Newbie from overseas, trouble ahead?

Question

Newbie looking to invest from abroad

I discovered the BP gold mine a few weeks ago and have been mostly reading, it is time to start participating in the conversation!

The posts I found on investing from abroad as a foreign national are from a few years back so I thought that it wouldn't hurt to start a new thread on this for the international investors out there.

My objective is to start investing in the US Q1 of 2021 and wanting to get your input on strategies and the hoops to overcome as a foreign national.

Strategy: I want to build a cash flowing rental portfolio - I know that common sense says invest from abroad = turnkey properties but I more inclined to buying distress properties and rehabbing them. I know that it's going to be very hard starting from abroad and that my first deals probably will be way more expensive than they should but the learning and "boots on the ground team acquisition" will be the return I'll be looking for at first.

Financing: My first deals will be in cash but would like to get into BRRRR after. Anyone knows if refinancing is possible as a foreign investor? I purchased a property in FL when I went to college there and got a mortgage without any problems but that was pre 2007 and I don't know if this is still possible nowadays.

Markets: I'm currently looking at the potential markets (have shortlisted Huntsville AL, Jacksonville FL and Dayton OH but open to suggestions) and my next goal is to try to build network in these markets, the final decision will most likely be based on where I find the people I'm most comfortable with since I will be relying heavily on them. Whichever the market I end up going with I live in Argentina, this means a minimum of 12 hrs flight with connections and a couple of thousand dollars for each trip I make!

Any suggestion, networking, issues /tips encountered by fellow international investor will be helpful to keep learning and make informed decisions.

Thanks!

Tomas

Marty Neville · Answer

It’s been excellent, purchased a SFR in MI in 2020 was able to purchase it under value. Cash out refinanced then purchased a duplex in Ohio.

Currently going through the rehab stage and will be looking to acquire a 3 or 4 unit next.

Tomas Buedo · Answer

Hi Marty,

Thanks for your input an reliving this thread!

I do have an account with Mercury but for a non RE related business, they are great.

I purchased a duplex last august in FL, did a complete rehab and both units are now rented. I'm currently talking to a few lenders to do a cash out refi. It's been a great learning experience so far and I'll be hunting for the second deal as soon as I'm done with the refi.

How has your experience been investing from NZ?

Marty Neville · Answer

You can use Mercury bank for your bank account and there are many lenders who provide cash out refinancing.

@Tomas Buedo how’s your US investing journey going?

Tomas Buedo · Answer

Thanks @Jim Spatzenfeld Great resources

Jim Spatzenfeld · Answer

https://www.corevestfinance.co...

Foreign nationals eligible

Jim Spatzenfeld · Answer

https://www.rentalhomefinancin...

A little dated but it says yes to cash-out refis

Tomas Buedo · Answer

Thanks for the tip on C-corp @Jim Spatzenfeld. I figured the best way was to buy properties under an LLC. I guess being the foreign owner of a US C Corp I would also have to file a personal tax return in the US. I'll seek advice from a US CPA on this one before doing anything!

As for mortgage I know that some lenders do give conventional loans to foreigners, normally requesting a higher down payment, do you know if they also offer refinancing? My idea would be to do BRRRs, using cash to buy and rehab the property and eventually pull as much of that cash out.

Jim Spatzenfeld · Answer

You can DocuSign everything except for the few things that need to get notarized: when you sell it would be the deed. When you buy it's just the mortgage, so if you pay cash, as far as I remember, there is nothing to get notarized, so DocuSign should do the trick.

I had to go to the consulate once when I bought a commercial property in Europe while I was living in USA. They charged by value of the transaction instead of a flat fee.

Tomas Buedo · Answer

@Doug Durgee Thanks for your input and congrats on investing from Japan!

Yes, being in a similar timezone is a major plus, I'm currently dealing with other parts of the world for work and the time difference can be a real pain to get things done.

For sure I will have to do a few trips at first to find my "rock star team on the ground".

First deal will be all cash and hopefully it will help build my credit back to what it once was (rehab purchases...)

Regarding the documents signing, I had imagine that by now it was possible to use a web service like Docusign or Hellosign. Are these services not yet recognized by Closing companies or States?

Thanks!

Tomas Buedo · Answer

Thanks for the welcome @Ned Carey!

Yes @Michael Craven I will definitely get in touch to discuss Dayton.