Crisis Investing

Wednesday, June 03, 2009

Dear Reader,

I consider crisis investing and distressed sales to be one of the hottest international real estate plays today.

I’ve pored over hundreds of opportunities. The deals have been getting better, and locations more desirable. Although it’s impossible to call the bottom in markets that are suffering right now, I’m excited to be seeing deals that immediately throw off positive cash flow with very strong prospects for medium-term capital appreciation.

These are deals in major urban centers and blue chip tourist locations that offer you diversification from the dollar. These are deals that should be on your radar.

I’ve called on several sources to help me identify the best opportunities—bankers, developers, finance specialists, and others. This morning I spoke with Colin Murphy. Based out of Madrid, Spain, Colin spends his time poring over the books of banks—cherry- picking the best distressed opportunities in Europe’s major markets.

Through his company, Colin offers these opportunities discreetly to his clients. This is what’s known in the trade as an “off- market” deal, i.e. a deal which will never be publicly advertised.

One of the deals I discussed with Colin offers a 40% discount on official 2009 valuations in a major European city. It’s important to note that this valuation is not based on historic or inflated list prices, but on a realistic guild-certified valuation. For this deal, finance is available…and boy, does the cash flow out nicely! The units are complete and the condominium functioning. This is the type of deal I have been looking for.

Crisis investing is something a property investor can’t afford to ignore.  I’ll be bringing you details of specific deals from Colin over the coming weeks.  Stay tuned. 

Ronan McMahon

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appreciation potential, profit play