Foreign investors snapping up troubled U.S. real estate properties

Depressed prices coupled with the dollar's descent has attracted a lot of foreign investors to the distressed US real estate market ... I see this as a good thing. Buyers (regardless of where they are from) are the ones who can 'right' the real estate ship and get us closer to price stabilization and hopefully appreciation some day! :woohoo:

http://www.contracostatimes.com/california/ci_13834840?nclick_check=1

Edited: 06/26/2010 at 10:36AM

Uwe S.

Real Estate Investor · Chemnitz, Saxonia

1146 posts
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Icon_minipost Nov 21 '09, 03:07 AM

Ted,

I did my best in Cleveland :).

-Uwe

Edited: 06/26/2010 at 10:36AM

Vikram C.

Real Estate Investor · Phoenix, Arizona

1457 posts
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Icon_minipost Nov 21 '09, 06:39 AM

I have moved to Phoenix just for this purpose. But what worries me is the graph below. Is this just the lull before the storm?

Edited: 06/26/2010 at 10:36AM

Ted Harris

Real Estate Investor · Portland, Oregon

660 posts
27102 Influence
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Icon_minipost Nov 21 '09, 07:25 AM

Vikram:
mortgage resets = more opportunities ....
sure, it may delay appreciation but if one is thinking long term then this means more cashflowing homes will be available for those who are ready (and willing) as people losing their homes still need a place to live! :mrgreen:

Edited: 06/26/2010 at 10:36AM by Ted Harris

Vic L.

Real Estate Investor · Chicago, Illinois

158 posts
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Icon_minipost Nov 22 '09, 04:54 AM

I have lots of buyers from Hong Kong, China, and Singapore snatching up bank owned properties here in Chicago. 2 sales of this nature closed last week.

Edited: 06/26/2010 at 10:36AM

Tim W.

Real Estate Investor · Indiana, Indiana

4333 posts
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Icon_minipost Nov 22 '09, 06:48 AM

I sold a property to Australian buyers. It's triage. Cash flow is a simple matter of percentages of return and percentages never change, no matter where you are in the world. What does change is the value of real estate and the value of currency. If you can work a country's devaluation of real estate and currency at the same time you are doing quite well.

One person's "worse" is another persons "better" and it's going to get "worse/better" before it gets "better/worse". Clear? ;-)

Edited: 06/26/2010 at 10:37AM by Tim W.

Josh Keys

Accountant · Sydey, NSW

106 posts
1015 Influence
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Icon_minipost Jan 27 '10, 01:13 PM

I completely agree. As an australian buyer looking at the Wisconsin, Ohio and upstate NY area for cap rates of >10% it makes perfect sense to look at the US market!

Edited: 06/26/2010 at 11:23AM

Lamonte Evans

5 posts
34 Influence

Icon_minipost Feb 02 '10, 12:24 PM

Hey I've got phoenix wholesale properties. These properties are priced below market valley and ready to sell.

I also have a great Columbus Ohio bulk deal that has great cashflow potential. The bulk deal is priced very very well. Instand $390,000 in equity. Please contact me.

Edited: 06/26/2010 at 11:28AM

Josh Keys

Accountant · Sydey, NSW

106 posts
1015 Influence
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Icon_minipost Feb 02 '10, 01:54 PM

Lamonte, ill pm you.

Thx

Edited: 06/26/2010 at 11:28AM

Carlton Ellis

Real Estate Consultant · Lansing, Michigan

117 posts
746 Influence
1 Award

Icon_minipost Feb 04 '10, 04:22 PM

It is interesting your wrote this and mentioned the decline of the dollar. I watch and trade the foreign exchange market in addtion to my interest in real estate. Yesterday the dollar hit it's highest valuation versus the Euro and several other major currencies in since July of 2009.

Foreign investors are attracted to U.S assets right now due the fact that the U.S economy is still one of the more stable economies in the world despite the issues of high unemployment high deficits and relatively slow economic growth. Real estate valuations right now in this country are in many cases at their lowest valuations in more than a decade. This includes commerical as well as residential real estate. Also despite of the hoopla from China and Russia the U.S. dollar is still recognized at the worlds reserve currency. When there are concerns about worldwide growth the dollar will appreciate.

Basically foreign investors have two ways to win by acquiring U.S. real estate. If the dollar appreciates versus their own currency they win. If they hold on to their assets long enough to see them appreciate in value they win.

Edited: 06/26/2010 at 11:30AM by Carlton Ellis