Skeptical of a Private Investor
I was talking to a guy tonight and he said that his investors overseas have money but they want a green card and an easier way to get one (rather than the traditional way of applying and waiting) is to invest in a business. He said that that they love investing in businesses especially the food space because they can make a lot more money than real estate. He proceeded to tell me that if 4 investors invested in a property that they bought for 1.8 million (College Housing) is chump change to what they could do with a Chick Fil A. I threw out numbers and said if you bought the property for 1.8m and each investor (4) put the equal amount for the down payment and you received even 12k (each investor) for three years, and everyone gets their initial money back after 3 years because of the refinance, that’s not better? I am fairly wet behind the ears but I told him if the restaurant business was better than real estate then everyone would be trying to do it as opposed to real estate. Let me know your thoughts. I’m speaking over all in general that real estate is better. Any opinion is appreciated.