All Forum Posts by: Krisztian Adorjan

Hey Krisztian 
I am from Israel and I have been investing in the US for 10 years.
Until 2018 I invested in Single family and then I shifted to Multifamily.
All my investing I did from Israel by hiring the right team.
You need to decide first what approach are you going with:
1. Do it yourself. Where you build the team, find the properties and manage the process by yourself
2. Invest passive in someone else deal.

When I invested in single family homes I learned by myself from reading, trying and learning from my mistakes.
It took me a long time to perfect the process.
When I decided to syndicate Multifamily I learned and coached by Think Multifamily. Now I am at 655 units.

So my suggestion again decide first the approach you will be using.

Good Luck

Rafi
 

Rely heavily on referrals, whenever you can. I personally advise against buying a property sight unseen and recommend that clients come out to see the property once it is under contract, and scheduled for an inspection. Don't buy something based just off of photos. Ask your agent to do a video walk through. 

To me, the most critical part of your OOS strategy will be a great PM. A great PM will make or break your investment in my opinion. Choose wisely.

Lastly, work with someone who has the heart of a teacher, not that of a salesman. It's important that you learn through the process and develop skills that will make you a better investor, as opposed to just going through the steps but not learning anything!

Talk soon,

Filipe

Yes, there are banks that make loans to foreign nationals. As far as I know, direct ownership may file income tax differently from a LLC member. You may want to consult a CPA for further clarification. I really think lower interest rates will stay, and negative interest rates may arrive sooner than most think. Most economists are forecasting economic slowdown in the near future due to the uncertainty associated with the trade war and the presidential election. There are very few tools that the government can use to boost the economy. Negative interest rates could be a good solution. Unlike Europe, the US has plenty of land and natural resources. Negative interest rates can wake up the underutilized resources and be an effective tool to encourage investments, with less side effect, i.e. inflation, than west European countries

Yes I will most probably speak to a CPA and also do my research on that. 
It’s interesting that you say that because I have also been seeing many posts and videos from accredited investors (Ray Dalio) that the economy is about to slow down. What would you say, how will that effect the prices of the housing market? And when there is an economic slow down, does that mean that there will be less people who rent homes? Or more, beacuse it’s more affordable then buying a home. 

A LLC is just an option. Best to research if you need one.

 Welcome to BP!

Depending on your US structure, you may need to be mindful of withholding tax. If you opt for a LLC, you need to be aware of IRS 5472 which carries a potential $25,000 annual fine.

The US is a market that can for almost any investor with the right team on the ground. 

Good luck on your investing journey!

Hi Jordan

thank you for the informtion.

Do I have to set up a LLC or is it just an option as a foreign investor?

I will be sure to be mindful of widholding tax. Thank you for the advice.

Great ideal! Net lease properties will be an excellent fit if you don't have anyone to manage the property. If you know someone you can trust, go for multifamily. Marketwise, you want to look at not only growth, but also supply constraint. The key is location. You want to find a location that will support the use/uses of real estate for a very very long time - hundreds of years. 

If you are holding your real estate for a long time and your main goal is cash flow, you can take a a look at smaller markets, or suburbs of a large metro, such as the inland empire in LA metro. 

Not much restriction as a foreign investor as far as I know. There is FIRPTA that requires withholding when you sell the property. 

If you don't buy in cash, however, it will be more difficult for a foreign person who doesn't have credit and asset in the US to get financing, i.e. little higher interest rate and less loan amount. 

Hi @Krisztian Adorjan, I would look into the midwest!