New Investor Currently Living Overseas

[Zach Bollman]

Hello all,

Thought I would come over here and introduce myself. A little background: I'm originally from the St. Louis, Missouri, area having grown up to the west of the City, although I now live in Cambridge, UK pursuing a masters degree. Following the degree, I'll relocate to Sydney, Australia which I'll call home for the foreseeable future. 

Prior to my current endeavor, I have worked as a bank officer and real estate attorney. As a bank officer, I underwrote residential and commercial mortgages. As an attorney, I represented developers, REITs, multi-national corporations, and local governments in all aspects of real estate including asset acquisition, development, leasing, and disposition. As a result, I understand the financial and legal aspects of real estate but cannot say I know the first thing about actually being a real estate investor. However, I'm looking to change that.

Due to my location, I've been following discussions, podcasts, etc. on long-distance investing and am quite excited by the prospect of not being geographically bound to a certain market. If I had stayed in St. Louis, I would probably have limited my focus to that market.

Due to my current studies and lack of income, I'm currently helping my father get started as a real estate investor (the blind leading the blind so to speak) rather than pursuing deals for myself. Together, we've been searching for single-family and 2-4 unit properties in the St. Louis area (he prefers them to be local).

I hope to be able to contribute to the forums as an attorney and prior banker, and ultimately as a real estate investor. Thank you all for this wonderful community -- I cannot wait to be a part of it. 

Best,

Zach

[Zach Bollman]

Originally posted by @Lindsay Stewart:

G'day Zach, welcome to Oz!  Best of luck with your ventures.  With your experience and contacts, im sure you can crush it there.  It is quite achievable to invest back in the US from AU particularly with your past experiences!

Good luck!

Cheers

Lindsay

Thanks! I’m looking forward to finally being able to let my feet rest and unpack my suitcase after years of being a bit of a nomad. I’m actually curious about two things if you have time. 

First, do you have any experience in investing in the US from AUS? When I was at the bank a few years ago, we used to do financing for Australians, but they were extremely high-networth individuals buying nice properties in Aspen at 70% LTV so we were happy to hold those loans. Getting financing in the US while living in AUS seems as though it could be a hurdle, although I haven't reached out to any banks to inquire given my timeline.

Second, what’s the story with property investing in AUS given the astronomical purchase price compared to rents and the newly restricted lending policies at the major banks? If I were to buy a duplex in St. Louis, it would be $150k or so and rent for $2,000+ per month between the two units. Comparatively, a duplex anywhere near Sydney is around $1,000,000 and rents for around $4,000 per month — no possible way to cash flow so you’d be gambling on appreciation. Curious as to your thoughts. 

Cheers,

Zach