Newbie from Israel

Howdy everyone,
American expat here living in Israel, looking to start real estate investing, primarily on multi-family rentals. Been reading for a bit and loving everything (especially MikeOH's stuff!). Obviously I'll be an absentee owner but what can you do - rent over here doesn't even touch 1% of purchase price and I'm not a buy and hold type of guy.

Edited: 06/26/2010 at 09:08AM

Joshua Dorkin

BiggerPockets Founder · Denver, Colorado

Donor Pro

11,044 posts
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Jul 27 '09, 11:54 PM

Shalom Ariel -
I take it you're looking to be an absentee investor here in the states? Are you willing to put your trust in people to look out for your best interests? Absentee ownership sounds great in theory, but in many cases, can be a very scary experience.

I know from my own bad experiences doing it, that it is something to do very cautiously. I've been burned by four property managers over the years, who didn't have my full interests at heart, and allowed properties to be run sub-standardly. I'll personally never do it again; that said, not everyone is going to screw you, but when you can't regularly check up on the property or those maintaining or living in it, you're putting all of that into someone who better do a good job for you!

Just something to think about . . .

That said, I'm glad that you've picked up some great info from the site, and if you do decide to invest back here, we'll be here to help you get going, however we can.

Welcome aboard!

Edited: 06/26/2010 at 09:08AM

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Ariel O

Real Estate Investor

3 posts
50 influence

Jul 28 '09, 12:05 AM

Josh,
I run a small business and at some point you have to have SOME trust in your employees, or you just fire them. It's part of the game. I don't expect everything to run 100% smoothly at all but I do expect it, if done properly to be a cash flow positive business from within the first 60 days of purchase. Of course this assumes a building with existing tenants where I can get the price I Want etc.

Ariel

Edited: 06/26/2010 at 09:08AM

Joshua Dorkin

BiggerPockets Founder · Denver, Colorado

Donor Pro

11,044 posts
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Jul 28 '09, 12:10 AM

I agree with you completely. That said, I was just putting it out there for you to consume. Good luck!

Edited: 06/26/2010 at 09:08AM

Eddie Ziv

Real Estate Investor · Studio City, California

1,803 posts
9 awards
56 influence

Jul 28 '09, 01:32 AM

Ahallan Ariel. Ma Inyanim?
Welcome to the site. I'm an Israeli expat who live in Los Angeles, but all my investments are out of state (Texas & Alabama) I don't have multifamily but rather SFR. I'm dealing with two different property management companies. The one in Texas are really by the book and so far so good. They are a little lazy when it comes to shop for professionals, but overall I don't have any complains. The houses are typical middle class house. In Alabama I have low income residence and it is more "adventurous" to say mildly however, it's still good business.
I would say that regardless of the type of property (SFR, MFR) you are seeking for, the quality of the property and its residents will ultimately dictate the level of service you are going to get from your PM. Obviously, old property, low income residency would require more work, more attention for less money for the PM and therefore it is more likely then not, the PM would try to "supplement" their income somehow.

Good luck and if you have any question, you can contact me at my e-mail below.

Edited: 06/26/2010 at 09:08AM

Ariel O

Real Estate Investor

3 posts
50 influence

Jul 28 '09, 01:36 AM

Hey Eddie,
Hakol Beseder.
Email sent.
Ariel

Edited: 06/26/2010 at 09:08AM

Harrison Painter

· Indianapolis, Indiana

762 posts
10 awards
50 influence

Jul 28 '09, 01:39 AM

Welcome to BP Ariel!

Good luck on your investments in the states. There are quite a few solid people here that will be willing to help you with anything you need!

Have a great day!

~Harrison

Edited: 06/26/2010 at 09:08AM

Tim W.

Real Estate Investor · Indiana, Indiana

Donor

4,333 posts
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Jul 28 '09, 09:13 AM

Welcome Ariel. Looking forward to talking with you and maybe getting a bit of insight on what it's like to be an American expat elsewhere in the world. That's something that's been interesting me for a couple years now.

Edited: 06/26/2010 at 09:09AM

Laurie Silverman

Real Estate Consultant · Tiberias, Israel

1 post
50 influence

Jun 12 '10, 06:04 PM

Shalom Ariel ... if you have any interest investing in northern Israel - Tiberias and communities, let me know! But wishing you all the best with your ventures!
... Laurie

Edited: 06/26/2010 at 01:12PM