- Joined
- Jun 11, 2008
- Messages
- 2
Hi all,
As the discussion about "Real Estate investing in the US," started by Jason Bagorio, died about 3 months ago, I would like to restart it with questions about a specific concept we have been trying.
We have been an RE investor in Southeat Florida (Miami-Ft. Lauderdale-Palm Beach) for about 15 years. As the loca market deteriorated and local invstors ran out of investment cash, we developed a new concept based on partnering with Australian RE specialists, as follows:
1. My compnay identifies the properties for purchase by foreign investors, using specific critera:
- properties at 20% below market value, to ensure excellent resale returns in 5-7 years; and
- gross earning from rent, before capital costs, of app. 5-6%
We also prepare the closing, supervise rehab if needed, manage and maitain it, and eventually, when time is right, prepare its sale.
2. The Australian team translates the information about the property and location into a lcoally familiar format and jargon, and use their credibility to illustrate and explain the benefits of investing in the US rental market at the present time, and support the investors locally with any required information or activity in the US.
Now we are in contact with European RE specialists, implementing the same concept, and the question has been on my mind for a while whether the same concept might work for Canadian investors.
It seems at least in theory that it should: a) overpriced local RE, peaking, which makes local RE investments much less attractive; c) low interest rates, especially in Canada and Euro-zone. All these enable a "double-play" on property and currency appreciation in 5-7 years, by the time to sell.
I would greatly appreciate your reactions to this. Should it work in Canada, what are the pitfalls, and how should I explore and pursue it?
Thanks and all the best!
As the discussion about "Real Estate investing in the US," started by Jason Bagorio, died about 3 months ago, I would like to restart it with questions about a specific concept we have been trying.
We have been an RE investor in Southeat Florida (Miami-Ft. Lauderdale-Palm Beach) for about 15 years. As the loca market deteriorated and local invstors ran out of investment cash, we developed a new concept based on partnering with Australian RE specialists, as follows:
1. My compnay identifies the properties for purchase by foreign investors, using specific critera:
- properties at 20% below market value, to ensure excellent resale returns in 5-7 years; and
- gross earning from rent, before capital costs, of app. 5-6%
We also prepare the closing, supervise rehab if needed, manage and maitain it, and eventually, when time is right, prepare its sale.
2. The Australian team translates the information about the property and location into a lcoally familiar format and jargon, and use their credibility to illustrate and explain the benefits of investing in the US rental market at the present time, and support the investors locally with any required information or activity in the US.
Now we are in contact with European RE specialists, implementing the same concept, and the question has been on my mind for a while whether the same concept might work for Canadian investors.
It seems at least in theory that it should: a) overpriced local RE, peaking, which makes local RE investments much less attractive; c) low interest rates, especially in Canada and Euro-zone. All these enable a "double-play" on property and currency appreciation in 5-7 years, by the time to sell.
I would greatly appreciate your reactions to this. Should it work in Canada, what are the pitfalls, and how should I explore and pursue it?
Thanks and all the best!