Have you ever been to a place where you thought to yourself, “Wow this is a cool place! I like it here.” If so, have you asked yourself, why you had this impression?
What was it that you liked so much about that particular city or town?
Well, as a real estate investor and hedge fund manager, I have always paid attention to what I like and what other people find alluring in a specific city.
In the past, I had the privilege to live in a variety of places around the world like Egypt, the Middle East, France and Switzerland, throughout Europe, various cities in the U.S. (mainly California), Cancun, Mexico and also Old San Juan Puerto Rico, in the Caribbean. I have had many residences for over a decade now and have enjoyed the beauty and uniqueness of all these different places. But I have come to realize that there is a set of criteria, when met, any city becomes attractive to its locals and most of its visitors.
Here is a short list I developed after 3 decades of travels, while always keeping an eye on beauty of architecture and attitude of locals that impact the overall lifestyle in a particular location.
To feel like a great place a city or a town must have:
In the early 2000’s I found such a city— and it is called Old San Juan, Puerto Rico. It is the oldest historic zone under a U.S. flag. This area features all of the criteria I wrote above and more. It has hotels, museums, churches, restaurants, art galleries and great shopping. This enchanting city is all nestled into some unique and colorful colonial buildings with narrow streets covered by blue stone-casts that were brought over as ballast on Spanish ships in the 1500 and 1600s.
This area is very charming and I have worked hard and invested millions into the area to restore the beauty and integrity of its colonial buildings. My goal has been to make everyone enjoy the history and charm of this Old City. That city offers everyone, locals, tourists, first time visitors (coming off the cruise ships) to returning guests an opportunity to connect with each other and with the historic architecture and the story that is very much part of nature in its design and creation.
Come and visit Old San Juan, PR and you may just fall in love with it as I did back a decade and a half ago.
Make money in RE:
1) Buy and sell
a) Buy and sell as is
b) Buy, fix and sell
2) Buy and hold:
a) Buy and hold based on per unit price
b) Buy and hold based on a per sq ft price
Sooner or later you will mature enough to:
1) Buy and hold instead of keep buying and selling
2) Buy and hold the type of properties that require the least amount of marketing, management and finance.
Lose money in flipping RE:
1) Buying at a high price
2) Buying at the wrong time/market
3) Buying in the wrong place
4) Buying the wrong property with physical obsolescence
5) Fixing at too high a price
6) Fixing too much – too little or the wrong things
7) Under marketing property
8) Selling at too low a price
9) Having no cash reserves
10) Having wrong people involved (partners, investors, contractors, brokers, bankers, appraisers etc.)
Lose money in holding RE:
All of the above plus:
1) Renting to the wrong tenant
2) Bad lease, price and terms
3) Not maintaining the property
4) Not resolving matters with finality
Obviously this is a very short list. Please give me feedback and let’s add to the list of how and why some people lose money in real estate.
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