Luigi Foscale answers on Real Estate Investments

Today an investor posed me a smart question, which I would like to extend to all of my blog readers. Obviously any reference has been changed on purpose so that the person cannot be identified. John asked me “properties are easy to buy but when I purchase a building with ten apartments, could the business become more difficult?”

Even if you buy a property of 10, 100 or 1000 apartments, you get the same duties, but clearly you deal with a different value.

The key factor, that I wish to share here is that a building is the sum of many apartments and so if you know how to buy an apartment well, you definitely are able know how to buy well a whole building with more rentals.

Buying properties is easy but the due diligence is the stage that requires more attention to detail so you need a good team of lawyers, business consultants, notaries, and real estate experts. Such a team could make the difference and your purchase much more easy. When it’s about business I always advise to rely on the Field experts.

Luigi Foscale

Simple Investments

Usually I prefer simple investments because they are easy to grasp. In the past few years we saw many brokers promoting investments that were hard to catch. Those were complex investment schemes often structured in a complex way to confuse investors. 

 

Some of these investment schemes were conceived on purpose with such a complexity in order not to let the potential investor understand its game rules. Obviously the only ones who earned from such a "business" were the promoters and the promoters only. In a complex investment scheme the promoter is required being always present. A simple investment instead is easily manageable by anyone.

 

That’s why I feel more comfortable in advising investors to approach easy investments.

 

I did both complex and simple investments. In the long term the complex ones demand higher legal expenses, lawyers, and mostly you need a certain amount of time in order to check that everything goes smooth. There are some investment categories whose value is easy to understand. Investments in the Real estate field are among the most popular. Obviously they have to be managed for good, but anyone will agree with me that buying an apartment is something easy that only need common sense.

 

Simple investments are easy and they keep going by themselves. Just like earth going around sun.

 

Luigi Foscale