Real-Time Quote
US News
Page 1 of 3 | Next Page
Show Entire Article

When Investing in Foreclosures, Turn-Key Is Key
CNBC.com | September 27, 2011 | 11:16 AM EDT

It was just hitting 105 degrees in Dallas when Phillip Carter herded a group of Australian investors onto a bus and headed out to see some previously foreclosed properties. Cowboy to cowboy, Carter tells them the Dallas market is ripe for profit, as rental demand surges and rents head higher. The difference in his business model is that the cash is ready to flow, immediately.

"We buy foreclosures in bulk from the banks, REO's, and rehab them and sell them with property management," says Carter, who sells his properties complete with renters. "It's a turn-key package that provides cash flow."

Carter is promising 20 percent cash return on most of his investments, and his "Texas Cash Cow Investments" is just the business model his largely foreign clients want.

Travis Henley is hitting Kansas, Indianapolis, Memphis and Atlanta, ready to put the relative power of his Australian dollar to work against the still-crumbling US housing market. Carter's properties are just what he's looking for.

"We're looking for cash flow and maybe a bit of appreciation as well, but at this stage we're mainly looking at cash flow," says Henley.

Fellow Aussie, Damian Nagus, says the exchange rate alone will offer enough capital appreciation, but he's still looking to hold for a long time.

Page 1 of 3 | Next Page
Show Entire Article
Real-Time Quote
omniture pixel