Learning to buy in USA from Croatia

13 Replies

Unfortunately I see that this part of forum is not so active as rest of the forum.

Since I am new i don't know is this a good place to ask questions, but since I am in Croatia this sub forum looks OK. I just hope that people are reading this.

If I am starting to investing in USA properties, in the beginning it will for sure be cash only investing, and currently I am interested in property for renting. So questions that I have are:

1- Are good property managers able to do all things for me regarding everything about real estate? That includes even buying in my name? I am asking this because of option to not even see property before buying. (Maybe some J/V is option?) I am aware that this is maybe tricky idea, but I still believe in people! :) (trust & honesty).

2- Does anyone knows or have suggestion what is better for me regarding ownership of property. Is it better to buy in my personal name or better option is for me to make some LLC?

3- Question about tax. Example: If I eventually buy property for 50 000 $ and sell it for 1 year for 60 000 $, how much tax there is to pay. I am not asking for specific amount of tax but more in way is there difference when I sell it on first year, second..., in which state property is etc.

4- Since this are not only questions that I will have in future, is it better to make new topic for every question or set of questions or all in this topic? For me sounds reasonable to have all in one topic since could also help other foreign people.

Thank you very much for reading this and for help.

-Roni

P.S. Sorry for mistakes, English is not my native language.

This post has been removed.

Dobrodosli Roni! It’s nice to see a fellow Croatian on BiggerPockets.

1.A good property manager / turnkey provider can guide you through the process. A property manager will help you find a property, possibly renovate if necessary, place tenants and deal with the headaches. A turnkey provider will sell you an already rehabbed home at a markup (they need to make money, too). You will likely need to buy in the name of a Limited Liability Company (LLC). To my knowledge, there are no restrictions on foreign nationals owning LLCs.

2.Definitely use an LLC.

3.If you flip a property (< 1 yr), you are subject to short term capital gains taxes. That’s a high %. If you hold for 10-20-30 years, the value of your property will have depreciated and your tax bill will likely be materially lower.

Bok


Zoran

Originally posted by @Ronald Cvetkovi:
Unfortunately I see that this part of forum is not so active as rest of the forum.

Since I am new i don't know is this a good place to ask questions, but since I am in Croatia this sub forum looks OK. I just hope that people are reading this.

If I am starting to investing in USA properties, in the beginning it will for sure be cash only investing, and currently I am interested in property for renting. So questions that I have are:

1- Are good property managers able to do all things for me regarding everything about real estate? That includes even buying in my name? I am asking this because of option to not even see property before buying. (Maybe some J/V is option?) I am aware that this is maybe tricky idea, but I still believe in people! :) (trust & honesty).

2- Does anyone knows or have suggestion what is better for me regarding ownership of property. Is it better to buy in my personal name or better option is for me to make some LLC?

3- Question about tax. Example: If I eventually buy property for 50 000 $ and sell it for 1 year for 60 000 $, how much tax there is to pay. I am not asking for specific amount of tax but more in way is there difference when I sell it on first year, second..., in which state property is etc.

4- Since this are not only questions that I will have in future, is it better to make new topic for every question or set of questions or all in this topic? For me sounds reasonable to have all in one topic since could also help other foreign people.

Thank you very much for reading this and for help.

-Roni

P.S. Sorry for mistakes, English is not my native language.

WOW,

Its a honor to see someone from Croatia on the Bigger Pockets forum :)

Ronald,

Dobro dosao na Bigger Pockets,

Ja sam zivio u Zagrebu do 16 godine I onda sam preselio u Sydney gdje mi je stari bio vlasnik gradevinarske firme.

Evo sada u Americi hehe

Svijet je malen :)

Gdje zivis u Zagrebu?

Pozz

Originally posted by @Zoran M. :
Dobrodosli Roni! It’s nice to see a fellow Croatian on BiggerPockets.

