German, looking to invest in Indiana

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German, looking to invest in Indiana

Philipp C. Dukatz
Member since 2018 · 18 posts · 6 votes

Hi guys,

after following the forums and the YouTube channel for quite some time, I finally signed up. Still a bit overwhelmed about all the info here but so happy to be here.

I'm from Germany and have strong ties to Indiana. Hence my decision to invest in the Indianapolis, Fort Wayne, South Bend areas. I am still a total newbie and really want to get educated before approaching my first transaction. I'm generally interested in either small homes or apartments/condos - buy and hold to get started and generate income. 

I am super interested to learn about the local markets, how to manage properties over distance and generally how to get started.

Once again, thanks for having me, super excited to start this journey. If you have any pointers about where to get started, what books to read first, that would be awesome.

Best,

Philipp

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Jaron WallingPro Member
Rental Property Investor · Indianapolis, IN · Member since 2018 · 4k+ posts · 4k+ votes
8y

https://www.biggerpockets.com/renewsblog/20-books-...

Here you go man. I've read 3 of these books and it opened my mind to real estate.

I'll say my first book (if you want to call it that) was "Rich Dad Poor Dad". It was a game changer for me because my parents were not great with money and only recently started understanding my plans for house hacking, renting, etc. 

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  • Travis Henderson
    Washington DC · Member since 2018 · 21 posts · 9 votes
    8y

    Welcome to BP!! I’d suggest just searching around this site every chance you get. Endless amounts of blogs and conversations full of great info. Also there’s a link that Brandon Turner made I think that lists his top 20 or 25 books. Good luck!!

    1Reply
  • Philipp C. Dukatz
    OP
    Member since 2018 · 18 posts · 6 votes
    8y

    Hi @Travis Henderson . Thanks for the warm welcome. I will for sure scout the website whenever I have the chance - so much info here, it's unbelievable. Do you by any chance remember where I can find that link to the book selection? Is it in the forum or elsewhere on the site?

    0Reply
  • Jaron WallingPro Member
    Rental Property Investor · Indianapolis, IN · Member since 2018 · 4k+ posts · 4k+ votes
    8y

    https://www.biggerpockets.com/renewsblog/20-books-...

    Here you go man. I've read 3 of these books and it opened my mind to real estate.

    I'll say my first book (if you want to call it that) was "Rich Dad Poor Dad". It was a game changer for me because my parents were not great with money and only recently started understanding my plans for house hacking, renting, etc. 

    2Reply
  • Philipp C. Dukatz
    OP
    Member since 2018 · 18 posts · 6 votes
    8y

    Hi @Jaron Walling ... thanks so much. I have also read RDPD and the Kyosaki's follow-up book as well. Both are an absolute eye opener and have strengthened my will to get into RE. Now I just have to learn more, especially with a focus on the US market and then take the first steps.

    by the way, how is investing in Indy going for you? It's definitely a city, which I am strongly interested in. I'd be looking at rental properties (SFH, apartments, condos) as part of a buy and hold strategy to start out.

    Thanks so much again, really appreciate your input.

    PS: Which 3 of those books did you read?

    1Reply
  • Jaron WallingPro Member
    Rental Property Investor · Indianapolis, IN · Member since 2018 · 4k+ posts · 4k+ votes
    8y

    @Philipp C. Dukatz No problem man and that's wonderful to hear. I love Indianapolis and the diversity that it's attracting. The market is starting to cool right now as I'm noticing properties sitting much longer. I looked at a SFH last week but it was over priced (by at least $20k) and the sellers have no offers. The property will most likely be foreclosed by the lender, and sold to the highest CASH buyer. That's how you flip houses in Indy. 

    I've read The Book on Flipping Houses by J. Scott, Rich Dad Poor Dad, and What every real estate investor needs to know about cash flow by Frank Gallinelli. 

    1Reply
  • Philipp C. Dukatz
    OP
    Member since 2018 · 18 posts · 6 votes
    8y

     @Jaron Walling Thanks again, that's interesting stuff. I definitely will have to buy Cash since getting a mortage as a non-resident is complicated and interest rates unfavorable. Hence it can't be too huge of an investment. I haven't really wrapped my head around flipping, as I am more after long term and steady returns ... but let's see. 

    My plan is to take the rest of the year to learn as much as possible and then come over to Indy for a month or two to check out the market, look at properties and talk to people. If you are still around, I'd be happy to buy you a coffee ;).

    Cheers man and good luck with everything.

