Foreign Investor - How I turned $500K into $2M

Foreign Investor - How I turned $500K into $2M

Developer · Atlanta and Detroit · Member since 2018 · 601 posts · 821 votes

Just thought I would provide an account of my journey since I started investing in US property market in 2011 and more recently Detroit. Perhaps this can provide some inspiration/feedback for any wannabe foreign investors, it can be done. If you can invest from overseas, you most certainly can do it from outer of state too. 

I had plenty of people, family and friends give me at least 5 good reasons why I should not invest in the US market. But fortunately I ignored this and just continued doing my homework, flying over regularly to US and sorting out the best way to move forward to make it work for me.

At this time the US property market was a basket case, and I could see with the right systems in place I could buy cheap properties that would be cash flowing from day 1. I also thought how low could prices go, some States hit 70% drops, pretty scary stuff.

I started investing in Atlanta in 2011, when the market started rising, and pumped about $500,000 cash buying SFH at around $35,000-50,000 price range (each), these were 2500 sq ft homes, in South Atlanta, in the main distressed properties/foreclosures.

 At this time financing was not an option for foreigners so all my properties were cash buys, however this has changed significantly. Today there are more financial options for foreigners. 

As we know many markets have rebounded from when the market peaked/crashed in 2007? and Atlanta is no exception, these properties today are worth at least $200,000+ each. 

So it really was not that hard, the rising market  turned my $500,000 into over $2,000,000 USD

These homes today rent for approximately $1400-1500 per month. Rents have slowly risen in the last couple of years in Atlanta. But when I was buying rents were pretty much stagnant.

My Atlanta properties today generate an income of approximately $10,000 per month (net)

Fast forward today...........am playing in the Detroit market, seems to be many opportunities, whether I can repeat what I did in Atlanta.... only time will tell, fingers crossed:)

I have been purchasing a mix of C and B grade SFH using cash for now, on average generating around 15% net returns. I have a couple of properties that I will be flipping next year as some markets are appreciating nicely and I would like to bring capital back to the table, rinse and repeat. The idea is to have some cheaper properties that are cash flowing and some purely for flipping.

I have a lot to learn about this market, and it certainly is different from the Atlanta market. 

Its been 12 months to date and  I have now bedded 10 properties where I have sourced good property management, not the easiest thing to do, I believe for a foreigner/out of state investor if you get this right you are 80% there. 

There are certain areas that I am targeting that are safe areas and have a mix of home owners/renters. 

My idea at the moment is to continue increasing my cashflow which is now at around -

$15,000 per month

I am not foolish enough to believe its going to be all smooth sailing, hardly.... Detroit is a beast and I have had some unpleasant experiences, but persistence is something I can do.  

 I plan to revisit this thread in 12 months time and give you an update on my journey

Happy investing everyone

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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
7y

timing is everything.. and you timed it perfectly . you made your equity on Appreciation.. BP most folks think its gambling etc etc. .when in fact appreciation is what makes most investors wealthy.. either by organic or forced..

I would not expect the same results in Detroit though..   PS there are lenders for your situation.. I have done well over 200 buy hold loans for Aussies..  rates are higher but in your case in Atl you would have been able to double what you bought with the same cash and well now you would have 4 mil in property instead of 2 mil.. by simply pay a little over market rates for debt.

See this reply in the discussion

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  • Delaware/Maryland/New Jersey/Virginia/Pennsylvania · Member since 2019 · 33 posts · 9 votes
    7y

    What an inspiration! More power to your journey!

  • Real Estate Agent · North Myrtle Beach, SC · Member since 2018 · 110 posts · 99 votes
    7y

    Awesome story! Where are you originally from? What visa status did you have and were you based in the U.S or did you do this from afar? 

  • Real Estate Agent · Merritt Island, FL · Member since 2017 · 986 posts · 1k+ votes
    7y
    Originally posted by @Alexander Knowles:

    Awesome story! Where are you originally from? What visa status did you have and were you based in the U.S or did you do this from afar? 

