All Forum Posts by: Sachin Acharya

@Danette Bottelsen

Hello and welcome to the Bigger Pockets community. As you can see already this is an awesome place to network with other investors and professionals that can help you in your real estate career. But that's just one little part. 

Not sure if you have checked out the other contents yet. If not, I encourage you to read the blogs, check out the forum posts, set up some keyword alerts using your city name and your interests. This will make sure you are notified as soon as someone posts with those words. 

Also listen to the podcasts. There are over 150 hours of amazing interviews with people who have done what we are learning how to do. 

Then there is the Ask BP section which includes some great Q&As. There are many books available here too. Check out the suggestions at biggerpockets.com/books 

Here's wishing you a Merry  Christmas and a Happy and Successful 2016

Regards 

Sachin Acharya 

@Teerra Davis

Welcome to Bigger Pockets! There's a ton of information available here and the best part is the support investors are willing to provide each other. 

My personal favorite part is the podcasts. 

Good luck 

Regards 

Sachin Acharya 

@Michael Lee that's an awesome offer. I wish you a speedy recovery. 

@Keitha Lovett welcome to Bigger Pockets. As you can see already this is a place experienced investors help and guide new ones like you and me. Do some reading and listening, which will help you decide on the niche you want for yourself and then start taking steps towards your goal. 

I wish you a lot of will and persistence in your real estate career. 

Regards 

Sachin Acharya 

The same thing happened to me as well. I was first contacted by Victor. Well exact same thing as @Gary Bellant mentioned. So I'm not going to repeat the whole story. The addition is, they were ready to lend overseas (I'm located in Dubai). Also when I asked Michael for his website he said that it is temporarily under maintenance. Then I noticed that the email address was a Gmail account. If he has his website although not functional why would he not have his email address from that domain? 

Thanks for this post. I was not sure how to ask the question because in case it is legit, asking the question openly can upset the lender. 

Hey Antonio

Welcome to BiggerPockets!

Glad you are listening to the podcasts. I am doing the same thing -- a podcast marathon, right from show1. Hey what podcast are you at right now? I am at 47.

Regards

Sachin Acharya

Hi Patricio

Welcome to Dubai and welcome to Bigger Pockets! 

I'm going to send you a connect request. Let's catch up. There are a few BPers in Dubai. 

Regards 

Sachin Acharya 

@Haider Asfandiyar

Hey Haider

First of all, Welcome to BiggerPockets!!!

Like Morgan Nilsen said, it depends on what your goals and risk appetite are. Dubai is somewhere in between the developing countries like India, Pakistan, and the developed countries like the UK and US. Also, the political setup is important to be considered. Whether or not Dubai is good place for you depends on what your other options are. Developing markets offer lower rental yields but higher appreciation potential, while more stabilized markets have vice versa. Also, developed countries have more financing options than the developing ones.

Morgan and I discuss about Dubai real estate market a lot and one of the things he had mentioned to me was, in a democracy things change slowly because there are oppositions etc. You get to know about these changes and can adjust your strategies accordingly. In countries like the UAE, there is a possibility of things changing overnight. 

The average rental yield is around 7% in Dubai, while some areas can go upto 10%. Now this may be better or worse depending on your other options. Indians are the single largest foreign investors in Dubai owning around 20% of the units and 14% of the investment amount. That is because of the higher yield Dubai provides as compared to India, and the closer proximity. 

In terms of timing, Dubai market is going down and is expected to bottom out next year according to a report by JLL. Click here to read that report.

Dear Experts

To give you a background and context, I am based in Dubai and want to buy rental properties here. I am currently at the education phase, which means, I haven't bought my first one yet. I have created a rental cashflow analysis tool to work my numbers out.

Upon running the numbers I have come across 2 hurdles that I want your help in to crossing. 

1. Gap in rental yield

The average annual rental yield in Dubai is 7.2% and that in the area and type of property I am focusing on is between 9% to 10%. Based on my calculations, for me to able to make a mere 5% cash-on-cash return, I need 19% to 20%.

Now that's a huge gap. Either I have to offer 55% to 60% of the price the properties are listed for, in which case I will not be taken seriously and will soon be put an ignore list by the market, or I buy the property and demand an out-of-market rent, which is not possible to get.

Please help me on how I can bridge this gap.

2. No cash

The second issue I have is I don't have the cash for a down payment. If I use a secondary loan using various financing options discussed at Bigger Pockets, I am looking at a negative cash flow for at least 4 years.

I don't want to give saying this stuff doesn't work in Dubai. I want to figure how to make it happen. Please help me with that.

Thanks

Sachin Acharya

 Hey Rico

Check out the Conservative Rental Cashflow Analysis Tool that I just uploaded on the Fileplace. I have made the tool with a wider audience in my mind. So it is very adjustable. Play with it and let me know how it goes.

 Thanks for the kind words and encouragement!