Real Estate Investor Magazine South Africa June 2018 | Page 54

UNITED KINGDOM
Single Family Houses
are Different
Calling savvy investors
RJ PALANO
Turnkey operator in Atlanta,
Georgia, an author and marketer
and is an invited speaker for
the Information Management
Network (IMN) Conferences for
hedge funds and family offices.
E
very Real Estate investor that’s
been in business over 20 years
has experienced the good, the
bad and the ugly. You can’t escape it, at
some point you’re going to have some
kind of issue. That’s because real estate
is like every other business, that is;
there can be a lot of moving parts at
any given time and once in a while the
wheels come off. It’s the nature of the
beast and here’s the thing: “time cures
all ills in real estate if you bought in
the path of progress.”
This is especially true of single fam-
ily houses. Hedge funds that over paid
3-5 years ago in the U. S. have made a
fortune by holding the houses for long
52
term rentals. In an appreciating mar-
ket, this always holds true.
Nobody likes to overpay for hous-
es, but these hedge funds did this on
a regular basis and were extremely
successful and you know what? They’re
still buying today, and they are buying
at lower cap rates - often under a 5%
cap rate. The reason for that is simple;
their cost of money is much lower
than the average investor.
On, May 28, 2018, we closed the
sale on 27 single family houses owned
by South African investors that I sold
houses to a few years ago. Every inves-
tor sold for a gain and every house was
sold to a hedge fund that bought on
a cap rate of approximately 5%. Last
week, I was at the IMN (Information
Management Network) Conference
in Miami, Florida. My houses were
offered at a shark tank event at the
conference and the activity was crazy.
You see, I’ve personally sold hundreds
of houses to over 8 hedges funds and
we still sell to them today along with
retail sales.
Today I had lunch in Tampa, Flor-
ida with one of the guys that ran In-
vitation Homes which is a subsidiary
of Blackstone, a large hedge fund that
owns and manages over 50,000 hous-
es. Cory is now doing his own thing
working for himself with a large fi-
nancial backer and they’ve acquired 30
houses last month and he expects to
JUNE/JULY 2018 SA Real Estate Investor Magazine
get 60 houses this month. All they’re
doing is buying, rehabbing and renting
while they aggregate houses to sell to
one of the funds. The reason he can do
this - he has the BIG financial backer.
I’m looking for one well-heeled in-
vestor that would like to back me for
a position like that to share the profit
with.
If you’ve got the money, let’s have a
conversation that your “buy in” is at my
price and we can share in the profits
equally. No heavy lifting on your side,
as I’ll do all the work and oversee it
over here in the U. S.
Look, I’m a serious guy that loves
this business. If you’d like your mon-
ey to work for you over here in the U.
S. then this could be a match made in
heaven - if you’ve got serious mon-
ey. I have my hands on excellent op-
portunities in the SFH space as well
as commercial real estate. The U. S.
Housing market has room for more
growth in specific markets and the
cash flow is hard to beat combined
with appreciation.
I will be coming to South Afri-
ca and Zimbabwe in September and
look forward to meeting you at these
speaking engagements. In the mean-
time, if anything I wrote resonates
with you, call me or email me at the
contact info below:
See you at the top.