    She's from down under!

  • Developer · Atlanta and Detroit · Member since 2018 · 601 posts · 821 votes
    7y
    Originally posted by @Alexander Knowles:

    Awesome story! Where are you originally from? What visa status did you have and were you based in the U.S or did you do this from afar? 

    Thanks

    I am From Australia, started researching US around 2011

    Foreigners don't have restrictions when it comes to buying property in US, as long as you have the cash you can buy.

    In Australia our country has restrictions on what foreigners can buy and cut off point on how much

    Esta visa, which means you can stay in US on upto 3 months at one time

  • Real Estate Agent · North Myrtle Beach, SC · Member since 2018 · 110 posts · 99 votes
    7y

    Sweet. I am from NZ myself but now have a Greencard. My brother wants to get into the US market as he is having to come up with 40% down payments for investment properties. We are wondering how to get started - had a feeling cash is king so thanks for the clarification! 

  • Rental Property Investor · Milwaukee · Member since 2018 · 44 posts · 36 votes
    7y

    Great and awesome. Your story is very inspiring. I am an investor from Amsterdam (Europe). It has been very hard in real estate in the last couple of years. In Amsterdam, you can not buy a garage for 50 000 USD and the price of a 500 m² apartment is between 200 000 and 250 000 USD. Prices are still climbing. The market is very hot.

    A few months ago, I began investigating the US housing market, including Detroit. It's amazing how affordable it is. But my lack of knowledge of the local market sometimes holds me back as I read that things change from one street to another.

    How did you approach the Detroit market and what are your tips?

  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    7y

    timing is everything.. and you timed it perfectly . you made your equity on Appreciation.. BP most folks think its gambling etc etc. .when in fact appreciation is what makes most investors wealthy.. either by organic or forced..

    I would not expect the same results in Detroit though..   PS there are lenders for your situation.. I have done well over 200 buy hold loans for Aussies..  rates are higher but in your case in Atl you would have been able to double what you bought with the same cash and well now you would have 4 mil in property instead of 2 mil.. by simply pay a little over market rates for debt.

  • Real Estate Coach · Member since 2018 · 246 posts · 216 votes
    7y

    @Jay Hinrichs I agree Jay, Detroit is whole different animal compared to Atlanta. One of the market tactics Iv'e seen poverty cities use, is by demolishing blighted and abandoned homes. Which results in a higher market demand for that location over time because there becomes limited housing. However, Detroit doesn't have enough money to even do that and they are thinking there is 40% more blighted homes than originally expected. 

  • Investor · Arroyo Grande, CA · Member since 2014 · 1k+ posts · 1k+ votes
    7y
    Originally posted by @Darius Kellar:

    @Jay Hinrichs I agree Jay, Detroit is whole different animal compared to Atlanta. One of the market tactics Iv'e seen poverty cities use, is by demolishing blighted and abandoned homes. Which results in a higher market demand for that location over time because there becomes limited housing. However, Detroit doesn't have enough money to even do that and they are thinking there is 40% more blighted homes than originally expected. 

     Who fact checks the garbage coming from your keyboard?

    https://detroitmi.gov/departments/detroit-building-authority/detroit-demolition-program

  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    7y
    Originally posted by @Travis Biziorek:
    Originally posted by @Darius Kellar:

    @Jay Hinrichs I agree Jay, Detroit is whole different animal compared to Atlanta. One of the market tactics Iv'e seen poverty cities use, is by demolishing blighted and abandoned homes. Which results in a higher market demand for that location over time because there becomes limited housing. However, Detroit doesn't have enough money to even do that and they are thinking there is 40% more blighted homes than originally expected. 

