People know me as a Single Family House (SFH) investor as I’ve sold over 1000 houses to investors on 5 Continents in recent years. It’s true, I am a SFH guy and have already purchased 46 houses this year. SFH’s are the most liquid of all real estate investments and can provide predictable monthly income.
The thing about SFH’s is that they are easy to understand and if you make a mistake it’s a small one. The first commercial real estate I acquired was in 1985, a 25,000 square foot office building that I lost over $150,000.00 on in 3 years. That doesn’t happen with houses.
In a stabilised market, free and clear single family houses produce a cash on cash return of 5% – 6.5%. The key is to buy in appreciating markets. But, that doesn’t change the cash flow or eliminate repairs. Don’t get me wrong, I LOVE SFH’s and I own over 100 houses on any given day. Houses have replaced my income from a job and when you have enough of them, they would replace your income too.
Currently in the United States, the market is over heated. There are opportunities, there always are, but they are far and few in between. To date this year I’ve purchased 46 house from Atlanta to Tampa, Sarasota, Oklahoma, Clearwater, St. Petersburg and Lakeland. That’s a lot of ground to cover and most of our sales are retailed to people that want to move into them. We have scraps for our global investors that like the U.S. houses. If we know your price points, we’ll get it, but our stock of houses for investors is way down from 50-70 houses at any time to 10-15.
The New Opportunities in the United States
I’ve familiarised myself with the affordable housing sector in the United States where the wise use of leverage will substantially increase investor returns. My friend, Michael Friedman, is involved with a company that has new opportunities almost every month. Opportunities just like the one I got into.
Where I bought into has a guaranteed return of 14% and I’m simply a limited partner with a passive investment. Those opportunities typically require a minimum of $500,000.00, but in some cases you can get in for less. The best part is that Mike shows me the best opportunities.
Here are 2 of their latest projects that they were seeking investors funds for:
I never thought I’d get back into commercial real estate, but with returns like these, I’d be silly not to investigate.
If you have an interest in how to profit from U.S real estate, join me and Neale Petersen in our upcoming webinars.
Feel free to reach out at any time with your questions.