1.A good property manager / turnkey provider can guide you through the process. A property manager will help you find a property, possibly renovate if necessary, place tenants and deal with the headaches. A turnkey provider will sell you an already rehabbed home at a markup (they need to make money, too). You will likely need to buy in the name of a Limited Liability Company (LLC). To my knowledge, there are no restrictions on foreign nationals owning LLCs.

2.Definitely use an LLC.

3.If you flip a property (< 1 yr), you are subject to short term capital gains taxes. That’s a high %. If you hold for 10-20-30 years, the value of your property will have depreciated and your tax bill will likely be materially lower.

Feel free to message me if you have any questions.

Bok


Zoran

Zoran,

Kad cemo na coffee?

haha

@Engelo Rumora Ja ne pijem nasu kafu! Maybe an espresso or Pivo.

Javite mi kad dodjs u Clevelandu!

Moze, expresso it is hehe

Ili piccolo latte? haha

Petak putujemo u Dayton. Nisam siguran kada cemo do Clevelanda.

Javim ti

Imaj lijep dan :)

@ Zoran Miling tanks for answers. You are right about LLC, there are no restrictions on foreign owning LLC.

@ Engelo Rumora U Zagrebu zivim na Tresnjevci, odmah kod Ciboninog tornja.

Guys you are confusing me with language I don't know on what language to write :) If you need good old coffee I can send some from here. But it is easy for you to drink coffee or even better some beer over there while I am stuck here in Croatia :)

Ronald, I'm looking for an investment partner at the moment, willing to JV one or more of several buy and hold short term/vacation rentals, which I would also personally manage. I'm located in San Antonio, Texas, a stable, growing economy in a tax (and landlord) friendly state. I have a lender already lined up, willing to finance 75% of as many deals as I can put under contract, provided they meet my cash flow requirements. Send me a message if this interests you, and I'll provide you with additional information, as well as estimated cash flow models.

Originally posted by @Ronald Cvetkovi:
@ Zoran Miling tanks for answers. You are right about LLC, there are no restrictions on foreign owning LLC.

@ Engelo Rumora U Zagrebu zivim na Tresnjevci, odmah kod Ciboninog tornja.

Guys you are confusing me with language I don't know on what language to write :) If you need good old coffee I can send some from here. But it is easy for you to drink coffee or even better some beer over there while I am stuck here in Croatia :)

We can mix it up. English and Hrvatski hehe

E bas super, majka mi zivi na Savici.

Kad sam bio klinac zivjeli smo blizu Trga Francuske Republike. Right next door to Franc coffee factory.

Svako jutro miris kave. Amazing hehe

Eto ti malo mix Eng/Cro

haha

@Engelo Rumora Nadam se da ti majka pošalje kavu koji puta ako ti fali :)

@Thomas Cocke I am interested in many things regarding investing in real estate. But I am still learning so it will take some time to invest in something. Maybe I will contact you regarding your offer. Thank you very much for offer.

I definitely recommend working with an expert who specializes in setting up entities and bank accounts for international buyers. If this part of the equation isn't done just right, there can be major tax penalties to pay. You first want to get your entity (LLC) and US bank account setup. After those are in place, you can then worry about what properties. It's all about the team on the ground. There is a lot of due diligence you can do, even from afar, to ensure you are going at it all right. It's all about the team you have in place wherever you buy.

@Ali Boone Thx for reply. You are totally right about working with expert regarding bank accounts for foreign . LLC can be created along as part of first real estate deal.

For sure, good team on ground is essential for such business. I am trying to figure out how to find good team from far away. Here on BP are also some PM teams worth contacting.

Basically good and complete PM company can do most business. If I get it right some of them can do anything, even books/taxs for future LLC.

@Ronald Cvetkovi one thing I found in buying a long distance away is to make several connections in the area you plan to buy in. If you get offered a deal then have at least 3 people who do not know each other each give you their opinion on value, location, price, etc. That allows you to know the real story and not be fooled by someone who is only looking to make a profit from you. It takes time to do this, but I think it is worth it. Hope this helps.

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