Investing in the US from overseas?

Question

I am a newer investor with one STR and one more under construction. I am looking to expand my portfolio but am currently working overseas. Is it possible to conduct inspections, do rehabs and close on deals from outside the US? Is it reasonable to expect I could move forward or is it advisable that I continue learning and research and wait until we return to the US?

Thanks !

Elizabeth

Thanks !

Elizabeth

Oz Radiano · Answer

I was out of the country in my first 4 years of investing and purchased 20+ units, so def doable. Moreover, I invested I n upstate NY so ask me anything

Kristina Kuba · Answer

Hi @Elizabeth Conklin,

I have quite a few investors that live and conduct most of their business from outside of the country.  In order to accomplish this, find a real estate professional that is an investor themself and is savvy with technology.

Inspection reports should come to you in PDF format so you can make an informed decision. Closing on the deals are typically effortless with international notaries and wires.  The most important need for you is that your agent has a vast network of trades, everything from plumbers to painters to a drywall crew that is not only reliable but GOOD with technology.

The most common pain point I encounter here is that …out- of-country …investors are dealing with trades people and contractors that lack tech skills and still want to be paid the old way.  You and your agent should set the expectations upfront that the contractor needs to provide a video walk around along with a report from “audit trail”  (It is a $10 app on the IOS store) at the end of each week.  And that they need to be able to be paid with third-party payment networks like Venmo, CashApp or Zelle

Ricardo Hidalgo · Answer

Find a realtor you can trust with a solid network of professionals that can effectively get you quotes, inspection and other necessities to move the business online. I think it's very doable with the right team. FaceTime or video helps!

Frank Mongiello · Answer

I've done 3 deals this year with out of state remote buyers since January. It seems to always be calm and then panic within a short inspection period.

If you are comfortable with the area/community/ and numbers, have a good lender ready, trust your agent, have a good insurance agent(especially in Florida where insurance costs can get pricey and quotes can vary), an investor friendly inspector, and a solid title company, you should be good to go.

Edwin Epperson · Answer

@Elizabeth Conklin,

Investing remotely can be a hurdle for many investors, but once overcome it can really liberate your time freedom.  One question I always pose to any investor, especially if they have capital to invest and are sitting on it, is have you considered becoming the bank?  Meaning, why not become the lender.  The professionals you deal with are always licensed, and you get to play on the banker's side of the real estate game, which is the ultimate control.  I teach investors how to do this all the time, and have been PL myself since 2014.  Happy to have a chat about that if you are curious.

Should you decide you want to be on the borrowing side you, I'm happy to give you a rundown of what I at least look for when it comes to lending to real estate investors. As @Kristina Kuba so amply stated having a team in place is CRITICAL, and this is what I look for primarily, whether the RE Investor is local or overseas.  happy to be a sounding board to field questions and ideas.  Best wishes and much success.

Dave Meyer · Answer

Hey @Elizabeth Conklin good question! I live in The Netherlands, and still invest in the U.S. Although at this point I primarily invest in syndications, it is definitely still possible to invest in individual properties in the U.S. while living abroad. I'm not sure where you live overseas, but in NL (as well as many other countries) there are tax treaties that make it (relatively) simply to generate income from both countries without paying double tax.

It's been easier for me to invest from abroad because I have an established team in the U.S. that I have worked with for years and trust. It's really just about having people you trust -- especially if you're going to do large renovations. Honestly, it's pretty much the same thing as investing out of state. Build a team you trust, build systems...and then hire two accountants :)

Nick Schlabach · Answer

Hi Elizabeth,

I am local to Sarasota and have experience in the STR market here. Please feel free to use me as a resource. I'm always available and happy to help.

Oz Radiano · Answer

My rentals are in Buffalo and in the surroundings! Not sure how STR will work there as I rent for the long run, but other than that - what are your questions? (:

Elizabeth Conklin · Answer

Oh wow @Oz Radiano!  I would love to hear more!  That is impressive.  Where in Upstate NY?  I have one STR in Ellicottville and currently building STRs in the Dominican Republic.  Ellicottville is a great market but also looking to expand to LTRs in Buffalo.  If you have advice, I'd love to hear it.

Thanks for reaching out!

Ruchit Patel · Answer

Florida is an excellent place to invest now, and the government is foreign investor friendly and tax-friendly!

Message me and we can connect. I will share my experience and see if you want to try that path.

--Ruchit

Investing in the US from overseas?

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