All Forum Posts by: John Flanagan

@Greg Brooks my partner and I have focused on investing in NH and ME for the past 5+ years.  As others have said there are places to look and others to stay away from, part of which will depend on what your personal objectives are.  Feel free to reach out and I would be happy to share some our experiences.

@Mike Lambert Exactly! Would love to connect on some of the opportunities you highlighted in Mexico and other countries.  

@Mike Lambert appreciate your insight! I think that just about every you point you make is extremely valid.  First, I 100% agree that too many people don't fully comprehend that last property crash/financial crisis and every time I hear United States real estate referred to as a "recession proof investment" or current prices as "the new bottom" it makes my stomach turn.  Personally I believe too many people are getting in WAY over their heads under these misguided premises.  That's not me saying I believe the US market is due for a correction or recession, I just believe too many people are unprepared for it should it occur.

You make some very good points that I may not have been clear about in some of my initial posts.  If it weren't for my partners (and my relationship with them) there is absolutely no way that Peru would have been my country of choice to begin international investing.  Are there plenty of opportunities to make money in Peru? Absolutely, but it is not the place I would recommend for someone without the right relationships.  For example, my partners are both Peruvian, successful business owners, and are very well connected locally both politically and socially.  Ideally we are trying to create a model through our developments that is more enticing for international investment but there is a lot that needs to be worked through before that becomes a reality.  But too your point, at this point it makes me more of a trailblazer and that may work in my favor or it may not only time will tell.  

I agree with @Account Closed. The concept of a deal is all relative... It also depends on where exactly you plan on finding the money.  Banks or hard money lenders don't care whether you got a "deal" or not, they only want to make sure they get paid back w/ interest.  If you're dealing with private investors all they care about at the end of the day is how it benefits them, regardless of whether it's a buyers or sellers market.  If you show value by making them money or highlighting the opportunity to make them money then usually the money will follow.

@Tony Kim thanks for the information! I honestly haven't looked into investing in Asia much but it sounds like at least from a tenant standpoint it's well worth looking in to! Just out of curiosity how exactly does South Korea make it difficult to own more than one rental? And is there financing options available? Thanks! 

@Liz Coodchild that’s amazing! Is it more difficult to obtain the loans as a non resident? And are you focusing on bigger cities in Denmark or less populated areas?  Thanks for sharing!

@Ariela H. Exactly! Research is priority number 1 and building a solid team locally to help is imperative.  It's definitely a step outside many people's comfort zone but I think it's worth more of a look than many people give it.  Do you mind me asking where you have invested in Mexico and seen success?

@Lien Vuong so I can obviously only speak to my personal experience but I'll do my best to answer best I can. I used personal funds to finance my entire investment (although some of those funds were from an LOC I have on a property here in the states). I do know from some of my research that there are countries that will lend to non residents but I would be sure to understand the financing structure and interest rates you will be paying. For example in Peru where my project is rates for loans are often times higher than 20%. With that being said, I do know certain European countries have much more favorable rates and loan structures for non resident investors.

In regards to your question on cost of building it is significantly less.  The reason behind that is labor costs are significantly cheaper than here in the states and also at this point in time way more hungry to work than what I have been able to find here.  We completed the first build of the development which was a 3k sq ft, 3br, 3ba, house with a pool for $68k.  If we were to list that home it would probably price in the $200-250k price range and the rental numbers we have seen would more than justify that as a cost.  

Keep in mind my situation is unique as I have partners from the area i'm investing in but I am also looking at purchasing on my own in Costa Rica as an investment property sometime in the near future.  Hope this helps! 

@Shane Siederman oh I 100% agree with you. I personally moved back to FL from New Canaan CT a couple months ago. The point of my original post was more to give people some advice for potential road blocks that may occur with short term rentals. But you make a very good point about following the money… the more government imposed red tape, regulations, and taxes the less enticing it is for investors. And as much as it blows following the money will often times identify trends like large corporations with millions in lobbying dollars (like the hotel/hospitality industry) trying to stronger arm municipalities and politicians into imposing silly regulations on small time investors. Either way never hurts to have a backup plan. 

@Shane Siederman listen I'm all for freedom but remember that whether you or I or anyone else have our definitions of freedom the government/municipalities have theirs and they will come after you if you don't abide by it.  Personally I agree with you we should be free to rent our properties however we see fit.  So if you decide your best course of action is to go toe to toe with a town or city over your "right" to rent your property how you see fit that's your prerogative.  If you own in a big city you probably have enough firepower from other large scale owners to have a chance but in smaller areas you may not.  Check out some of the regulations on short term rentals in Santa Monica, Sarasota County FL, Jersey City NJ, or Clearwater FL to name a few, each one has different regulations but they all make it tougher.  Do I agree with them? No. But to hang your hat on "freedom always wins out" probably doesn't work out in the favor of many of these short term owners.

Also, I see your from Charleston which is an amazing city where you can do about anything you want but you do realize that there are still cities and towns in this country where gambling and alcohol are illegal right?