|
|
|
|
Lief Simon
|
|
|
Lief Simon |
|
|
Investing in real estate has become popular around the world as real estate prices have soared in most places
in the last 10 years. Small talk on the golf course or the hair salon now includes
discussions of condos in foreign countries and terms like pre-construction and off-plan.
Most people think investing in real estate outside of their home country is either too complicated or worse they think
it is no different than buying property at home. The fact is that it is neither. While buying real estate in a foreign country does require more due diligence than you would normally make
when buying in your home country, it isn’t overly risky or complicated in most cases.
You just have to gather your facts to make an informed decision. Lief
Simon has been helping investors find real estate opportunities around the world for almost 10 years. As the founding editor of Global Real Estate Investor, he traveled as much as 75% of each year scouting
markets for readers. In October of 2006, he turned the reigns of Global Real
Estate Investor over to a new editor, but he continues to travel regularly looking for real estate opportunities. However, now with close to a decade of experience and contacts, many of the better opportunities come to
him…the wholesale investing opportunities. In real estate like all investing, there are two levels
– retail and wholesale. While retail investors can make excellent returns,
even greater returns can be achieved by investing wholesale. There is more risk
investing wholesale, but the expected higher returns offset that. The basic difference
between retail and wholesale real estate investing is timing. The wholesale investor
gets in earlier than the retail investor. For example, in January of 2006, Lief found a new development
about to launch. The developers needed early sales to get momentum for their
project and were willing to sell at pre-development prices that were approximately 30% then their initial list price. Retail lots in this same development are selling for 88% more less than a year and
a half later. Buying early in a development before it starts its regular
marketing program is one way to get wholesale prices. Another is to get in front
of the path of progress. Buy land at local prices where roads are being paved,
the next town where retirees are expected to move, or the location for a new airport.
Sell the land at developer prices once the progress arrives. The trick
is finding the path which is what Lief spends much of his time doing. The
cost of researching new locations to find the path of progress takes both time and money.
It is similar to wildcatting oil wells. You just don’t know if anything
will come of it. That is why it makes sense to work with someone already in the
trenches. Lief researches real estate markets both for his own account
and his clients – investors and developers. While Lief isn’t a financial
advisor, he can help investors understand specific real estate markets to allow them to find investments that fit their needs. Developers can benefit from Lief’s marketing knowledge gained in the years spent
as the director of an international real estate marketing group. Finding the
right mix of product and pricing is critical to any real estate development’s success.
Lief’s experience can help find the balance for your development. |
|
