Are foreign investors impacting your business
Manasquan, NJ · Member since 2014 · 88 posts · 23 votes
Are foreign investors impacting your business
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Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
12yInvestments in US real estate by foreign investors is nothing new.
On a personal level it sounds like your area has become much more competitive. Others have experienced the same thing from hedge funds. I don't think we have either a significant presence of foreign cash or hedge funds here yet it is still very, very competitive. Markets change. Competitors come and go. Prices rise and fall. Adaptation is a key skill.
14 Replies
- 12yJohn Van UytvenPro MemberProperty Manager · Oconee, IL · Member since 2014 · 536 posts · 202 votes
As someone who is living abroad.
The world is rapidly changing, because we are becoming highly globalized.
With the ability to fly almost anywhere within a 36 hour period.
The internet is allowing me, living in Korea to write about this.
My new smartphone is more powerful and has more hard drive space, (plus I think it's amazing) than my first computer.
You concern that American real estate is going to become like the manufacturing sector is interesting, but nothing to fear.
You job as an investor isn't being outsourced.
Would you feel the same way if (insert big bank, BofA, etc) came in and bought all the properties?
Are foreign investors buying property?
Yes, but what is their goal/exit strategy?What is their research in the area?
Are they going to live there?
Are they flipping or becoming landlords?
If anything they are going to flood the market. Worst case scenario we will see a boom and bust in some areas.
Then everything will be on clearance again.
Do think it's bad if America changes?
I personally don't think so, we are a nation of immigrants who have changed America for hundreds of years.
- Manasquan, NJ · Member since 2014 · 88 posts · 23 votes12y
Great responses, reply and thoughts. I am just wondering if USA is stepping backwards as apposed ot moving forward. As in many foreign countries like India, Africa, China that are investing in USA there is often a small middle class in there home countries and a small set of 1%'ers in the upper class that CONTROL to much for there own greed. OPPORTUNITY is what made america great. Unfortunately the American politicians and big corporate donors have sold americans out for their own greed/pockets by outsourcing. I am concerned that is what is happening in America with Real Estate. History does repeat itself and as we have more disparagy I think unreast is going to become more real. Maybe I should take this into account in my investing.
- 12yEngelo RumoraBusiness MemberInvestor · Toledo, OH · Member since 2013 · 4k+ posts · 2k+ votes
Originally posted by @Account Closed:
The last month we have been running across a large number of foriegn investors at Sheriff sales, Homepath and Hubzu property visits. (more than "normal"). We just used to see them alot at bulk sales but now more individual ones. Is this impacting anyone? Of course they were able to snap up the value properties (all) as it seemed there cash pockets was limitless and left the expensive ones alone... Your thoughts and or experiences? Is real estate going to become just like the manufacturing sector in the USA? I would have said never 20 years ago but today I strongly believe the way real estate is now being handled by these big international banks American soil is going to be sold off and we will become even a much more different nation than we already are.Hi Gina,
Our group has been selling properties to many foreign investors. We haven't to date experienced any competition from foreign investors when purchasing.
We do tend to by very run down properties that need whole teams in place to be able to turn them around.
Most foreign investors are only interested in turn key.
I must say tho that a few fellow Australian investors have tried buying wholesale and doing the work themselves from overseas.
I am sure you can imagine it didn't turn out to good for them :(
Thanks and have a great day.
- Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes12y
Investments in US real estate by foreign investors is nothing new.
On a personal level it sounds like your area has become much more competitive. Others have experienced the same thing from hedge funds. I don't think we have either a significant presence of foreign cash or hedge funds here yet it is still very, very competitive. Markets change. Competitors come and go. Prices rise and fall. Adaptation is a key skill.
- Manasquan, NJ · Member since 2014 · 88 posts · 23 votes12y
Being in R/E investing for 30 years I agree Adaption is important. Maybe because of the close proximity to NY (a gateway) we are prone to many avenues of investment. That said I have seen many ups and downs in our market and I can often udjust strategies. BUT when outside investors do not have to play by the same rules it is hard to compete. Where and how they get there cash (by living in a country that tolerates oppression) is a lot different than I can. I like it like that I do NOT oppress. I pay my american workers a fair wage (not wal mart wages). I am now seeing foreign money bringing in foreign labor. That i cannot compete with on a fair level. @Engelo Rumora indicated the Australians had a rough go of it but in my market other Foreign countries are having great success.
