a few forum readers have sent me some offerings from the UK companies pitching
the buying of Hotel rooms in N. Dakota I reviewed the written material and have some comments
1. Not possible to buy one hotel room unless its been a legally recorded condo or Strata.
2. What they are offering is a 1/20th interest in a property, So you would have 20 tenants in common.. And 19 partners you would not know from all over the world probably.. anything goes wrong total mess to clean up.
3. Huge red flags when talking about no need for county oversight for water and sewer this is just not the way it works in the US.
And then of course the sales pitch… IE
We are only giving you these great deals because we are staying in as PM…
This is a hotel investment I would only do this if you bought the whole thing NO partners…. And or close knit partnership and would not spend a dime unless you had a N. Dakota Land USE Attorney or engineer bless that the project is fully approved from the local county or city.
there is more but I have to run to the airport off to Honolulu tonight
Aloha
JLH
jayhinrichs wrote:a few forum readers have sent me some offerings from the UK companies pitching the buying of Hotel rooms in N. Dakota I reviewed the written material and have some comments 1. Not possible to buy one hotel room unless its been a legally recorded condo or Strata. 2. What they are offering is a 1/20th interest in a property, So you would have 20 tenants in common.. And 19 partners you would not know from all over the world probably.. anything goes wrong total mess to clean up. 3. Huge red flags when talking about no need for county oversight for water and sewer this is just not the way it works in the US. And then of course the sales pitch… IE We are only giving you these great deals because we are staying in as PM… This is a hotel investment I would only do this if you bought the whole thing NO partners…. And or close knit partnership and would not spend a dime unless you had a N. Dakota Land USE Attorney or engineer bless that the project is fully approved from the local county or city. there is more but I have to run to the airport off to Honolulu tonight Aloha JLHKevin tried to call you ..,we are both in the office call Kevin Cell number
I think we discussed on another thread how small the window is likely to be in these regions. It now seems much of the industry hype is just that. Production across the US has suddenly begun to decline. I imagine with the growing banking sector problems and falling energy prices investment will be difficult to obtain to run/develop these fields at the pace previously set.
A high risk investment if ever there was one. The payoffs would have to be huge to warrant the risk I’m thinking. This is the kind of investment you only apply a small percentage of your portfolio to (less than 5%)
Capital Destruction in Natural Gas
http://www.zerohedge.com/contributed/2012-06-04/capital-destruction-natural-gas
More reading…
http://www.testosteronepit.com/home/2012/5/23/the-natural-gas-massacre-gets-bloodier.html
http://www.testosteronepit.com/home/2012/5/12/drilling-down-into-oil-gas-prices.html
I agree, from what I have seen, mining towns can be extremely risky. It is defiantly not a good idea for a long term investment. Nothing looses its value more quickly than a rental property in a mining community once the business goes south. However, if you can time the market right, and stay in just as long as you need to, you can make amazing profits.
Liam
My point is not should I or should I not invest!
It’s the way these guys are structuring this.
You cannot buy a single hotel room in the US.
This ia a limited partnership tenant in common set up
Other red flag is the materials would infer that these projects can be built prior to sewer water and county approvals this HIGHLY suspect as being false
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