First steps as an out of country investor

16 Replies

Hi Everybody,

I am Nate, and this is my first forum post. 

I have been investing in stocks for a few years now, and I would like to start investing in real estate as well. I currently spend most of the year living in Israel but also spend some time in NY. Therefore, I plan to buy properties remotely. My goal in real estate investing is to "buy and hold" SFRs and Multi-Families, so that I can earn a consistent, passive cashflow, allowing me to quit my day job if I wanted to.

Thus, my first item for consideration is to choose the right city and state to start purchasing investment properties.

My requirements:

1. Landlord friendly state - Average eviction of under two months.

2. Good ROI - not hard to find properties complying with the 1% rule

3. Growing population

4. Multiple Fortune 500 companies in diverse industries.

What are your thoughts? 

Do you know areas which follow these requirements? 

Do you think there are any additional essential requirements I haven't listed?

Thanks for your help! 

@Nathan Cedar I am very found of the Raleigh-Durham, NC area. As long it is A or B class properties, it is very easy to find good management, evictions are relatively easy to do, it has an extremely broad economy (RTP has tons of large companies), has a light rail system in the works, and the main airport now has a couple direct international flights as well. 

Finding deals that meet the 1% rule are there, but they take a little work. There are also tons of small suburb cities around that have deals as well.

@Nathan Cedar You've got a great start but I would like to add that you should also consider your personality type and investing style. For instance, you might like the idea of buy and hold but if your personality type is akin to a trader's mentality, it will be hard following on your plans. It is best to play to your strengths. 

That being said, the simple answer to most, if not all, of your questions is: Texas. We did a deep-dive analysis and came to this conclusion. So much so, that we moved to Texas (from Canada).

Texas is the most landlord friendly state with a growing population, multiple Fortune 500 companies, diverse economy, business friendly environment and a very entrepreneurial spirit. 

PM me if you have any questions. I will answer myself or refer you to a trusted source. 

P.S. The sunny weather is a plus!

@Nathan Cedar - May be worth your time to reach out to @Daniel Sheftman . He too, is from Tel Aviv, though currently living in CA. I helped him purchase a townhouse in Apex, NC that we closed on a week ago. He spent 4-5 days in the Raleigh-Durham market back in December scoping out some properties before picking the property right outside of Raleigh. 

@Nathan Cedar I live in Raleigh myself. You can PM me about the area if you want. I currently invest in Memphis and Cleveland as an out of state investor. So between that, and living here and having also previously lived in dfw I have a wide range of experience

Thank you guys for the responses!

@Eric Weireter Thanks for the tip :)  I will reach out to him

@Caleb Heimsoth What are your thoughts on the Raleigh NC market? Do you plan to invest there yourself at some point?

Hi @Nathan Cedar , welcome to  BiggerPockets!

I'm also an out-of-country investor. I was born in Texas, but I live in Abu Dhabi and invest in Indianapolis. You can find some great buy and hold properties in Indy for a relatively low cost compared to other parts of the country. It's pretty common to find 12% ROI's. The laws are landlord friendly, just like Texas.

Like @Omar Khan mentioned, Texas is also a fantastic state (and I'm not just saying that because I'm from there). I will be purchasing more properties once I get back. As far as areas, that's a big question, and it depends largely on a number of factors. There's just so many different ways to go about it. Dallas/Ft Worth is one of the best markets in America. San Antonio, Austin, and Houston are also booming. Maybe Houston would be the best place to start if you're looking to BRRR some properties since Hurricane Harvey damaged a lot of homes there. But again, it just depends on your goals.

Fortunately for you, you're in the right spot. Networking will do wonders to get you on your way. I met some good friends here on BP, one of them is my mentor, and he helped propel my investment career much more than I could have imagined. Especially since he is also an overseas investor. I would advise you to take full advantage of BP as a resource.

Anyway, keep honing your criteria, keep asking questions, and surely you'll be on your way. I hope to hear of your success stories once you're a guest on the podcast ;) Good luck brother and take care.

-Michael Volek

@Nathan Cedar the following is our list of cities which have made our "buy" list. Charlotte, Raleigh, Asheville, Atlanta, Savannah, Charleston, Lexington, Ky, Knoxville, Nashville, Chattanooga, and any city in TX with over 300k population.  These all have good net domestic migration, good job creation, and good organic rent growth numbers in linear real estate markets.  There are pockets in most cities where you can do well but we believe its is easier in these locations due to the underlying fundamentals.  

Hello Nathan

Welcome to BP! great site with wealth of knowledge. Cleveland, Cincinnati, Euclid and Toledo in Ohio are good cities to invest. 

@James Wise with Holtonwise is a good resource if you are looking for turn key properties.

Lots of Good luck in your journey!

@Nathan Cedar I bought these turnkeys about a few years ago and right now it’s a little to late to the game if you don’t have the time or local. Yea you can find good turnkey rentals that are 105% retail price that will still get 7-10% cashflow. Not the greatest but best things out there these days. I bought in Birmingham Atlanta indy.

Nathan,

One other point to consider is your financing: if you are paying all cash, then it should be no worries. If you are planning on borrowing, to use leverage, please be aware that some banks are quite difficult to provide loans to non-US citizen or non-US resident. You can find banks to work with, however you need to explain them your personal situation upfront: my personal experience is that loan officer have pre-approved me and then denied me later one once the house was under contract. It all came out ok in the end but switching bank at the last minute is quite stressful.

Good luck with your search!

Vincent.

Originally posted by @Nathan Cedar :

Hi Everybody,

I am Nate, and this is my first forum post. 

I have been investing in stocks for a few years now, and I would like to start investing in real estate as well. I currently spend most of the year living in Israel but also spend some time in NY. Therefore, I plan to buy properties remotely. My goal in real estate investing is to "buy and hold" SFRs and Multi-Families, so that I can earn a consistent, passive cashflow, allowing me to quit my day job if I wanted to.

Thus, my first item for consideration is to choose the right city and state to start purchasing investment properties.

My requirements:

1. Landlord friendly state - Average eviction of under two months.

2. Good ROI - not hard to find properties complying with the 1% rule

3. Growing population

4. Multiple Fortune 500 companies in diverse industries.

What are your thoughts? 

Do you know areas which follow these requirements? 

Do you think there are any additional essential requirements I haven't listed?

Thanks for your help! 

Some markets in the Midwest might meet your requirements, and also see a much better ROI than some of the bigger ones. Good luck!

Tom Ott, Real Estate Agent in OH (#2016003865)
440-749-4043

If I were you, I would keep the fund in stocks for now. Being a remote landlord is quite painful if you do not have a trusted team. ROI in real estate is quite low compared to some mutual funds. And sometimes, after all expense, you do not net much.

Thanks everybody for your responses! I see I have a lot of research to do :) 

Shalom Nathan,

I love Israel! I went to Tel Aviv last year. 

1. Landlord friendly state - Average eviction of under two months. (5 weeks in Cleveland)

2. Good ROI - not hard to find properties complying with the 1% rule (Cleveland)

3. Growing population (Ok..... Not Cleveland, LOL)

4. Multiple Fortune 500 companies in diverse industries. (Cleveland)

Have you considered just buying notes and mortgages? Still a strong return without the Drama.

Wherever ya buy, make sure you have boots on the ground. You live too far away to do it alone!

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