Moving to the US. How do I get a headstart?

Question

Hey guys! I've been a lurker for a while but didn't participate. I'm a European that's moving to the US.

How can I optimize the acceleration of my real estate journey? I am starting out with a non-existent credit score (I'm not from a country you can transfer your credit score) and I've read a few articles on how to increase it as fast as possible. I've also watched some podcasts and tried to accumulate as much information as possible, but most of it is targeted towards existing residents.

Moreover, I have no ties to any particular state apart from the first year, thus I can freely choose any state in about a year from now. I want to take advantage of this and move to an investor-friendly state with plenty of deals.

Was there anyone else in a similar situation? Do you have any tips?

Michael Glunk · Answer

Hi @Peter Garcia if you are looking to have control over your own destiny and be rewarded for the effort you put in, the USA is a great place. Especially in the Real Estate space. I can say that not only because I am a real estate investor and agent, but because I am both a German and USA citizen.

You are already taking the first step to accelerating your RE journey by "lurking" as you mentioned on BP and of course by your post here. To break your question/post apart a bit....

#1: Credit Score: I am not an expert. I am not an accountant. But in America it is beneficial to have a strong credit score. I have a friend (and real estate client) who is from Austria and dealt with this exact same thing. So yes you will definitely want to build your credit. My personal suggestions would be to get an American credit card as quickly as possible. Sometimes you can't get one right away. So form a relationship with a bank. Usually a small local bank is the best option, but talk to a few and see who is willing to work with your situation best. If they won't give you a credit card right away, often you can start with a debit card. But assets in their bank. And start to build that relationship. Don't be afraid of telling them your goals when you are interviewing banks to put your money in. Ask them what steps need to happen in order to get that credit card. Then once you have a credit card. USE IT! USE IT FOR EVERYTHING YOU CAN. Pay it off every month. And gradually over time your credit limit will increase and your credit score will also increase.

Oh, and another option I just remembered while typing this is to look into a multinational bank. If you are with a bank now in Europe (or could get with one before you come to the USA) that offers services here as well, often times because you already have a relationship, they can be more flexible with you in the USA in the options and services they offer. Credit Cards, loans, etc. But again don't be afraid to have the conversation and ask up front.

Oh and maybe this isn't an issue for you, but if it is you will need to get over the European mindset on money. My Austrian friends would only pay cash for things. Not helpful towards their goal toward building credit. It took them a little while to get over this. Credit cards can have a bad reputation in Europe. As least I know the do in Germany and Austria. In the USA putting money on Credit Cards is a good thing when it comes to building credit. Just treat it as a replacement for carrying cash, never spend more than you can afford, and pay it off every month. (At least that's my opinion.)

#2: Journey Acceleration: This is dependent on your situation. If you don't have cash reserves to start now then you will be dependent on mortgages and this is dependent on credit score. If you do have strong cash savings then it's easier to get started.

Another option is your time. You could hustle your way into deals. What value can you offer another investor to "buy yourself" into a deal or deals. Many conversations could be had on this, but hopefully this gets you thinking.

#3: Location: Sounds like you want to live in the same state as you invest. If this is the case, then you need to decide what your goals are and then choose a state where the real estate situation is advantageous to meet these goals. e.g. if your focus is cash flow move to a high cash flow market like the midwest (one example), etc. Click HERE to read my recent post response on why it's important to narrow down and identify your real estate investing goal.

But you don't have to live in the same state as you invest. Many people invest out of state. Myself included. But this is a personal decision. Click HERE if you want to read my recent post on the places I invest out of state and why.

Happy to dig into any of these points a bit deeper. And if you end up in Colorado or want to invest here, let me know. I also have good connections in a few other states so let me know where you end up landing or end up wanting to invest.

Kerry Noble Jr · Answer

you can pay for someone to add you as an AU and that will establish credit......then you can use that to get more cards......that will help start your score for sure......

Kerry Noble Jr · Answer

Definitely legal.....shoot me a DM and we can discuss more.....

Moving to the US. How do I get a headstart?

Most Popular Reply