Foreign investors buying U.S. Real Estate

[Neddie Smith]

I live in Austria and after see my success with purchasing real estate in the U.S. (I'm a US citizen) my friends would like to do the same.

Can anyone point me to a resource for to get answers on the following topics?:

- purchase rules regarding foreigners purchasing U.S. turn-key rentals

- U.S. tax rules foreigners need to follow ( filling, tax withholding, double taxation, etc..)

Thanks in advance!

[Lior Reich]

@Neddie Smith Hi Neddie welcome to BP.. Feel free to connect and I will happily provide answers to your questions. In short , here are major points that foreign investor should take under consideration: 1. FIRPTA withholding.. Google it. It is very important to know before you make real estate purchases in the U.S. 2. Bank account and LLC 3. Financing for foreigners 4. Turnkey- I personally don't like the turnkey model, mainly due to the fact that most products sold via turnkey are in C/D areas, thus making you totally dependable in your Property management company 5. Areas to invest. As a foreign investor o usually recommend NOT to buy the cheapest houses (30-50,000$). All of those houses will be on and neighborhoods and will be very hard to manage from out far. It is better to buy a more expensive property (at least 70-100,000$) in a better school district 6. Look in to condos - very easy to manage from abroad. Pay attention to HOA investor friendly community's 7. Don't buy HIGH cap properties that look good in presentation. I have learned it is smarter to settle for 6-8 % CAP but steady and easy to manage. It is better having one bird in hand then 2 birds on the tree....