Hello from Saudi Arabia

Lumi Ispas

Real Estate Consultant · Chicago, IL · Member since 2014 · 720 posts · 439 votes

10y

@Ruka Ishihara Welcome to BP, a great community of investors, and great choice on choosing to invest in Chicago, the 6th wealthiest and most influential city in the World!

OP

Ras Tanura, Eastern · Member since 2015 · 14 posts · 2 votes

10y

Thank you, Andrew and Lumi!

Account Closed

Investor · Princeton, TX · Member since 2014 · 1k+ posts · 1k+ votes

10y

Once you decide on a property the process you be fairly easy to work out. There are many "foreign" investors on biggerpockets.

In the past, I worked in import/export. The main advice I would give you, is to make sure to allow a few more days to close the transaction than you would if everyone lived in the same city.

OP

Ras Tanura, Eastern · Member since 2015 · 14 posts · 2 votes

10y

thanks for the advice, Michael!

[email protected]630-781-6744 Podcast Guest on Show #72

Mark AinleyBusiness Member

Property Manager · Roselle, IL (Chicago Suburb) · Member since 2013 · 2k+ posts · 1k+ votes

10y

@Ruka Ishihara We have numerous clients that work at Aramco...and have been doing business with them for almost 10 years here in Chicago. I know Aramco is huge but feel free to reach out as we may know the same people.

GC Realty & Development LLC4.61066 Reviews

OP

Ras Tanura, Eastern · Member since 2015 · 14 posts · 2 votes

10y

Thanks, Mark! I've only been at Aramco for a couple years, so we may have any first degree connections, but I'll be sure to send you a message!

Crystal SmithPro Member

Moderator

Real Estate Broker · Chicago, IL · Member since 2014 · 2k+ posts · 1k+ votes

10y

Originally posted by @Ruka Ishihara:

I am hoping to send my down payment and closing costs to title companies directly with a wire transfer. Do title companies usually accept this or only accept paper checks?

Most transactions required a certified check for earnest money, followed by wiring of funds for closing. Many times the check is held & not cashed until the transaction closes. Although I don't think a Title company would reject a wire for earnest money but we've never done it before. We always however have wired funds for closing.

If you're operating from out of town I'd recommend hiring an attorney w/ a client Trust. Once you find such an attorney you can provide him w/ power of attorney, including handling of $ for your deals.

312-681-7487

OP

Ras Tanura, Eastern · Member since 2015 · 14 posts · 2 votes

10y

Originally posted by @Crystal Smith:

If you're operating from out of town I'd recommend hiring an attorney w/ a client Trust. Once you find such an attorney you can provide him w/ power of attorney, including handling of $ for your deals.

Noob question(s0, but why should I have an attorney for these kinds of deals? If I send the money directly from a bank in anywhere, will it matter? How is it different from buying a home locally? I bought a house and paid a check for down payment and closing costs. Will this process be different?

Podcast Guest on Show #132

Brie SchmidtBusiness Member

Moderator

Real Estate Broker · Chicago, IL · Member since 2013 · 6k+ posts · 5k+ votes

10y

@Ruka Ishihara - In Chicago it is customary to hire a attorney to represent you as we are not a "title only" state. You cannot sell without an attorney, but you can buy without an attorney, though unless you are an experienced investor who knows how to review title and review and send draft letters, I think it is well worth the $650

Second City Real Estate4.821 Reviews

OP

Ras Tanura, Eastern · Member since 2015 · 14 posts · 2 votes

10y

Originally posted by @Brie Schmidt:

@Ruka Ishihara - In Chicago it is customary to hire a attorney to represent you as we are not a "title only" state. You cannot sell without an attorney, but you can buy without an attorney, though unless you are an experienced investor who knows how to review title and review and send draft letters, I think it is well worth the $650

Thanks for the tip, Brie!

[email protected]630-781-6744 Podcast Guest on Show #72

Mark AinleyBusiness Member

Property Manager · Roselle, IL (Chicago Suburb) · Member since 2013 · 2k+ posts · 1k+ votes

10y

@Ruka Ishihara

I can refer you our clients, particularly one bigger one that works at Aramco, who can give you the low down on Chicago and he also invests in Houston. He also can refer you the attorneys, accountants, etc....

GC Realty & Development LLC4.61066 Reviews

Ray A.

Professional · Cypress, TX · Member since 2015 · 309 posts · 17 votes

10y

Welcome @Ruka Ishihara, if you ever have interest/need help down in Houston, just let me know.

Larry Smet

Flipper / Rehabber / Real Estate Investor · Toronto, Ontario · Member since 2012 · 392 posts · 77 votes

10y

Originally posted by @Ruka Ishihara:

Hello Community! My name is Ruka, but I go by Luke. I work in Saudi Arabia at the world's largest oil company. I am interested in buying real eatate in Chicago, a city I went to grad school in and where I got my first job. Since I don't have a lot of time to spend while doing the purchase, I hope to do as much research online before I visit - maybe about once a year - and then hit the pavement. I am wondering a few things:

1. Are there other investors here based in foreign countries doing similar things? If so, please share with me your experience, pitfalls, horror stories, etc.

2. I am hoping to send my down payment and closing costs to title companies directly with a wire transfer. Do title companies usually accept this or only accept paper checks? (Sorry for such a specific question.)

Thanks a lot! Looking forward to future interactions!

Hi Luke

I invest in Chicago from out of the country as well - I'd be happy to share some of my experiences and contacts with you - feel free to PM me.

To answer your questions:

1. Yes, there are lots of foreigners (in the US even people living in other states are considered foreigners) investing in US real estate. You need to be extra careful investing from a distance. It's absolutely critical to have a very solid team in the exact area that you will be investing in and do as much due diligence as you can.

2. Yes, you can use wires to transfer money directly to escrow accounts. It's very handy for people like us living out of state. As others mentioned you will need to find an attorney you trust in Chicago because you will need to use one and you will have to provide limited Power of Attorney for the transaction, unless you plan to go to Chicago for every close.

Hope that helps.

Good luck and let us know how it all turns out.

OP

Ras Tanura, Eastern · Member since 2015 · 14 posts · 2 votes

10y

Originally posted by @Mark Ainley:

@Ruka Ishihara We have numerous clients that work at Aramco...and have been doing business with them for almost 10 years here in Chicago. I know Aramco is huge but feel free to reach out as we may know the same people.

Thanks Mark, Ray! I don't do investing in Texas, as I don't have contacts there. I think Chicago is going to be my base. Larry, thanks for the useful advice. Ill contact you if I run into trouble.

BTW, is there any other way to tag people in response without quoting everything they wrote? I tried just putting in the @ mark and the name, but I wasn't sure if that worked.

https://www.biggerpockets.com/blogs/6526/blog_post...

Daniel Ryu

Investor · Suwanee, GA · Member since 2014 · 579 posts · 347 votes

10y

Originally posted by @Ruka Ishihara:

Originally posted by @Mark Ainley:

@Ruka Ishihara We have numerous clients that work at Aramco...and have been doing business with them for almost 10 years here in Chicago. I know Aramco is huge but feel free to reach out as we may know the same people.

Thanks Mark, Ray! I don't do investing in Texas, as I don't have contacts there. I think Chicago is going to be my base. Larry, thanks for the useful advice. Ill contact you if I run into trouble.

BTW, is there any other way to tag people in response without quoting everything they wrote? I tried just putting in the @ mark and the name, but I wasn't sure if that worked.

Welcome! A fellow investor from overseas. ^^

I bought my first investment while living in Korea in 2014. I used BiggerPockets to network and did my own due diligence to narrow down my marketsize to an area in Jacksonville, Florida.

I'm not sure if it was just 'dumb luck' but the market turned out to be one of the hottest in Florida in 2015. I posted a blog post about on BiggerPocket's Members Blog:

I'm also helping to organize a meetup for overseas investors. We've been mentioned on BiggerPockets a few times.

