All Forum Posts by: Nicholas Trans

Nicholas, welcome to the forum and REI. I think you're wise to pursue this goal. I caveat my comments by stating that I consider my wife and me novice investors. We got started while in the Foreign Service and serving abroad as well. I only wish we had started years before when we were in the military. I recommend collecting sufficient information to make a sound and balanced decision, then take action. Countless pubs and gurus will say the same thing; inaction will defeat your goals. Based on your circumstances (though others may disagree), I recommend buying a SFH or small MFH through either a TK company or other network of trusted advisors that will get your feet wet and help you learn. Make the purchase safe enough that if things don't go well, if won't impact your financial security. Such a purchase will 1) build your confidence, 2) teach you a lot about the process, and 3) spur you to follow through on subsequent purchases. Hope this helps. Matt

Hi Nick,

I'm currently in the military, stationed in Japan, and have done several deals in the US from overseas. The asset I've used the most so far is Roofstock.com. I've purchased several properties through them (site-unseen, obviously) and can attest that they provide a safe, user-friendly experience and are more than happy to work with you through the difficulties of buying from a drastically different time zone. There are several threads on BP that detail the pros and cons of Roofstock specifically, but here are some of the highlights:

-you place bids on houses, and only pay money if you win a bid. There is a nonrefundable $500 marketplace fee for winning a bid.

-properties are available either rented or vacant. Buying vacant properties comes with a Roofstock guarantee, which entails them paying 85% of the market rent to you until you get a tenant, for up to a year. \

-Roofstock will work with you to ensure that you are getting a clean title, and will also recommend property management and insurance companies in the local area so that the transition is as simple as possible. 

I'm happy to answer any other questions you have. 

Hey @Nicholas Trans!

Welcome to the world of REI! I'm actually living in Yokohama, and started investing in the US while I'm here. I can't speak from experience from the other options, but I have done some turnkey as well as working with teams while I've been here. I've had both great experiences and horrible experiences, and can echo everybody here that making sure you vet the people you work with and trust is important.

Even sometimes after you vet them it doesn't come out how they are until you have started working with them. I think a key too is to not let one single experience define REI for you. It's easy to get jaded from one transaction/experience, but of course use wisdom every chance you get.

Even through all the bad experiences, I have had more good and its definitely working. Personally I've been leaning more towards the turnkey route, as it is not the most passive, I feel like it provides a good balance between the passivity and return.

There are only three totally passive ways to invest in real estate: (or 4 ways)

1. Syndications

2. Private lending

3. Buying mortgage notes or buying tax lien certificates

All the rest require some time to manage the property or manage the PM who manages the property.

Now, with regard to syndication, you can invest even if you're non-accredited as long as you have pre-existing relationships with the sponsor. How do you establish pre-existing relationships? You can't invest because of one email. You can call sponsors and see the deals they work on. You can ask questions and learn over time (could be several weeks or several months or even a couple of years). You're vetting them and at the same time, establishing that relationship with them.

Not all my investors are accredited. I am sure other sponsors do the same. I use an accreditation form just to document when I spoke to the investor and that can be used as a basis for preexisting relationship. Now, having said that, I am not an attorney so don't construe the above as legal advice. Please consult your own attorney.

By the way, where in Japan are you located?

I have investors from Asia by the way - in China. Here's a post I made about my experience with Chinese investors:

https://www.biggerpockets.com/forums/432/topics/738518-how-to-raise-private-capital-experience-with-chinese-investors

Enjoy that life experience you and your family are receiving working abroad. I admire your FIRE goals as well. 

At this point you don't need me to tell you that syndications are solid passive investments in real estate. There are other options as well that might turn you from passive to active which is hard money lending to flippers. If they don't perform and you take over the investment, you're looking to sell the asset to someone else to complete or you are likely to complete it on your own. This might be difficult for you being an ocean away but wanted to provide some perspective on the different avenue. 

Good luck and happy investing!

I would speak to your attorney and CPA. You should see if qualify as an Accredited Investor or not. Then in speaking with your CPA and lawyer could setup up a LLC and get an ein.

I've done well with investng in MF properties, both for myself (as property manager & investor) and for my passive investor partners. We have a strong trust relationship, which I beleive is very important, and it works really well. 

@Nicholas Trans

Hey Nick I saw you mentioned frommilitarytomillionaire. If you listen to episode #71 I was a guest and spoke on managing/find deals from long distances. Not as long a distance as you but the practices still apply!

@Nicholas Trans if you're looking to be 100% passive that really limits your REI options. It's not a bad thing at all though! I would focus on trying to maximize your income to passively invest in syndications or other wealth GENERATING products.

You're well positioned to succeed, but you might need to narrow your focus to passive strategies. Bigger Pockets is great, but sometimes it can be distracting with all of the different strategies they cover. Some might not be possible for you.

Whatever you decide, just get started - that's the key!

@Nicholas Trans

If you are looking to build wealth passively; syndications are a great option and probably the best option. Real estate is a business and no matter how "passive" people want to call rental real estate, it requires property management and management of the property manager. If you find a great group to invest with, they will be more knowledgeable than a first time investor and will have the systems already in place.