My name is Cosmas, from Harare, Zimbabwe. I've always wanted to do Real Estate investing in the US. I am starting out so i need advise on how to start. The end goal is to use the capital i have (around USD200,000) as down payment for properties in good States.
Real Estate Agent · Columbus & Cleveland, OH · Member since 2023 · 1k+ posts · 1k+ votes
2y
Welcome to BP Cosmas!
When investing from a long distance, you will need to build a core 4 team. The core 4 consists of a realtor, contractor, property manager, and a lender. Once you have this team in place, you should have the foundation to invest in any market confidently while not being there physically. (I suggest reading this article below)
Columbus, Ohio is a great market to consider if you're leaning towards appreciation. Multiple, billion dollar companies are investing heavy in our area, such as Intel, Google, and Amazon. Which in turn will bring plenty of other investors and general business to the area. I moved here from Florida after seeing the projected growth.
We have partners who are foreign investors. DM me and I will send you contacts for; attorneys, lenders, and accountants they have previously used. It is important that you hire professionals who have experience working with foreign investors.
Real Estate Agent · Columbus & Cleveland, OH · Member since 2023 · 1k+ posts · 1k+ votes
2y
Welcome to BP Cosmas!
When investing from a long distance, you will need to build a core 4 team. The core 4 consists of a realtor, contractor, property manager, and a lender. Once you have this team in place, you should have the foundation to invest in any market confidently while not being there physically. (I suggest reading this article below)
Columbus, Ohio is a great market to consider if you're leaning towards appreciation. Multiple, billion dollar companies are investing heavy in our area, such as Intel, Google, and Amazon. Which in turn will bring plenty of other investors and general business to the area. I moved here from Florida after seeing the projected growth.
When investing from a long distance, you will need to build a core 4 team. The core 4 consists of a realtor, contractor, property manager, and a lender. Once you have this team in place, you should have the foundation to invest in any market confidently while not being there physically. (I suggest reading this article below)
Columbus, Ohio is a great market to consider if you're leaning towards appreciation. Multiple, billion dollar companies are investing heavy in our area, such as Intel, Google, and Amazon. Which in turn will bring plenty of other investors and general business to the area. I moved here from Florida after seeing the projected growth.
Real Estate Agent · Metro Detroit · Member since 2023 · 4k+ posts · 3k+ votes
2y
@Cosmas Paulosi we've posted this hundreds of times, because it's very logical:)
Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.
If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.
So, when investing in areas they don’t really know, investors should research the different property Class submarkets.
Here’s our OPINION for the Metro Detroit market (use as a template for your target area!) that we’ve learned in our 24 years, managing almost 700 doors across the Metro Detroit area, including almost 100 S8 leases.:
Class A Properties: Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation. Vacancy Est: Historically 10%, 5% the more recent norm. Tenant Pool: Majority will have FICO scores of 680+, zero evictions in last 7 years.
Class B Properties: Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation. Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support. Tenant Pool: Majority will have FICO scores of 620-680, some blemishes, but should have no evictions in last 5 years
Class CProperties: Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation. Can try to reposition to Class B, but neighborhood may impede these efforts. Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages. Tenant Pool: majority will have FICO scores of 560-620, many blemishes, but should have no evictions in last 2 years. Verifying last 2 years of rental history very important! Also, focus on 2 years of job/income stability.
Class DProperties: Cashflow vs Appreciation: Typically, all cashflow with zero or negative relative rent & value appreciation Vacancy Est: 20%+ should be used to cover nonpayment, evictions & damages. Tenant Pool: majority will have FICO scores under 560, little to no good tradelines, lots of collections & chargeoffs, recent evictions. Verifying last 2 years of rental history and income extremely important to find the “best of the worst”.
Make sure you understand the Class of properties you are looking at and the corresponding results to expect.
Real Estate Agent · Member since 2022 · 1k+ posts · 1k+ votes
2y
Hey Cosmas! Welcome aboard! I recommend reading “Long-Distance Real Estate Investing: How to Buy, Rehab, and Manage Out-of-State Rental Properties” - I found it to be very helpful when I got started investing 2.5 years ago.
The book also mentions the importance of having a rockstar Realtor, contractor, lender, and property manager.
I invest locally in Columbus and Cleveland. I can send you a list of contacts in Ohio to help you build your team, property manager. Let me know how I can help!
Lender · Miami · Member since 2022 · 99 posts · 18 votes
2y
Hey Cosmas,
I'd be happy to help! Do you have an idea of where you'd like to invest? I can send you a couple blogs that provide a comprehensive overview and I'd also recommend you check out Doorvest - they essentially handle the BRRRR strategy on your behalf. Foreign national financing is my specialty so I'll shoot you over a DM and see how best I can help you.
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