Highly Recommended
USA Property Investment | USA Investment Property | Oil Worker Accommodation
LAST UPDATED: 18th april 2012
Investment Summary:
Investment opportunities begin at $47,000 per en suite room. Investors can purchase individual rooms or entire 20-room hotel blocks. With a professional management company in place to run them, these hotel blocks provide investors with a lucrative passive income opportunity.
With the high demand for accommodation and low cost, rapid construction, there is a realistic prospect of securing annual returns of 37% NET. Rental income is often underwritten by major oil companies that are seeking to house their workers in suitable accommodation. In some cases, the oil companies pay their workers a housing allowance, while others pay the accommodation costs direct to the management company.
Funds are held in escrow, giving investors additional peace of mind. Funds will be released to the developer on completion of specified phases of the development.
Receive the Investor Report by completing the form above or call: 00442032878727.
Purchase price just $47,000.
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Key Investment Points:
- Massive, realistic rental yields of 37% per year.
- Over 15,000, and rising, workers without proper accommodation.
- Rental income underwritten by multi-billion dollar oil companies.
- Long term investment with an estimated 20-40 years of oil available.
- Invest safely - all funds held in escrow.
- Workers typically pay $100+ per night for accommodation that is available.
- Hotels booked out for 6 months to years in advance.
- Private residence rates quadrupled
- Rent includes all Utilities, Cable/Wi-Fi costs, VOIP Phone (calls charges extra), cleaning.
- Breakfast and additional Evening Meal included at an additional cost
- Investors benefit from our reduced costs when buying a complete 20 unit strip.
Highly Paid Workers Lack Basic Shelter:
North Dakota, USA is experiencing an oil boom due to advances in extraction technology, which have given oil companies the ability to produce oil from one of the USA's largest oil fields. The Bakken Formation has long been known to contain massive reserves of oil, but much of it was inaccessible using traditional extraction techniques. Since 2008, new exploration techniques have opened up this oil field to economically viable oil production.
This is great news for the thousands of oil workers, engineers, and laborers who have flocked to North Dakota in search of well-paid employment. With manual workers earning upwards $80,000 - $100,000 + per annum, there are plenty of lucrative and stable opportunities. However, this influx of workers has put great strain on the resources and infrastructure of surrounding towns. With insufficient accommodation available for such high numbers of people, circa 15,000 well-paid oil workers have to sleep in tents, trailer parks or even in their cars.
The number of people without accommodation is growing daily as more people arrive from all over North America to find highly paid work. Even with the continued influx of people searching for work this area has the lowest unemployment rate in the USA, at just 2% and more jobs are being created every day.
Advanced Manufacturing Techniques utilized by US Military:
An innovative solution to this accommodation crisis is the erection of low-cost, high-end, technologically-advanced mini hotel blocks. Each block contains 20 self-contained, fully-furnished en suite rooms and takes only 90 days to construct. With much of the construction completed off-site, these advanced hotel blocks can be erected more cost-effectively than traditional buildings, due to advanced manufacturing techniques.
The developer is a specialist in this type of construction, with extensive experience of erecting similar accommodation in Afghanistan and Iraq. Under military contracts, they have constructed infrastructure to support American troops.
Development:
Each room will be 24" x 12" and will be fully furnished with a beds, sofa, table, shower, wash basin, toilet, TV, microwave and Wi-Fi connectivity. Occupants will get all the home comforts of a full size hotel/motel room. Demand has driven room rates up to $125 per night although the developer plans on charging $100 per night for a single room. The units are priced at $47,000 per unit, (until Feb 10th).
Each building contains 20 self-contained units. These will be charged by the day and rented to workers for 4 week periods at a time. Rent must be paid in advance with both a 4 week notice required and a security deposit taken.
Each suite is self-contained, secure and fully furnished all have the following durable features:
- Microwave
- Flat Screen TV with cable
- Wi-Fi Internet ready
- Lockable dead bolt door
- Lockable screen window
- Heat Thermostat
- Smoke, Carbon Dioxide Alarms
- Fully insulated for extreme cold
Exit Strategy:
Compared to the yields and returns offered by bank accounts and the volatility with stocks and shares, a passive, consistent rental income of up to 37% makes a tremendous return to hold for the long term.
As a performing property asset achieving a massive yield and with an effective management company in place, this would be an extremely attractive sale to other investors or funds.
Whilst you would need to buy an entire 20 room mini hotel or come to an arrangement with the other owners, these units could be converted into spacious apartments with high capital growth potential.
Next Steps:
For detailed information on this investment please contact us by filling out the form below or calling us +44 (0)203 287 8727. We can send you:
- Comprehensive Investor Report.
- Availability, Price List, Floor Plans.
Please ask us any questions you have, we are happy to help.