bid of $500 and many of the properties, in Detroit, will sell for that. Judging by past events there will be many properties that will not sell.

http://www.co.wayne.mi.us/5143.htm
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compensateme
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RE: Is This Bogus

Wed Oct 10, 2012 1:54 am

If somebody could buy that property in NYC for the advertised $12,000, I'm certain they wouldn't mind paying the property taxes, no matter what they may be  . However, the $12,000 list price is actually the monthly price of what the owner is attempting to rent it out for. So you won't pay $33,000 or anything else in property taxes, but you will pay nearly $200K a year in rent.

Quoting YokoTsuno (Reply 15):
I am beginning to get the full picture.

If I could convince my sugar dad to buy this condominium at the advertised rip-off price   of US$ 12,000 (Estimated value 2.8m$) according to what I can find on the NYC website, the annual property tax would be US$33,000. (14.5% of 8% of taxable value) excluding a one-off title deed registration fee I presume?

No wonder nobody is queuing up to get these.
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YokoTsuno
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RE: Is This Bogus

Wed Oct 10, 2012 2:47 am

Quoting CompensateMe (Reply 18):
However, the $12,000 list price is actually the monthly price of what the owner is attempting to rent it out for. So you won't pay $33,000 or anything else in property taxes, but you will pay nearly $200K a year in rent.

I am missing something here? For Sale means For Rent in the US. I knew our command of English wasn't all that good .
 
compensateme
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RE: Is This Bogus

Wed Oct 10, 2012 3:21 am

Quoting YokoTsuno (Reply 19):
I am missing something here? For Sale means For Rent in the US. I knew our command of English wasn't all that good .

LOL! Zillow just sources information (in other words, people don't post anything directly to Zillow) and sometimes it's not entirely accurate.
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YokoTsuno
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RE: Is This Bogus

Wed Oct 10, 2012 4:14 am

Quoting CompensateMe (Reply 20):
LOL! Zillow just sources information (in other words, people don't post anything directly to Zillow) and sometimes it's not entirely accurate.

Jeeeez, Truly dissapointed. $12000/month is way off my turf. Yesterday night I had a dream, my wife and I watching Sullenberger the 2nd landing an A380 into the Hudson River from our brand new condominium. When something sounds too good to be true it usually is   Let's see on Zillow if they have something for me in Flint.
 
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falstaff
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RE: Is This Bogus

Wed Oct 10, 2012 3:49 pm

Quoting YokoTsuno (Reply 21):
Let's see on Zillow if they have something for me in Flint

Flint may be even more pitiful than Detroit when it comes to home prices. If you move to Highland Park you might just be able to get something for free, just watch out for arsonists and robbers.
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