Is it risky or difficult to flip a house overseas?

Question

Does overseeing repairs overseas online present a problem?

Of course, I'll show up to see the house before the repairs, and maybe again after they're done. And I'll pay for each repair only after the job is done, so the handymen won't run off with my money. But I won't stay overseas for a long time.

Some countries don't have capital gains tax, such as Belize. Buying a house and living in it is difficult for me for reasons to long to write in one post.

Do you recommand flipping a house overseas?

Eliott Elias · Answer

A lot falls through the cracks when the boss isn't there, it's like raising kids and not being home. Best you can do is find ONE person you trust (even they won't look out for your best interests) and let them run the show and give you weekly reports

Leo R. · Answer

@Galit Garsiel short answer: yes, it's risky and yes, it would be very difficult.

Does that mean it's impossible? No.  But, very risky, and very difficult, and would require some serious expertise and skill with flipping, remote communication, an A+++ team you know and trust on the ground, with a GC who is completely on top of things, and completely trustworthy.  ...I have many years' experience in all areas of residential real estate investing, and personally, I would not attempt to oversee a rehab from a different state (let alone a different country).

You also mentioned flipping--right now is a very risky time to flip (especially for inexperienced people). This is true even for a local flip, and is exponentially more true for a remote flip.  The topic of why right now is a risky time to flip has been covered extensively in other forum threads--I'd suggest reading up.

Good luck!

Chris Seveney · Answer

@Galit Garsiel

Overseeing work anywhere online is problematic. Impossible to determine quality of work.

Is it risky, it depends. I assume you have vast understanding of the market where you want to build and what homes sell for, what the inventory supply is and demographics.

The Belize currency is stable to us currency so that’s a positive when doing something overseas.

Basit Siddiqi · Answer

Language may be barrier.Understanding the local laws may take timeTime differences may be a difficultyTaxes may be more difficult(Do you have to file a tax return in the foreign country?)Is it doable, yesShould you, maybe

Best of luck

Henry Clark · Answer

@Galit Garsiel

Read your previous posts. Does not come across you have ever invested in Real estate. I’m going to recommend what not to do, then what to do.

1.  Don’t do any flip right now Won’t explain why. You need to invest learning into this thought. 2.  Dont do Belize. It does not have a market. The last property we bought to months ago was listed for $310,000 and we bought for $180,000.  Listed for 2 years.   Our first property was listed for 15 years. We paid half their original asking price.  Plus their house was “stolen” while they waited with no caretaker. 3.  No matter what country you still have to pay US taxes. Even though it has nothing to do with the US. Belize no capital gain. US still charges you the difference between what you would have been charged in the US versus what you paid in another country. 4.  Belizes official language is English but you will not be able to communicate with them even though they and you understand each word your saying.

What you should do.   BRRR, house/apartment/trailer hack. Join the local charity group and help build houses for the poor.   Get a weekend job at the hardware store. Save your money.   Start doing deal analysis. If you want to do flips do several types of repair estimates. Hvac. Roof, added bedroom, new bathroom.  Etc. Do about three of each.

Bob S. · Answer

In a " 3rd world " country I would not do it. But from overseas doing the flip in America sure.

Is it risky or difficult to flip a house overseas?

Most Popular Reply