My experience in real estate has been minimal to two purchases where I currently live and i used to live.

The idea is to take advantage of and minimize capital gains whenever possible.

If you work hard, you may find that diamond in the rough that needs minimal repair, cash flows great, attracts the perfect long term tenant and appraises well.

What happens when there is a lot of capital chasing a sponsor and it is continuously being recycled is that the pursuit costs and timing are minimized such that the lag between when capital is put to use and when it is raised is rather short; so short that it makes more sense to just raise it in a fund. 

I'm starting out and have a minimal foundation from which to build.

I got a minimal disclosure packet from the seller, the agent didn't even put in any notes and said "they would be coming". 

They were minimal, but they were there...

Notes and private lending are the other two big ones to consider, which can be done with minimal time commitment and from a distance.Regarding returns, generally speaking many of us seek to beat the market.

Even with Katrina the loss claimed was minimal compared to others.   

I agree with you fully, it's a 50/50 play - still IMHO he can minimize that exposure by using part equity from the US and part local morgage.