Hello from Israel

Hello from Israel

Kiryat Ono, Israel · Member since 2016 · 32 posts · 10 votes

Hi everyone. I'm Anne and I live in Israel, not far from Tel Aviv with my husband and our two boys.

We love traveling and have traveled in the US & Canada for a total of 12 months in the past 7 years, in 4 separate road trips. We've visited 44 states so far and hoping to add Alaska to our list next summer.

We're in our forties and so far invested only in the stock market, mostly via index funds. Our portfolio leaves something to be desired in terms of average annual yield (we invested too much in China and South America a decade ago, I'm afraid). Currently looking into real estate investments in the US.

We really like the US. It's our favorite travel destination. We love the country, the landscape and the people. There's a lot of information available online about everything and everywhere, so that makes things easier. 

We've decided to give this a try. We have a friend who's a real estate broker. She's based in Israel but flies over to her markets 4 times a year. She works in two markets: Atlanta, GA & Memphis, TN. The basic model is buying from wholesalers, renovating as may be needing and then selling to investors as rental properties. The advantage of working with her is that she knows these areas well and has a reliable team on the ground. 

So, there you have it. If this can make us a profit of 5% a year, we'll be happy campers. Investing about 70K in cash at this point (we can't get a US mortgage yet and we have the money in cash anyway). IF we see this is working, then we'll see what our next step may be.

Any thoughts, tips or ideas on these markets welcome. She's a pro, so we're going to have a close mentor (we're paying her as well, of course) but I always like hearing from more people. 

Looking forward to getting to know more people here. Will be cruising the boards, blogs and podcasts to learn more. 

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Dean HarrisBusiness Member
Real Estate Agent · Memphis, TN · Member since 2015 · 1k+ posts · 1k+ votes
10y

@Anne M. I would be concerned that my source of properties only makes it to my target market 1 time per year. You mentioned she comes to the U.S. 4 times a year and you mentioned 4 markets. This would be a major concern for me as an investor. I would recommend teaming up with someone who lives in Memphis and knows this market and is an 'Active" investor.

I would make sure you got as much information on exactly what you are buying. I would seek out all the advice from the local investors that you could. I am an investor myself, I represent investors in the Memphis market and I am happy to answer any questions or help you vet a deal. Memphis has some of the very best investment opportunities and there are several different options to choose from and there are many, many good resources on BP that are willing to answer questions. 

Good Luck!

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  • Alex CraigBusiness Member
    Real Estate Professional · Memphis, TN · Member since 2009 · 1k+ posts · 1k+ votes
    10y

    Sounds like your in good hands.  Invest in areas with higher rents is my best advice. If she wants to put you in 50 to 70k homes, I would value her opinion, but question her real knowledge of the market.

  • Kiryat Ono, Israel · Member since 2016 · 32 posts · 10 votes
    10y

    Do you mean higher value properties with higher rents? Or a better ratio between the price of the property and the predicted cash flow?

  • Douglas SkipworthBusiness Member
    Rental Property Investor · Memphis, TN · Member since 2014 · 1k+ posts · 1k+ votes
    10y

    Hi, @Anne M.

    Welcome to BiggerPockets.  Sounds like you've got a great plan lined up!

    Be sure to check out the blogs and podcasts as well as the forums. You can learn a ton from the real estate experts on the site.

    Best wishes to you on your journey to real estate investing success!

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  • Dean HarrisBusiness Member
    Real Estate Agent · Memphis, TN · Member since 2015 · 1k+ posts · 1k+ votes
    10y

    @Anne M. I would be concerned that my source of properties only makes it to my target market 1 time per year. You mentioned she comes to the U.S. 4 times a year and you mentioned 4 markets. This would be a major concern for me as an investor. I would recommend teaming up with someone who lives in Memphis and knows this market and is an 'Active" investor.

    I would make sure you got as much information on exactly what you are buying. I would seek out all the advice from the local investors that you could. I am an investor myself, I represent investors in the Memphis market and I am happy to answer any questions or help you vet a deal. Memphis has some of the very best investment opportunities and there are several different options to choose from and there are many, many good resources on BP that are willing to answer questions. 

    Good Luck!

    CrestCore Realty4.713 Reviews
    View Page
  • Kiryat Ono, Israel · Member since 2016 · 32 posts · 10 votes
    10y

    Thanks for the replies, everyone, and the offers to help (including via PM's).

    My contact is there 4 times a year and visits both of her markets on every trip (two markets: Memphis and Atlanta). 

    I know this business is competitive, do you think it's ok for me to post the details of the deal before we make our final decision? Should I avoid mentioning the exact address (I guess that would be part of the assessment of the property though). 

    By the way, any other overseas investors in the US market here? I know a few people invest in US real estate without ever flying out (using a broker or agent they trust). No guarantees either way, I guess. Our first plan was to fly and do the whole things ourselves but I think that we may save that for our second property. That way I'll have time to learn more. 

    We expect to be in the US again in the summer of 2017. We want to come and see the great eclipse. Right now the plan is to drive up and travel from Oregon (where we'll see the eclipse) to Alaska and back. I guess that doesn't leave time for much else ;)

    My impression is that the right markets for buy & hold are in the east coast, and maybe the midwest? We'll be traveling from California to Alaska, so not many of those on the way ;)

  • Investor · Jerusalem, Israel · Member since 2016 · 52 posts · 8 votes
    10y

    Hi Anne.

    Welcome to BP

    Im also an Israeli and interested on investing the US market. I'm hearing repetitively among Israeli investors the idea that investing here in Israel is not so productive. I see the rent to property price ratio is very low, and I don't think it would be easy to persuade someone to fulfill our 70% rule around here, I don't know. what are your thoughts on this?

    I think it would be great to create a Real Estate meeting group of literate on RE Israelis that are on BP and have meetings to discuss this subjects of investing here and abroad as well, team up, contacts etc. If it sounds interesting to you please PM me. Would be great connecting with you.

    Ariel.

  • Kiryat Ono, Israel · Member since 2016 · 32 posts · 10 votes
    10y

    Hi Ariel, great to meet you!

    Not sure what the 70% rule is? I know that where we live (Kiryat Ono) the 1% rule can't be met. We live in an apartment that's worth 2.3 million shekels (~$600K) and pay 6500 shekels a month in rent ($1700). The cash flow is pretty terrible here. People hope the appreciation will be worth it but we're looking for an investment that's less speculative. 

    Great question about meetings and teaming up. It brings up a topic that's been on my mind since joining here (ok, I know that's not long!)

    Seems to me like many investors here invest a lot of time into this, not just money. Making this into a business rather than an investment. Which is perfectly ok, of course, but it's not a far cry from passively investing in index funds. I absolutely get that the profits can be much higher this way but that's money you get for putting work (including learning time) into your business. Currently, we're both fully employed (both self-employed but working full time) so I'm not sure if we'll have the time to put that much time and energy into this?

  • Linda LabbePro Member
    Investor · North Bay, Ontario · Member since 2015 · 709 posts · 263 votes
    10y

    Welcome to BP  would love to connect with you

  • Specialist · Indianapolis, IN · Member since 2014 · 670 posts · 352 votes
    9y

    Hello @Anne M. and @Ariel G., my brother-in-law who is also on our investment team is located in Tel Aviv. Our company has built connections in over a dozen different markets in the US. Our business is built on transparency and educating the investor. Please let me know if I can be of any assistance to your investing needs.

    Anne, the drive through Oregon is beautiful, I can recommend some sites to see along the way.

  • Kiryat Ono, Israel · Member since 2016 · 32 posts · 10 votes
    9y

    Thanks, @Jeff Wallenius We decided to stick to index funds for now. Too busy with life in other departments to jump start a real estate investment at this point. Maybe sometime in the more distant future, so thanks for the offer!

  • Specialist · Indianapolis, IN · Member since 2014 · 670 posts · 352 votes
    9y

    Happy to help at anytime, best of luck with your investing!

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