- Manasquan, NJ · Member since 2014 · 88 posts · 23 votes12y
Why was this moved to OFF TOPIC. This issue is very relevenat to my market and may become a larger regional/national issue as a whole not a personal issue.
- Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes12y
@Account Closed this was moved to off topic because that's the only forum that allows political discussions.
- Manasquan, NJ · Member since 2014 · 88 posts · 23 votes12y
Too bad it is not in the public forum. I believe it is a much bigger and broader issue than politics. IMHO it is an issue that fellow BPers are not factoring in their decisions and should when it comes to investing as a whole. I will admt I feel this is a bit of censorship in light of the facts. Thanks for your help.
- 12yJohn Van UytvenPro MemberProperty Manager · Oconee, IL · Member since 2014 · 536 posts · 202 votes
Originally posted by @Gina D.:
Maybe because of the close proximity to NY (a gateway) we are prone to many avenues of investment. That said I have seen many ups and downs in our market and I can often udjust strategies. BUT when outside investors do not have to play by the same rules it is hard to compete. Where and how they get there cash (by living in a country that tolerates oppression) is a lot different than I can. I like it like that I do NOT oppress. I pay my american workers a fair wage (not wal mart wages). I am now seeing foreign money bringing in foreign labor. That i cannot compete with on a fair level.
Maybe that's why, because you are close to NY.
Why don't outside investors have to play by the same rules?
Are you talking about the Canadians or the British?
If they are doing something illegal you should contact the authorities.
When you say foreign labor, do you mean undocumented workers?
Which again goes back to contacting the authorities.I am bringing in foreign investors, and everything is being done legally.
Part of the reason this was moved off topic is because of political nature of the topic, and you haven't really shown how to change things.
You're just saying it isn't fair.
- Manasquan, NJ · Member since 2014 · 88 posts · 23 votes12y
Thank you for the responses/questions and statements re my initial post immediately below. See my responses in BOLD
Originally posted by @Gina D.:
Maybe because of the close proximity to NY (a gateway) we are prone to many avenues of investment. That said I have seen many ups and downs in our market and I can often udjust strategies. BUT when outside investors do not have to play by the same rules it is hard to compete. Where and how they get there cash (by living in a country that tolerates oppression) is a lot different than I can. I like it like that I do NOT oppress. I pay my american workers a fair wage (not wal mart wages). I am now seeing foreign money bringing in foreign labor. That i cannot compete with on a fair level.
Your questions, statements and responses @John Van Uytven
Maybe that's why, because you are close to NY. It should not matter where anyone is located in the USA. Foreign investors are creeping into everymarket.
Why don't outside investors have to play by the same rules? Great question. Where do they (foriegn investors) get there inititail cash investment monies from (even continued funds). Often other countries have different laws that favor the wealthy to the extreme. Oppression through abuse of powers is a huge issue world wide. (look at factories in Asia and other foreign countries that abuse kids, woman and mentally ill through their working conditions and education opportunities based solely on family social status). Inequality is the standard in many countries. Slave labor to which the owners reap rewards and then use those funds to invest in Americas is done all the time. So where as I am american employer that pays a fair wage and affords mandated benefits to my workers cannot save the same amount in funds because of american rules it is easy for foreigners to abuse a system.
Are you talking about the Canadians or the British? I am talking about any country outside the US. For me I have seen a lot of investors from all over. If anyone has read the "Rich Dad Poor Dad" books "Robert" often talks about the opression in his ancestrial country and how wealth is created in many other countries by corruption and surpression and why we should be greatful of american standards. Unfortunately the 1%ers and those in "Control" world wide do not see it that way. Because it is about again Control and greed.
If they are doing something illegal you should contact the authorities. Please why do you think America is in trouble. The authorities "those in power" love the system as is. Why change it. It creates wealth disparegy which means control.
When you say foreign labor, do you mean undocumented workers?
