Intl' Brit living keen to invest in US real estate

4 Replies

Hi everyone,

I am British, living in Dubai, UAE since 2014.

Before moving to Dubai I was considering investing in the UK, since then, changes to the buy-to-let regulations has made UK returns far less attractive, so the UK is off my radar.

  • Keen to connect with fellow members in a similar international situation who have bought property in the USA.
  • Would like to hear your story about how you secured your first deal and how it went rehabbing and renting it out.

Current concerns:

  • Differential access to funding/leverage from an American. My research shows that the typical deposit size needs to be in excess of 40 % and access to low/no money down deals is heavily restricted. I appreciate that the ‘cost of doing business’ will be higher as a non-American, any tips or directions to further resources how to reduce that and enable me to spread my cash around more opportunities, rather than forced to fewer properties initially are happily recieved.
  • I have not yet decided on my market location yet, I realise is an important first step. From the BP podcasts, it was interesting to hear investors from lesser known places such as Kentucky or Tennessee - I am not looking for showpiece locations (NYC, SF etc.) - cashflow is the goal. I know this decision should really be made ASAP but there is a huge amount of territory to research. I dare not ask advice where because I’ll get 320 million different opinions and I don’t think my inbox can take it.
  • Purchase strategy – A single-family home is the perfect place to start/learn the ropes, some rehab and off we go. I feel after listening to Grant Cardone on show #250 that it would eventually like to move into multi-family residences (2-4 plexes etc). On the other hand, it was inspiring how Joe Martin on show #243 built up an extraordinary portfolio with just single-family homes.
  • Because of non-American restrictions, I am conscious that although the budget is 150k USD, it may not be possible to afford much more than 2 single units initially if I must put a lot of money down.
  • My preference is not to go with turn-key solutions as I agreed with David Green on show #257 that although you get an easy solution – it will eat into equity and I want the practice of going through the whole process myself.

However, the no.1 dilemma for a guy not 49 states away, but oceans away is building up a reliable team to facilitate inspecting/rehabbing/managing a property in a market I’ve not physically been to…

Thanks, if you made it to here, all thoughts greatly appreciated.

Harry

Updated 7 months ago

Going from the title - I am clearly living... in Dubai !

Hi @Harry George ! For the past 5+ years I've been working with a client in a situation very similar to yours: UK citizen, but currently living outside the UK, intrigued by the US real estate market, averse to turn-key solutions, seeking cash flow.

I'd love to put the two of you together so you can compare notes and discuss strategies. If you are interested, connect with me here on BP and I'll make the introduction.

Hi Mitch, thanks for the reply. Sounds awesome. I'll add you right now.

Originally posted by @Harry George :

Hi everyone,

I am British, living in Dubai, UAE since 2014.

Before moving to Dubai I was considering investing in the UK, since then, changes to the buy-to-let regulations has made UK returns far less attractive, so the UK is off my radar.

  • Keen to connect with fellow members in a similar international situation who have bought property in the USA.
  • Would like to hear your story about how you secured your first deal and how it went rehabbing and renting it out.

Current concerns:

  • Differential access to funding/leverage from an American. My research shows that the typical deposit size needs to be in excess of 40 % and access to low/no money down deals is heavily restricted. I appreciate that the ‘cost of doing business’ will be higher as a non-American, any tips or directions to further resources how to reduce that and enable me to spread my cash around more opportunities, rather than forced to fewer properties initially are happily recieved.
  • I have not yet decided on my market location yet, I realise is an important first step. From the BP podcasts, it was interesting to hear investors from lesser known places such as Kentucky or Tennessee - I am not looking for showpiece locations (NYC, SF etc.) - cashflow is the goal. I know this decision should really be made ASAP but there is a huge amount of territory to research. I dare not ask advice where because I’ll get 320 million different opinions and I don’t think my inbox can take it.
  • Purchase strategy – A single-family home is the perfect place to start/learn the ropes, some rehab and off we go. I feel after listening to Grant Cardone on show #250 that it would eventually like to move into multi-family residences (2-4 plexes etc). On the other hand, it was inspiring how Joe Martin on show #243 built up an extraordinary portfolio with just single-family homes.
  • Because of non-American restrictions, I am conscious that although the budget is 150k USD, it may not be possible to afford much more than 2 single units initially if I must put a lot of money down.
  • My preference is not to go with turn-key solutions as I agreed with David Green on show #257 that although you get an easy solution – it will eat into equity and I want the practice of going through the whole process myself.

However, the no.1 dilemma for a guy not 49 states away, but oceans away is building up a reliable team to facilitate inspecting/rehabbing/managing a property in a market I’ve not physically been to…

Thanks, if you made it to here, all thoughts greatly appreciated.

Harry

Originally posted by @Harry George :

Hi everyone,

I am British, living in Dubai, UAE since 2014.

Before moving to Dubai I was considering investing in the UK, since then, changes to the buy-to-let regulations has made UK returns far less attractive, so the UK is off my radar.

  • Keen to connect with fellow members in a similar international situation who have bought property in the USA.
  • Would like to hear your story about how you secured your first deal and how it went rehabbing and renting it out.

Current concerns:

  • Differential access to funding/leverage from an American. My research shows that the typical deposit size needs to be in excess of 40 % and access to low/no money down deals is heavily restricted. I appreciate that the ‘cost of doing business’ will be higher as a non-American, any tips or directions to further resources how to reduce that and enable me to spread my cash around more opportunities, rather than forced to fewer properties initially are happily recieved.
  • I have not yet decided on my market location yet, I realise is an important first step. From the BP podcasts, it was interesting to hear investors from lesser known places such as Kentucky or Tennessee - I am not looking for showpiece locations (NYC, SF etc.) - cashflow is the goal. I know this decision should really be made ASAP but there is a huge amount of territory to research. I dare not ask advice where because I’ll get 320 million different opinions and I don’t think my inbox can take it.
  • Purchase strategy – A single-family home is the perfect place to start/learn the ropes, some rehab and off we go. I feel after listening to Grant Cardone on show #250 that it would eventually like to move into multi-family residences (2-4 plexes etc). On the other hand, it was inspiring how Joe Martin on show #243 built up an extraordinary portfolio with just single-family homes.
  • Because of non-American restrictions, I am conscious that although the budget is 150k USD, it may not be possible to afford much more than 2 single units initially if I must put a lot of money down.
  • My preference is not to go with turn-key solutions as I agreed with David Green on show #257 that although you get an easy solution – it will eat into equity and I want the practice of going through the whole process myself.

However, the no.1 dilemma for a guy not 49 states away, but oceans away is building up a reliable team to facilitate inspecting/rehabbing/managing a property in a market I’ve not physically been to…

Thanks, if you made it to here, all thoughts greatly appreciated.

Harry

 Hi Harry,

Im a US citizen also living away from home (currently in Shanghai) and have recently bought two triplexes with my sister in Colorado, both with a purchase Cap Rate over 9% and bringing in just over 11% Cash on Cash ROI. In Shanghai, I also have investments in small commercial properties and do AirBnB in 2 leased apartments.

I have an accredited dual architecture and building science degree and practiced in architecural and interior design firms for almost 20 years in the states and here in China before diving into the real estate and property development side. I have a strong construction management background as well.

Im looking for the next investment.

Restore it, flip it, hold or even build it from the ground up, no size is too big or too small. What Im really looking for is a strong peforma, a project with purpose, and a partner that is passionate about making a better built environment.

If you're up for sharing more ideas and stategies, feel free to add me.

Cheers,

Troy 

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