New Member from Japan

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New Member from Japan

Kristin Shitara
Real Estate Investor · Minano, Saitama · Member since 2013 · 13 posts · 2 votes

Hello, I live in Japan with my Japanese husband and two children. I am from America. My husband and I first started thinking of investing in real estate over 10 years ago when we first got married. I'm embarrassed to say we haven't started. We have read many books and I even attended a seminar at a AZREIA where I was basically told we would have too much trouble getting financing through American banks because my husband is a foreigner and my salary is kept really low (we own our own company which is an English school) for Japanese tax reasons. I got frustrated and stopped moving forward, but the dream has not died!

Our plan is to invest in buy and hold rental properties. We would like to start with multifamily and move up to small apartment buildings. Our family goal is to be mobile. Our plan is to hire teacher/office manager to replace us in our school and possibly get some passive income from the profits of our school. It is small so after paying the employees, there might not be much. So the bulk of our passive income will come from real estate. We want to make enough to be free to move back and forth between the two countries and eventually retire and live off of the passive income.

I found the BP podcast about 10 days ago and I think I have listened to most of them. I just read a line from the Millionaire Real Estate Investor that said when the student is ready to learn the teacher will appear. I feel like BP did that for me. My husband and I debated about signing up for the Rich Dad coaching but it is such a chunk of money, we didn't. I'm so glad now! I really hope I can connect with someone who has experience being an expat and getting financing to invest in real estate in America. As soon as I can I will jump over to the forum and start asking questions. I am very excited to join the community. I feel like it might be the support I have been needing to make the leap. It has already been extremely motivating. Thank you!

Sincerely,

Kristin Shitara

1Reply
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Most Popular Reply

Matt E.
Tokyo, WI · Member since 2013 · 38 posts · 3 votes
12y

Hi Walter,

I've been meaning to go back and read all of your posts. Keyword: Japan. I'm interested in at least learning about investing in Japan--thinking about it in the long term. I'm paying rent in Tokyo. I've had thoughts of buying a 3LDK and renting out two rooms. For now, I'm starting off back in my hometown (where there definitely aren't any earthquakes). I'm purchasing my first multi-family in the middle of June. It's my summer project and a way grow some roots back home. Giving it a try to see what can be done from overseas.

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  • Aaron Mazzrillo
    Investor · Riverside, CA · Member since 2011 · 2k+ posts · 3k+ votes
    12y

    Welcome to the forum. I used to live in Japan, 5 years, teaching English, bar tending, and DJing clubs in Roppongi. Had so much fun.

    0Reply
  • Kristin Shitara
    OP
    Real Estate Investor · Minano, Saitama · Member since 2013 · 13 posts · 2 votes
    12y

    Hi Aaron, The podcast you did was the first podcast I listened to! Thanks for the message. I'm heading off to Roppongi this weekend to celebrate a friend's birthday.

    0Reply
  • Account Closed
    Brooklyn, NY · Member since 2013 · 19 posts · 4 votes
    12y

    Welcome, Kristin.

    You've set great goals and seem thoughtful enough to achieve them. Best of luck!

    And as far as your connection to education, thank you! Educators are under appreciated and can (and do) make all the difference in the students' lives. I taught for 3 years here in New York--a very inspiring, and humbling, experience.

    0Reply
  • Ali Boone
    Real Estate Coach · Venice Beach, CA · Member since 2012 · 6k+ posts · 3k+ votes
    12y

    Welcome! Great to see someone from the other side of the world :)

    0Reply
  • Aaron Mazzrillo
    Investor · Riverside, CA · Member since 2011 · 2k+ posts · 3k+ votes
    12y
    Originally posted by Kristin Shitara:
    Hi Aaron, The podcast you did was the first podcast I listened to! Thanks for the message. I'm heading off to Roppongi this weekend to celebrate a friend's birthday.

    Thanks!

    All the bars I used to go to are probably long gone; Bar Isn't It? De Ja Vu, and Gas Panic were the most happening ones back then.

    0Reply
  • Mehran K.
    Investor · Wichita Falls, TX · Member since 2010 · 3k+ posts · 603 votes
    12y

    Welcome to BiggerPockets @Kristin Shitara! It's great to have you here and thanks for introducing yourself.

    Where there is a will, there's a way! I'm looking forward to seeing how you two develop as real estate investors. Stay active on the forums.

