New investor from oversea, welcome for discussion here!

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New investor from oversea, welcome for discussion here!

David Ng
New to Real Estate · Hong Kong · Member since 2022 · 7 posts · 2 votes

Hi BP Community~

This is my first post here. I'm David who come from Hong Kong and would like to invest in real estate, and also here to learn and have discussion with you about the real estate. 

Just started to learn lots of knowledge about REI and my Strategy would be Buy and Hold. What's your advices to the out-of-state investor or even an oversea investor? Cause it's not possible for me to have a regular inspection of possible deals

I'm still at the Market Analysis process in order to select a market to start the very first step. After i've done some research looking at the population growth, job diversity, unemployment rate, etc... I'm thinking Plano, TX could be a good city to invest? Any thoughts? (Please definitely let me know if i'm wrong!)

I'm so new on REI but i definitely want to start to be an invester, so please feel free to comment and have a discussion with me. Thank you so much guys and take care!

David

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Nathan GesnerBusiness Member
Moderator
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
3y

Welcome to the BiggerPockets forums!

I like Texas as an investment, but don't know anything specifically about Plano.

Dave Meyer has some good information about markets to invest in: https://www.biggerpockets.com/...

I recommend you read "Long-Distance Real Estate Investing" by David Greene. It has a lot of actionable information.

Since you aren't able to inspect the property in person, you probably want to stick to nicer investments in A or B class. Take advantage of video walk-throughs from the REALTOR, Property Manager, or o home inspector. Have at least two different people look at it for you to get different opinions.

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  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    3y

    Welcome to the BiggerPockets forums!

    I like Texas as an investment, but don't know anything specifically about Plano.

    Dave Meyer has some good information about markets to invest in: https://www.biggerpockets.com/...

    I recommend you read "Long-Distance Real Estate Investing" by David Greene. It has a lot of actionable information.

    Since you aren't able to inspect the property in person, you probably want to stick to nicer investments in A or B class. Take advantage of video walk-throughs from the REALTOR, Property Manager, or o home inspector. Have at least two different people look at it for you to get different opinions.

    The DIY Landlord Book4.7248 Reviews
    WebsiteView Page
    2Reply
  • Bruce Lynn
    Real Estate Broker · Coppell, TX · Member since 2011 · 5k+ posts · 4k+ votes
    3y

    You can do it.

    One thing you should read up on is FIRTA regulations.  It's easy to put your money in, harder to take out.

    The other trick is if you want to invest cash or use financing.  Financing as a foreign investor is tough and limited.  Not impossible, but very few lenders do these loans and your interest rate will likely by higher....I'm guessing right now around 10%.   Cash is not really a problem if it is coming from HK and done by bank transfer.

    Plano is a nice clean city for the most part, many investors though looking north of there, where there will be new growth.  Cities like Anna, Howe, Van Alstene, Sherman, Denison, Gunter, and maybe Greenville or Princeton.

    1Reply
  • David Ng
    OP
    New to Real Estate · Hong Kong · Member since 2022 · 7 posts · 2 votes
    3y
    Quote from @Nathan Gesner:

    Welcome to the BiggerPockets forums!

    I like Texas as an investment, but don't know anything specifically about Plano.

    Dave Meyer has some good information about markets to invest in: https://www.biggerpockets.com/...

    I recommend you read "Long-Distance Real Estate Investing" by David Greene. It has a lot of actionable information.

    Since you aren't able to inspect the property in person, you probably want to stick to nicer investments in A or B class. Take advantage of video walk-throughs from the REALTOR, Property Manager, or o home inspector. Have at least two different people look at it for you to get different opinions.

     Hi @Nathan , nice to meet you. What do you like about the Texas and where do you like the most? I've bought the book by David Greene and it's on the way! Can't wait to read and learn. 

    Alright, i'll definitely go learn more about the property class first, i haven't go deep on this topic. But for the new oversea invester like me, it is better for us to do a turnkey for the very first one? Cause i'm afraid that i can't really learn much from the process if the Turnkey is a all-ready package. 

    Thanks and looking forward to hear from you.

