Foreign Investor - How to start operating?

Question

Hello everybody, I want to start operating in the State of OHIO

Opening the LLC, have a registered agent there to receive my correspondence and comply my tax duties, etc.

The thing is that I have ask some companies that they do that service, and they defer one from each other, what exactly I need and the whole process its not clear for me.

Does anyone can explain me what I need and how is the process, I will really appreciate it.

Thank you!

Ozzy Smith · Answer

I’m not sure why you are always hating on Dayton @Brandon Sturgill. Making a claim that the actual returns in Dayton are different than the paper analysis is wrong. If you budget correctly and have the proper strategy in place the actual will match the paper. It’s just as likely to be the same outcome in any market. I’ve been investing Dayton for years and actually you are right - the actual is different than what I had on paper... I continue to get better than expected returns. I’m not sure why you think Dayton is a “volatile market “ so I’d really like to see that data in case I’m doing my investments wrong. Again to advise on where a person should invest is completely misleading based on the lack of information provided in the original posted question. I live locally and don’t invest in the areas you suggested Bc the model I do and strategy I employ isn’t feasible in those areas. Sorry for the rant but I’m tired of seeing people (not just you) make blanket statements and assumptions about things that they are not exactly experts in without knowing the whole story especially when not asked just to further their own agenda. I’d recommend you start chiming in with comments and do networking with people asking about wanting to get started in Columbus rather than simply try and hijack every newbie that picks a market other than yours. If Columbus is as great as you make it out to be in most of your other comments I’m sure you will have no problem selling them lots of great deals.

BTW I don’t have a dog in this fight so I’m not going to try and push my agenda on this guy unless he asks a specific question that I’m knowledgeable about.... rant over

@Daniel Fridrij my advice would be the same given by those above not named Brandon and add watch out for ppl telling you how / where to do business that don’t know your business... especially when you don’t ask them

BTW I don’t have a dog in this fight so I’m not going to try and push my agenda on this guy unless he asks a specific question that I’m knowledgeable about.... rant over

@Daniel Fridrij my advice would be the same given by those above not named Brandon and add watch out for ppl telling you how / where to do business that don’t know your business... especially when you don’t ask them

Ozzy Smith · Answer

@Brandon Sturgill

Glad to see you didn't take my comment personal yesterday.  I agree with you 100% about needing local expertise and guidance.  When I first started out I had a little but not much and I got my degree in hard knocks for sure and it wasn't cheap.  I'd recommend to anyone starting out to partner with someone that's blazed the trail first and not worry about taking a little less profit on the first 2-5 deals... smaller profits is way better than the big loses that usually happen on the front end.  I've been approached by "newbies" before with that proposition and did it and it has worked out very well for both of us.  They got to learn, I got to buy more properties than I could have by myself which = higher returns for me, and we both grew our network.  I hear awesome things about Columbus but I just don't have a need to go there bc there is still plenty of deals in my little back yard of Dayton and my network is here (mainly my construction company and I have no desire to drive through Columbus EVER LOL).  I hope you continue to do well in our state capital and maybe one day our paths will cross and I'll buy you a drink for the rant I had yesterday at your expense.

Daniel Fridrij · Answer

@Brandon Sturgill Hello and thank you for your response.

We are going to start in Dayton.

I will appreciate any referal.

Best regards

Michael Orlando · Answer

@Daniel Fridrij I invest in Cleveland love being here. That being said, we've been interested in deals in Dayton, Cinci, Columbus and even Akron/Canton. It really does come down to knowing the markets and where to be/going cap rates and price per door in the areas. I think wherever you invest you really just have to make sure your team is strong. They'll be your boots on the ground and they should know the market well. If you ever need assistance here in Cleveland, I'm happy to help!

Brandon Sturgill · Answer

I hear you @Ozzy Smith...I grew up on the East side of Dayton...family still there...there are some incredible spots for sure. That said, I've spoken with several investors this year who got googly eyes buying small MF on the West side for $30k/unit...dumping $30k into the renovation...and then discovering the actual market value is $25k/unit. On the flip side, I knew a guy that was buying a house a week at $6,000 max...putting in $6,000 renovation and renting at $600/mo. Absolutely insane ROI. Dayton is just a market where you need a local expert to help and lots of transparency and guidance.

Remington Lyman · Answer

Dayton, Ohio is great for cash flow and spending too much money on private college. Columbus, Ohio is great for both of those things as well, but you also get appreciation.

Aaron W. · Answer

@Daniel Fridrij That's great you are looking to invest!

My suggestion will be to build a local team who will you be your boots-on-the-ground in the market you want to focus on. Before that, decide where in Ohio do you want to invest. The state has many different markets and one team will likely be unable to cover the entire state effectively.

In your team, you should have an agent, property manager, and a contractor whom you trust will be able to get the job done for you. They will be essential to the success of your investment.

With the agent, I would ask them to take pictures and a video of the properties you are interested in. Since you are not going to be present, you want enough pictures and video on the property as if you visited the property yourself.

The property manager will be a key member of your team as they will manage the property. Don't just pick anyone. They can make or break your investment by the way they manage it.

The contractor will be important for larger rehab projects that a project manager can't or won't do.

Being an overseas investor, you may also want to consider an accountant who can take care of US tax requirements as a foreign investor.

Building a solid team, especially remotely, is a challenge, but it is essential. You are in the right place to get the help you need. Don't hesitate to ask for referrals for team members. I've found the most success with team members who were referred to me.

Good luck!

Gordon Starr · Answer

The locals have been making a killing and hedge funds are gobbling it up. Out of area inveators too. Alot of contractors are swamped. Pms and investors have it tough right now because of covid.. Rent appreciation is also substantial. It would be a big mistake to underestimate the population growth and price rises going on right now. It may be everyone is so busy making all this happen that its a bit hard to get things done from out of state. Try Raleigh pennington.. remax realtor gudorf law offices tax and legal.. A few pms who i would consider.. Manco.. Gem city.. Roost.. For c or even solid d management.

Daniel Fridrij · Answer

Thanks to everybody for his/her time. I appreciate it.

Daniel Fridrij · Answer

@Marc Rice thank you!

Foreign Investor - How to start operating?

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