Foreign investors vs Local investors

[Ken Kwok]

Hi all real estate lovers,

I am from one of the most expensive property city, Hong Kong. I am a potential investor for US property and exploring all potentials and risk. I am not sure if I am competing with local investors and if they will welcome me or hate foreign investors. I am planning to invest 2-3 properties at 450 - 700K each including mutltifamily in Seattle area and looking to hold for 8 years +. 

Seems like foreign investor has higher down payment (40%), higher interest (30 yrs fix at 5.25%), harder to manage the property. Other than that, seems like everything is the same.

Just would like to see how people think about foreign investor? helping or hurting the market? and would like to social with some international investors and resources as well.

Ken

[Troy Williams]

hi @Ken Kwok I'm an American but have been living overseas for almost 15 years, preparing to go back to the US. This year I have already purchased 2 properties in Colorado (while living abroad) and planning for my 3rd very soon. Based on my research as well, I think Brian is right in saying that budget won't buy you much in terms of multifamily in a market like Seattle, nor would you likely get strong financial returns if that is your goal. I'm curious what made you choose that market and what are your goals from this investment? I too looked at the bigger cities of the state (i.e. Denver) but find these markets too hot. When I went to some smaller towns however, I found great deals. 200-250 K triplex and quadplex at 10% CAP rates and around 12% Cash on Cash ROI.

Anyhow, I just wanted to share that and remind you that the US is a huge market and there are a lot of places with great deals.   Also, your interest rate of 5.25% (assuming fixed 30 year) is actually not that bad, but if you partner with Americans on your deal, can get multi-family at 25% down payment.  ;)

Hope that helps.