Real Estate Investment In the US from Europe

[Sivan Aviv]

Hi All , 

I would like to share with you my story and my future plan in order to get feedback on it's feasibility.

In the past 10 years i was working ultra hard saving every $ and now some things happened and i forced to resigned from the place that i was working in the last 10 years. During this time i was able to save around 1.4m dollars which i want to start investing in US real estate from my residents in Europe (The market that i'm living in is not good for investing) . in the last few days i'm reading the book of David M Greene : "Long-Distance Real Estate Investing: How to Buy, Rehab, and Manage Out-of-State Rental Properties" As progressing in the book i understood that there isn't something that should prevent me from investing in the US. My main goal is to create cash-flow and for this i thinking to buy in cash 10-15 single home apartments in around 50K usd then to make the renovation and to bring them to a value of around 100K usd each ( according to the 70% rule , these numbers make sense (assuming 20k renovation costs)). according to the 1% rule i should be able to cash-flow out of these properties around 10k-15k usd gross every month in rent. Once i will be able to cash-flow this amount i'm going to start refinancing these properties and proceed to the next 10-15 properties. because i'm not a US citizen i will have to create an LLC (i was thinking about Nevada) and to do all the activity on the LLC.

i want to ask you :

1. Can you please share your thoughts about the above plan?
2. Can you "attack" this plan and tell me why it's not going to work ?

Thanks a lot !

[Nathan Gesner]

The only thing I see really wrong with the plan is that you have no experience. If you have no experience renovating a home, how are you going to supervise someone else renovating a home? David can do it because he's a real estate expert and he had a very strong mentor getting him started 18 years ago. You can read his book and learn a lot about how he finds a REALTOR or Property Manager to build a team, but there are 100 other things his book doesn't teach that you will have to learn on your own.

You may want to consider something that is more hands-off that still provides strong returns, like syndication deals.