US Real Estate Investing While Abroad

[RJ Harden]

My wife and I are American but live & work in Hong Kong and expect to be here for at least a few more years. We are considering investing in housing real estate near the Dallas area where I am originally from and where my father has had a fair amount of success over the last few years.

I was curious whether others who live abroad or have been in similar situations have any insights or best practices investing while abroad. I can foresee some particular issues which others might not have to face - for example:

1. Are there complexities securing financing when your income is earned abroad in a non-USD currency? My wife and I have well enough in a US-based bank for a down payment, and additional funds in a non-USD account, but our current income is not in USD.

2. Do we need to make a trip to see the house in person before deciding on it? Or is online research, appropriate research and due-diligence, and a proper inspection sufficient to be comfortable making the investment?

3. Are there emergencies which could come up that would require our immediate attention that a property management company would not take care of? Given that it's a 13 hour time difference we'd really need to rely on such a company overseeing all immediate, day-to-day issues once a tenant is in place.

Any advice would be greatly appreciated!

[Mitch Messer]

Hi @RJ Harden. I'll admit I'm envious: I got to spend some time in HK in 2006 and absoutely loved it (especially the food!)!

What you're proposing is definitely viable. We've got international clients with income-producing US properties who are just as distant as you. The key is to take your time assembling a quality ground team of experienced professionals. That said, I do have some thoughts about the issues you mentioned:

1. You might consider working with a bank (like HSBC) that has a presence in HK as well as here in the US. Even better, consider deals that are seller financed (let's talk)!
2. Site visits are generally cost-prohibitive, unless you're buying in bulk. Better to have a reliable independent local team (home inspector, attorney/trustee, property management company, etc.) that can assist with property assessment and acquisition.
3. No, an experienced property management company should be able to handle any emergencies that arise.

I'd be happy to put you in touch with investors who are successfully investing in the US from around the world. Just connect with me here!