Has anyone considered the boom that going on in North Dakota.
An Australian operator is claiming that Stage 4 is released , 70 units @ 42% ROI – 2k per month Nett
They are building motel style units as quick as they get them up they are leased to the oil company.
Can,t find the current price but I think it was around $50,000 U/S
I can't comment on the merrits,
However can comment on the legalities of buying motel units.
Unless these are condo's or I think you call them Strata's ( at least the canadians call them that)
there is no way you can own a single motel room.
You can invest in a company that owns the motel.. Or and LLC or corporation or whathave you but you can NOT get a deed to a single motel room, Not legal and not possible.
If you consider one of these deals besure to have a GOOD US attorney look at it for you.
I have seen a few of these pitched on the Over seas markets to people that just do not understand US land use laws.
One I saw the property was not even built yet… Not deed NO dice in my mind.
Also, can't help but wonder, how long is that particular site there destined to last? Oil fields are no different than mines, of which we are now beginning to experience the downside of here in AUS. Sure, great income for 4-5 years, all but guaranteed – but with a very dubious life expectancy following that.
Ziv Nakajima-Magen | Nippon Tradings International (NTI)
http://www.nippontradings.com
Email Me | Phone MeZiv Nakajima-Magen - Partner & Executive Manager, Asia-Pacific @ NTI - Japan Real-Estate Investment Property
Ziv,
I think this one has some legs, however the way these foriegn promoters are representing that people can invest in single motel rooms is really out there.
However your correct, if there was no Oil fracking then there is no town and the place will end up a ghost town.
I think the look, feel and building specs of these projects can also say a lot about whether the developer sees a future for the place, or if they're in it for a quick, short buck. Something that looks like a glorified, 2-story caravan park is very rarely there with any long term intent. Something that's clearly cost a few extra dollars to build and is, for all practical purposes, a "real" building built to withstand time and weather conditions, is probably good testimony as to the long term intent of the developer too.
some of the cheaper built constructs actually look very permanent, with new building technologies introduced in recent years, so it may take some closer and more professional inspection to be certain.
Ziv Nakajima-Magen | Nippon Tradings International (NTI)
http://www.nippontradings.com
Email Me | Phone MeZiv Nakajima-Magen - Partner & Executive Manager, Asia-Pacific @ NTI - Japan Real-Estate Investment Property
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