Looks like bolting time…or not
With all the media coverage of the current presidential campaign in 
the U.S., you’d think a large segment of the population will be ready to bolt depending on the outcome of the general election in November. How many celebrities and political pundits to date have made half-assed threats to leave the country should Donald Trump be elected president? There is no denying the more-than-implied threat to both national, and therefore, world economic stability should Trump succeed in his endeavor to gain the presidency, and then as he attempts to make good on many ludicrous economic “suggestions” he seems to come up with on a daily basis…
the U.S., you’d think a large segment of the population will be ready to bolt depending on the outcome of the general election in November. How many celebrities and political pundits to date have made half-assed threats to leave the country should Donald Trump be elected president? There is no denying the more-than-implied threat to both national, and therefore, world economic stability should Trump succeed in his endeavor to gain the presidency, and then as he attempts to make good on many ludicrous economic “suggestions” he seems to come up with on a daily basis…A very good property investment model
It’s times like these that taking a serious look at real estate overseas as an investment model may make some sense. And not simply for the
experienced investor. Consider how it may be a smart move to diversify your real estate holdings. While the knee-jerk response to buying real estate overseas might be “it’s too risky,” understand that property investments outside the U.S. should be thought of as part of a total portfolio of real estate holdings long term. In this way you can best diversify to offset the vagaries any one property (or set of properties) in one particular country (like the U.S.) may perform, based on events way outside your control (read: Donald Trump’s being anointed King, or some facsimile thereof.)
experienced investor. Consider how it may be a smart move to diversify your real estate holdings. While the knee-jerk response to buying real estate overseas might be “it’s too risky,” understand that property investments outside the U.S. should be thought of as part of a total portfolio of real estate holdings long term. In this way you can best diversify to offset the vagaries any one property (or set of properties) in one particular country (like the U.S.) may perform, based on events way outside your control (read: Donald Trump’s being anointed King, or some facsimile thereof.)High returns await…possibly
Also take into account the possibility for some very high returns, depending on the country you plan on investing in. Some emerging 
countries can show yields in the double digits year to year. Your selection process will be critical, based on the degree of risk you’re willing to assume. I always recommend getting advice from other property investors who are experienced, and know how to buy real estate overseas. There are online property investing clubs for real estate investors who just invest in overseas property. Seek them out as part of your initial research into different countries. In addition, know that overseas real estate investment is going to be for the adventurous at heart…the risk-takers who have the guts and stamina for dealing with investment property that is not close to home. From time to time you’ll be able to travel to them, but for the most part, you’ll probably have a property manager handling the day-to-day duties of running the properties overseas.
countries can show yields in the double digits year to year. Your selection process will be critical, based on the degree of risk you’re willing to assume. I always recommend getting advice from other property investors who are experienced, and know how to buy real estate overseas. There are online property investing clubs for real estate investors who just invest in overseas property. Seek them out as part of your initial research into different countries. In addition, know that overseas real estate investment is going to be for the adventurous at heart…the risk-takers who have the guts and stamina for dealing with investment property that is not close to home. From time to time you’ll be able to travel to them, but for the most part, you’ll probably have a property manager handling the day-to-day duties of running the properties overseas.Setting your own terms
Keep in mind that with foreign real estate holdings, you can buy, sell or rent based on your own sets of standards. Just like with investment property in the U.S., you can set the rental prices, lease terms, etc., as 
well as the amount you’ll accept when it comes time to sell your property. In addition, your diversification will also include having holdings in different currencies. In this way you can take advantage when certain countries currencies appreciate in value. Remember too, your property investment overseas has the ability to make use of multiple land uses, depending on what is “hot” at the time in that particular country. You shouldn’t think that purchasing real estate overseas can be simply for renting to people. Some countries rely on a burgeoning forestry or agricultural usage of the land.
