All Forum Posts by: Shane Barone

Greetings Aaron,

I am also familiar with the Island, like you but I have no real investment experience. One of my main goals, is to obtain a rental home/apartment on the Island, primarily in the Northern region, Alcudia/port de Alcudia. As I have used a few websites to begin my searches,  such as www.idealista.com, and http://www.inmobiliaria.com/ it has been of no real luck, or should I say, I have been too timid (unknowledgeable) to pull the trigger. How did the sale go, or did it? Very interested in speaking and linking up with you!

Thanks, ! appreciate it. Also, I just wanted to mention I have found many new users in my hometown of Eau Claire, Wisconsin and hope to connect with more of them with information regarding the EC market as well!

Greetings Raymond, Kerry, Greg, and Hubert,

Nice to meet you other "German" market interested investors here on the forums. I'm currently operating within the German market in Wiesbaden, Taunusstein and Stuttgart areas. Many US military members have chosen to leverage their LQA/OHA to purchase a house, but the majority are using it just as rent. 

Many of the local home owners and investors have been renting to American service members for years knowing this entitlement is available. This creates high price points for rent in the area and keeps purchase supply (good quality) at an all time low. 

While there are deals to be found, they are limited and one must be creative with location, use and understand what American renters are expecting during their 3-5 year "European Vacation" 

I have however been in Europe for over ten years and been witness to many of the US military communities downsizing or outright shutting down.  The housing market in these ares suffers immensely not to mention putting investors at risk of not paying their mortgages due to their strategy of Military housing. 

I would love to talk with you all more about specifics, i.e., communities of interest, financing, property management, lease options and more. Lets chat or keep this forum moving! 

Shane

Welcome Sara, Yes the Rheingau is absolutely amazing. Eltville is a great place to call home and so is the surrounding area. I am located just down the river a bit in Oestrich-Winkel. Hope you have been doing well and look forward to hearing from you!

Thanks Pratik. It's already rented out as it took no time to find a good renter. I have it rented for 600 euro flat with all utilities and parking included. A fair market price for the area.

Greetings, 

I would like to share some photos/stories of a recent rehab I've completed. The project included a kitchen replacement, floor replacement, refresh and furnishing. 

The project created a cash flowing asset, which provides a clean, safe and comfortable short term home for students during their international studies. one thing I always like to concentrate on is buying a home/resident in which I would live in. If I am not comfortable staying overnight, I will not buy it/rent t out it until I am fully comfortable with it... Just a personal principle...

Before:

During Rehab:

After Rehab, ready for move in!:

I feel it turned out very well. What are your thoughts?

Greetings, 

I also have some experience investing in properties in Germany. There are many factors to consider and obviously need to be based on your individual strategy. Due to the recent regulation, based on the landlord tenant laws and rent ceilings, it is getting harder and hard to earn a good cash flow. Home prices are completely overpriced at the moment and the European Central banks negative interest rates are not helping.

Like Silvio stated, leverage is key and important right now. Eventually the properties will be paid off or at least become a value add. 

A few tips, at least from my perspective: 

1. Germany has a large influx of Expats for business short and medium term. = focus on furnished housing/corporate housing for it beats the rent ceiling

2. Students: Always good everywhere and you can leverage the furnishing as well

3. Refugee housing. The state will pay for a suitable home for refugees coming from overseas.

4. Watch out for capital gains within 10 years of purchase (25%!)

Good luck and hope to hear back !

Greetings all,

Based on years of experience in analyzing deals and purchasing a limited number ofproperties in Germany, I have recently started preparing a direct mail list for my area. My main strategies are buy/hold for cash flow and enjoy appreciation -(if possible). 

Germany, being the privacy oriented country it is, likely has some laws/regulations regarding direct mail. I have already begun capturing a list from my own self thought sources to mail to but I have not yet started mailing

I was wondering if any one from Germany has any experience in this. I would like to direct mail in order to find those homes which never get listed through an agent.

A recent class I was in regarding selling homes stated statistics of approximately 50% home sales never even go to market. 

My goal is to reach these sellers/potential sellers before they sell/inherit their property to a neighbor/friend/relative.

Does anyone have experience with direct mail in Germany and if so, what are your sources and what is the legality of it?

Thanks!

Shane 

Greetings Salomon,

I have been in Germany for over 10 years and recently began investing myself. Up until this point I have manged English Speaking properties in the Wiesbaden area, built new construction and rented myself. While refugee housing was certainly a booming market, I would not say it is due to expand a whole lot more in the near future. The political environment may not be prime for this type of thinking/investing. 

Germany's housing market, historically, has been very stable and increased at a very meager pace. However, more recently, as in the states, we are all waiting for the bubble to burst, [rock bottom] interest rates are driving the cost of homes up so high, money is cheap and everywhere and the only thing in which is slowing purchasing now, is the raising cost of transfer tax throughout the country. (perhaps more stringent loan requirements as well)

Germany is a country full of organized, frugal, buy and hold investors. It is certainly a sellers market and the deals a few and far between in large metro areas. Certainly in my area of interest the return are no where near the 2% rule everyone would like to achieve, but buy and hold strategy/equity, as we all know is always a wealth builder. 

Personally, I keep my eyes open for deals, but I think capital creation is really the key at the moment. Wait for prices to drop a bit and then when interest rates go back up and homes come on the market, buy them up...

What type of property are you thinking of investing in? Berlin is a very rapid growing city with more and more international investors coming. Good luck and hope for some success!

Greetings everyone!

My name is Shane Barone and I am a fairly new member here to bigger pockets. I have been a listener to the podcasts for quite some time and finally decided to jump on the forums and introduce myself.

I have been living in Germany for over 10 years, originally coming from the US state of Wisconsin. During my stay I have learned a great deal of the rental communities, markets, contractors, new build and property management. 

I have built a home here, with the project including the land analysis and eventual purchase, plumbing, electric, structure, design, landscaping and all the way to the finishing touches of wall paper and paint. I acted as the general contractor and learned a great deal of building code, good contractors, what to have in your contract and timelines.

Through this experience, I improved my German speaking to a business operational level and knowledge and know how. Because of this, some of my English speaking associates and home owners have trusted me with the management of their homes here in Germany as they transitioned back to America. 

In 2014, Barone Estate Management was formed as a self incorporated small business here in Germany. Since its inception, I have managed single family homes, condos, and town homes in the Wiesbaden, Stuttgart and Taunusstein area. 

I have experienced and resolved many situations, including move-ins, move outs, contract signing, security deposit returns, inspections, renovations, heater problems, water pipe breaks, property tax assessments and much more. 

Because I was able to "test out" the landlord act, and always wanted to purchase and maintain my own portfolio of homes for Military, local nationals and students, I began my search.

I just recently purchased my first rental condo and have begun the experience of being a landlord myself and learning the benefits and adversities. I bought a small apartment near where I live with the intention on renting to students of the local business university in Oestrich-Winkel (European Business School) 

Following renovation, I was able to immediately rent the apartment out and have since been looking for the next deal in my immediate area.

Now that the bug is stuck, I am starving to continue expanding my portfolio and continue moving forward with this property endeavor I am going to follow. 

As I move forward towards my goal of financial independence, I am on a never ending search for cash producing assets, investment in myself and my education and to find like minded individuals in which I can share a relationship with. 

I would be very grateful to meet up with other like minded individuals and potentially set up an event where we could all get together and talk about our successes, failures, troubles and listen to what each other has to say. 

For all you out there, please write, as I am looking to engage and meet with new people!!