Rental Property Investor · Tel Aviv, Israel · Member since 2012 · 163 posts · 57 votes
8y
@Neddie Smith
Hi Neddie welcome to BP..
Feel free to connect and I will happily provide answers to your questions.
In short , here are major points that foreign investor should take under consideration:
1. FIRPTA withholding.. Google it. It is very important to know before you make real estate purchases in the U.S.
2. Bank account and LLC
3. Financing for foreigners
4. Turnkey- I personally don't like the turnkey model, mainly due to the fact that most products sold via turnkey are in C/D areas, thus making you totally dependable in your Property management company
5. Areas to invest. As a foreign investor o usually recommend NOT to buy the cheapest houses (30-50,000$). All of those houses will be on and neighborhoods and will be very hard to manage from out far. It is better to buy a more expensive property (at least 70-100,000$) in a better school district
6. Look in to condos - very easy to manage from abroad. Pay attention to HOA investor friendly community's
7. Don't buy HIGH cap properties that look good in presentation. I have learned it is smarter to settle for 6-8 % CAP but steady and easy to manage. It is better having one bird in hand then 2 birds on the tree....
Rental Property Investor · Tel Aviv, Israel · Member since 2012 · 163 posts · 57 votes
8y
@Neddie Smith
Hi Neddie welcome to BP..
Feel free to connect and I will happily provide answers to your questions.
In short , here are major points that foreign investor should take under consideration:
1. FIRPTA withholding.. Google it. It is very important to know before you make real estate purchases in the U.S.
2. Bank account and LLC
3. Financing for foreigners
4. Turnkey- I personally don't like the turnkey model, mainly due to the fact that most products sold via turnkey are in C/D areas, thus making you totally dependable in your Property management company
5. Areas to invest. As a foreign investor o usually recommend NOT to buy the cheapest houses (30-50,000$). All of those houses will be on and neighborhoods and will be very hard to manage from out far. It is better to buy a more expensive property (at least 70-100,000$) in a better school district
6. Look in to condos - very easy to manage from abroad. Pay attention to HOA investor friendly community's
7. Don't buy HIGH cap properties that look good in presentation. I have learned it is smarter to settle for 6-8 % CAP but steady and easy to manage. It is better having one bird in hand then 2 birds on the tree....
Rental Property Investor · Portland, OR · Member since 2018 · 56 posts · 18 votes
8y
@Lior Reich thanks for the great offline talk the other day. You brought up lots of great points that I will need to consider and I really appreciate the fact that you took the time for me out of your busy day.