One of the most common topics people want to talk to me about lately is the downturn in the US market. It has been splashed all over TV, radio, newspapers, and countless online articles. This combined with the strong Canadian dollar has many people chomping at the bit to start investing in Amercian real estate, and they are asking my opinion.....
I am a strong believer that there is real estate investment opportunity in countless places throughout Canada and the US and I don't want to discourage anyone from taking the plunge into such a proven vehicle to wealth. However, there are some things to think about.
When investing outside of your local area you have to take into account that you will need contacts that you CAN TRUST. If you wanted to start investing into Florida right now and have a great deal all lined up, that's great! But who is going to take care of it for you? What is your plan for the property (Remember a vacant property with you paying the bills doesn't make you money)? Who are the people in Florida that you can lean on to help you?
These are the pieces that need to be in place when you are going to jump into the market, unless of course, you are going to be flying down there when an issue arises, ouch!. (And from taking 5 trips in the last three months airfare isn't on its way down, but that's a different story)
These are some simple questions that often get overlooked because of the shiny dollar signs that are promoted by many US companies selling in the Toronto area. Not I am not saying there is not opportunity but there is more to it than listening to a pitch and signing the documents (which I have seen many people do). You may want to stop and think, "Is there a reason that someone is selling real estate that is a plane ride away in another country for 'dirt cheap' with guaranteed returns in a relatively short period of time, in a down market, with strict lending regulations?"
I'm not sure about you but I definitely think there is some due diligence to be done.
Back to opportunity........
IT EXISTS EVERYWHERE!
With the right pieces in place you can be a multinational investor and be successful but those pieces are the key. It is important not to lose sight of that.
It is common to get caught up in opportunity elsewhere. I think we have all been guilty of "The Grass is Greener Over There" mentality at one time or another, while overlooking some opportunity under our noses.
My times up but let's continue this point in a couple days because it's a big one, especially for the many beginners, started to invest in real estate.
- Nick Karadza