Investing from Overseas

9 Replies

Ever since the onset of COVID, I have become fiercely interested in personal finance and then specifically in investing in real estate. I do have one major hurdle, I live overseas (active-duty military). Not looking to re-invent the wheel, I have seen of few other posts of others who have accomplished this feat. I would like to see if those have any big pieces of wisdom or pitfalls to avoid as I look to buy a rental property via video chat.


Currently, I'm looking at small multi-family properties in the same town as my parents in the mid-west, where I grew up. I figure I should still have some connections there and I am more familiar with that market than the other places I've been.  I haven't bought a home before but I'm doing my best to learn as much as I can.  Hopefully, I can make my first deal happen before the end of the year! 

@Jonathan Roach . Two words: Property Management. 80% of your success will come from the property manager you hire. The other 20% will come from finding the right deal. The higher-ends properties will manage better than the lower-end property; which will take more management expertise and a history of managing these kinds of assets. I located in Southeastern Wisconsin. What city do you plan on purchasing in?

Originally posted by @Jonathan Roach :

Ever since the onset of COVID, I have become fiercely interested in personal finance and then specifically in investing in real estate.  I do have one major hurdle, I live overseas (active-duty military).  Not looking to re-invent the wheel, I have seen of few other posts of others who have accomplished this feat.  I would like to see if those have any big pieces of wisdom or pitfalls to avoid as I look to buy a rental property via video chat. 

Investing overseas is possible, but you need a system in place. there are number of questions you should ask yourself before jumping in headfirst. 

- are you buying in that market because you are comfortable with it or because the numbers makes sense?
- are renters in that market paying rent? could you afford the property if they fail to pay rent? (new policies due to covid about evicting tenants)
- If you are doing this from overseas, who will help you purchase the property? does this person know what to keep their eye out for?
- can you get the financing?
- do you have a management in place?

If you are new to real estate it would be good reach out to an agent in that area who has experience with investment properties. If you mention the city name is this thread, it will set off a keyword alert for a number of people in the BP community who are also working and investing in that area, they may be able to help you out further.

Best of luck




 

@Michael Henry Thanks for the pointer!  I've been debating on how soon I should start looking for and comparing Property Management companies but it looks like it should be sooner rather than later so  I can vet the right one.  

I am looking into the Dayton, Ohio area (Miami Valley area) for no other reason than I am familiar with the area and my family lives there.  I have no issue with investing in an area I have no ties in but I believe in an industry based on the physical property, it would make sense to be able to conveniently (when I visit my family) visit the property to make sure things are on track.  Thoughts?

@Matt Bucklaew . Thanks for the input! That’s a good list of question to keep my efforts focused in the right areas.

I’d like invest in the Dayton Ohio area because I am comfortable with the area. After some my initial assessments the numbers look promising but you bring up a good point with the fact that the numbers are what matters most in the end.

As for paying rent, it seems the area hasn’t been hit too hard by the virus and my personal contacts there aren’t struggling for jobs. That being said, it would probably be better having that conversation with an agent or other local investors. It’s time to start seeking those out.

Thankfully, we are in a good financial situation and we have good job security working as active duty military. I’d imagine that as long as we don’t stretch the budget to make the deal, we will have a good cushion to deal with COVID and other surprises.

Right now I believe my focus needs to be on building my local team, specifically agents and property managers, while continuing to strengthen my educational foundation.

Thanks again for the input. I’ll let you know how things end up!

Originally posted by @Jonathan Roach :

@Michael Henry Thanks for the pointer!  I've been debating on how soon I should start looking for and comparing Property Management companies but it looks like it should be sooner rather than later so  I can vet the right one.  

I am looking into the Dayton, Ohio area (Miami Valley area) for no other reason than I am familiar with the area and my family lives there.  I have no issue with investing in an area I have no ties in but I believe in an industry based on the physical property, it would make sense to be able to conveniently (when I visit my family) visit the property to make sure things are on track.  Thoughts?

 My fiance's sister goes to school in Dayton. I think it is a solid market to invest in. The demographics for the city are not as promising as Columbus, Ohio though. I would recommend checking out Columbus as well as Dayton.

Welcome to the world of real estate and congrats are making the decision to get started! The Dayton/general Miami Valley area is a solid rental market and there are no shortage of small multifamily homes. I agree with that others have said that finding a good property manager will be very helpful to your success in managing multi-family homes. Your idea to invest where you are from first to get a feel for this business is a common first step. I did the same thing (in Springfield, OH) when I lived out of state because of the familiarity with the area and established connections and then branched out from there (Dayton and other areas). I imagine you can still do this even from out of the country! Feel free to reach out to chat anytime and thank you for your service!

@Michael Henry What has been your approach (where to begin the research) to finding a property manager in a long distance investment? It seems that if one does not have the right systems and team in place for long distance, many things can be overlooked or fall apart altogether.

@Greg Koszkul BP is a good reference point. You have to ask for a lot of referrals and interview those referrals. I remember when I did property management and marketed my services with no clients, even at that point I had references who could speak on my character. I do believe you should always have a third party that you can call on to act as your eyes and ears. Good checks and balances and remember this saying: "hire slow and fire quickly".