Professional property investors do their research first
Before 2008 all you needed to know about buying abroad was – it must be worth a punt. More than that was the kudos of an “overseas property portfolio” – always impressive with friends and colleagues. Wherever you bought whether in established countries such as Italy, Spain or France or emerging countries such as Bulgaria and Croatia, it seemed the bubble would never burst. Well sadly the bubble did burst but could it really have gone on forever?
Those who took a gamble without real knowledge of the country and its infrastructure are now facing difficulties but those in the know are still benefiting from investment in bricks and mortar. You need to do your homework before you commit. Knowledge goes a very long way.
Colin Murphy, MD, Torcana Ltd, is an expert in selling homes in the USA, not just to the British but to canny buyers around the world.
Says Colin, “I have never been a big fan of using everyday expressions and phrases to describe selling property. The ones I hear most at exhibitions and conferences include terms like: "you get what you pay for", "it´s a buyer's market", "the clock is ticking" & "it´s a no brainer".
However I think one of the most used and abused terms of all over the past few years (and I´ve been guilty of using it myself), is the ubiquitous "cash is king".
Knowledge will beat cash every time. Negotiating a lower price from a seller by posing as a cash buyer is easy. Almost anybody can do that. To put it bluntly, a bad investment is bad whether you paid cash for it or not.
Over the past 10 years, I´ve had the good fortune to speak with, learn from and sell to hundreds of experienced and successful investors. Some of these guys have truckloads of cash, but that is generally not what sets them apart.
One of the recurring themes I´ve noticed is the importance professional investors place on solid analysis. Every deal will be researched and analysed carefully to see if it conforms to their particular strategy. If they don´t have time to do it, they´ll pay someone they trust to do it for them.
When you think about it, every single person who buys a property will end up paying for a solid analysis, either before or after they purchase. As anybody who has ever bought the wrong property can attest, it is a lot cheaper and quicker to do it at the beginning!
What happens when you chase a great price?
If you were so inclined, it would be quite easy to do a Google search on ALL the resorts we sell in Florida and quickly find what looks like a similar property in a similar area for a much cheaper price. Once you find the actual seller, you might even be able to negotiate a slightly better deal for a quick cash sale. The chances of making a profit on these deals is probably similar to a rookies chances playing a professional poker player - they might win a couple of hands, but eventually they will lose.
I´ll be the first to admit that we are not a one size fits all company. A lot of what we promote won´t be suitable for sizable chunks of our database. We might launch something at $130k when your budget is $90k. The net yield might be 7% when you actually need 9%. It might be in Orlando when you´d prefer Miami.
Whether or not a new launch suits you, you can rest assured that we have done our due diligence on it. I will be able to tell you when it was built, what materials it was built with, how many have been sold, who has been buying them, what rents and occupancy levels are being achieved, all the hidden running and closing costs, what the accounts and reserves of the home ownership association look like, the history of the real estate taxes in each unit, its proximity to important schools, offices and attractions, bulk buyers that have previously been involved .... and much else besides.
It is this knowledge that ensures our buyers get a solid deal, not the cash they have in their bank accounts.
Sample of what is currently available through Torcana
Tuscana is a stunning $100m resort just located just two exits from Disney World in the famous Champions Gate area of Orlando, Florida. The amenities are terrific and include a beach style swimming pool with cabanas, a 24 hour clubhouse, a bar, restaurant, business center and a 30 seat cinema.
We have a very limited selection of spacious condos available for $99,900 - an incredible 28% of their former sales price! A wide variety of options are available depending on whether you´ll want the property to be reserved for friends and family only / rented out full time / a mixture of both...
Siesta Lago, Orlando, Florida
In the heart of Orlando and just minutes from the international airport Selection of 1 & 2 bed condos and 3 bed villas Balcony or terrace, hardwood flooring, internet, appliances, walk in closets, aircon,Pool, spa, gym, tennis, bbq areas, lake, playground, gardens, clubhouse, gated.
Achieving almost full occupancy, which speaks volumes for the quality of the community.
Rental Yields - The average net yield is 8%, although a select few are higher Investment Type - Completely hassle free investment with full after sales service
Prices - From $59,900 (£37,000 / €44,000) to $99,900 (£61,000 / €73,500)
For more information, visit torcana.com.