All Forum Posts by: James Ewing

@Tommy Brant, yes very useful, thanks for taking the time to respond.  Brrrr and value-add is definitely a target for us and I like your soft-start suggestion as an entry strategy to build our systems and relationships; this could gear us up well for a return to the U.S. in a couple of years when we could then escalate to Brrrr and beyond.  

Thanks to all for your responses, very useful!
At both @Jason Regan and @Randall Alan, you highlight what I think must be the greatest challenge in distance REI, that being the contractor element and, more to the point, delivery and quality control. The right team is key and a significant challenge in itself. Engaging a property manager is a given, but my feeling is that it would be advantageous to engage a firm that is both property management and contractor as I feel there would be more accountability, any thoughts on this?

I am in two minds on the financing aspect: on the one, I am attracted by reducing the investment risk with less cash down and taking advantage of a relatively low-cost financing market, but on the other, feel as though buying cash may provide some advantage over others in some cases (potentially lowering purchase price for cash, but also quicker to close?) as well as to @Todd Rasmussen's point, allow me to invest and scale at a slower pace in the beginning where we can learn.

thanks again all, appreciate it!

James.

@Account Closed 

Thanks for your comments.  I am sure there is no easy street and that is not what I am expecting here, but your question re our edge is very pertinent; it is one than I struggle with (and some of the reason for this post) and realise that any edge we may perceive we have is surely diluted by our current lack of proximity (though we hope to move back to the states in about 2 years).  This said, everyone started somewhere and we are trying to get a feeling of how best to do that in current market conditions, so grateful for the thoughts you provided.

thanks.

Hello all,

Happy and prosperous new year to all! 

Need your help on a strategy game I am playing with myself and our situation: suppose you have USD 250,000 cash you want to invest, what do you do:

1. Buy a property (maybe 2 if funds allow) 100% cash, then finance after rehab and repeat?  Perceived advantage is to reduce purchase price and close quicker.

2. Brrrr multiple SFH/MFH properties (according to a scaling/location strategy), using cash as down payment for finance? Perceived advantage is to maximise the number of doors.

3. Brrrr fewer properties, each with higher unit count, using cash as down payment for finance.  Perceived advantage is also to maximise doors, but reduce common-area maintenance costs, number of deals needed and be a more 'important' client to property managers and contractors.

4. Some other strategy?

A few considerations:

- I am Scottish, my wife is American and we currently live in Italy – investment is fully remote!

- Given above, we are thinking long term rental and not extensive rehab.

- We are educating ourselves, but have no REI experience.

- Target is cash flow of $30,000 and up, per year, after no longer than 2 years.

- Some appreciation can be forgone for cash flow, but appreciation still ideally above 4%

Also, you thoughts on the reasonableness of our target would be appreciated!.

Many thanks and look forward to some interesting answers!

James.

@Natasha Hardy and All,

In a very similar boat; I am Scottish, my wife is American, we are currently based in Rome, Italy and are looking to invest in the U.S. with a view to moving there in a couple of years.

James.

Hello All,

Newbies to REI here. Husband and wife team – me, Scottish and my wife American. We are currently based in Rome, Italy and looking to begin the journey of portfolio building in the U.S. where we will, sooner or later, move (though I don't currently have a green card) with the hope of REI substituting at least 1 salary within 2 years.

Short-terms strategy is to focus on (very!) out of state investing, most likely with SFH and MFH long-term rentals, though are open to other opportunities.

Look forward to engaging with the community here and interested in all and any comments or guidance you may have, but in particular with regards strategies on distance REI and legal and finance considerations as out-of-country investors.

Thanks and see you in the forums/FB group.

James and Elaine.