Comments on: Real Estate can still be a Hedge

By: Haim Ac.

Haim Ac. — Mon, 24 Aug 2009 22:08:48 +0000

Bruno, #15

You need many of those green documents with the Benjamin Franklin face in the center . The Americans easy their regulations when the money is ready available.

Since you would not apply for loan or a mortgage in the US, you pay for the entire property value and the closing cost (~3%). Real estate agent’s percentages (6%) are usually paid by the sellers.Annual taxes and monthly maintenance/association fees can be costly too, depends where you buy.

You can even get local finance if you pay at least 50% of the property value. A loan company would take the risk of the loan to a non-resident, if they can do a short sale of your home and still make profit, in case of non payment.

Good luck

Haim

By: Vision(s) intéressante(s) de Martin Varsavsky sur l’entrepreneuriat et l’investissement immobilier. | Nicolas Clairembault

Wed, 19 Aug 2009 19:30:41 +0000

[...] et l’investissement immobilier. Je vous conseille chaudement (?) la lecture de ce post de Martin Varsavski. Si vous ne le connaissez pas, voir sa fiche [...]

By: Bruno

Bruno — Fri, 14 Aug 2009 14:27:54 +0000

What documents are necessary for a foreigner to buy real state in U.S.? Just a passport? A social security number?

Thanks.

By: Martin Varsavsky

Martin Varsavsky — Fri, 14 Aug 2009 12:26:30 +0000

I buy real estate more like I buy art for my art collection. I enjoy the different homes, I furnish them with my wife. I live the neighborhoods. A REIT could be a great idea, but I feel its like shopping for groceries online. I want to choose my peppers, the good ones.

By: rdm

rdm — Fri, 14 Aug 2009 01:14:21 +0000

Martin,

You haven’t answered Dario’s question to why not buy REITs instead of physical properties. I would like also to get your thoughts and opinion on the subject.

RE South Beach vs Brickell I think the latest has the greatest upside potential from an investor’s point of view ( and obvious higher risk ). Downtown/ Brickell area is becoming every day a more livable place thanks to the new zoning.

Thank you for your blog.

By: Jan

Jan — Thu, 13 Aug 2009 16:06:11 +0000

Martin

didn’t know you were that much involved in real estate.
coming from that site and trying venture business, I find that venture business is really hard to do, i.e. to make REAL money with MANAGEABLE risk. But of course venture is all about entrepreneurship, and that is something that the few big markets like real estate do not really have except for you do development in emerging countries.
There is one thing I would like to add to your ideas: I respect venture entrepreneurs because they create VALUE for society. Real estate, except for development (what does not seem to be your focus), is nothing more than a money game: you have the same building you buy for 10 and sell for 20 and the next guy sells it for 30. No labor, no IP, nada. Just taxes and your capital gain. So in that sense, the tech investments are really very valuable for society.
2 aspects of real estate, which are also very nice : one would be purchasing land – long term investment with no monthly gains. But since you have been doing some real estate, you should be able to have good sources of info and gut feel about land. The second thing is: you have been doing RE only in the western (developed) world. Why not trying out areas where it’s booming? Certainly thrilling, closer to venture business …

By: Alex

Alex — Thu, 13 Aug 2009 03:35:43 +0000

Hola Martin, coincido con vos al respecto de que Es un gran momento para invertir en us real estate. A su vez, desde Leadtorealty tengo el poder de ver cuales mercados suben y cuales bajan ya que capturamos informacion de miles de compradores y vendedores todos Los dias. Hay algo con Lo que creo que difiero con vos. Habiendo vivido en el silicon valley por muchos anios, podria casi asegurar que seguira siendo la gran cuna de las mejores Empresas de Tecnologia del planeta y eso genera ingresos reales y gente con poder adquisitivo en cantidades industriales que se vera reflejado en una sana competencia por subir Los precios de su real estate. Pero la zona de Miami fue victima de millones de inversores que no viven alli y pensaron que comprarian propiedades en pre-construction a precios altos que subirian aun mas. En miami no hay una razon que me haga pensar que el stock de poropiedades se vaya a achicar pronto. No olvides que los bancos miran credit score, income y assets de un borrower para extenderle un mortgage y la gente en Miami ahora tiene problemas con las 3. Espero estar equivocado y que todo se recupere rapido.

By: Julian Martinez

Julian Martinez — Wed, 12 Aug 2009 21:04:34 +0000

Hola Martin,
I’m interested in learning how do you manage your property around the world. Do you pay a local estate agent to take care of the property while you are gone? How do you pay utility bills, open a local bank account? or pay with a credit card? Do you have a part-time person that takes care of your properties? Do you buy the under your name, or under a holding company?

I currently own a flat in Buenos Aires and I’m thinking of buying one in Miami.

By: Martin Varsavsky

Martin Varsavsky — Wed, 12 Aug 2009 18:42:06 +0000

South Beach is better.

By: Raul Moreno

Raul Moreno — Wed, 12 Aug 2009 15:53:26 +0000

Excelentes ideas! Como “value-investor” aprecio mucho este feedback. Parece logico pero es dificil convenser a la gente que en hay que comprar en crisis a buen precio…..pero bueno…. gracias a tu articulo me han escuchado mis padres. Mejor invertir en Southbeach-Miami vs Brickell-Miami, o el mercado es muy similar y da lo mismo? Muchas gracias por tus comentarios.