How could new travel alerts and terror threats impact wholesaling houses for U.S. real estate investors?
The last week has seen new global travel warnings issued by the U.S. State Department as well as the extended closing of embassies overseas. Some sources report we are now seeing more and more specific threats than ever. Plus, a pullback in the ‘war on terror’ and a Fox News report on August 5th, 2013 stating the U.S. Army continues to do business with terrorist linked contractors suggests America’s enemies are better funded and bolder than they have been in many years, which could lead to more attacks, or at least threats.
So could this along with increasing travel expenses alter current trends and change the game for those wholesaling houses?
This all could definitely help keep more U.S. investment dollars at home. But could it take some of the fire out of the global investment rush, especially in terms of second homes?
It could at least have a limiting effect on travel. This could change the rush to invest closer to some airports and travel hubs, but an influx of capital from abroad and foreign buyers looking for a backup plan and to get cash somewhere safer could balance this out. Certainly it could encourage more in terror prone areas to get their cash out of abroad and put it in the U.S., which combined with the current massive interest in U.S. property from Asia could boost demand and home prices further, improving conditions for wholesaling houses.
Major international investment houses like Barclays are already honing in on new generation of African millionaires offing new investment opportunities. Many of these will definitely be housing related investments and will help raise visibility of the benefits of investing in the current market.
Still it pays to balance your out of area, national and international marketing with a local presence, local branding and relationship building. Dominate your local market. This is your bread and butter. Then look for opportunities to capitalize on global investment trends and interest.
If you are going to take an international approach to marketing and wholesaling houses adding and partnering for services which can make it easier for investors and overseas private lenders to work with you and buy from you can be smart. This can include translation, banking, title and property management services, which can also often become alternative revenue centers for ongoing passive income.