Starting REI in the US not being a US citizen?
Member since 2019 · 17 posts · 5 votes
I would like to know how to start REI in the US. I've heard that I should contact a lawyer to make the setup. But what is the setup? An account, permissions, forming a LLC etc.? I would love to connect with others who do the same.
By the way I’m from Denmark in Europe and have experience from owning 2 apartments, a bit of rehabing and Selling with profit. I’ve also been in a board of directors in a owners association for 8 year and have great knowledge about PM from working with the PM to manage 11 blocks with about 240 units.
But now looking to do some REI in the US. Does anybody have a direction I could start walking in, so I too can find my financiel freedom? I need knowledge in this besides what I am sucking in here at BP.
Hi Collette,
Happy to help. I went through the process you're asking. Here's what I did:
First: you need to have an address in the U.S. Fortunately, you can get an address by working with a "registrar address" company. Essentially, they provide you with a virtual address and it is perfectly legitimate (the IRS sends me documents to this address, so it's legit!). You can find many such companies online and the registration process is super easy and the service very efficient.
Second: I recommend you setup an LLC. It's pretty easy there are several companies that do this online for you... PM me if you want the company I worked with (actually this company will steps 1 and 2 for you at the same time, awesome!) It's important you decide where you will setup. Different states have different advantages and disadvantages. We chose Texas. Once you setup an LLC you will get its EIN (or company tax number, similar to VAT number in Europe).
Third: you need to setup a bank account for the LLC. This isn't a must but down the line (loans, rent deposits etc. it's easier/required). This can be tricky as most probably a) you will need to physically visit a branch; b) they might ask you for your personal Tax Identification Number. Best thing to do here is to call banks and ask them. We bank with Chase. I would consider a small bank too, as long as they have an online portal.
Fourth: find your tax person. This is your guy or gal who will handle your tax filing, consult you on how to file etc. This isn't needed to setup your business but, looking back, I wish I had done this exercise when we setup and not wait till 2 months before tax filing date (March/April).
That's it, really, pretty easy. The only real hurdle is getting your personal tax identifiction number, everything else is pretty easy.
If you have any specific questions, send me message.
Good luck!
I'm from Canada, investing in multiple states pursuing Flips and Rental properties. Please feel free to reach out and talk in more detail as i would love to share my experience on how we got into the US market, setting up corporate structure, and the whole process.
Take care!
Great posts now have some answers to my many questions ! I am UK based have a rental portfolio in the UK have done some BRRRs and some multi let houses and a new build
Looking to try to do something in the US. It is a different language with terminology but learning
I am wondering if financing is going to be hard being a non US resident ? any ideas ?
I need to focus down on some areas so will hopefully get some inspiration, I am thinking of avoiding expensive areas which will probably have a lower yield (Cap rate), but if anyone can point me in the right direction as I am looking to get things moving before a trip over ...
Vincent,
I am an American living in London for 25 years. I like to say I am a landlord with property from Hawaii to Bradford. I live in London and run a monthly property meeting. 15 years and counting. The 2nd Tuesday of the month.
Happy to share what I know about the two markets.
Anyone else who wants to reach out, just send me questions or post in a thread like this one.
Great posts now have some answers to my many questions ! I am UK based have a rental portfolio in the UK have done some BRRRs and some multi let houses and a new build
Looking to try to do something in the US. It is a different language with terminology but learning
I am wondering if financing is going to be hard being a non US resident ? any ideas ?
I need to focus down on some areas so will hopefully get some inspiration, I am thinking of avoiding expensive areas which will probably have a lower yield (Cap rate), but if anyone can point me in the right direction as I am looking to get things moving before a trip over ...
Vincent,
I am an American living in London for 25 years. I like to say I am a landlord with property from Hawaii to Bradford. I live in London and run a monthly property meeting. 15 years and counting. The 2nd Tuesday of the month.
Happy to share what I know about the two markets.
Anyone else who wants to reach out, just send me questions or post in a thread like this one.
John where in Hawaii do you own? Vacation rental or long term? House or condo?
Colette,
What kind of cash on cash returns and/or cash flow do you get with your investments there? How much do the properties you invest in typically cost? Do you get a lot of appreciation?
I live in an expensive market in Hawaii. Our median home price is 820k, but I found a niche buying low end condos as long term rentals and produce great returns. Currently average around 20% COC and around $400-600/month in cash flow with sales prices around 100-150k. Although appreciation has driven those prices closer to 150k in the last 2 years.