GlobeSt.com: Why is the foreign investor demanding ongoing cash flow over choosing “flight for capital” as in the past?

Fernandez: For years, foreign investors parked money simply to protect against internal strife within their own countries. As long as over a period of time real estate values increased, they were satisfied. While condos continue to be a crowd favorite, many of these investors are seeing the huge demand for end-users and have shifted to buying multiple single-family homes–often blocks at a time–renting them out to create cash flow as well as a safe environment to park their money.

GlobeSt.com: How does buying dirtprovide foreign investors more flexibility than buying space?

Fernandez: During the last cycle, when numerous investors tried to unload their condo properties, they found it was a race to the bottom. Not only were they competing with half-empty buildings, they were also competing against the very developers they purchased from in the first place. Dirt provides the investor the flexibility to expand, add amenities, et cetera, to increase value.

GlobeSt.com: How has the foreign investor ultimately made condo development better now than during previous cycles?

Fernandez: The ability for investors to have investment choice was a driving factor in tightening bank regulations. It has forced many developers to be close to 50% or above in sales with more than 40% of money from buyers recorded. This allows for less speculation and more potential for projects to be seen through.