Which again goes back to contacting the authorities. The wealthy have created rules through work visa programs. Every year Hundreds of thousands of workers from other countries are allowed to enter into this country and take american jobs. WHY? Cheap labor. Americans can do all that other countries can do but because of our rules created by the wealthy and privilaged and greedy we as non 1%ers are handcuffed.I am bringing in foreign investors, and everything is being done legally. Again whom creates our legal rules and laws The corrupt that do not want to relinguish any power. Again Greed. I have been offered the ability to seek foreign investors and workers. It is short sighted IMHO to do so. "to simply close my eyes and not ask and verify where the foreign money is coming from" is wrong. Why should I surpress other american families and their children and great grand children for greed. For that matter I am also surpressing the same in other countries if I take their dirty money to build my wealth.
Part of the reason this was moved off topic is because of political nature of the topic, and you haven't really shown how to change things.
You're just saying it isn't fair.
- 12yRoy N.Pro MemberRental Property Investor · Fredericton, New Brunswick · Member since 2013 · 7k+ posts · 4k+ votes
@Account Closed
For generations U.S.A. citizens and companies have been the foreign investors purchasing real estate, mineral rights, businesses in many other countries around the globe.
While there has always been some foreign investment in the U.S.A., it was inevitable the volume would grow as the relative wealth/strength of other nations/nationals/business increased.
- Manasquan, NJ · Member since 2014 · 88 posts · 23 votes12y
Said "For generations U.S.A. citizens and companies have been theforeign investors purchasing real estate, mineral rights, businesses in many other countries around the globe.
While there has always been some foreign investment in the U.S.A., it was inevitable the volume would grow as the relative wealth/strength of other nations/nationals/business increased."
Response: I do not want to get off "my" topic. I hope you use this medium to express your concerns re the above topics in your own post and thread.
The USA is a young country I am fearful our elected officials might become as corrupt and one sided in this great nation as the politicians and dynasties are in other countries. Historical data shows that as wealth disparigies increase there is a greater chance of unrest and turmoil. Today because of commmunication mediums it is more difficult for nations and the 1%ers that "run" them that are corrupt to not be exposed. That said the elite seem to know how to manipulate things but again the more corruption that is exposed the better the world will be as a whole in my opinion.
I often laugh when people talk about Warren Buffet as being this great "man". All I see is a great manipulator and professional industrial psychologist that has learned how not only to play the game but play the game where he gets to make up many of the rules and game pieces as he keeps playng it. Sad part is it will not be until he is gone that all rules he manipulated to be in his favor for his own and close inner circle will be exposed and how many others are left to rot in the fields of OMAHA.
- Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes12y
@Account Closed this forum is as public as any other. There is no censorship involved. Forum rules state the ONLY forum where political discussions can occur is this one.
- 12yJohn Van UytvenPro MemberProperty Manager · Oconee, IL · Member since 2014 · 536 posts · 202 votes
Immigrants aren't taking our jobs. These people add a lot to our economy.
I know what you are thinking. Yes, they do. You have seen it.
The truth is most immigrants are just working to support their families.
I was dating a Vietnamese immigrant worker extremely hard. She was trying to support herself and her daughter. Her entire "apartment" was half a shipping container, and the smallest living space I have ever seen.
A lot of your sources for information I assume will make it seem like they are living the high life on their NON living wages. But they save, then work long hard hours. Which I respect them for working harder and longer than other people.
As Louis C.K. said “Of course foreigners steal your jobs. But maybe if someone without, contacts, money or speaking the language steals your job, you’re ****”
"to simply close my eyes and not ask and verify where the foreign money is coming from" is wrong.
I know you are not quoting me here.
You make it seem like all foreign money is questionable. Which you also make seem that any Americans investors money is going to be legit.
Also that I personally am taking questionable money. The people I am investing with are English Teachers. Must be all that under ground teaching and meth making that they are getting their money.
Your opinions are based on a little bit of fact and a lot of fear.
I promise you everything is going to be fine.
These investors are no different than any other big money.
To wrap it up.
I studied history with a concentration on American Immigration Patterns and How Race and Religion Influenced Immigration Legislation.
Your rhetoric can be found throughout American history, in which people are scared of the unknown immigrant.
You are worried that immigrants are going to change this country.
They will, but when they changed this country. They built bridges, roads, canals, and railroads. They built corporations that employed thousands of people.
It's going to be okay.
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