For Canadian investors, it is fun to take part in the U.S. real estate game, not to mention, an incredible investment opportunity. Under-valued property in the U.S. demonstrates long-term appreciation value and creates cash flow from renter income. Smart investors are able to use U.S. real estate as assets and leverage equity for new start-up businesses. U.S. real estate is hot right now. The sweet window between 2008-2010 is over and the U.S. housing market has gotten extremely competitive. Particularly in Florida and Arizona, where undervalued property, high renter demand and beautiful weather has brought new meaning to CASH IS KING closings. Meet the new darling of U.S. Real Estate: Self-Storage
With the improved U.S. job market and the effects ensued by Hurricane Sandy, guess what U.S. real estate asset is growing in demand? That’s right, storage units.
Homeowners typically need to store undamaged goods during the clean-up while contractors need commercial storage space. The current cap rate across the nation is sitting between 80-85% for storage units and rental space is expected to continue to rise. What’s more, hedge fund investors, REITs and other such groups making moves in U.S. real estate are more focused on A class properties, making storage units much more accessible. Storage units give smaller investors to chance to establish U.S. assets and benefit from land appreciation and cash flow.
Keep in mind that it’s essential to have a clear idea of what your goals and strategy will be. It is wise to keep things as simple as possible. The best way to get a lot done in a short period of time efficiently is actually by creating a collaborative effort – a.k.a. your power team. Your power team gives you an edge with negotiations, financing, rental income, marketing and so on. You will stay on top of valuable market information and trends to capitalize on opportunities. Don’t bother trying to do it all yourself. At a certain point, some fees are just the cost of doing business. Make it a point to account for your time in dollars to really see if you are saving money doing it all yourself and you will see what I mean.
As an entrepreneur, you need to have an open-mind to network, stay up-to-date and integrate masterful strategies. When you are aware of market trends you are able to create aligning strategies. There is a balance to be struck between focus for a task and being receptive to market changes. Know your market, know your clientele, know your competition and know the peripheral markets.Use this information to better your practices and allow yourself to learn from others. Remember, if you’re starting out it’s a great idea to find ways to barter with other small business, like setting up agreements to provide services for clients. If you are looking into storage units for example, you might consider exchanging storage unit space for advertising through radio…and so one. Make sure you do the numbers to see if things are worthwhile of course. Bartering can be a great tool for small businesses to excel.