    0Reply
  • Kristin Shitara
    OP
    Real Estate Investor · Minano, Saitama · Member since 2013 · 13 posts · 2 votes
    12y
    Thanks everyone for your wonderful welcome! If I new how to tag your names I would. I guess I need to figure that out for future posting/replying.
    0Reply
  • Kristin Shitara
    OP
    Real Estate Investor · Minano, Saitama · Member since 2013 · 13 posts · 2 votes
    12y
    Aaron Mazzrillo Ali Boone Mehran Kamari John Kuroda Thanks so much for the warm welcome!
    0Reply
  • Marco Santarelli
    Specialist · Orange County, CA · Member since 2008 · 2k+ posts · 623 votes
    12y

    Hi @Kristin Shitara,

    Welcome to BiggerPockets!

    We just sold a property to an American client living in Japan last month... Small world!

    Glad to hear that you want to build a buy-and-hold real estate portfolio. It's a good time to be investing.

    Be sure to check out the Ultimate Beginners Guide as well as my 10 Rules of Successful Real Estate Investing.

    Continues success!

    0Reply
  • Dawn AnastasiPro Member
    Rental Property Investor · Milwaukee, WI · Member since 2013 · 6k+ posts · 4k+ votes
    12y

    Hello @Kristin Shitara and welcome to Bigger Pockets! Where in America are you looking to invest?

    Podcast Guest on Show #29
    0Reply
  • Patrick C.
    Investor · Orinda, CA · Member since 2013 · 20 posts · 2 votes
    12y

    Konichiwa Kristin, I am an American living in Tokyo and my wife and I have been investing in condos in Chicago for several years. Conventional financing in the U.S. has never been a problem even for investors. What area of the U.S. are you considering? Have you applied to prequalify for loans?

    0Reply
  • Brandon TurnerPro Member
    Investor · Maui, HI · Member since 2009 · 13k+ posts · 3k+ votes
    12y

    Hey @Kristin Shitara! Welcome! Thanks for the nice words about the Podcasts!

    See you around the site!

    Oh - and don't forget to set up your Keyword Alerts!

    Welcome Kristin!

    Podcast Guest on Show #92
    0Reply
  • Kristin Shitara
    OP
    Real Estate Investor · Minano, Saitama · Member since 2013 · 13 posts · 2 votes
    12y

    @Dawn Anastasi , @Patrick C.

    Thanks for the greeting. We (my husband and I) haven't decided where to start investing. We don't know if we should focus on where we would like to live one day or just choose a good place to invest. Both scenarios leave a big question mark. I have family in the Phoenix area in AZ and in the Orange County area of CA as well as South Dakota and Wyoming. Any suggestions?

    0Reply
  • Kristin Shitara
    OP
    Real Estate Investor · Minano, Saitama · Member since 2013 · 13 posts · 2 votes
    12y

    @Marco Santarelli Thanks for the message.

    Can you tell me what kind of financing was used or is available for a client living abroad?

    Thanks,

    Kristin

    0Reply
  • Jerry W.Pro Member
    Moderator
    Investor · Thermopolis, WY · Member since 2012 · 4k+ posts · 4k+ votes
    12y

    Welcome to BP @Kristin Shitara , Get active, read up in the learn section, chose what type of property you are interested in and start surfing the sites, like Zillow, truilo, redfin etc.

    Probably the most important decision will be assembling a team, like a realtor and a management company. There are several turnkey providers who post regularly on here as well. Before you actually buy please post your potential deal here. I have seen some amazing feedback that probably saved folks many thousands of dollars and countless headaches.

    0Reply
  • Marco Santarelli
    Specialist · Orange County, CA · Member since 2008 · 2k+ posts · 623 votes
    12y
    Originally posted by Kristin Shitara:

    @Marco Santarelli Thanks for the message.

    Can you tell me what kind of financing was used or is available for a client living abroad?

    Thanks, Kristin

    Hi Kristin,

    Our client, being an American citizen, was able to qualify for conventional financing here in the U.S. If you have a U.S. social security number with a good credit profile, and can prove at least two years employment income (tax returns, etc) then you are likely to be able to get a mortgage loan.

    Of course, there is always seller financing but that is somewhat rare too, and requires a lot of sifting to find sellers willing to do it.

    We have a private money mortgage product in a few markets, but it's not for everyone because it's 50% LTV, 12% interest, and fully amortized over 7 to 15 years. This works well for people with no/bad credit, or self-directed IRAs.

    Outside of that, you would probably need to speak with your local banks and lenders because financing for foreign nationals is quite rate today.

    Continued success!

    0Reply
  • Kristin Shitara
    OP
    Real Estate Investor · Minano, Saitama · Member since 2013 · 13 posts · 2 votes
    12y

    @Jerry W. Thanks for the advice. Your cowboy hat makes picking you out of the many Jerrys on the list much easier! My dad has a ranch in Wyoming near Newcastle.

