Posted by ray@lcorn on July 08, 2007 at 16:15:09:
Thanks for the kind words about the book, and glad to know it is helping you accomplish your goals.
I can’t really opine on foreign direct investment in real estate because I haven’t done it. I get lots of emails pitching land in far away places, condo development deals, etc., but as yet haven’t pursued any of them. I’ve also looked into hedge funds and REITs that specialize in emerging market real estate, but again have yet to pull the trigger.
My reluctance is borne of two factors… first I’m a control freak and I hate the thought of relying on someone else’s judgment with my money. That rules out the hedge funds and REITs for me.
Second, the answer to the control factor is direct investment (or partners). I’d have to get very comfortable with the market, the legalities of the country, and the exit strategy.
Partners, foreign or domestic, require another level of due diligence that is often more trouble than its worth. Either way, that’s a lot of work, and I wouldn’t rule it out completely, but it’s probably not going to work its way to the top of my to-do list anytime soon.
Coincidentally this week’s article from Torto-Wheaton Research is about direct RE investment in Asia. While the article focuses on Asian countries, the questions raised are the ones I would be asking anywhere.
The direct link is https://www.twr.com/default.aspx?_title=AboutRealEstate&_id=1480
If the link doesn’t work you may have to sign up for access (free) at www.twr.com The title of the article is “I Felt The Rush…” (fitting, eh?
Best of dealmaking,
p.s. Upcoming seminar announcements will be sent to all those in my database with working email addresses, and will also be announced here on the CREO ComRE newsgroup. I’m working on a couple of projects right now that will directly affect the timing, so I can’t give a date yet, but it will be within the next few months. Thanks for asking.