All Forum Posts by: Erik Noordam

There are all types of legal entities to protect your assets and liabilities. Just consult the 'Doing Business in...' from the World Bank or any law or accounting firm in Europe.

@NateGarrett: you have my vote. Good resource.

Also check IREM.org They publish reports and books on property management and its licensing requirements. For Florida management firms are to be licensed since 2009. A seperate license is required, see FREC: www.myfloridalicense.com/dbpr/re/frec.html

You need one as a Community Association Manager (CAM). Join NARPM or IREM, great resources.

I use Insightly for CRM apart from proprietary CRM software modules as part of two seperate ERP systems in our other lines of businesses (brokerage and property management), but it is a lot of work to set up all processes (pipelines and activity sets for each activity). It's cheap, $ 7/user/month when using Google Apps (or free) and integrates with Google (mail, calender, drive) and MS Office 365, and many other products (Quickbooks, Evernote, Mailchimp and such). API can be used so that leads / prospects are directly recorded into Insightly through your website form. The integrations are delegating (and monitoring) tasks to team members the biggest plus for me.

Hello Bart, for a beginner's guide I prefer Gary Keller's (c.s.) books.  Check www. KellerINK.com. Groeten uit Amsterdam.

Hello Cameron,

Proxio is a great tool for connecting with brokerages and agents worldwide. The website is very functional for advertising new developments, especially to international clients. I use it also as a seperate landing page with own domain to target European clients.

Kate, welcome. Few tips for you:

Search 'Netherlands' for posts and members, and do join a Dutch REI club like Vastgoedbelang.

For investing in the Netherlands start with a general book on real estate business practices such as "Praktijkaspecten vastgoed" ISDN 978-90-01-49400-1 (or check the extensive library of Amsterdam School of Real Estate, University Amsterdam). Also read "Real Estate Finance & Investment Manual"by Jack Cummings ISDN 0-13-493396-6. Third book to read is The "Millionaire Real Estate Investor" by Gary Keller c.s. ISDN 9780071446372.

If you are interested in income properties in Amsterdam check out www.mva.nl (our brokers' association, chapter of NVM) and the auction (held in De Rode Hoed, Keizersgracht). 

For international real estate business: look for agents who are truly working international. Most are member of FIABCI (fiabci.org), the international real estate federation, or belong to national associations that are represented by ICREA and hold a TRC certification (worldproperties.com has all RE agents, check for TRC for international). Thirdly, check for the CIPS designation (Certified Internatonal Property Specialist) of NAR: http://www.realtor.org/designations-and-certifications/cips-designation/cips-network/cips-search

Good luck! Erik

@Thierry Van Roy. It's official today. A German residential investment fund acquired 5500 residential units from the housing corporation Vestia in the Netherlands.

@Thierry Van Roy. Good comments about the difference in building quality. There are certainly differences between the continents, but also between regions within the two continents. Now back to your question:

It's political decision making. In 1995 the Dutch government's social housing holdings were transferred to the (independent) housing corporations. Now national government wish to split up the social (DAEB) and commercial activities of housing corporations starting in 2015. Government also wishes to include the regulated social housing units that could be liberalized (non-regulated) in the section of commercial activities. Those are the residential units that are rented as social housing (regulated contracts) but actually belong in the non-regulated sector based on the quality and value of these units. Of 2,3 million units it is believed that 800.000 can be liberalized (non-regulated). Commercial activities of housing corporation should operate in a more or less same competitive level playing field with private investors. That is, no favorable financing, guarantees, low land prices, other favorable conditions, etc. The housing corporations will sell at least 12-15.000 units annually to the private sector (owner-occupants or landlords). More units will transfer from regulated to non-regulated with tenants' mutations (new lease).

Market research shows that the non-regulated sector will possibly grow up to 700.000 units until 2030. This growth will be partly at the expense of the regulated sector (minus 10-16%). Also, companies like AM and Van Wijnen are quite successful building for investors in the non-regulated housing sector. The demand for housing is strong and when social housing subsidies are restricted we will get a bigger non-regulated market sector and more stabilized market conditions. Not at first, naturally rents will go up steeply in the beginning to catch up (high demand, low supply due to inelasticity). High growth has to do with smaller households but more households.

Private investors in the Netherlands are ready to invest (40.000 units were proposed earlier), institutional investors (particularly German and US investors) are ready with funding and already starting to participate. Still a bit hesitant due to Dutch tenant laws, but politics and reforms will result in a more market approach of the housing market. The non-regulated (almost non existing) residential sector is ready to go!

Hello Dunstan, I would advise you to use a collection agency (PM me if you want some references) or get an eviction order immediately. Vastgoedbelang has a legal department they can help you with. It is a shame that some tenants act this way.

Your comment on due diligence is well understood. Selecting the right tenants means lot less headaches.

The reasons that the Netherlands has too much social housing are complex, but has to do with the power of the social housing corporations who received billions during the 'bruterings' operations in the '90s, and with existing legislation the politicians are trying to curb now. We are not a poor country (right? (;-))  but have a social housing stock of over 95% of the residential renters market of 3+ mln units (the other half+ being owner-occupants).  It's a supply issue, the supply of social housing that is an overkill, and because of subsidising the social housing sector there is little supply of the free market rentals (non-regulated rentals). Only 5% of Dutch households live in non-regulated rental dwellings. That's the main reason why there are waiting lists, there is an undersupply of non-regulated rentals (still a very small market here, and expected to grow).

Good reading material: vision paper of IVBN (association of institutional investors): http://www.ivbn.nl/viewer/file.aspx?FileInfoID=679. I just noticed the older vision papers (2011 and earlier) are not on their site anymore.

Take care, Dunstan, all the best from Amsterdam.

I need to correct a few things here, so that there is no misconception about the residential rental market in the Netherlands. Yes, Dutch tenant's laws are pro-tenant. But there's no 'free' renting. After three months' rent arrears  a court order can be initiated for eviction. There is no free rent and no longer periods for longer tenancies. Although the rent is not free, collection of rent arrears may be difficult and if you have a verdict (for payment) you can chase your tenant for 20 years in order to pay. Since the verdict remains valid for that period. Our company has had quite some success with this,  most people eventually get some new job, pension, or other source of income (or capital).

Investing in social housing (up to $ 700 now) means low direct returns and is not risk free. Social Housing corporations are mostly active in this segment. Private investors in social housing seek for instance condo conversions or other exit strategies. $ 700-1000 is considered mid market and attractive. In both segments tenants can be 'hand-picked'.

Subsidizing has nothing to do with reliable tenants and can certainly not replace a thorough renter's screening.

The Dutch market has a under supply of so-called free market rentals, and an oversupply of social housing (by housing corporations). Politically this is being corrected now, so that market forces will have a more important impact on residential rentals. Especially (institutional) US and German investors have therefore become more active here.

I hope your views on the Dutch residential market are a bit more balanced now. If you do seek residential investments, join a REI association like Vastgoedbelang (or enter into a Buyer's Agent agreement with an investment broker). Good luck with this great business!