Newbie in California interested in out-of-state investing

5 Replies

Hello! I live in California and am looking to get started with REI. I have never bought a property before, but have considered out-of-state investing. Moreover, I would like to eventually live abroad permanently, either as a digital nomad or teacher or whatever. I prefer to live in Asia, such as China, Malaysia, etc.

I've read about out-of-state investing a little, and it sounds like getting into apartment syndication deals as a limited partner could be what I'm looking for, whether it be investing in the US or abroad. But I don't meet the criteria to be accredited

If one plans to live abroad, is it better to just go with other types of investing such as stocks, if it's too complicated and a hassle to invest in US RE while living overseas? Or would investing in apartment syndication deals out-of-state or while abroad give larger returns than investing in stocks?

If anyone has any advice then please let me know. Thanks in advance and I can’t wait to start meeting and interacting with you guys!

@Jerry Kim , welcome to BP! So much great, free knowledge here, you're in the right place.

Do you have goals set already, for example a certain cash on cash return you are looking for? One step would be to determine how much risk you are comfortable with, if you haven't already. 

I know there are opportunities out there that you don't have to be accredited, but personally I haven't done any yet. Out of state investing can be tricky though, so make sure you fully trust your contact and be careful of too good to be true "opportunities".

@Jerry Kim Though the best syndication deals are typically available to accredited investors only, there are still pretty good options for non-accredited investors. You can certainly invest in US real estate while living overseas, though there are tax considerations. My main piece of advice is to do a TON of due diligence on the syndicator/operator/sponsor before investing. The more due diligence you do before investing the better off you will be. And go slowly if you can. I would recommend reading as much as you can on https://www.therealestatecrowdfundingreview.com/.

@Jerry Kim

Before you start investing in real estate as others noted, you need to do some upfront research to find out what will work best in your personal case. Some things to consider: how much time do you have/want to spend on real estate investing. you mentioned moving abroad and becoming a digital nomad. So you may align better with some passive strategies. Here're a few posts to guide you in the right direction:

https://www.biggerpockets.com/member-blogs/10850/86621-six-steps-approach-to-getting-started-in-real-estate

https://www.biggerpockets.com/member-blogs/10850/84064-what-type-of-investor-to-be-when-i-grow-up-active-or-passiv

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