Buying US distressed properties
Actually it is not impossible to buy distressed US properties for USD$15k..
A group of friends and investors ourselves have bought 10 properties under a company name for about USD$400k ? netting a net rental yield of about 14% p.a .. less broker / agents / maintenance / insurance fees. My capital was about USD10k. You just need to get a good contact who has the fresh US subprime leads and the know how to do all that legally. And at least we get our rental giro-ed to our SG bank account on a monthly basis.
Alternatively, if you are one distrustful of others with your money, you can opt to do all that work yourself ( which i also have friends who have done so) but it involves multiple trips of flying to and fro to do sales & legal work. So must bear into mind that is part of your "costs" that the net rental yield must be able to cover.
I'm glad i kept an open mind to listen to one of the investors who put this deal together (by legal contract) ... too many a times we shut our minds off (due to the over-enthusiastic nature of sales people - but hey that's what they are there for!) because we do not understand the structure of the deal.
What we hear in talks is the final packaged versions that do not explain how the ROI is being obtained. In some investment structures, the returns are precisely predictable because it is a matter of business arrangement.
A good example is that every retail business marks up at least 40 - 60% on their COG (cost of goods sold).. so if they were to form a business structure for investors to invest in their company and allow investors to be paid based on the revenue received ..then it would be totally possible for their investor to earn anything from 10% - 20% without sounding too out of this world.
My real seasoned investor friends (at least net worth of $5 - 10mil) tell me that they do not invest in anything that does not double their money in 4 - 7 years time. Which breaks down to annualized returns for 25% p.a at least? Ask any property investor in Singapore within the last 3-7 years and they will tell you that many of them more than doubled their networth.
Sometimes i wonder if its the "mass market (ie: middle income) forumers who let their negative minds call and find 4% p.a CPF the best investment ever.
i have been to all sorts of talks from Gold Guarantee , Agarwood , Dolphin capital German properties , Brazillian social housing and investments talks. Some i agree with their returns (and invested) , some less so...
These AZEA telemarketers just called me to their talks and i think i will also go with an open mind just to understand their business structure at least! Even if i don't invest, my aim to is learn how these businesses are so smart to structure deals to make people part with their money! maybe one day i can apply these techniques to get investors for my own ventures!
