How to purchase blind/abroad

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How to purchase blind/abroad

Andre Lewis
Rental Property Investor · Little Rock, AR · Member since 2014 · 26 posts · 14 votes

Hello everyone!

My name is Andre and I'm a novice real estate investor. I actually used advice from Bigger Pockets a few years ago to purchase my first rental property.

So here is my dilemma. I'm looking to step further into the water and purchase another investment property. I'm finishing up a 365 deployment currently and will be heading home soon. This whole deployment I've been listening to Bigger Pockets podcasts and while I prefer SFR's, I'm contemplating a duplex.

However, returning home from this deployment for me, actually means returning to Japan where I'm stationed. So what's the best route to go when purchasing a property in the states, while I won't be able to see it in person? I read a lot of discussions on here and naturally I need to find a solid real estate investor first. How do I find a good one and determine they are awesome when I can't talk to them in person?

Sorry for all the questions and those too come. I appreciate your guys/gals patience and help.

Andre T. Lewis

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Joseph Crunkilton
Rental Property Investor · Oregon City, OR · Member since 2020 · 324 posts · 780 votes
5y

@Andre Lewis

I'd recommend reaching out to @Zach Lemaster over at Rent to Retirement. They provide high quality turnkey rentals in markets with great returns.

I am a busy professional myself and wanted to get rentals under my belt with low risk. Zach is highly experienced and his team can get you started with properties that fit your criteria. 

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  • Forrest Faulconer
    Real Estate Agent · Oklahoma City, OK · Member since 2020 · 471 posts · 462 votes
    5y

    Hey Andre, thanks for your post, I hope it gets some good traction as there are many investors out of state or out of country. You have the right idea with finding a solid investor (partner I assume). I would highly recommend coming up with a list of questions and connecting over a virtual face-to-face meeting to discuss things. With any out of town investing, it is important to develop a good team, so asking the right questions will help you find solid people to work with. Connect with a good realtor or investor who can find deals, analyze them, and make good offers. One with experience in investing in SFHs or small MFHs and is familiar with the market. Make sure your goals are aligned and you have a good feeling about their character, as you will putting a lot of trust in them!

    Are you just going to be investing capital and therefore looking for someone to do all the "ground work?" 

    2Reply
  • Doug Spence
    Investor · San Diego, CA · Member since 2016 · 1k+ posts · 975 votes
    5y


    @Andre Lewis I was forward deployed in Japan as well and I loved it! Regarding the long-distance investing, I highly recommend reading David Greene's book "Long-Distance Real Estate Investing". It has a lot of tips for building a team for investing out of state (or country in your situation). I would also consider Turnkey providers. I have purchased 2 cash-flowing rentals via turnkey and I'm currently on the waiting list to buy two more. Its a great way to build your portfolio remotely, but you have to trust the company and the people completely! 

    I wrote an article about why turnkey is such a great option for military - check it out here. Best of luck and let me know if I can help in any way. 

    1Reply
  • Nadia O.
    Member since 2020 · 82 posts · 100 votes
    5y

    @Andre Lewis i don't know how it is in japan but i know purchasing RE abroad is much more complex. First you need to know if a foreigner can even own a property in Japan. if you can, do you need a loan? can you get the loan? I just want to share my personal experiences in trying to purchase a property in Bali. I encountered many problems.  I was able to purchase the property, however, there were very limited banks that will help provide the loans. I found a few and the interest rate was super high (over 10% and it is not fixed rate). The only way to purchase, if i put in all cash offer. Another problem was i could not travel abroad to see the property. No foreigners can enter until the end of the year and that is subject to change depending on the pandemic situation. I could hire someone from the Bali RE to do the purchase for me. However I heard so many negative stories how foreigners being scammed from buying undocumented properties. or worst, no property and runaway with the money. so it is very complicated & scary.  on tax purpose, you don't get the tax benefit when purchasing international properties.  You can't claim your deductions / depreciation on your international rental. That's what my accountant told me. i might be wrong. So it's best to invest where you can benefit most which is in the US.

    0Reply
  • Joseph Crunkilton
    Rental Property Investor · Oregon City, OR · Member since 2020 · 324 posts · 780 votes
    5y

    @Andre Lewis

    I'd recommend reaching out to @Zach Lemaster over at Rent to Retirement. They provide high quality turnkey rentals in markets with great returns.