    1Reply
  • Michinori Kaneko
    Rental Property Investor · NY · Member since 2018 · 571 posts · 332 votes
    8y

    @Philipp C. Dukatz

    Welcome! i just closed on my first investment property in Fort Wayne yesterday :) Let's keep in touch and let me know if you have any questions!

    1Reply
  • Philipp C. Dukatz
    OP
    Member since 2018 · 18 posts · 6 votes
    8y

    @Michinori Kaneko Wow, congrats - how cool is that and what a timing. Really good stuff. What exactly did you go for and what's your strategy? How long did it take you to find a deal that suited all your requirements? 

    I wish you the best of luck with everything. I will be back in the states next year and would love to meet up for a coffee and discuss the FT market. Thanks so much for your willingness to help!

    0Reply
  • Michinori Kaneko
    Rental Property Investor · NY · Member since 2018 · 571 posts · 332 votes
    8y

    Hi there. I purchased a SFH looking for cashflow (buy & hold). I think I started looking about 3 months ago. the hardest step, in my opinion, was the first step, which is finding the right people you want to work with. Fortunately for me, @Account Closed reached out to me and help me get started by giving me lots of great contact info. After that, it was just a repetition of looking for houses, asking the broker for what it would rent for, and cranking the numbers.  I might have been a little lucky in the current market to find something in 3 months, not sure? 

    I live in NY, if you are ever in the area let me know :) 

    1Reply
  • Philipp C. Dukatz
    OP
    Member since 2018 · 18 posts · 6 votes
    8y

    Hey Michinori. That sounds really really good as this also roughly the time frame I was looking at. Can you tell me if you did all your research etc. while being based in NY or did you spend a considerable amount of time on the ground in FW?

    Would it be okay to send you a PM here? Got some questions to ask if that would be okay. Many thanks.

    0Reply
  • Michinori Kaneko
    Rental Property Investor · NY · Member since 2018 · 571 posts · 332 votes
    8y

    Sure you can send PM.  While I do have personal ties to Fort Wayne and looked at like 2 or 3 properties while I was visiting there, all the actual research I've done was while I was based in NY. This was also possible because I had a really good broker that was diligent and hard working though!

    1Reply
  • Jeff Schechter
    Developer · Nashville, TN · Member since 2016 · 484 posts · 406 votes
    8y

    Hey @Philipp C. Dukatz We're doing a lot of buy/hold here in Indy.  Happy to answer any questions about what we're up to. Feel free to PM me.

    1Reply
  • Philipp C. Dukatz
    OP
    Member since 2018 · 18 posts · 6 votes
    8y

    Hi @Jeff Schechter , thanks for reaching out. I already looked at your website yesterday after going through the Indy Facebook group. Definitely interesting ... would be happy to meet once I am over there again. Thanks again.

    1Reply
  • Heather Swope
    Rental Property Investor · Plainfield, IN · Member since 2018 · 17 posts · 8 votes
    8y

    @Philipp C. Dukatz

    Hi Philipp,

    I'm in Amsterdam. Here's a tip to look into. The Netherlands has a treaty with the U.S. that says that income from rental properties in the U.S. can't be taxed by The Netherlands. It's only taxed by the U.S., which has much lower tax brackets.  I'm not sure what the tax brackets are in DE, but I'm assuming they're quite high like here in NL. I suggest getting a good CPA that understands the tax laws in both countries to make sure you pay as little tax as you (legally) can.

    Welcome to BP!

    Heather

    1Reply
  • Yonah WeissPro Member
    Cost Segregation Expert and Investor · Lakewood, NJ · Member since 2017 · 1k+ posts · 1k+ votes
    8y

    @Philipp C. Dukatz welcome to BP, and good luck on your journey! I know it's a big country but check out @Ken Breeze he's in your neck of the woods, and a great resources for investing.

    0Reply
  • Philipp C. Dukatz
    OP
    Member since 2018 · 18 posts · 6 votes
    8y

    Hi @Heather Swope ... I am actually not too far from Amsterdam, just living an hour from the border. But I move around a lot and usually spend only 2 months a year in Germany. What are you doing in Amsterdam then?

    Thanks for the heads-up on the tax issue. That is indeed a whole different topic and tax optimization is generally very high on my agenda. I am in the process of setting up the proper structures to position myself accordingly. But it's one hell of a topic to figure out haha.

    Thanks for the warm welcome Heather. Best, Philipp

    0Reply
  • Philipp C. Dukatz
    OP
    Member since 2018 · 18 posts · 6 votes
    8y

    Hi @Yonah Weiss , thanks for the warm welcome. It is a journey and it's a big one. But every journey begins with the first step, right? Thanks for referring to Ken, I will make sure to drop him a line.