well as the amount you’ll accept when it comes time to sell your property. In addition, your diversification will also include having holdings in different currencies. In this way you can take advantage when certain countries currencies appreciate in value. Remember too, your property investment overseas has the ability to make use of multiple land uses, depending on what is “hot” at the time in that particular country. You shouldn’t think that purchasing real estate overseas can be simply for renting to people. Some countries rely on a burgeoning forestry or agricultural usage of the land.Always weigh the inherent risks
As with any investment, you should always consider the worst case scenario, that is, if you were to lose all the money you invested in the property. If you’re concerned too much that the government of the country you’d like to invest in may be corrupt, or too third-world for your tastes, then very simply, don’t make the jump into buying real estate overseas. At least not until you’ve fully vetted the country and it’s political environment enough where you can sleep at night. Once you feel it is safe enough to make the jump, then by all means, dive in.Beginning your overseas search
I have written in some recent articles here about some good places to begin your overseas investment property searches. I have noted how “areas with emerging and burgeoning economies are good places to
start looking. Pacific rim countries like China, Japan and the Phillipines are all doing well right now. In Europe, countries like Turkey, Latvia and Romania are in fine shape, with low debt and rapidly increasing economies. Meanwhile, the usually reliable spots for investors, like Italy, France and Spain, are all currently struggling. However, if you stay in major cities like London or Paris, there is much more stability in real estate valuations. Of course, if you’re unfamiliar with specific areas, you’ll need to do a good amount of research first before investing. You’ll need to make sure the market has been relatively stable over the past five to ten years.”
start looking. Pacific rim countries like China, Japan and the Phillipines are all doing well right now. In Europe, countries like Turkey, Latvia and Romania are in fine shape, with low debt and rapidly increasing economies. Meanwhile, the usually reliable spots for investors, like Italy, France and Spain, are all currently struggling. However, if you stay in major cities like London or Paris, there is much more stability in real estate valuations. Of course, if you’re unfamiliar with specific areas, you’ll need to do a good amount of research first before investing. You’ll need to make sure the market has been relatively stable over the past five to ten years.”Effects of the Syrian refugee crisis
I have also been extremely supportive of European property 
investment for another key factor – and one that, given the explosion of refugees from Syria over the last year – remains such a huge factor. I refer, of course, to immigration. This factor is one of the key stabilizing factors in buying real estate overseas! One might think the opposite, given the negative press Syrian refugees have received. However, Europe’s largesse should be a beacon to overseas property investors. The high immigration patterns throughout Europe tend to create a very robust rental market for each developed country in the European Union.
investment for another key factor – and one that, given the explosion of refugees from Syria over the last year – remains such a huge factor. I refer, of course, to immigration. This factor is one of the key stabilizing factors in buying real estate overseas! One might think the opposite, given the negative press Syrian refugees have received. However, Europe’s largesse should be a beacon to overseas property investors. The high immigration patterns throughout Europe tend to create a very robust rental market for each developed country in the European Union.Follow and utilize the pattern…
With this pattern, Europe remains an excellent alternative for property investors to consider when deciding to invest in long distance rentals,
as confidence in the marketplace stays high. Basically, you’re taking lemons and making lemonade out of them. I have also noted before that, as long as you are utilizing the services of a local property management company, the risks of such long-distance investing can be reduced substantially. This is especially true in countries where market rental rates are increasing and demand remains stable.
as confidence in the marketplace stays high. Basically, you’re taking lemons and making lemonade out of them. I have also noted before that, as long as you are utilizing the services of a local property management company, the risks of such long-distance investing can be reduced substantially. This is especially true in countries where market rental rates are increasing and demand remains stable.photos courtesy of youtube.com, moneyplansos.com, caribreezes.com, lincolntrustco.com, members.virtualtourist.com, sg.lifestyleasia.com, wnd.com, williemandrell.com
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investors are naturally going to be leery that they will make a huge mistake, and end up buying a money pit of a house. It is good to be wary. Especially without the experience that comes with acquiring more and more investment homes. Whether they be for flipping, or to hold onto and rent out long term, there are some basic mistakes to look out for as you assemble your home buying checklist. And don’t think that a money pit is confined to low end homes either. Even huge mansions can end up being potential money pits. If you’re not convinced, check out this article: 
need to be brought into this decade, or an entire whole-house gutting down to the wall studs with complete rehabbing of new electrical and plumbing as starters, fixer upper homes for sale can represent a tremendous opportunity for any investor. You can pick up some cheap fixer uppers that, once you’ve completed renovation, can earn you a tidy profit. Fixer upper houses come in all shapes and sizes, but they all have the same major component: they are waiting for some entrepreneurial person to come along, see the vision in what they can be transformed into, and know where to invest rehab dollars wisely for maximum re-sale value when the house is ultimately flipped.
