I moved in Shanghai 5 months ago, and now I decided to take a closer look to real estate investment. I am totally new of this world in a pratical sense, I've just read some books and many articles but never made any deals.
I've heard from many that Shanghai, and China in general, is a overheated market for real estate. So my first concern is, should I look from somewhere else or still with right strategies and hard work it can be a place where to start?
If the answer is invest in Shanghai, so how do you suggest me to start?
If the answer is to look somewhere else, well, is it a good idea to invest in a far place in which I do not live? And if so, how?
Thank you in advance, I would appreciate an honest answer from you.
I do not know much about the Chinese RE market but I do know that their is a lot of Chinese money investing here in America.
Thanks for the answer @James Wise
So, how am I supposed to invest in the US from China? I guess that those Chinese who invest in the US are the already millionaire guys and they invest through agencies or common funds, is that correct?
Is there anyone with experience in investing in China, or have some other suggestions?
Welcome to BP!!
I would advise you to define your goals first, then find out if you can invest locally.
My personal goal on a 2-4 unit investment property is:
$100/door/month Cash Flow AND 15% Cash on Cash return on my investment.
Other folks might say:
Buy RE notes that return 18% on my investment
Buy 100+ Unit Apartment Buildings with a 10 Cap
Purchase SFH to Flip at 50% ARV or below
Once you have figured out what you want to do, start building your connections. What portion of RE investing you focus on will determine where you need to connect with people.
Investing world wide has the same goal: make money. I would see if there is a local Real Estate Investors group in Shanghai. If there isn't, start one. Bigger Pockets is also a great resource for just about anything RE related. We may not have experts in Chinese RE law, but the fundamentals don't change.
Please bring all your questions, we are here to help.
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