    0Reply
  • David Ng
    OP
    New to Real Estate · Hong Kong · Member since 2022 · 7 posts · 2 votes
    3y
    Quote from @Bruce Lynn:

    You can do it.

    One thing you should read up on is FIRTA regulations.  It's easy to put your money in, harder to take out.

    The other trick is if you want to invest cash or use financing.  Financing as a foreign investor is tough and limited.  Not impossible, but very few lenders do these loans and your interest rate will likely by higher....I'm guessing right now around 10%.   Cash is not really a problem if it is coming from HK and done by bank transfer.

    Plano is a nice clean city for the most part, many investors though looking north of there, where there will be new growth.  Cities like Anna, Howe, Van Alstene, Sherman, Denison, Gunter, and maybe Greenville or Princeton.


    Hi Bruce, nice to meet you here. You are the life-saving bell for me, i didn't think of the exit strategy, especially the FIRPTA regulation. Thank you so much. 

    For the financing, is it harder for forigner to do the conventional loan? Or more down payment is needed? 

    I'd like to invest in the Multi-Familt Housing, would you mind to share the trend or atmosphere about the MFH market in Plano or even the north cities that you recommand?

    Thanks and looking forward to hear you!

    0Reply
  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    3y
    Quote from @David Ng:

    I've never invested in Texas. I just know it's a safe bet with growing population, good taxes, good schools, fair laws.
    The DIY Landlord Book4.7248 Reviews
    WebsiteView Page
    0Reply
  • Gary Tucker
    Lender · Pittsburgh, PA · Member since 2022 · 73 posts · 16 votes
    3y

    There are Foreign National DSCR (no income or tax docs) loans available for investors like yourself. This program uses the property rental income to qualify the loan. There are stipulations for the borrower, but they are essentially the same loan program as other investor loans.

    Good luck in your search!

    0Reply
  • David Ng
    OP
    New to Real Estate · Hong Kong · Member since 2022 · 7 posts · 2 votes
    3y
    Quote from @Gary Tucker:

    There are Foreign National DSCR (no income or tax docs) loans available for investors like yourself. This program uses the property rental income to qualify the loan. There are stipulations for the borrower, but they are essentially the same loan program as other investor loans.

    Good luck in your search!


     Hello Gary, nice to meet you. 

    Thanks for your information, you gave me a chance to know another way for financing. Thanks a lot. 

    0Reply
  • Bruce Lynn
    Real Estate Broker · Coppell, TX · Member since 2011 · 5k+ posts · 4k+ votes
    3y

    @David Ng  Most lenders will not lend to non-US citizens on investment properties....and if they do, typically both down payment and interest rate will be higher.

    MFH is not common in Plano....if you are talking about small MFH 2-3-4 units.  There is some, but not all that common.   I would say the majority of housing in Plano is either single family or larger multifamily 100-400 units.

    If you want 2-3-4 unit properties, I'd probably look at north of Mckinney.....there are more being built in that area. One thing I say about MFH vs single family is exit strategy is different. Single family you can sell to owner/occupant or investor. With Multi chances are you'll only sell to an investor....so what are investors looking at when they buy? ROI and deals. Just something to consider. I don't know that I've ever seen a good comparison, but I'm guessing appreciation is greater on single family over small multi over the long run due to this issue.

    0Reply
  • CJ Berina
    Lender · Northridge, CA · Member since 2017 · 186 posts · 42 votes
    3y

    @David Ng Hey David, 

    I work for a hard money lender and I believe we are able to lend to non-US citizens. You just need to bring a higher down payment, but it is possible. Let me know if you need help with this to start coming up with a strategy.

    0Reply
  • David Ng
    OP
    New to Real Estate · Hong Kong · Member since 2022 · 7 posts · 2 votes
    3y
    Quote from @CJ Berina:

    @David Ng Hey David, 

    I work for a hard money lender and I believe we are able to lend to non-US citizens. You just need to bring a higher down payment, but it is possible. Let me know if you need help with this to start coming up with a strategy.

    @CJ Berina Hello CJ, thanks for your information. Will definitely let you know if i need your help. 
    How high is the down payment you are talking to? And how's the rate about the lending to Non-Us Citizens? Thanks a lot. 

    @CJ Berinaundefined

    0Reply
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