     Who fact checks the garbage coming from your keyboard?

    https://detroitmi.gov/departments/detroit-building-authority/detroit-demolition-program

    its not hard to have big upswings in value in Detroit if you know how to buy the 20k and then sell it to an investor for 30 to 40k.. that happens every day.

    what happened for the OP is she simply bought rentals in ATL and they sky rocketed doing nothing but keep ing them as rentals.

    so I question whether most areas of Detroit were your buying 100k rentals are going to be worth 400k in or the same amount of appreciation she made in atl.  IE she bought 50k homes that are now worth 200k.. this happened I know it did.. I partook as well but we sold out when things doubled.. as that is our business model. 

  • Rental Property Investor · Horn Lake, MS · Member since 2019 · 31 posts · 13 votes
    7y

    This is good info Travis. Thanks

  • Real Estate Coach · Member since 2018 · 246 posts · 216 votes
    7y

    @Travis Biziorek 

    Travis Clearly doesn't read his own articles he references to others. All you do is type before you even read and before collecting reasonable thoughts.  SInce I've read that link many of times.  3/4 down the link you posted. It clearly states ...

    • "Since 2014, Detroit has taken down 18,093 vacant buildings in neighborhoods across the city. If we keep this pace, we can remove 40,000 blighted structures in about eight years, instead of the 30 years it would have taken us at our previous rate."

    If you do the math boy, there is roughly 22,000 structures that still needs to be removed if your referring to your link. 

    SOMEONE NEEDS TO CHECK YOUR CREDIBILITY ROOKIE.

  • Investor · Arroyo Grande, CA · Member since 2014 · 1k+ posts · 1k+ votes
    7y
    Originally posted by @Darius Kellar:

    @Travis Biziorek 

    Travis Clearly doesn't read his own articles he references to others. All you do is type before you even read and collect reasonable thoughts.  SInce I've read that link many of times.  3/4 down the link you posted. It clearly states ...

    • "Since 2014, Detroit has taken down 18,093 vacant buildings in neighborhoods across the city. If we keep this pace, we can remove 40,000 blighted structures in about eight years, instead of the 30 years it would have taken us at our previous rate."

    If you do the math boy, there is roughly 22,000 structures that still needs to be removed if your referring to your link. 

    SOMEONE NEEDS TO CHECK YOUR CREDIBILITY ROOKIE.

    Darius, you clearly have a short attention span since you can't even explore the link I dropped. There is tons of information on that page, including the number of homes (and exact address) that are scheduled for demolition. Then there's this quote from this link:

    "Since 2014, the City has demolished nearly 18,000 blighted structures, and the Detroit Land Bank has sold 6,000 vacant houses to be rehabbed and occupied. But there are still 18,000 abandoned houses in Detroit that we need to demolish in the next five years, without federal funds. At his May 2019 Mackinac Policy Conference address, Mayor Mike Duggan laid out this vision: Detroit will be free of residential blight by the end of 2024."

    My good deed for the day: teaching a fool how to use the Internet.

  • Real Estate Coach · Member since 2018 · 246 posts · 216 votes
    7y
    @Travis Biziorek If you go a little further than the first links of google. You will read articles regarding the current issues the city is having with the Demolition Rigging. LOL They can't even knock houses down right. You always get on BP and take 1 line and try to use it against someone to make yourself look inferior.

    You Idiot Mayor Duggan is only laying out a vision.  This is not set in stone. Your just hoping Detroit turns out well because it is the only city you can afford to invest in. 

    https://www.freep.com/story/news/local/michigan/detroit/2019/04/08/federal-charges-allege-bid-rigging-bribes-detroit-demo-probe/3405118002/

  • Investor · Arroyo Grande, CA · Member since 2014 · 1k+ posts · 1k+ votes
    7y
    Originally posted by @Darius Kellar:
    @Travis Biziorek If you go a little further than the first links of google. You will read articles regarding the current issues the city is having with the Demolition Rigging. LOL They can't even knock houses down right. You always get on BP and take 1 line and try to use it against someone to make yourself look inferior.

