It annoys me when I discover solid real estate investments abroad, I want to talk about them, but my believe in ahimsa causes emotional pain.
There are Sustainable Real Estate Investments Abroad
I want to explain a real estate deal savvy people can do when living abroad; but I also do not want to explain it. And yes, I tell readers on a regular basis, there nothing more stupid than buying real estate abroad, but this is not buying, I call it "Rental Arbitrage."
Maybe I can leave in many misspellings, and awkward sentence, so the people who are easily manipulated are instantly push off this page, yes, I will do that, annoy the “silly” to leave.
I can rent an apartments here in Kara, Togo for 50 USD per month, and re-rent it to foreigners using my web site for 50 per week. This is very a very annoying observation to me, because my mind is tempted, but I know in most ways this is trap, there is nothing that simple, I have to trust other humans.
More or less this is about a 1000 dollar gamble, but what makes it really tempting is I could stop any loss by returning here to live. But, do I really want to return to Kara, Togo to live?
I will pay 300-400 USD to live in the Hotel room here for one month.
My problem is also “Ahimsa.”
Which is just an fancy Sanskrit way of saying,
“First do no harm.”
I first do not want to harm you.
Tempting you to harm yourself.
I have purchased over 60 homes in my life:
The 30 Rental Homes
I purchased 30 house to rerent, and this was the most horrible, blood sucking way of making money of my life. I would not wish it on my worst enemy. The home rental homes own you, you do not own them.
The 30 House Flippings
I would buy a House in Fort Wayne, Indiana for 5-10 K on Monday and sell it 1-5 days later on Friday for 10-40 K. If I ever stopped moving, I would do this again, it required no money on my part, just knowledge, I never even took title them, just profited by knowing how to buy correct, and sell correctly.
But, how does one get hurt with Real Estate Investments?
- Simplest terms, if you do any work, or by thinking too much, worrying too much, or getting to learn your friends are corrupt, and will steal all your money.
1. Sweat Equity:
By doing physical labor, more or less earning the money by what people call sweat equity, and listen to the words. SWEAT, it truly is the harm you can do to yourself, buying a shit load of work, and spending all your days and nights thinking about doing the work, it is really Gods punishment given to man when he kick Adam and Eve out of the Garden of Eden.
2. Close to the Edge Real Estate Invesments
If you do the math up above, you can see I double my money in one week, there is nothing close to the edge about it, it is huge windfall, no brainer amounts of profits.
I believe a person should invest 1 dollar in Real Estate, and make 2-10 back within six months, regain the principle in the first 30 days,and retrieve the profits in six months, then bleed the invesment until it collapses or self-destructs as do all business enterprises, or maybe merge or get eaten.
I sincerely hope all of what I have written above did a fly by, and nothing sank in, and I want what I write to be ambiguous as hell, because you need to think, and herein lies the problems with people, they do not want to play chess, the hate chess, they instead want to play dice.
Investing overseas is really insane, unless you have lived outside the USA for at least seven years. I can do this in Indiana, 100 times safer than here, but I want to live here, and that in the end is the torture of Real Estate, it demand you squat on the investement, and defend it against all takers.
Somewhere along the line, one needs to find people who want to squat on a property, people who hoard, refuse to walk away.
Fun stuff, and please again, ignore what I wrote above, it is just a muse, my amusement.
Note, good solid real estate investments require less than 5-10 hours of thinking, and time required to manage it. If there is more work than that, it is most likely a sweat equity project, and you should walk away, and the art here is to say no 100 times more than you walk in to the investment.
Kara, Togo West Africa
thanks for your thoughts on this. I am very interested in your comment: I purchased 30 house to rerent, and this was the most horrible, blood sucking way of making money of my life. I would not wish it on my worst enemy.
I have been thinking about investing in rental real estate. Many people say that this is a nightmere. Other say it can work if you are very choosy about your tenants. Looking back on your experience as a landlord (oh, I mean property owner) do you think I would have worked out better if you knew THEN, what you know now?
Yes, I could do it better now, yet, owning rental property is for people who love house work, doing repairs as a hobby. I do not enjoy doing house maintenance, I do not enjoy talking to people who need to pay rent. Each home is like having a wife you can not divorce easily. Yet, always would be nice to have 5 homes 100 percent free and clear, no debt. I sometimes think about buying a house here on Lake Atitlan for 5000 USD cash. Then giving the management to any Tom, Dick, or Harry when I am gone, and allow them to steal all the money as they do, and I would have a house for me, when I want. Yet, I want less things to think about, not more. Right now, I have two people who manage people working, and I never talk serious with them. One manages the making products for Amazon, which is residual income without the lifelong commitment, I could stop in a day, no worries about tons of angry tenants, credit problems, etc. I have 5 type of residual income, only one is actual work, consulting. The other work I do is simple. if I got really hard up, I would write a book ever 3 months and publish them. Having skills is what everyone needs, and the more, the better.
I agree that the attraction of owning the home would be offset by the complication. You can't be in two places at once, and when you own property, part of your attention always has to be on it. I've seen people forced to abruptly fly back "home" from the place they wanted to be because of damage tenants did, or fire, or just legal hassles. It doesn't fit the hobo lifestyle in my opinion.