In the days of the dot-com bust and the subsequent collapse of thousands of web sites, investors across the country have flocked to find alternate investment firms. These firms were formed in the hopes of tapping into emerging markets that had previously been inaccessible to larger banks and investors. These alternative investment firms usually purchase real estate for pennies on the dollar in hopes that it will soon be able to realize its full worth. This is referred to as flipping real estate. The value of these properties are not seen as a good long-term investment, since they are usually bought and resold within a short period of time before being recouped in the hope of gaining profit. Check more on Authorityinvestors.com
Most alternative investment firms buy properties in developing countries like Brazil, Russia, India, and Malaysia. They typically purchase large lots of land with the intent of developing the land into an urban center or a business hub. In many cases, they purchase properties that have already been developed, allowing them to pick up all of the necessary infrastructure required to operate the project properly at a reasonable cost. Alternatives firms then take advantage of the rising prices of these properties by fixing up them, renovating them, and selling them for a profit.
While some of the companies involved in flipping real estate may provide substandard living conditions and poor working conditions, there are some very good alternative investment firms out there that provide safe investments. For example, a popular alternative investment firm in Russia called “Sberbank” has purchased an enormous amount of real estate from American companies like Halliburton and Boeing. The purchase included over a hundred thousand apartments in Moscow alone. Sberbank also bought hotels in the likes of Novgorod and Archangel. These investments are safe due to the fact that the Russian government is offering generous tax incentives to American companies that open new branches in Russia.