    Have a great rest of the week.

    0Reply
  • Ken Breeze
    Investor · Phoenix, AZ · Member since 2015 · 485 posts · 384 votes
    8y

    Hey, @Yonah Weiss thanks for the shout out and welcome to Bigger Pockets @Philipp C. Dukatz , this is THE PLACE to be on all things real estate. Feel free to reach out to me with a colleague request and PM. I'd be happy to help out. I'm currently in Cuxhaven, Germany analyzing deals in the USA and putting together a German and European Bigger Pockets group. I am also very active stateside with multifamily syndication and mentorship, especially in the Phoenix Metro area.

    QUICK TIP! Start using 'keywords alerts' to make this awesome machine work for you. This will save you a boatload of time getting the stuff into your radar that you are looking for.

    Gimme a nudge and chat soon ;-)

    1Reply
  • Ken Breeze
    Investor · Phoenix, AZ · Member since 2015 · 485 posts · 384 votes
    8y

    @Philipp C. Dukatz I think this might be the book list you're looking for.

    1Reply
  • Ken Breeze
    Investor · Phoenix, AZ · Member since 2015 · 485 posts · 384 votes
    8y

    It's funny how many quote Kiyosaki's first book - and I love the guy because I met him personally in Phoenix in 2006 when he turned my life UPSIDE DOWN. 

    I would vote for his 2nd book to be the strongest game changer in the past 15 years:  "The Cashflow Quadrant" which puts it all into perspective about what's wrong with our current (stuck in the industrial age era) world. Another game changer is Jeremy Rifkin's  "The Age of Access",  "The End of Work" or  "The 3rd Industrial Revolution". He predicted so much of the change that we see these days. Any of his books will get you closer to a crystal ball than anything else out there.

    2Reply
  • Bjorn AhlbladPro Member
    Investor · Shelton, WA · Member since 2017 · 6k+ posts · 6k+ votes
    8y

    Philipp welcome, If you do not have one already I suggest you open a US bank account either on line or on your next visit here (easier). I moved to the US 30 years ago and had a bank account here years before that. I bought a house before moving to the US and rented it out as well. It is more complicated today due to 9/11 and concerns about money laundering; but doable just the same. From what I hear Indiana is a good choice for investing. All the best!

    0Reply
  • Philipp C. Dukatz
    OP
    Member since 2018 · 18 posts · 6 votes
    8y

    Hi @Ken Breeze . Thanks for reaching out and funny to hear that you are currently in Germany. It's a truly international world these days. What are you doing on this side of the Atlantic? 

    Thanks for the book list, that is awesome. I have also read the Cashflow Quadrant not too long ago - such a great book and so motivating. I think the things he describes in that book are even more true for Germany - our society is so focused on security and people just can fathom the fact, that traditional pension models won't work anymore. A lot of them put their heads into the sand and I sure it will end in total disaster for many of them. 

    Better to take your fate into your hands ... and that's why I'm here. Still lots to learn though and still need to work on my mindset and shake off fears. But I'll take it one step at a time.

    Cheers Ken, thanks again for your input and tips, really appreciate it.

    2Reply
  • Philipp C. Dukatz
    OP
    Member since 2018 · 18 posts · 6 votes
    8y

    Hi @Bjorn Ahlblad , thanks for the welcome. I actually just opened a bank account just this year when I was over in Florida. Was lucky to know another German guy in the states with a good connection to his local branch. Otherwise, it is actually not that easy to get an account without having residency.

    Where in the US are you investing Bjorn?

    Cheers

    0Reply
  • Bjorn AhlbladPro Member
    Investor · Shelton, WA · Member since 2017 · 6k+ posts · 6k+ votes
    8y

    Philipp I invest within an hour from home in Western Washington, south west of Seattle. When I lived in California I invested here (same area) as an out of state investor; but now it is strictly local. This are was terriffic a few years ago and will be again. ;<)  All the best!

    1Reply
  • Medi Sarwary
    Pleasanton, CA · Member since 2016 · 73 posts · 48 votes
    8y

    Hi Phillip, welcome to BP!

    You mentioned you will purchase with cash because of your non-resident status, have you committed to that or been in contact with any local credit unions? Some of them are more flexible than the big banks and I know the area has a lot of German immigrants so you are probably not the first to attempt foreign investment.

    I tried to do the opposite in Germany and I could tell you it was very difficult to open my sparkasse account. Luckily for you language doesn't seem to be a barrier! 

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