Real Estate Investor Magazine South Africa Real Estate Investor Magazine - July 2017 | Page 57

professional sports, nothing is easy, but the prize is
worth it. It takes tenacity, perseverance, determination
and drugs! Hey, just kidding about the drugs – I’m
just testing to see if you are really reading this! The
second point, and this is the most startling revelation
here, is I’m changing it up. I’m selling off a portion of
my portfolio!
I still can’t believe I’m doing it, so let me tell you
why and also why you might want to look at your
world through a different financial lens.
Times are changing
You see, I’m older now - 62 years old - and I still have
a lot of gas in my tank, most days. I do what I want,
when I want, because I don’t like to take orders - just
like you! That’s the world we attempt to create for
ourselves. So, why would a guy like me sell off the
safety of a large portfolio of single-family houses?
Timing, market conditions, and other opportunities
that are easily within my grasp - yours too.
Let me explain in more detail, because what you’ll
read next is pretty dichotomous. Keep in mind, I’m
on the ground in the US with eyes wide open, and I’m
very well-connected in the real estate industry - here
and in other countries - with people like you reading
this. So, here we go:
The US market has heated up, including many of
the trophy markets like the ones I invest in: Atlanta
and Florida. Hedge funds and first-time homebuyers
continue to raise values as the competition is high. It’s
all about timing at the moment, and we are perfectly
poised to sell cash flow houses for full retail to hedge
funds in large packages.
“Woah! Slow down RJ. You’re always writing and
telling people to buy single-family houses.” I still am
- and there’s the dichotomy. It’s the perfect time to sell
if you acquired houses over two years ago, as prices
are up and we can take some profits off the table. The
single-family house opportunities are scarce. We’re
still buying, but returns are lower for investors on the
cash flow side of things and unless you have at least
five houses, the cost of operating LLC’s in America
along with the tax reporting may not be worth it.
This defies everything I have ever written
about goal-setting and single-family investing for
retirement. I know, I know, I know. It’s because I
found something better. Higher cash flow and an easy
exit in 2-4 years. I still can’t believe I wrote that -
because I’m still buying houses.
For many investors outside the US - it’s time. I’m
not kidding. It’s time to sell and take some chips off
the table and potentially move them to something
better. For others, stay the course of single-family
homes and continue to add to your portfolio. I want
w ww.reimag.co.za
to be clear, I am violating my own long-term goals
that I had written down for 35 years because of new
information, market conditions, and my personal
competency and knowledge of the government
influences over our lives. The cost of doing business
for many of you outside the US is too much, for too
little of a return, unless your portfolio is big enough.
It’s still a good time to buy well-selected
single-family homes and there are plenty of other
opportunities with less risk, more cash flow, and
upside for you to take advantage of now. If you’re
happy where you are, stay there and continue to build
your portfolio. Mine is large, and it’s time to harvest
and reallocate a portion.
However, if you would like to consider preferred
guaranteed returns with a built-in exit plan, then we
should have a conversation. We can clearly see that
the cheese is moving in the US and we are aligned
with market moves to the advantage of above average
yields that you would feel comfortable putting your
mother’s savings into.
Contact me below if you would like more information
on where and how to look for these new opportunities.
And if the cost of your U.S. accounting is destroying
your returns, we have a solution for that as well.
RJ Palano is a 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. His new books, The Buy Sell Machine will
be released in the 3rd Quarter of 2017 and No BS Retirement
Account Investing in the 4th Quarter.
RESOURCES
buycashflowproperties
JULY 2017 SA Real Estate Investor
55