Investing in the US market being a foreigner

[Franz Isak Bergmann Ingolfsson]

I have been following BiggerPockets for a year now as well as my real estate in my whole country, Iceland which contains only 360.000 people and I can't see any deals that give a good cashflow, the best thing you can do when investing here is flipping and holding apartments and hoping they will appreciate. That got me thinking if it's allowed for a foreigner with hard cash like me to invest in the US market without actually living there or having any kind of permit like the green card? 

[Asif Karmally]

Hi there @Franz Isak Bergmann Ingolfsson I am an international investor like you and have been following these forums as well as some RE markets for some about a year. What I've found : 

1. You can buy as an international investor, but its not a good idea to buy in your personal name. You must use a corporate vehicle to minimize legal liability as well as potential taxes.

2. You need to consult a local tax consultant who can advise you properly on this. I've been speaking with a Florida based CPA and found them to be quite good - happy to connect you if you can private message me. 

3. Finding financing is harder, especially for lower valued deals. You'll need a higher downpayment, find fewer lenders, and potentially pay a higher interest rate. However, it may still be all worth the returns depending on your strategy. 

4. I have been doing "desktop underwriting" on many deals and can find deals which on paper would yield 7-8% CoC and total IRR of >12%

5. I have not done any investments yet as my plan is to visit the markets I'm following (Chicago area, Miami area) and drive the streets to get a feel for the places, before I part with significant cash. 

I'd encourage you to listen to @Charles Carillo's podcasts which focus on international investors, these really helped to shape my thinking. 

Note, none of this is formal advice, just my personal thoughts as a colleague which might be helpful to you. 

Good luck ! 

- Asif