Most European investors are jealous of you.
The United States has the best opportunities for investments in the world.
We have access to various real estate opportunities in different regions where we can place high LTV leverage with low-interest rates while getting a favorable price to rent ratio.
...but most U.S. investors take these opportunities for granted.
I know because I've spent months traveling in Europe. Many of my investors abroad have told me directly how great the states are for investing — and are honestly quite jealous.
Yes, Europe has affordable real estate (and it seems like they’ve got it made).
But the yield doesn’t make for profitable investing. Let me show you some examples of what I mean:
- - A 2/1 apartment in Tbilisi, GA, costs $40-$60K US dollars. But you’ll only get $250-$500 per month in rent.
- - Apartments in Trieste, Italy range around $70K USD for a one-bedroom and one bath. But it’ll only rent for $450/month.
- - And finally, in Vienna, a two-bedroom one-bath costs $400K. But even then, would only rent for $1000/month.
Now let's compare a few recent options that our Inner Circle members are receiving in their inboxes from different regions across the U.S:
Here’s a 6 unit in St Louis, MO. A fantastic deal. The asking price is $295K with a monthly rental income of $3905. After accounting for all expenses, the cap rate is 8.3 cash on cash return is over 15%.
Another great example is from Red Wing, MN. The duplex asking price is $145K with a monthly rental income of $1980. After accounting for all expenses, the cap rate is 8.5, and the cash on cash return is 15%.
And finally, here's a 40 unit in Memphis, TN, for $1.2M. It is currently operating at an 8 cap rate. But with some renovations and increased rents, the pro forma cap is 14 with a 27% cash on cash return.
All this to say...
Do not miss the opportunity in your own backyard (the best place in the world) to build an investment portfolio.
You have two options:
1. Ignore the opportunities and let them pass you by
2. Participate
You know which one I encourage you to choose.
Now, there is another opportunity not to be missed that does involve real estate in other countries. More on that next week,
P.S. The United States is the best place in the world for investment opportunities. High cash on cash return and high yield. Learn to leverage these opportunities by joining the Inner Circle and get new deals in your inbox every week.
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