    I am a busy professional myself and wanted to get rentals under my belt with low risk. Zach is highly experienced and his team can get you started with properties that fit your criteria. 

    5Reply
  • Andre Lewis
    OP
    Rental Property Investor · Little Rock, AR · Member since 2014 · 26 posts · 14 votes
    5y

    @Forrest Falconer thanks for the reply. I will indeed just be looking to purchase the SFR or Duplex and then have a property manager rent it out.

    Great point on determining a list of questions to ask a realtor though. I just want to make as much of an effort as possible to mitigate using a realtor that isnt devoted to finding me a good property or helping me get tenants in the property since I will be "out of pocket".

    Great advice.

    0Reply
  • Andre Lewis
    OP
    Rental Property Investor · Little Rock, AR · Member since 2014 · 26 posts · 14 votes
    5y

    @Douglas Spence solid input. I haven't even began to think of "turn-key" purchases. I've herd of it before on the BP podcast but haven't researched it much. Sounds like that's exactally what I'm looking for!

    I notice you mentioned that your in a list, are you part of a specific group then I'm assuming?

    V/r

    Andre

    0Reply
  • Andre Lewis
    OP
    Rental Property Investor · Little Rock, AR · Member since 2014 · 26 posts · 14 votes
    5y

    @Nadia O. I've heard rumors on how difficult it can be to invest in the international market, I've never researched it though. Thank you for all the information since I'm sure one day I'll get curious about doing so.

    However, I was just stating that I'm stationed in Japan. I am indeed looking to buy another property in the states, not here in Japan. Due to me living in Japan, I will not be able to purchase the property in person. Sorry if I didn't convey that very well in my original message.

    Thank you again for all of your information. Best of wishes.

    V/r

    Andre

    0Reply
  • Andre Lewis
    OP
    Rental Property Investor · Little Rock, AR · Member since 2014 · 26 posts · 14 votes
    5y

    @Joseph Crunkilton awesome, I'll defintely look him and his team up. Thank you for the recommendation!

    V/r

    Andre

    1Reply
  • Jonathan Oh
    Investor · Las Vegas, NV · Member since 2019 · 499 posts · 259 votes
    5y

    @Andre Lewis

    I'd connect with local investors, agents, and property managers and start building a team. Another route is turnkey. Regardless of which way you go, make sure you do your own due diligence. And remember when you buy a rental, you're investing in the property AND the neighborhood. The latter is something many beginners look past. Read up on A, B, C, and D class neighborhoods to get a feel for it and go from there. Hope this helps!

    0Reply
  • Nadia O.
    Member since 2020 · 82 posts · 100 votes
    5y

    @Andre Lewis oh my mistake. i read wrong. Let me offer a few insights...rental turnkey is great to start. However being your first rental, i would suggest to start with area that you're best familiar with. For me, purchasing a home is a big deal. I would want to see location, surroundings, the house itself, the walls, foundations, roofs, and so on. Your first hand experience in purchasing the home is so important. Although some else who has a lot of RE knowledge can offer better insight than you do, that person will come with a tag on price which add to the total amount of purchase. The idea of getting a rental is to get to best possible deal and positive cashflow. On top of that, Property management will take about 20-30% of that cash flow. And we are on seller market. Any deals in a good decent area will get you into bidding wars. Before you start, you are already at negative cash flow that will take several years to break even. 

    Perhaps it is not time to make a move just yet. Don't rush your purchase. Do it when you have the time to invest.

    1Reply
  • Doug Spence
    Investor · San Diego, CA · Member since 2016 · 1k+ posts · 975 votes
    5y
    Originally posted by @Andre Lewis:

    @Douglas Spence solid input. I haven't even began to think of "turn-key" purchases. I've herd of it before on the BP podcast but haven't researched it much. Sounds like that's exactally what I'm looking for!

    I notice you mentioned that your in a list, are you part of a specific group then I'm assuming?

    V/r

    Andre

    Andre, the waiting list I'm on is for two separate turnkey companies: Storehouse 3:10 Ventures, and Mid-South Home Buyers. I am however in a mastermind group for military and military veteran real estate investors. Its a fantastic group of like-minded individuals. I'm happy to chat more about turnkey, masterminds, and anything real estate!

