Toe in the water not an option in the USA

Posted on Monday, September 30 2013


We are so used to investment property costing 6 figures that we generally think about buying
1 or 2 houses and eventually getting up to maybe 4 or 5 knowing that even that many houses
will involve over a million dollars in debt.

So the thought of a large portfolio is either daunting or just not in our brain at all.  So when we think of investing in the USA we have to retrain ourselves to think rightly.

If we have ever spoken in person you will know my attempts to talk you out of investing to
help you be sure this strategy is for you. And one of the aspects of that is understanding that
if you are going to invest over here your initial goal needs to be to own 10 doors minimum.


You see things like maintenance, vacancies and just plain ignorant people can all knock your
cashflow around and if you don’t scale your investing up to at least 10 doors you
are very likely to wish you had never started.

It’s a simple principle really. If you have 1 house and it’s vacant your income has reduced by
100%. But if you have 10 doors and 1 is vacant you only have a 10% reduction.

You see no one thinks of owning “a” rental property in America. We build portfolios and even
small investors would generally have 20, 30, even 50 homes.

Obviously this takes a little time but not like NZ or OZ where it could take decades,
it is a short term goal to get to ten houses here. The faster you can do it the better you will
sleep at night.

There is no real basis for hobby farm investing here. It’s a business and the minimum size to
make it work in our experience in ten income streams.

So if you currently have 1 or 2 doors then you need to go again. The longer you sit exposed to
risk the more likely you are to have a problem and regret the whole thing. Then you
miss out on all the benefits of what this market can offer you. Values and rents are rising and
money is starting to relax. The perfect scenario for you is in place. So don’t delay, take a deep
breath and jump in properly or else keep your bathers in the draw and don’t play at all!

As always we are here with great homes, great financing and expertise to help you.
All you have to do is take the first step by contacting us

Looking forward to helping you get to your dreams, Dean and the Team.

PS: Memphis has really started to move. We have to dig a lot deeper to get deals as good as 2 or
3 years ago BUT WE STILL ARE, so you haven’t missed out, but you do need to get your big girl
panties on and DO SOMETHING!

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Expert's Bio

Dean Letfus

Dean spends his time between the USA, Fiji and New Zealand helping hedge funds and individual investors buy cash flowing real estate in the Memphis market. He works with top professionals in those cities and is considered better at finding deals than most of the locals. Turnkey has clients in 9 countries and specialises in providing end to end solutions regardless of your budget.

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