    0Reply
  • Kristin Shitara
    OP
    Real Estate Investor · Minano, Saitama · Member since 2013 · 13 posts · 2 votes
    12y

    @Marco Santarelli Thanks for the reply. It is good to hear. I'll have to check on my credit score. I haven't looked in 15 years!

    0Reply
  • Jerry W.Pro Member
    Moderator
    Investor · Thermopolis, WY · Member since 2012 · 4k+ posts · 4k+ votes
    12y

    I actually have several friends in Newcastle. While Wyoming is large we are only around 600,000 people so the odds of knowing someone who knows almost anyone else is decent. The hat is constant for me but the Tux was a one time deal. The picture was with my brothers and dad in D.C. for the presidential inauguration.

    0Reply
  • Matt E.
    Tokyo, WI · Member since 2013 · 38 posts · 3 votes
    12y

    @Patrick Chu

    @Marco Santarelli

    I've been reading through your posts. Thank you. The local bank I am using in Wisconsin told me that I can only apply for a variable loan (Fannie Mae) because the address I list on my tax returns is outside of the US. I'm in the process for applying for 30 year 5/1 ARM at 4.75%. Do you think I'd have any luck securing a fixed loan next time around? I'd appreciate your advice.

    Happy Golden Week, Kristin and Patrick!

    0Reply
  • Marco Santarelli
    Specialist · Orange County, CA · Member since 2008 · 2k+ posts · 623 votes
    12y
    Originally posted by @Matt E.:

    @Marco Santarelli

    I've been reading through your posts. Thank you. The local bank I am using in Wisconsin told me that I can only apply for a variable loan (Fannie Mae) because the address I list on my tax returns is outside of the US. I'm in the process for applying for 30 year 5/1 ARM at 4.75%. Do you think I'd have any luck securing a fixed loan next time around? I'd appreciate your advice.

    Happy Golden Week, Kristin and Patrick!

    Hi @Matt E.: Why couldn't you apply for the 30-year fixed rate loan now instead of "next time"? The rate might be a little different but if you qualify for the ARM you should be able to qualify for the fixed-rate.

    BTW - If you can prove residency in the U.S. you should see if you can get an exception on your loan approval.

    Good luck!

    0Reply
  • Matt E.
    Tokyo, WI · Member since 2013 · 38 posts · 3 votes
    12y
    @Marco Santarelli

    Thank you for your advice! I'm looking into it. When I file my US tax return, I list my Japan address to be eligible for foreign tax exemption. I assumed this meant that I'm not a 'legal resident' of the US. Perhaps, I can still be considered a resident. I'm usually in the US just a couple weeks per year. Anyway, it's worth knowing if I qualify for a fixed loan.
    0Reply
  • Matt E.
    Tokyo, WI · Member since 2013 · 38 posts · 3 votes
    12y

    Previously, my bank wrote:

    Freddie Mac/Fannie Mae provide the funding for fixed rate loans, and require that addresses on tax returns are US addresses. Your tax returns have a Japan address. It's kind of a catch-22, because as I understand it you can only get the tax exemption from the IRS if your tax returns show an overseas address. So – what we can consider for you is a 5/1 ARM at 4.75%, where the interest rate is fixed for the first 5 years, then can adjust annually thereafter. The rate after the initial 5 years is set by using the 1 year treasury bill rate plus 3%. The rate can adjust by no more than 2% annually and 6% lifetime. We also have 3/1 and 1/1 ARM's, but I recommend the 5/1 so your initial rate is set for a longer period of time.

    0Reply
  • Kristin Shitara
    OP
    Real Estate Investor · Minano, Saitama · Member since 2013 · 13 posts · 2 votes
    12y

    @Matt E.

    Hi Matt. Thanks for the sharing about the loan process. I'm sorry I can't be of any assitance. I have been kind of stalled because I found out I don't have any credit history in the U.S. When I moved to Japan almost 15 years ago. I paid off everthing and closed down all my accounts except for a savings account and a debit card. I had great credit at the time, but now it is almost like I don't exist in the U.S. All my credit cards are Japanese. So I got an American card and am trying to use it. I don't know how long it will take to make me look good on paper again. I am thinking about using an investor (a family member), but don't know quite how to set that up either. I have more research to do. Good Luck! I appreciate the posts.

    0Reply
  • Kameron Patterson
    Greenwood, IN · Member since 2012 · 95 posts · 17 votes
    12y
    Kristin Shitara I take it since you went to roppongi you are in the Tokyo area? I'm currently down in sasebo and have been eager to invest back stateside.
    0Reply
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