your vision of what a house can be transformed into – and sold for a profit – if you don’t properly crunch your numbers, and stick within your limits. I have seen too many property investors who make the mistake of “falling in love” with a potential flip, only to slowly keep edging their counter-offers up, beyond what they originally felt was their top limit for what they would pay for the property. This is a rookie mistake. Don’t be blind to the emotional pull of it – remember – it’s not your home we’re talking about…it’s a simple business decision. And if it’s not right financially, then you move on to the next best alternative property available to make an offer on.”
get emotionally involved in the decision-making process. Always crunch your numbers – then double check them until you feel totally sure of your financial constraints, as well as what you feel your profit will be on the investment. And always stick to your final number when making an offer – don’t deviate upwards, regardless of the temptation to finish the deal. Remember, there’s always the rule of “next” – and you should move on to the next available property to make an offer on, rather than go in over your head on a potentially bad deal.
are specifically looking to offset other income with losses for tax purposes, it’s best to stick to properties that represent strictly positive cash flows…and the greater the better. Novice investors should be wary of any property rehabilitation project that involves negative cash flows. Second homes and land speculation are prime examples, however even simple “fixer-uppers” can become disastrous for throwing off large sums of negative cash flow (also known as “negative gearing”). Unless you’ve had experience with land development, steer clear of this form of property investment.
work to be done prior to even making an offer on a rehab project. Without a doubt, investing in negative cash flow real estate should be attempted only by those with deep pockets, looking to shelter other forms of income from the tax man. The losses thrown off by negative cash flows will aid in reducing the bite of their overall tax bill. So, in effect, negative gearing makes sense for them…but not so for the novice investor actively looking for profits from the outset.
realistic market value for the property once it’s all fixed up to determine your net income projection.
through a home they’re considering buying. Are the basic, standard amenities there? Are there any safety code violations present that haven’t been corrected? You should always have a fresh set of eyes review your project after work is almost completed, just to be sure you haven’t missed anything critical to your ultimate buyer when it comes time to flip the property. In this way you can avoid making any costly house renovation mistakes.
demand, as well as negotiating. Therefore, it’s a highly specialized niche, usually reserved for the experienced investor.
possession (unlike most home buyers). You’ll also be competing with the pros, other real estate investors who have the knowledge and patience to deal in foreclosures.
sometimes hundreds of properties in their portfolio at any given time. And if their initial pricing is off on a property, and the house hasn‘t received any offers, these managers tend to stick to a set schedule of price reductions, based on time and percentages. So, for example, if a house has been sitting for 30 days without an acceptable offer, the bank will, on their prescribed time schedule, automatically reduce the asking price – and usually no more than 10% at a time. As time passes and the house still doesn’t get a proper offer, the bank will wait until their next time interval for a price drop to occur. This is quite different from an average property owner, who can drop the price at any time, for any amount they choose, on their own house.”
apportioned out to local, trusted real estate agents who have a track record working with that particular lender in their area. These agents will become the listing agents for each property the bank needs to place on the market. And it is these agents that act as the de facto gatekeepers for each foreclosure. Unlike any other type of real estate that’s placed on the market, where a listing agent deals with a particular seller of the property one on one, the listing agent for a foreclosure deals with a mass of bureaucracy. Instead of an individual, they deal with different contact people for the lender – each one with a specific responsibility.
dabbling in foreclosures, it’s “rigid rules.” In fact these rules are so complex and rigid, listing agents in foreclosures tend to be quite specialized, dealing only in representing lenders in foreclosures.
acquired the property. The lender in this instance was Fannie Mae, the Federal Home Loan Mortgage Co., responsible for buying up tremendous property inventory throughout the U.S. in packages of loans that get bundled together by banks. Fannie Mae issues specific guidelines to banks about the type of mortgage that can be considered available as a Fannie Mae product, including, for example, the upper limits on the amount of the mortgage.
told by the listing agent), but the lender only negotiated with us. This runs counter to how any good listing agent will operate with a “normal” seller. The listing agent wants to create a bidding war to help jack up the price he can fetch for his seller. Multiple offers are usually a boon, and treated as an integral part of the process when a listing agent runs the show on a bidding war. In essence, the listing agent controls all the negotiations in order to get the best price for his seller. But not so with foreclosures. Please understand this.