    You Idiot Mayor Duggan is only laying out a vision.  This is not set in stone. Your just hoping Detroit turns out well because it is the only city you can afford to invest in. 

    https://www.freep.com/story/news/local/michigan/detroit/2019/04/08/federal-charges-allege-bid-rigging-bribes-detroit-demo-probe/3405118002/

    Old news, bub. 

    If you care to attempt to insult me further, please do so via PM. Happy to destroy you privately so we don't detract from the quality of the thread. If you knew how to use Google you'd know how off base your personal attacks on me are. 

    Best of luck. 

  • Real Estate Coach · Member since 2018 · 246 posts · 216 votes
    7y

    @Travis Biziorek 

    The solution has not been solved yet. 

    and you attacked me. You tried to prove that I was wrong and embarrass me.  And I am just here to stick up for myself as you have done this countless of times without reading like other people on BP. 

  • Investor · Arroyo Grande, CA · Member since 2014 · 1k+ posts · 1k+ votes
    7y
    Originally posted by @Darius Kellar:

    @Travis Biziorek 

    The solution has not been solved yet. 

    and you attacked me. You tried to prove that I was wrong and embarrass me.  And I am just here to stick up for myself as you have done this countless of times without reading like other people on BP. 

     I have not done anything of the sort countless times. The only poor interaction I've had on BP has been with you, and it was simply to stick up for a friend, Ashley, after you put her down.

    If you have a problem with that I can't help you.

    I wasn't attacking you (odd you see it that way). I was simply correcting misinformation. The city does have money to demo houses and commercial buildings (they're doing so now). They also have a plan to do all of the remaining structures. I pointed to legitimate sources with that link. If you see me correcting incorrect information as a personal attack you must have a very difficult time in day-to-day life. That must be tough, and I genuinely sympathize with you if that's the case.

    Your link about the issues with the demolition program doesn't take away from the fact that progress is being made, or that the city has money to do it, or that they're demoing structures (that was your original claim... that they weren't doing those things). So I'm not sure what the relevance was with that.

    Sure, the program has had issues but they're addressing it and moving forward. 

  • Real Estate Coach · Member since 2018 · 246 posts · 216 votes
    7y

    @Travis Biziorek  All you do is take one thing and flip it. I am not the only person who has said this on here about you.  For example, 150 words can be written and you take 4  words and turn it against them. I see how you roll. 

  • Investor · Arroyo Grande, CA · Member since 2014 · 1k+ posts · 1k+ votes
    7y
    Originally posted by @Darius Kellar:

    @Travis Biziorek  All you do is take one thing and flip it. I am not the only person who has said this on here about you.  For example, 150 words can be written and you take 4  words and turn it against them. I see how you roll. 

    Sure, dude. Don't take it as an attack, but I won't be replying to you any longer. I just don't have the luxury of spending my time in that manner. Best of luck.

  • Real Estate Agent · Salt Lake City, UT · Member since 2014 · 473 posts · 230 votes
    7y

    @Marisa R.

    Great story, and awesome work in Atlanta! What makes you a believer in the Detroit market long-term?

  • Property Manager · TX · Member since 2019 · 327 posts · 69 votes
    7y

    @Marisa R.

    May I ask how did you transfer money into US? Did you transfer it directly to your personal account in US for the buying or you had to go around? Asking because my brother is in Vietnam and he wants to invest in US.

  • Real Estate Agent · Chicago, IL · Member since 2017 · 2k+ posts · 2k+ votes
    7y

    Awesome keep it up! We are seeing similar rapid growth in the gentrifying Chicago neighborhoods right now 

  • Nadia DaggettBusiness Member
    Real Estate Broker · Tampa, FL · Member since 2019 · 92 posts · 60 votes
    7y

    What a great inspiration story! We also have some great investment opportunities is the sunshine state of Florida! Keep up the good work!!

  • All Over, USA · Member since 2017 · 689 posts · 756 votes
    7y

    Detroit is FUBAR. Too much of a dumpjanks. Sorry.

  • All Over, USA · Member since 2017 · 689 posts · 756 votes
    7y

    Awesome success in ATL though!

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