US Expat Investing in US Real Estate

[Matt Ward]

Pretty much what it says. I run several ecommerce businesses and live in Switzerland (among other places), staying out of US more than 330 days a year for foreign income exclusion.

What are recommendations going forward with real estate investment as someone outside country? Is it necessary to "hire" a partner in US to handle maintenance, day-to-day, legal stuff etc or is it feasible with property management company etc...?

[Sam Van Horebeek]

@Matt Ward

I think the first step is to identify what is most important to you; e.g. buy and hold for cash flow, buy and hold for appreciation, buy and flip, etc. Of course, budget, timing and risk are other important factors. This will help you make a selection of cities that would be more appropriate than other cities.

Depending on the answers above, this will help you making in decision on engaging a partner in the US.  For example, if you are looking for buy and hold for appreciation purposes in New York City, you probably do not need a property management firm on the ground (simply an agent who can assist you with the search for decent deals would be sufficient). If you are planning to do buy and hold for cash flow purposes in Detroit, than probably a local property management firm is a must.

We are dealing with a lot of American investors based overseas and this is usually the way we work with them. Hope this helps a bit