Zmagen,
I hear ya but just not reality in the US landlording market especially the low end rentals that so many foriengers are buying. the tenants are very difficult… Again if you buy A quality 5 to 8 cap properties your theisis is sound. You buy low end rentals in the US and there is no way your going to be able to relate to these life long renters. they hop scotch around from house to house. Living their life in a fasion you just cannot really comprehend… Matter of fact most of these tenants
When they talk about where they live the comment is: ( I's stays over there) they do not live anywhere they stay!!!! its in the culture and lexicon…. This leads to wholy transient tenant pools.
AND your dead on about property management no one is aurging that. its the make or break.. The point I am making it does not matter how great your management is if your tenant pool is bascially unmanagable..
On another note I am in the process of brokering a nice bit of business for a Tokyo developement company they are listed front page Tokyo stock exchange… I brokered the owners sister a few Multi's in Portland OR. 6 or 7 years ago and they are going to make their first investments in the US… West coast Portland,,, SF,,, and LA… The deals we did here in Oregon were fabulous they rolled out of Vegas on 1031 exchanges before the market there cratered and Multi in the NW is about as strong as any investment in the World… Cap rates are 5 to 6 with a super heated market demand…
Would like to hear more about what you do in Japan…. As you know Japanese were big in the 80's on the west coast over paid by a fair sum then kind of retreated in fact where I lived for 10 plus years Silverado Country club in the Napa Valley CA.. the owner of Sega systems bought our club in 91 for 120 million basically paid 3 times what it was worth if not more his son who ran the club lived next to me until Dad bought him a big estate up valley…… based on this one company buying US assets it looks like they could be entering the market again… they plan to move 5% of their cash here which is a huge number no matter where you are in the world….
they could buy most of Detroit with this investment dollars… and have enough left over to buy most of Rochester:)Its amazing in the US how divergent the properties and the values are….. There is cash flow then there is properties that you can buy and will always hold value… IE A class… the D and lower well thats really for those in the know and owner operators. I really personally beleive its not suitable for out of area investors. Lost of folks will try it most that play in that sandbox will end up walking from the properties like the last wave of investors did.
JLH
Oh, they're not overbuying at all no more lol, giving us a very hard run for our money – there's a new breed of investors in Japan now, just as savvy – only last week I lost two beautiful properties, offers submitted and accepted 5 and 10 minutes after emailed to us by a local Japanese investor, on the first occasion because my client had to ask his wife, and on the second occasion because I had to ask my client, for permission to apply out of budget.
They're lightning quick now, and know the good deals from the bad.
Would love to chat, PM me and I'll email you.
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
3919 Euclid Ave, if it was rehabbed to be tenant proof for 25,000 isn't to bad a deal, but doesn't sound like the seller did that. the rent on that type of house is generally in the neighborhood of 500 a month.
Not everybody has 200K to invest off the bat. I had to start with rentals and have no problem selling them to my Cali investors now. just have to be up front what type of investment it is. If your real with people and they know what to expect it can be a good investment for your money.
zmagen wrote:Oh, they're not overbuying at all no more lol, giving us a very hard run for our money – there's a new breed of investors in Japan now, just as savvy – only last week I lost two beautiful properties, offers submitted and accepted 5 and 10 minutes after emailed to us by a local Japanese investor, on the first occasion because my client had to ask his wife, and on the second occasion because I had to ask my client, for permission to apply out of budget.They're lightning quick now, and know the good deals from the bad.
Would love to chat, PM me and I'll email you.
My e mail is [email protected]
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