Millions of people around the world dream of starting a business in the USA. A profitable investment in this country can literally become a ticket to a happy life for any foreigner. Don’t be scared by the aggressive anti-migration rhetoric of the US President Donald Trump. On the contrary, he welcomes any legal business that would pay taxes and contribute to making America great again.
In America, they are always happy to see wealthy and successful people from all over the world, whom the United States actually helps to develop, and does not create numerous obstacles, as it happens in the countries of the former Soviet Union.
If you are considering investing in American real estate, then this material is for you. The main issues related to this type of business, as well as the benefits and risks of investing in American real estate, are answered by the famous multimillionaire, the former partner of President Trump and chairman of the Bayrock Group – Tevfik Arif.
Tevfik Arif: why it is worth investing in real estate
“Many businessmen are sure that the best deal comes in one suitcase. The fewer physical assets are there, the less problems it makes. Colleagues are partly right, but everyone needs reliable assets and their own real estate, which is why the real estate sector will be reliable and profitable at any time” – says Tevfik Arif.
The main advantage of this type of investment is the guarantee of a stable passive income. You can earn money by renting or selling land, housing or commercial facilities not only in the USA, but also in any, even provincial, city of Kazakhstan, Ukraine or Russia.
By investing in elite properties or in those belonging to the middle segment, entrepreneurs get more opportunities to earn income or resell it at a higher price.
“You can invest your money in the USA in apartments, private houses, villas off the coast, shopping centers, offices, catering establishments and the beauty industry. Also, if possible, you can buy an empty land plot, the use of which will be determined when the commercial market situation shapes up,” – Tevfik Arif gives his advice to novice investors.
Benefits of investing in housing, commercial real estate or land: Tevfik Arif advice
This type of investment activity opens up a number of opportunities and provides such advantages:
- Having spent money on real estate, you can always be aware of its physical existence, evaluate its condition, get satisfaction from the fact of ownership and presence at the facility or site;
- income guarantee. Real estate almost always generates income, even if minimal. In addition, objects often grow in price, which guarantees an increase in the level of profit of owners or management structures;
- Investing in land or houses is simple, and the principle itself was invented in ancient times. You do not need to learn a new business strategy or ask for the help of numerous experts.
The risks of investing in real estate: the experience of Tevfika Arif
“Any business carries risks. If you don’t want to doubt it and deal with new threats, then you shouldn’t do business, if you decide to invest, then you need to learn how to cope with uncertainty and take risks,” – says Tevfik Arif.
Thus, real estate investments present such difficulties:
- the need for large financial investments in the first stages;
- the high cost of supporting the investment at all stages – from construction and repair to paying for the services of lawyers and other intermediaries;
- the risk of losing part of the funds after the fall in the value of the object;
- the probability of physical destruction of the investment object as a result of natural disasters, wars and other unforeseen circumstances, i.e. force majeure;
- long term return of investment;
- the impossibility of ensuring a high level of project margin;
- possible damage to property from tenants or vandals.
In which real estate it’s the best to invest: studying the experience of Tevfik Arif
“It is impossible to answer unequivocally in which types of real estate it is most profitable to invest. It all depends on your financial capabilities, market conditions and personal preferences. Personally, I chose the hotel business, the construction of shopping centers, and also actively invest in housing, which brings not too big, but stable profits, and can always be sold on the market,” – said Tevfik Arif.
The multimillionaire notes that when just starting to work in the investment sphere, one should concentrate on acquiring real estate in his homeland. Later, according to Tevfik Arif, you can turn to foreign markets, which will open up new personal and business prospects.
Interesting related article: “What is an Investment?“