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Geremy is from Sydney, Australia. He worked as a management consultant, which brought him to the US in 2006. He met his wife here, got married and now he’s not going home.
It’s difficult to get cash flow on property in Australia. Property in the big cities is too expensive and the rest of the country is sparsely populated. There’s simply more opportunity for investors here.
Several Australian fellows came over at the same time as Geremy and all are real estate investors. They work separately and specialize in different asset classes. Geremy specializes in single-family homes.
He’s focusing on San Antonio but keeps his eyes and ears open for other markets where real estate is appreciating at significant rates.
Geremy had a bad experience with low-end rentals. There were tenant and maintenance problems, and he sold all of the homes.
Now he invests in houses with ARV of $140,000 to $180,000. This price point draws much better tenants and fewer headaches.
The standard return on investment is 5.5% to 6% net. He backs out property taxes, property management fee, repairs, a contingency for vacancies, etc. Cash on cash return is more like 10%.
Geremy owns the construction piece, the property management piece, everything involved with a deal. He thinks the San Antonio market at his price point shows no sign of slowing down.
For marketing, Geremy uses direct mail, radio, online marketing and some niche lists like foreclosures. He also does ‘walking around’ marketing. He sticks notes on doors that say “I want to buy your house.”
For selling turnkey properties, he goes to investors he’s worked with before, friends and friends of friends. He would like to expand his pool of buyers and is looking for ways to accomplish that.
Listen and Learn:
- Turnkey means the house is ready for tenants to move into, which makes landlords (buyers) happy.
- Since Geremy stays involved in his deals, he’s careful not to inflate earning projections to buyers.
- Joe’s found turnkey buyers by pulling a list of out-of-state investors in a given market.
- Another pool of buyers is people with self-directed IRAs/401Ks.
Mentioned in this episode:
- Joe’s podcasts on iTunes: RealEstateInvestingMasteryPodcast
- Joe’s free book: WLObook.com
- Geremy’s (and mates’) book: 10,000 Miles To The American Dream
- Property return analysis for investors: DealCheck
- Book recommendation: Reverse Wholesaling
- Geremy’s company website: AmericanTurnkeyProperties.com
- Other Australian investors/co-authors: RealEstateMates.com
- Go to iTunes or wherever you access the podcast and leave a review
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