Wednesday, April 10, 2013

March 2013 Update Well the first quarter of 2013 has been really good for our clients. We are still building “Casa Populars” in Brazil. The government in Brazil has a program called, “Mia Casa, Mia Vida” (My house, my life) whereby they fund almost 100% of a first time Brazilian home buyer. This is fantastic for us as builders because the demand for this social housing is HUGE, and we don't have to worry about getting paid. The Caixa (Brazilian national bank) deposits the funds directly into our account. The returns on our invested capital is really good. Our clients our making anywhere from 20% to 25% per year, and the best part is that the investment is guaranteed by the land. My Thoughts: I think that investors have to be much more conscience of what they do with their money and what projects they are putting their money into. There are so many investment firms that promise good returns to investors, but seldom deliver on their promises. The reason for this is that their operating expenses are to high. (as I have talked about in a precious article, “When it comes to real estate investing, it's a question of simple math.” We have been doing business in Brazil for the past 10 years and have been building “Casa Populars” for the past 3 years. We do it for ourselves and we are also working with a handful of clients, helping them realize their investment dreams. We can help you with everything from A to Z. Purchasing the land, the building process and the sales of the homes to Brazilian buyers. Check out these videos of 11 homes we are building for an American client Video # 1; https://www.youtube.com/watch?v=b8Blxki-edw Video #2: https://www.youtube.com/watch?v=jcxFh2tNocg Video # 3: https://www.youtube.com/watch?v=KGd7G9qaozQ If you would like to discuss investment opportunities, please feel free to contact us to discuss possibilities.
March 2013 Update Well the first quarter of 2013 has been really good for our clients. We are still building “Casa Populars” in Brazil. The government in Brazil has a program called, “Mia Casa, Mia Vida” (My house, my life) whereby they fund almost 100% of a first time Brazilian home buyer. This is fantastic for us as builders because the demand for this social housing is HUGE, and we don't have to worry about getting paid. The Caixa (Brazilian national bank) deposits the funds directly into our account. The returns on our invested capital is really good. Our clients our making anywhere from 20% to 25% per year, and the best part is that the investment is guaranteed by the land. My Thoughts: I think that investors have to be much more conscience of what they do with their money and what projects they are putting their money into. There are so many investment firms that promise good returns to investors, but seldom deliver on their promises. The reason for this is that their operating expenses are to high. (as I have talked about in a precious article, “When it comes to real estate investing, it's a question of simple math.” We have been doing business in Brazil for the past 10 years and have been building “Casa Populars” for the past 3 years. We do it for ourselves and we are also working with a handful of clients, helping them realize their investment dreams. We can help you with everything from A to Z. Purchasing the land, the building process and the sales of the homes to Brazilian buyers. Check out these videos of 11 homes we are building for an American client Video # 1; https://www.youtube.com/watch?v=b8Blxki-edw Video #2: https://www.youtube.com/watch?v=jcxFh2tNocg Video # 3: https://www.youtube.com/watch?v=KGd7G9qaozQ If you would like to discuss investment opportunities, please feel free to contact us to discuss possibilities.

Monday, April 1, 2013

When it comes to real estate investing, it's a question of “Simple Math”

There are a lot of real estate investment funds that have fancy brochures to entice you as an investor to invest with them. They all look very professional. Big fancy offices, gold embossed brochures. It all seems very appealing. Here's the problem: Most of them can't deliver in what they promise. The reason being that they are more marketing machines then they are developers. In any real estate development the profit margins are somewhere between 40-50%. Some of these real estate companies have huge overheads to pay out. The figures look something like this: Payout to investor: 15%-20% Finder's fee (for someone who brings an investor to them): 5%-10% Marketing expenses: 15%-20% So as you can see, even on the low side these firms work with 35% in expenses. And on the high side they are at 50%. So where is their profit. They are not doing this for free. The problem is, most end up being Ponzi schemes. They can only pay out to the investors as long as there is new money coming into the company. Once the inflow of new money stops, so does the payout to investors. There are hundreds of companies that end up closing their doors, Pemberton International Eldon International Willow International Allied Investment Abacus Investment This small list is a drop in the bucket, but over a two year period, starting in 2009, over 300 victims lost over 3 million pounds to these companies. The two men involved are in prison, but that does nothing to relieve the financial loss of the victims. As a real estate investor, you have to work your own deal. Stop trying to get money quick and easy. It doesn't exist. You work hard for your money. Make sure that when you get into a deal, you have control. Don't put your life in the hands of other people. The reason that we have been able to be very successful over the past 8 years is because we do things different. We reverse the payout numbers. Our investors do their own deals. We package small to medium sized real estate projects for each client. The 40% to 50% profit is theirs. We take a small percentage for managing and overseeing the deal. This has worked very well for us over the last 8 years. We are not a large firm. We have a handful of clients that have worked with us, and that continue to work with us in various projects. If you would like to learn more about how we work, please feel free to contact us: