Investing Out Of Country

7 Replies

Hey Bigger pockets family. This time last year It was only a thought to invest into real estate. Now it seems I have the bug. I have my first duplex up and running and am in the talks with others to joint venture and build the portfolio. Within the next couple of years I was hoping to invest out of country into the US market. I have always wanted to live there 6 months out of the year. I was looking at Texas, Florida and obviously California (to expensive for me). I was hoping I can gain some insight on some possible strategies "to bring my talents to south beach" - Lebron James. Let me rephrase I would like to bring My dollars To U.S lol Any advice would be helpfull Thanks guys! 

Again Thank you all who have reached out to me and gave me advice and help over the last year. 

Myself and my partner are for out of US and investing in it so its possible. 

We formed an LLC but other than that is hasnt been to different from investing anywhere else. BUT we have been fortunate to meet brokers we trust who can guide us.

@Kolton Lynch

Good luck taking your future steps in RE investing. 

investing out of country is defiantly possible. several questions for you - 

is it for Investment only? or possible residence?

what is the budget? this will help you determine market / type of property.

start with:

1. decide where to purchase on your name or LLC.

2. open a US bank account.

3. contact agents in your selected markets and setup Email Alerts for possible deals from the MLS.

4. Due diligence , Due diligence , Due diligence - dont save on inspections (3'rd party inspections) before , during and after you buy. being out of country - that is your best friend, inspection report to document the property during process.

5. decide whether you want to self manage (highly recommended - specially for first property. it is the best learning curve for the RE business there is..)

6. make offers!

if you need help , or have any questions do not hesitate to reach out:-)

@Joseph Green I have connected with you. It would be awesome to keep in touch.

@Lior Reich Thank you for taking the time and giving me a few steps that will be able to help me on my RE journey.

To Answer Your Questions: I would like to invest at first, and snowball into a possible residence for my wife and child. The budget would roughly be $150,000 - $300,000.  I would like to start with Single Family and Duplex since I will be in Canada and it would be hard to manage a 4 - 10 Plex being so far away.

I have just finished my first duplex and am in the process of looking for another one here in Ontario Canada. I am currently doing the BRRR strategy and so far it has been good. Just like you mentioned the best learning process is actually doing it. So I was hoping I can gain a few more of these here within the next year or 2 and then branch out to the US.

Kolton Lynch, first congratulations on Your purchase. Take action is decisive. 

I know how complicated is to invest in the US being a foreigner.  I don't live in the US (I live in Brazil) but I decided to invest there. More than that I (after a lot of study and research) focused my strategy on tax auction properties (Sheriff sale), what is somehow even more challenging. I already bought a property (under rehab) and will attend another auction in October. It has been an amazing journey so far (lots and lots of challenges, problems, and most important learning). No having an SSN makes everything harder. Being a newbie with no other deals to show too. But this is part of the game right? Partnering with reliable local partners in Your target market is primordial, and I have been lucky in this area so far.

 Keep the good work and soon You will be a fellow investor in US real estate. 

One thought is, I think investment property might be very different from the home you want to live in.  I often tell my clients don't mix the two up.  For example I often think almost the lowest price you can get for an investment property is a positive.  You may not want the fanciest house....less granite, less high end appliances, less yard for example.... however where you want to live and you will take care of might be much much nice.   Here in Texas for example $150,000 might get you a nice rental.  I would be less excited if my investor clients wanted to buy $300,000 single family for investment.  People do it, but the market is much more robust at $150,000 for rental than at $300, $300k the market is much thinner. 

Hope that makes sense.   There's also a limited market for 6 month rentals.  Possible, but less popular, but that also depends on where you buy.   That might work in Florida for example where people want to live for the winter, like your fellow Canadians, but don't want to be there for the summer, so you might rent it for 3-6 months in the winter, and then you live it in during low season.  This can complicate tax matters so that is something to think about too.