    0Reply
  • Andre Lewis
    OP
    Rental Property Investor · Little Rock, AR · Member since 2014 · 26 posts · 14 votes
    5y

    @Jonathan Oh great advice. I was fortunate to learn about evaluating the various types of neighborhoods and areas when purchasing my first rental. Still have alot to learn though, so thank you for reminding me. The biggest thing I'm worried about it building a good team when I can't physically meet them. It will have to be done either way, but still makes me nervous haha.

    V/r

    Andre

    0Reply
  • Jon L.
    Property Manager · Member since 2020 · 40 posts · 12 votes
    5y

    Hi @Andre Lewis, 

    If you're interested in investing remotely, having a local team in place can be one of the most important factors in making sure your rental property is profitable.

    Having worked with @steverozenberg, Bigger Pockets contributor, professional real estate investor, and Head of Investment Education at Mynd Management, I've learned that not having a local team can be one of the biggest drains on investors return on investment. 

    Companies like Mynd Management can not only assist you with finding a rental property but also with all of your management needs as well, offering a full end to end investment experience. 

    There are some great ways to source a local team. I'm happy to tell you more if you're interested.

    Thanks,

    Jon

    1Reply
  • Jonathan Oh
    Investor · Las Vegas, NV · Member since 2019 · 499 posts · 259 votes
    5y

    @Andre Lewis Yup, in my opinion, knowing your PM is most important. As long as you limit your investments to properties in good, proven neighborhoods, you've made it easier on everyone. Especially, your PM who has to deal with the tenants.

    1Reply
  • Zach LemasterBusiness Member
    Rental Property Investor · Denver, CO · Member since 2015 · 1k+ posts · 3k+ votes
    5y

    @Andre Lewis

    I'm a retired AF officer that has been investing professionally for many years in many different states that offer the best returns to build our portfolio that has allowed us to retire from our previous careers.  I also owned private practices as an Optometrist that we have since retired from as our rental portfolio replaced our income.  So I am quite familiar with strategically investing in locations that we are not local to.

    I typically like to start with an initial phone call to discuss your investment goals/experiences, answer any questions you have, and tell you all about what our company has to offer. Please let me know if this is something you would like to schedule.

    Also for your reference, here are some other forum discussions from investors that have worked with us in the past. I'm sure you'll find this informative. Looking forward to hopefully connecting in the near future!

    https://www.biggerpockets.com/users/ZacharyCole/references

    https://www.biggerpockets.com/forums/92/topics/518583-feedback-on-renttoretirement-and-zach-lemaster

    https://www.biggerpockets.com/forums/92/topics/765347-rent-to-retirement-review

    https://www.biggerpockets.com/forums/92/topics/808479-rent-to-retirement-experiences

    https://www.biggerpockets.com/forums/12/topics/533693-anyone-worked-with-renttoretirement-turnkey

    https://www.biggerpockets.com/forums/92/topics/581730-rent-to-retirement-zach

    https://www.biggerpockets.com/forums/48/topics/874096-reviews-on-r2r-and-nch?page=1&utm_source=Iterable&utm_medium=email&utm_campaign=Transactional:%20topic_notification&utm_content=Transactional#p5123754

    https://www.biggerpockets.com/users/ZacharyCole/references

    [email protected]800-311-6781Podcast Guest on Show How to Get 10%+ Off Your Next Real Estate Deal Right Now
    Rent To Retirement5334 Reviews
    WebsiteView Page
    5Reply
  • Basit SiddiqiBusiness Member
    Accountant · New York, NY · Member since 2015 · 8k+ posts · 3k+ votes
    5y
    Originally posted by @Nadia O.:

    @Andre Lewis  on tax purpose, you don't get the tax benefit when purchasing international properties.  You can't claim your deductions / depreciation on your international rental. That's what my accountant told me. i might be wrong. So it's best to invest where you can benefit most which is in the US.

    US taxpayers are eligible to deduct/depreciate properties purchased abroad. There are some differences though.
    Depreciation is calculate differently and if you decide to do a 1031 later on, you can only do it for another foreign property(not one in the US).

    [email protected]917-280-8544
    Basit Siddiqi CPA4.979 Reviews
    View Page
    1Reply
  • Andre Lewis
    OP
    Rental Property Investor · Little Rock, AR · Member since 2014 · 26 posts · 14 votes
    5y

    @Douglas Spence I'm very much interested in being added to the military real estate investment group of it's a possibility. Thank you for the information and any additional information you give me.

