Overseas Newbie Seeking Advice

[Graham F.]

Hello to all. Happy to have stumbled upon such an enlightening forum. My circumstances are quite unique and I'd be grateful for any advice.

I'm a UK resident currently spending more and more time in the US as my business (not real-estate related) develops over here. I've been based in Miami since August but will be heading home for Christmas before returning for another extended stay most likely in April.

I've been developing a modest 'buy and hold' portfolio of property back home since 2006 which currently consists of 6 tenanted residential properties in and around my home town. I'm generating fantastic ROI due to a combination of snapping up my properties during the good old days of 95% LTV tracker mortgages, increasing rents and falling interest rates. I'd be the first to admit that this has been more luck than good judgement.

I'm keen to dip my toe into real estate over here. Financially it makes sense to keep the profits being generated by my US LLC over here and from a purely personal point of view I'm always keen to take on new challenges. My relationship manger at the bank has explained that obtaining a mortgage over here is a non-starter as my credit history in the US is practically non-existent and I don't have the two years worth of tax returns needed as a minimum requirement. My good standing in the UK counts for zip it appears, which is fair enough. So any deal I do will be cash.

I've never 'flipped' previously, it's never been part of my strategy back home. However I'm also not in the business of tying up 100% of my own capital in any long-term property deal where it can be avoided. So on this basis it looks like a 'flip' is the most obvious means of starting out. All of my UK properties were bought below market value and all had to be extensively renovated before they could be let so I do have some experience in the process although I would say I'm no better than a 'novice'. I may be wrong about this being my only option and would be keen to hear of alternative strategies.

I'm willing to commit circa $150K as an initial fighting fund. I'll be back over in April and I'm in the privileged position of being able to locate myself wherever I please, although my preference would be to be no further than 1 hour from a major airport. And ideally, on the East Coast.

So my questions to all you learned people would be

1. What are your opinions on my overall strategy?

2. What locations should I consider setting up in for my next 6-9 month stint over here?

3. Is my budget realistic?

4. Any other general advice you may wish to share?

Thanks in advance.

Graham