[quote user=SweetZone]Well said...from what I have seen Andy offer to this forum, he often carries good advice (backed by experience).
That is why I asked him about the specific experiences he has about
So
what insights are you referring to after making the specific
comment of doing homework, "especially regarding taxes"? - See more at:
http://myreinspace.com/public_forums/forums/public_forums/Real_Estate_Discussion/62-17378-152258-Canadians_Snap_Up_US_Properties.html#152258
buying U.S. property "especially regarding taxes". I think forum readers can learn a lot by the information that he has obtained "backed by experience".
Still waiting...
"Giving the benefit of the doubt..."
So
what insights are you referring to after making the specific
comment of doing homework, "especially regarding taxes"? - See more at:
http://myreinspace.com/public_forums/forums/public_forums/Real_Estate_Discussion/62-17378-152258-Canadians_Snap_Up_US_Properties.html#1522
[quote user=SweetZone]
Risk = reward
Bigger yield =~ bigger risks
It depends on an individual's definition of risk. Most individuals have a misguided definition of 'risk'. Most people see risk when prices drop. Most people see less risk when
prices rise. That's backwards. For better or worse, I'm not afflicted by this perception.
In 2010, I saw virtually no risk in investing in U.S. real estate; paying 5x gross rent for good properties in good neighbourhoods. So in 2010, only speaking for me, bigger yield = less risks.
[quote user=SweetZone]
I agree to go in with your eyes open...and appreciate this is an advanced strategy. If you have never owned a property nearby, you don't really know how to manage a property. Same with a real estate agent who focuses on investment property (you may not know how to direct one)...and a real estate lawyer...and a tax accountant who specializes in cross-border transactions...and a renovator who is fair, does good work, and treats tenants with respect.
No offense, but I've never knew how to manage a property before my investments in U.S. real estate and I still don't know how to manage a property. Only speaking for myself, that's not important.
I also didn't use a real estate agent who focuses on investment property. Why would I? I don't care about another investor's opinion. I just care about my own. It's also not their job. The job of my real estate agent is to check out properties/neighbourhoods that I tell them to check out. The numbers are my job.
With regards to a real estate lawyer or cross-border accountant. Well, those are a dime a dozen. I can Google for those. That's not important to me either.
And with regards to property management. I'm just looking for one with the contractor relationships as well as the other expertise that I need (leasing, evictions, cleaning, etc.)
With regards to treating tenants fairly: I treat them as fairly as they treat me.
[quote user=SweetZone]
No matter how good your team is, you are always 100% on the line and accountable for every decision that is made in your business. The less you know about any one of these skillsets, the greater you enhance your risk. The fresher the relationships, the harsher the learning curve.
I have absolutely zero knowledge of contracting work, property management, real estate law, cross-border accounting and everything else.
Again, speaking for myself, when the price of good properties in good neighbourhoods is 5x gross, there is virtually no risk.
Most people don't understand that, and then end up needing to have all this knowledge about contracting work, plumbing, property management, real estate law/evictions, lease agreements, cross-border accounting and all that time-consuming crap because they paid 10x gross.
If an investor pays 5x gross, all the expertise that I will ever need can be paid by the tenant. I neither have the time nor the inclination to learn all the stuff. My life is short and I live once. I collect the money, farm out the expertise, and live my life.
[quote user=SweetZone]
However, there are pros out there. It's not in my wheelhouse to invest overseas, but if it were I'd align myself with a pro who has already done it and give up some upside to learn how to do it. I would anticipate you would probably lose less money to real estate expert payout than would be sacrificed by inexperience. I'd then decide whether to continue portfolio growth from there.
I wouldn't do this.
This is just another objection that people throw up and call a 'reason' not to invest. They want somebody to hold their hand because they're not confident with their definition of risk nor are they confident of their calculations (which is basic arithmetic).
Just my two cents.
From direct experience.
[quote user=SweetZone]
Just my two cents. There is no right answer on where or how to invest. Many roads to the same destination!
True. I'm just not interested in the longer roads because my life is short and my time is my most precious commodity.