Hi Property people,
Has anyone out there had experience or can offer educated opinion on the 47% rental yields on offer with the the hotel style accommodation in North Dakota USA? There seems to be a few companies offering this product now to house the oil field workers who are currently camping out in cars etc. I am currently invested in USA property and would appreciate any feedback anyone has on this particular investment area and the inherent risks associated with it. Obviously with higher return comes higher risk, I just want to ensure I understand it all.
Cheers
Dezza
I'd rather burn my money to get warm. At least I'd get some utility out of it.
I would be very wary about being hotel suites in a tin shed. I would not touch it.
Nigel Kibel | Property Know How
http://propertyknowhow.com.au
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Can't believe I'm saying this, but I agree with Freckle.. I kid, Freck! What happens when the oil production stops or dwindles and we find other resources. It's a game of hot potato. I don't know if I'd necessarily burn the money though
CheevesFinancial | Cushman & Wakefield - Commercial Property SW FL
http://www.CommercialRealEstateVoice.com
Email Me | Phone MeThanks for the feedback guys!
I have asked many times for information from these companies about structure of the deals,, and no one will answer. One cannot just buy and get a deed to a hotel room in the US these have to be some sort of partnership LLC 500 series offerings were they are pooling the funds so its a rather different investment than investing in a home where you are the sole owner and have a deed to the property… I guess I will respond to one of these and see what they are sending in the way of source docuemnts and supporting docs.
Jay: Perhaps it's a condotel? But if so, in my condotel experience, the management company takes 40-60% of the revenues so I just can't see an ROI close to 40's.
CheevesFinancial | Cushman & Wakefield - Commercial Property SW FL
http://www.CommercialRealEstateVoice.com
Email Me | Phone Mecheeves,, even a condotel denotes a condominium Map being recorded with subsiquent individual units that can be sold with deed and title insurance. Maybe because of the emergency type of housing the state has adopted new laws to allow this. When I lived in the Napa Valley I lived at Silverado CC and we had Condotel untis but they were a full blown condominium plat or Strata as they call it in Canada
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