Real Estate Investor Magazine South Africa December - January 2014 | Page 64

USA

BY SCOTT PICKEN

1 IN EVERY 375
HOUSING UNITS IN
ILLINOIS RECEIVES A
FORCLOSURE FILING

1 IN EVERY 869
HOUSING UNITS IN
ILLINOIS RECEIVES A
FILING NATIONALLY

ME

4.5%

CHICAGO IS BELOW
THE NATIONAL
AVERAGE

NY
CT

STATES WITH THE HIGHEST
FORECLOSURE INVENTORY
ILLINOIS HAS THE
4TH HIGHEST
FORCLOSURE
INVENTORY IN THE
NATION

NV

NJ

5%

IL

VACANCIES BELOW
THIS CONSTITUTE A
LANDLORD’S
MARKET

MD
DC

4% RENTAL
CHICAGO

VACANCY RATE AT
THE END OF 2012

Invest In Chicago

FL

With Net Yields of 10% + & financing at 6%

C

hicago is the sixth biggest city in the
world and it is also one of the most
beautiful cities in the world! On the USA
Buyers Trip 6, IPS went to investigate the market,
as the fundamentals are pointing to it being one
of the most robust and safe places to invest in the
USA and their USA partners on the ground were
recommending it.
IPS was extremely impressed with what they
found, where investors are buying houses there,
fully renovating them and then leasing them with
a 10% net yield.
There is an exceptional local team on the ground
with a staff of 41 people and they source and
renovate the properties, manage and maintain the
properties and so provide a full turn key solution.
Savvy investors who might find growing a
portfolio in South Africa limited by affordability
ratios with the banks can really take advantage
of the Chicago opportunities by acquiring bank
financing in the US at 6% interest, over 15 years,
with a LTV as high as 80%.
64

How do you do this?
There are services currently available to foreign
investors in the US that are designed to create a
perfect corporate credit score, unlocking access to
this finance within 6-8 months.
As we’ve travelled, researched and unlocked
various markets in the US, we’ve borne witness to
how fast and vibrant the markets are, benefitting
from timing our investments and riding the wave
of growth in these markets. The Phoenix and
Las Vegas markets were driven hard by foreign
investment capital and Wall Street money looking
for a safe home, but that market has moved and
doesn’t represent good value anymore. Some
markets that South African investors have
timed perfectly are Orlando, Atlanta, Memphis,
Oklahoma City and North Dakota and the
fundamentals are pointing to Dallas, Houston
and Chicago for great, safe returns in the very near
future.
Timing when to enter, when to hold and when to
exit a market is a key factor to positioning yourself
for the most return on investment for capital

December January 2013/4 SA Real Estate Investor

allocated. How to determine the right timing needs
more than just an Internet connection. Quality
information comes from people who are active in
those markets, researching and investing, looking
for opportunities.

RECENT RENTA STATISTICS
FROM ONE OF OUR TARGET
AREAS:
2 BEDROOM UNITS
Median Rent of $837 for past