200% - 500% ROI in what state?

7 Replies

Someone is telling me that alaska is a bad place to invest and that they're getting 200%-500% ROI stateside. I don't understand how that would work? Is anyone getting these number over there and how so?

I am highly doubtful of numbers like that unless they are only wholesaling.  What are they claiming to invest in flips? buy and hold?

He didn't give me too much info, just said "complete remodel restoration on an 8 unit and a 5 unit stateside." so i'm not sure. He also stated that alaska is only getting 2%-10% ROI .. so I'm thinking buy and hold? but still that's a crazy number to get right? or am I missing something ? @Aaron Klatt

@Youdo Thirakul Does this "someone" want to sell you a real estate education course? A mentorship? Is the someone a guy who was hammered at a bar? Not to mention that you probably have to had a timeline attached to that. If this mystery person bought an SFR in Los Angeles in 2009 I'm sure they've made more than 200% if you look at their down payment and juxtapose that with the increase in equity.

@Andrew Johnson lol, no just some guy on BP i reached colleague request to talk RE in Alaska. He just message me back saying it doesn't do Alaska because of the ROI and he getting those number stateside.

@Youdo Thirakul I agree with Andrew Johnson it seems like they are trying to sell you something they are not getting an annual ROI of 200%+ with buy and hold and probably not with flipping either unless they have been extremely lucky (meaning they probably can't do it again).

@Youdo Thirakul I could get 100% ROI easy but not in RE. I had a project worth 38k spent about 20k return in 3 months. I look at RE or flip as one big and complex project that is capital intensive. It’s just another type of business.

@Youdo Thirakul , My husband grew up in AK and his Best Friend hot his start in RE up in Juneau. We're thinking about investing up there as well. Here's some info that might answer your question. 

Alaska is in a recession right now, because of the oil prices, the State is running out of money and laying off state workers, I recently read the AK Marine Highway / Ferry System won't have enough money to run after April. 

 The cost of real estate all over the state has gone down quite a bit, I believe rents have not. There is a demand for housing. In Anchorage, there's nowhere else to build, unless they build the Knick Arm Bridge. It will cost a lot and the legislature has been trying to fun it for a while now. It's tabled now with the Budget problems. 

Juneau is landlocked and there isn't much room to build there unless you have a pretty penny. Duplex houses are common. The cost of living in Juneau is HUGE and there's not much out there for quality rentals. In the summer, tourism is huge as it's a Cruise Ship Port and in winter the legislature comes to Juneau for session. They have to rent places for 90 days or longer if session goes longer. 

If you buy right and capitalize on Tourism and the legislature in Juneau you can make some money. A friend is selling a 6 plex on Delta Drive up there, as well as a house on Douglas with an apartment. I can connect you two if you are interested in learning more. 

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