Take a look at my signature if you want to know more about our group. We're trying to help educate investors and form a community of oversea investors who share resources, experiences, stories, etc.

We've also had quite a few BiggerPockets bloggers, etc, join us virtually. You can see the interviews on our website.

Anyways, if you're interested in connecting with other overseas investors, feel free to drop me a line.

Hope all is well ^^

OP

Ras Tanura, Eastern · Member since 2015 · 14 posts · 2 votes

10y

@Daniel Ryu wow. Sounds awesome. Too bad I missed you in Seoul last month. My Korean wife and I were there then. I'll check out your website!

Crystal SmithPro Member

Moderator

Real Estate Broker · Chicago, IL · Member since 2014 · 2k+ posts · 1k+ votes

10y

Originally posted by @Ruka Ishihara:

Noob question(s0, but why should I have an attorney for these kinds of deals? If I send the money directly from a bank in anywhere, will it matter? How is it different from buying a home locally? I bought a house and paid a check for down payment and closing costs. Will this process be different?

As @Brie Schmidt said Illinois is a state where closings are orchestrated by attorneys. My recommendation though goes beyond just having an attorney to represent you in closings. While this isn't for everyone, I assumed from reading your post that you would be a candidate for an attorney w/ that manages Trust accounts (Accounts established on client's behalf & managed locally by the attorney.) Why is this important? You'll be competing in an environment where the difference between winning or losing a deal may the terms on the contract. Terms where speed of execution & closing may be more important than price. Having someone @ a local level that can act on your behalf w/ speed may be the difference between executing your plan & not becoming frustrated.

312-681-7487

2 Reply

OP

Ras Tanura, Eastern · Member since 2015 · 14 posts · 2 votes

10y

@Crystal Smith @Brie Schmidtthanks for the advice. I'll Statt doing my homework more on attorneys!

Podcast Guest on Show #132

Brie SchmidtBusiness Member

Moderator

Real Estate Broker · Chicago, IL · Member since 2013 · 6k+ posts · 5k+ votes

10y

@Ruka Ishihara - let me know if you need a referral. A friend of mine invests here from Israel and he raves about his attorney. If you PM me your email I will ask him who he uses and send it along

Second City Real Estate4.821 Reviews

William Cavalier

Real Estate Investor · Plano, TX · Member since 2014 · 21 posts · 4 votes

10y

Keep in mind, depending on a variety of facts, you may have to comply with the Patriot Act when wiring that money. Be sure to come to grips with those requirements before you get under contract. Don't want to miss any deadlines. Bill (Esq.)

OP

Ras Tanura, Eastern · Member since 2015 · 14 posts · 2 votes

10y

@Brie Schmidt thanks! I'll consider that. @William Cavalier I think that may be true if I'm sending cash to my own personal bank account, but if I'm sending a down payment for a house, it would be like any other online purchase. The reason I say this is because I have another friend from here who just bought a house while living here and he wired his cash from a local account. Thanks for the concern though!

Ryan Landis

Residential Real Estate Broker · San Mateo, CA · Member since 2013 · 585 posts · 264 votes

10y

@Ruka Ishihara welcome to BP! I am sure you will be able to find what you are looking for!

OP

Ras Tanura, Eastern · Member since 2015 · 14 posts · 2 votes

10y

thanks, @Ryan Landis!

Daniel Ryu

Investor · Suwanee, GA · Member since 2014 · 579 posts · 347 votes

10y

Originally posted by @Ruka Ishihara:

@Daniel Ryu wow. Sounds awesome. Too bad I missed you in Seoul last month. My Korean wife and I were there then. I'll check out your website!

That's too bad! It would have been great to meet.

Right now we have another out of country investor in town - BP member. I was able to meet him for coffee and we have another meeting set up for Monday at Taste of Thailand near Kyungridan, Itaewon.

If you and your wife come back for a visit, be sure to give us a shout out!