Equity Builders Group is the premier resource for real estate investors. We have conducted meticulous evaluations of emerging markets to uncover premium real estate locations and prime USA investment opportunities. Analyzing those locations yields optimum deals reaping the largest profits. The focus is the Turn Key Cash Flowing properties with the element of growth and [...]
What is your real estate investment style?
There are as many reasons for investing in real estate as there are states to invest in. The big question here is what is YOUR real estate investment style? First lets take a look at three key real estate investment types: Real Estate Investing for Cash Flow, Real Estate Investing for Growth or Investing in [...]
Read the full article →Florida Real Estate – Vacation Properties and Second Homes
Search Our List of Investment Properties For Sale Florida Real Estate offers some fantastic opportunities for investment properties, second homes and vacation properties. Prices have come down considerably and there are even pockets of affordably priced properties which have cash flow potential. The Equity Builders Group works primarily with investors to target emerging markets for [...]
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In our previous post, How The Housing Market Crisis Affected US Investment Properties – Part 1, we talked about the back story to the US Housing Crisis. Today we are going to look at how real estate investors are using the US housing crisis to get the best investment properties.
Here is what the savvy real estate investors are doing:
Having A Plan – Start with a real estate investing plan in place and find a real estate power team that can help them execute the plan.
Set Up Proper Financial Structures – Entity structures are set up (such as a trust or LLC) for asset protection and liability protection by working with national and, or international tax accountants to make sure that their homeland laws do not create a double taxation issue with the US tax laws.
Understand Cash Is King – The domestic currency of many of the foreign countries, when converted to US dollars provides massive leverage. Using currency exchange facilitators to maximize the conversion of their dollars to U.S. Dollars by purchasing exchange rates when the dollar exchange is at its peak and then they can lock that exchange rate in for as much as two years. This gives them even more leverage.
US Lending Is Stagnant – The reason that home prices are so low is that a smaller percentage of people can actually get a loan for purchasing a US property. Foreign real estate investors are leveraging anything they can in their homeland to create the cash. Many just have cash, others have secured lines of credit to their homes or businesses.
Picking The Best Locations To Invest – Experienced real estate investors understand the importance of investing in the best locations. They do their diligence to make sure WHERE they invest within the US has the best markets to maximize their rate of return. Also that the market they choose is able to sustain the rate of returns they seek.
Effortless Equity – One of the keys to succeeding at US real estate investing is to find turnkey properties that are sold at below retail prices which gives immediate equity value from day one.
Property Management – It is vital to make sure that the turnkey property provider also provides excellent property management.
Affordable Financing – Smart investors position themselves to acquire US credit so that as the financial markets rebound, they will be able to qualify for US financing.
Forward Thinking – As this financing comes available, they plan to put some mortgages on their properties to further leverage their cash and purchase more properties.
We work with foreign and domestic real estate investors every day, putting these plans in place and making the connections to find turnkey properties with solid finacials and ongoing property management support. If you would like to find out more about the investment properties we represent or how real estate investing works in the US, give us a call today! +1 727-808-8735
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Using the US housing crisis to get the best real estate investment properties can seem a little mercenary, BUT since it is happening, our best option is to capitalize on the opportunities we see in front of us now!
In Part 1 of this series, we will look at How The Housing Market Crisis Affected US Investment Properties:
Foreign real estate investors from all over the world love investing in the US real estate market. The Number 1 reason is that US real estate is deemed to be one of the safest investments in the world. As was shown at this years World Real Estate Investing Summit, US real estate continues to be one of the most highly sought after commodities around. Our population grows at a rate of 1 new (net) person every 10 seconds. Everyone who lives here wants to stay here and many people from all over the world wish they could live here.
Buying property in the US is as simple as identifying the right location and property and agreeing to the purchase contract. If indeed you have money to purchase a US real estate investment property and agree on the terms of a contract, you are good to go. Very few if any other countries have the simplicity to own real estate as the US does.
About 10 years ago the government and the finance industry wanted to make it possible for as many people as possible to own a home. This was a great concept but one that would later prove to be a disaster. In order to allow as many people as possible to get a home loan the lending standards were reduced to almost nothing. Many loans (nicknamed Liars Loans) were utilized and the process allowed most everyone who asked for a loan to get one.
What this ultimately did was created a large demand for homes. Everyone was buying homes and many were buying a second home. Investors were buying 10 to 20 homes and up. With little to no standards to qualify for a loan, the banks were lending money to people who could never sustain the payments they were committing to. Along came the A.R.M (Adjustable Rate Mortgage). These loans allowed you to get into the property very cheaply and after a year or two, the payment would rise as the interest rates went up. All these purchases obviously created a supply and demand imbalance for homes that were for sale, resulting in very rapid escalation in values.
Then the bubble burst. Home values started to decrease and now we are here, years later with a much deflated real estate market. In many parts of the country, the value actually reduced to home prices in the late 1990s to early 2000, eclipsing the increase and going even further down. In my opinion, most markets have over corrected.
Why the over correction? In its simplest form the finance industry has taken such a hit by borrowers who have defaulted on their mortgages that they are busy trying to liquidate their bad loans and are scared to finance money again. Lenders have done a complete turnaround from the height of the real estate boom days. They went from very loose lending standards to lending standards that are so tight many people who would normally qualify for a loan are not currently able to qualify to borrow money.
What this does to home prices is forces them to be reduced to the point that people can come in and pay cash for them. As fewer and fewer people have the means to purchase with cash, the supply of buyers is reduced which reduces the value of the homes. Homes are more affordable now than they have been for the past 15 years based on income to housing expense ratios.
Tune in next week for Part 2 of this series, Using the US Housing Crisis To Get the Best Investment Properties.
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