INVESTING IN REAL ESTATE for many, is an amazing and gratifying thing to do. For many others it is a risky and misguided venture. Support, encouragement, praise, compliment and approval by others for efforts to invest in real estate, as sought out by an individual of those he/she trusts, may vary from the overwhelming positive to a very critical negative. Seeking advice, counsel and guidance for such endeavors is a good thing even though the desired responses may not be forthcoming.
In early 1975 within hours that I got my real estate license in Arizona, U.S.A., I telephoned my father in California to share with him the great news. The first words out of his mouth were: “Sonny, you’re an embarrassment to the family!” My father came to the U.S.A. from the Ukraine in 1922 and had a completely different point of view on this new business than I did. After over 30-minutes of polite and enthusiastic (on my part) discussions, he said: “OK, OK!! I wish for you the best and I know you will be great!!” He soon witnessed my successes and gave me a great deal of encouragement. Sadly, and very unfortunately, he died less than 2-years before I began to gain major accomplishments and substantial recognitions in the business.
A feature of real estate investing that seems to be coming more and more pronounced is the arena of International Real Estate. Because of where I lived during my first 15 years of real estate brokerage, I was introduced to many aspects of International Real Estate early in my career. This aspect was only one of many branches of real estate specialties and achievements.
There are numerous possibilities presenting themselves along the highway of the exchange of opportunities for Israeli’s seeking to invest in real estate opportunities in the United States and Canada; and, for those from the United States and Canada seeking to invest in real estate opportunities in Israel.
TIPS FOR EXCELLENCE
The list of words and phrases shown at the beginning of this article are some of the important factors to consider about real estate investing almost anywhere. Briefly, here is some enlightenment (הבהרות) on the above, with more emphasis on international real estate strategies.
Patience & Temperance
These are acquired behaviors and skills usually serve the individual investor well. Patience is the investor’s most treasured and strongest asset. Temperance, is flourished by the steady investor in having abundant self-disciple and self-restraint.
Patient Money-Long Term Strategy
The investor is willing to make a financial investment in real estate with limited, or measured, expectation of turning a “quick” profit. Patient Money attitude and aptitude of the investor in real estate often is set into motion by how one “enters into the investment” and, how one is willing to forgo an immediate return in a relatively confident anticipation of more substantial returns later on.
Competent, dependable and response real estate management; legal management; financial management; and, people management, ALL these and more the backbone and sustainable investment endeavors.
This includes internal and external influences on the marketplace where and individual is seeking to invest. It is all in the details that an investor must be engaged in constantly. Either by personal engagement or be happy to pay someone else to do it for you. Over 4-decades ago there was a television ad by one of the Wall Street Investment Houses that stated:
“I say put all of your eggs in the same basket and
keep an eye on that basket."
This mostly includes those influences on the dynamics of the real estate marketplace due to influences having an impact that exist, trending toward, and unanticipated. Such consideration and understanding of effects on the geographic features that affect the area, population profiles, weather, proneness to natural disasters (i.e., flooding, hurricanes, tornados, mud slides, fires, earthquakes, etc.), and demographics. What comes to mind here is the expression: “Read The Room”.
“Where do I plug into?” It’s MUCH MORE than this!!!
When an investor expects, or demands, good communication from all parties he/she is dealing it is more than a desired to a question of what is happening. The communication form, format, clarity, methodology, frequency, content, summary or detail, between what parties, responsibility and accountability, all (and more) are vital to the real estate investment process, “from concept to concrete to liquidation”.
Customs, Laws and Practices
In ISRAEL, from the laws of the land to practices and customs, the range of divergences falls between at the top of this list, the Knesset (national legislature). Then also to the municipalities, districts, neighborhood associations, district committees, special agencies, etc., etc., with many cultural and custom influences that are quite diverse.
In the UNITED STATES itself, there are three (3) historic influences on the laws in the various 50-States that include Napoleonic Law (Louisiana); Spanish Law (many of the Western States); and, English Law (majority of the States). 50 different and similar sets of laws. 50-States with their own set of State Laws, numerous regional, county, local, and district customs and practices.
The knowledgeable real estate investor and his/her advisor(s) will take these differences in Customs, Laws and Practices very seriously in determining the “where” to make that investment.
Research and Accuracy of Data
The absolute “Rule of the 7-P’s”:
“Proper Prior Planning Prevents Pathetically
Minimizing RISK in real estate investments, locally and overseas is achieved by seeking, obtaining and executing on good, authoritative, reliable, current and verifiable information.
Fiduciary and Friendship
“Fiduciary”, truly an English term, which basically means a RELATIONSHIP. More specifically, it means there is the highest standard of care and trust, respect and alliance between the investor and his/her advisors. Team-building of advisors and experts must be set upon from a fiduciary foundation. FRIENDSHIPS are also relationships which have a closer sense of attachment, loyalty, and comradeship. ALL aspects of fiduciary are found on the elements that make-up friendships. However, there is a stronger legal and trust connection to the fiduciary.
The inexperienced as well as the experienced real estate investor is most of the time better served and more abundantly rewarded when he/she have a strong and clear grasp of how the above elements may affect the investment goals and outcomes. Surrounding oneself with key advisors, mentors and skilled experts makes the opportunities even more satisfactory.
Here at The Israel Center for Excellence in Real Estate, Aytan has the contacts, experience, knowhow and skills to coach and advise clients on how to effectively and profitably create a real estate and other business investment bridge between Israel and the United States/Canada. He will only mentor in those areas of business and real estate investing in which he has strong familiarity and profound experience.
“Successful People Do Those Things That Unsuccessful People Think Is a Waste of Time to Do”
(Attributed to Pastor Robert H. Shuller)