    V/r

    Andre

    0Reply
  • Andre Lewis
    OP
    Rental Property Investor · Little Rock, AR · Member since 2014 · 26 posts · 14 votes
    5y

    @Jon L. Thank you for the advice and information. I'm very new to using such teams and I'm eager to learn. The big thing is making sure I am surrounding myself with the right people, not just people.

    Thank you for your insight!

    V/r

    Andre

    0Reply
  • Andre Lewis
    OP
    Rental Property Investor · Little Rock, AR · Member since 2014 · 26 posts · 14 votes
    5y

    @Zach Lemaster thank you for the information. I apologize for the delayed response, this has been an extremely long deployment and I'm finally starting to our process.

    I am very interested in talking more with you and seeing how we may possibly work together in the near future. Calling right now will be difficult unless it's through a wifi app of some sort. However, I'm capable of messaging you through any platform you choose including email ofcourse. Best of wishes and I hope to hear from you soon!

    V/r

    Andre

    4Reply
  • Jon L.
    Property Manager · Member since 2020 · 40 posts · 12 votes
    5y

    @Andre Lewis no problem, I am more than happy to help. 

    If you want, feel free to click on the link in my signature below- there are some great resources on there to help you source a local team. 


    Thanks,

    Jon

    1Reply
  • Doug Spence
    Investor · San Diego, CA · Member since 2016 · 1k+ posts · 975 votes
    5y
    Originally posted by @Andre Lewis:

    @Douglas Spence I'm very much interested in being added to the military real estate investment group of it's a possibility. Thank you for the information and any additional information you give me.

    V/r

    Andre

     Andre, check out this link for more info: 

    https://military-millionaire-academy.teachable.com/p/the-war-room

    1Reply
  • Drew Bursey
    New to Real Estate · Tasmania · Member since 2020 · 29 posts · 10 votes
    5y

    @Andre Lewis

    Hey Andre,

    I'm in a similar position. I'm living in Australia but wanting to buy in Canada.

    If you haven't already read "Long-Distance Real Estate Investing" by David Greene, I would highly recommend it.

    I'm pretty much a complete beginner at investing (so the whole book is incredible) but the most important lessons I've learned is to find a great team (real estate agent, property manager, contractor and lender).

    It goes into detail on how to properly and efficiently find, interview and pick the best members of your team. It might take a long time (especially if you're 12+ hours ahead of them) but it's better to be sure you have a good team because a bad team can cost you thousands

    2Reply
  • Andre Lewis
    OP
    Rental Property Investor · Little Rock, AR · Member since 2014 · 26 posts · 14 votes
    5y

    @Drew Bursey thanks for the book recommendation! I'll defintely but it and study it. I'm a rookie still too, so everything is growth to me.

    It seems to be the consensus is the same amongst most of the answers, which is a great sign. Now to find the team.

    V/r

    Andre

    0Reply
  • Will FraserPro Member
    Real Estate Broker · Salt Lake City & Oklahoma City · Member since 2018 · 3k+ posts · 2k+ votes
    5y

    @Andre Lewis, first of all (and finally I can say this with no shame for the week)  WPS!!

    Now to the point: this is the magic question you should/can ask to any agent, investor, wholesaler, property manager you are considering or already working with:  Would you buy this deal?  Why aren't you?

    This helps cut a lot of fluff and get to the heart of the issue.

    0Reply
  • Ricky Davis
    Investor · Searcy, AR · Member since 2018 · 52 posts · 39 votes
    5y

    Thank you for your service!!

    There will always be deals. I live in Searcy and you will pay full retail here right now. I got lucky and had a plumber call me with some info on a lady getting out of the rental market and was able to buy 4 houses without them hitting the market last month. I have been looking for over a year when these came to me. Call your banker or let every banker in Cabot know what you are looking for. They will know of people who are behind or may want out of a house. I would watch the market closely. Not sure if Cabot will feel a pinch if prices should drop like Little Rock but still the last thing you want to do is pay up for something then lose 10% off the top in 12 to 18 months. Remember there will always be deals, just put the word out to anyone and everyone that you can get financing and you have cash.  Cabot is a hopping area. Good luck and don't get in a rush.

    0Reply
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