pitfalls of buying foreclosures. Another great pitfall is that you must make your offers based on buying the property in strictly “as is” condition. And if you’re buying in the middle of winter, and the water has been turned off, you won’t be able to test the plumbing system for leaks, water pressure, etc. In addition, most of the time the electricity is off, so you won’t be able to test the electrical system or appliances either. So, you’ll need to bracket a large amount for anticipated, unseen but probable repairs. And you’d best know how to estimate properly, otherwise, you could be stuck acquiring a money pit that could seem endless, and ruin you financially in the process. This is yet another reason to gain some experience in acquiring properties first before you even consider attempting to invest in a foreclosure.
sometimes calls these steps “triggers” or trigger events. In essence, it is a time consuming process, and the entire time, you never really know for sure if you have a done deal.
inevitable frustrations of such a lengthy, potentially mind-bending experience. Each time out for that matter. In my experience, I have never purchased a foreclosure for all these reasons. I just felt, with an honest evaluation of my own temperament and personality, I would not handle defeat well…especially if it’s because of some silly rule that’s out of my control. Just be wary if you decide to get involved with investing in foreclosures. Ultimately, if you ask how do you buy a foreclosure, I’d say very, very carefully.
wall, where it met the floor. It was originally assumed that this water damage was due to poor drainage issues with the house at the exact point on the exterior side. However, upon closer inspection, this was definitely not the case.
it comes time to make a bid on the house. While the average homeowner buyer gets scared off by the prospect of a huge bill to pay to fix the problem, the experienced investor knows better: it’s simple math to guesstimate the repair costs of utilizing the services of any number of water restoration companies available in the area, bracket those costs by adding in an extra overage percentage, then taking that amount and deducting it from the amount you’d be offering for a purchase price. It also offers one the opportunity to ask for an even greater amount off what the asking price of the property may be at the time – in essence, it offers a property investor the ability to make a very sweet deal.
turned off, you won’t be able to get a good idea of any potential problem lurking in the house, especially if there is the presence of much older piping. In this case, you must plan for the worst – and expect the pipes to have burst or leaked at some point in the past. Sometimes you just won’t be “lucky” like the family in my example above, where a leak is obvious. Using “caveat emptor,” you’ll need to either plan on a rehab of all plumbing in the building. Or simply be prepared to walk away. However, as I mentioned before, be sure to utilize this fact against the seller in any negotiation to try and make a great deal.
scope out any potential property investment problems associated with high water tables in the area, poorly graded building siting, underground streams and the ever-popular cracked foundations. I have previously written how “sometimes existing water or mold issues can be easily fixed. For example, an unmaintained building may have damaged or non-existent gutters and leaders. Hence, rainwater is dropped right next to foundations, and in heavy rains, there will usually be some form of basement seepage. This can then translate into standing basement water problems and/or mold growth – which of course, can spread. The solution – repair or replace existing gutters and leaders where needed, thereby stopping the problem from re-occurring.
same time around the perimeter. Naturally, you should look for simple solutions to a water problem first. For example, if gutters are broken or missing, or if downspouts are emptying directly onto the perimeter, rather than being led out many feet from the house, these can be inexpensively corrected.
the day or night…so you better have your emergency plumber (or two) lined up to call after you hang up with your frantic tenant. A plumber you can trust to get right out to your building and handle the bleeding, as it were, immediately. Sure, you’ll be paying double-rate for an emergency call – but think of the damage a burst pipe can do to your building. The worst-case scenario with a burst pipe, is when you don’t have a tenant in place to call you…Walking in on a flood as a property investor is one of the worst feelings you can have…So to hopefully avoid this, conduct regular inspections of your building(s), looking for potential water and or/pipe problems. Especially if you know you have any older, or rusting pipes. Maybe it would be best to replace them with pex (plastic) piping now to avoid any major problems later.
toilet, or under the kitchen sink, or behind the refrigerator. The leak you won’t notice until they move out, and you discover a warped floor, damaged carpet, or ceiling stains from above. Or worse – if you discover mold that’s been growing for quite a long time – requiring you to remove entire walls or ceilings, and completely replace them with new sheetrock, as well as painting them.
