All Forum Posts by: Jordan Morris

Quote from @Allan C.:

@Jordan Morris get familiar with your local US embassy since you’ll likely need their notary services. I managed 4 years from 8000 miles away - you’ll certainly need systems and trusted trades if you don’t use a PM.

I didn't know the embassy offers notary services! That's a great suggestion. Thank you!

Quote from @Melissa Hartvigsen:

It is possible you could be paying income tax on rental income received in the US and where you reside. 

Your post didn't say whether or not you are a US Citizen. If you are not, there would also be the Foreign Investment in Real Property Tax Act that would have taxes due on the sale.

You may want to check with a CPA, and explain your specific situation. Then, once you know what tax implications are, I would go about your cash flow calculations to see if it makes sense.

Melissa

These are very good points to take into conseration early on.

I am based in the UK. We have some kind of tax treaty between the US and UK, meaning we can file a Foreign Tax Credit application to avoid double taxation. I would need to look into this.

Also, and I don't know if this is a system you use in the U.S., but if I would own properties and rent them for short or long rentals, I would register two separate companies and two separate bank accounts for these activities and do business with myself between these two companies. This will help to mitigate legal risks and lawsuits, which can potentially destroy your investments.

For example, I register company 1 as REMS (Real Estate Management Services). This company doesn't own the properties but leases them from company 2, which I register as, say, REIP (Real Estate Investment Portfolio). My company 2, REIP, would lease the properties to company 1, the management services. REIP would then invoice the management company every month. And you have actual contracts made between the two companies. All paperwork has to be made as if you have two completely separate companies that do business with each other. This includes income and salaries.

You also keep all accounting completely separate (this is important). You sign any agreements, ads, rentals in the management company's name only - not in your investment company's name. So, if you get a very sue-happy and aggressive tenant, they would sue the management company which doesn't retain any assets but your investment portfolio would remain protected. I would personally register the investment company perhaps even in a different country, in a different jurisdiction. It may also help to reduce your taxes. In the UK, for example, we have base tax deductions for a company. Each company would qualify for these deductions (and tax returns would need to be filed separately for each), so if I have two companies I qualify for double deductions...

I am not a real estate expert in anyway, but I hope this structure may perhaps help some of you with your property portfolios and to protect your assets.

Quote from @Doug Spence:

Also, consider finding a title company that can do closing documents without wet signatures as well. Not sure if that was just a COVID thing that isn't around anymore, but its worth asking about. 

Very good suggestion. I will take that in mind. :) 
Thank you. 

Quote from @Doug Spence:

@Jordan Morris
I recommend starting with David Greene's book "Long-Distance Real Estate Investing". That book was hugely impactful for me, and really opened my mind up to the idea that you don't have to invest where you live. It's all about having the right people on your team!

 Thank you for the recommendation! I will definitely get the book. I love real estate and have always wanted to be in real estate, and at some point to build properties. I have a really good knack for cutting corners without cutting on quality. 

Thank you all for your kind replies. It does sound that this could be possible. I guess the only problem I would have is to acquire loans for the first properties...
I have a friend in Orange County (CA) who could always step in for emergencies and travel to locations if needed.

Hello everyone! I'm based overseas.... is it possible to buy and manage rental properties from abroad? I am thinking that if people can do it across the U.S. while living in different states, it must be possible from overseas as well.