All Forum Posts by: Diogo Alves

@Mark Karelin

Sounds like two great markets for investing! I’m focused on rentals for now, but feel free to reach out if you want to chat through the numbers on any specific deal, or think through how to approach. I haven’t done flips my self but keen to learn. Good luck!

@Mark Karelin

I’m getting started as well and looking for an in-market partner as I’m currently living outside the US.

What market and kind of properties are you looking into and what are you looking for in a partner?

Hi Evan -- I'm a new investor in a roughly similar position. I'm inclined to start with all cash on my first purchase for two reasons: 

1) minimize risk (if rehab takes longer than expected, or getting tenant takes longer than expected, I'm not paying the mortgage) 

2) move quicker on a deal, without having to wait for financing 

The good news is you can still refi your cash purchase and pull all/most of the money out (if the deal is right), so you can then scale quicker if you're ready. 

One I have built the confidence with my first cash purchase, I intend to scale quickly doing more of the approach you mentioned of spreading your cash across several down payments. 

I recommend checking out David Greene's book on the BRRRR method if you haven't already, as it's helped me think through how to get started.

Good luck! 

Hey guys!  Question -- would a traditional bank give me a conventional mortgage for my first investment property if I live outside of the US and earn income outside of the US? 

I'm a US citizen, file taxes in US, have credit history in US (FICO 700+). I'm just not physically present in the US and likely would not be when I apply for the mortgage. 

Anyone done this before? Would love to hear how it went / any hurdles you faced. 

Cheers from New Zealand. 

@Dean Letfus haha NZ likes to do things the old school way! Are the PIA meetings open to anyone? If so would be interested to stop by. 

But agree with you on the US, just don't see any reason to focus on NZ if I can invest in the US.

Auckland is a great city to be a tenant in... rents are so low compared to house prices I feel like my landlord is subsidizing my living costs, not the other way around haha

How are Kiwis investing in the US today (if they are not US residents)? Are they eligible for financing there? Imagine the generational wealth being built up in NZ wants to get a piece of American Pie returns. 

@Dean Letfus great great context, thanks mate! Will prob shift efforts into US and will take a look at Memphis as well. 

Was wondering why there hasn't been much chatter about New Zealand on BP (even by NZ standards) but your last two posts clear that up :) 

@Jerry Padilla -- would a traditional bank lend in this situation as well? (US citizen, living and working abroad, has credit history in US, files US tax returns -- looking to cash out refi from a cash purchase). 

Any issues if I am not physically present in the US when doing the refi?  

And do you think someone in this situation would be able to go up to the 4 mortgage limit for cash flowing properties with good DSCR + reserves?

@Dean Letfus thanks for quick and comprehensive reply. Sounds like NZ is just not an efficient market for getting money back out quickly via BRRRR, and agree with you that the low yields don't justify the other risk factors.

That said, is there anything about NZ which makes it more favorable to BRRRR? Probably not enough to tip the scales vs. investing in US, but just curious to get your thoughts.

Also, if BRRRR is very difficult in NZ vs. US, how does flipping in NZ compare to flipping in US? Understand rehab costs will be higher as you've mentioned, but if the numbers make sense, is this a strategy worth pursuing, or there are there other systemic risk factors? I imagine this would also be easier in smaller markets than Auckland, but that finding contractors in these areas would be tougher.

@Dean Letfus -- what is the limiting factor which makes BRRRR not work in NZ? Availability / price of refi-lending?

Understand it's much harder to find good rental yields here, but assuming deals are similar in US and NZ, and I'm using my own money for acquisition + rehab, where would I run into hurdles / extra costs in NZ that I wouldn't in the US? 

Context -- I'm a US citizen living in NZ. Currently can't invest here, but will have residency soon. Trying to understand pros/cons of arms length BRRRR in NZ, or long-distance BRRRR in the US while based in NZ.