Is there anyone who is doing long distance investing? investing out of there country or state? Cause I want to know what measures do I have to take before investing in another country or state.
@Jasraj Singh investing from Tel Aviv Israel for the past few years. Have a mix of small multi family and single family totaling 35 units. All in upstate NY. It’s an adventure and time zones make it a challenge.
That’s brilliant! But have you been there and check the property before investing there?
@Jasraj Singh we represent clients from around the world. My recommendations would be to ask the agent how they accommodate showings of properties for you from a distance, ask for references, and talk with them in person.
We handle acquisitions, management, and rehab for our clients so the client really needs to trust us with their money (we also need to trust them also) When we talk with clients we reassure them that we never have access to their rents (electronic payments go to their accounts), or bank accounts. We pay for rehabs out of our pocket and get reimbursed from the client.
You don’t want a management company or contractor having your money in their pocket it is too hard to collect from another state or country.
I would recommend FaceTime communication in the beginning so that you can feel comfortable with the person. If you have any hesitation with the person move on.
Thats great! But i think i need to be a citizen there so that i can borrow some money from the bank to buy the property?
If you want to invest overseas, you first need to have goals and strategies to lead you to your goals, as you would if you'd invest at home in India or any state of the US.
You asked how you find out in which countries to invest. This will first depend on your objectives and strategies. Then, you have to select places that are investor friendly, that have a legal system you can rely on, that allows you to own properties freehold (if that's what you want) and that will give you a satisfactory return. You need to take into account the economics and the politics of the place as well.
Yes it's not easy and it takes time and this is why not many people are knowledgeable about it. However, that's normal when you think about it. If it was easy, everybody would be doing it and the opportunity to make great returns might not exist or it might be much less profitable.
Great! thanks a lot! I know I want to start with multi-family rental properties and I've done some research about affordable cities to invest in which I've read articles about michigan, Indianapolis, Kansas and Texas and I'm a little confused about each but I just can't figure out what to look for in a market before investing there like how do you find out what's the rental income there or how much cash flow can i have monthly
I'm in Indy would love to connect with you....and see if I can add value to you
I work with a couple out of town investors in northwest Indiana... I can say if you aren’t going to be as hands on as possible stick to rentals, and a good property manager.
We have a small team, and we just successfully closed on a flip for an investor out of New York who never stepped foot in the property.
Thats great! But i think i need to be a citizen first because i need to borrow some money from bank first so that i can buy the property? Do you have any suggestions?
Looks like I might be a bit late here, but I'd always say that picking your market based off of real numbers is the most important thing to do. If you look up "Neal Bawa analyze a market" on youtube, you'll find videos of a couple presentations explaining exactly what metrics to look for and follow. The 5 city-based metrics are
1. Population growth
2. Median Household Income
3. Median House or Condo Value
4. Change in Crime Levels
5. 12-Month Job Growth
Most of the data can be found on city-data.com
Once you've picked a market, definitely read David Greene's books to see how you should be managing and finding properties. Good luck!
Looks like I might be a bit late here, but I'd always say that picking your market based off of real numbers is the most important thing to do. If you look up "Neal Bawa analyze a market" on youtube, you'll find videos of a couple presentations explaining exactly what metrics to look for and follow. The 5 city-based metrics are
1. Population growth
2. Median Household Income
3. Median House or Condo Value
4. Change in Crime Levels
5. 12-Month Job Growth
Most of the data can be found on city-data.com
Once you've picked a market, definitely read David Greene's books to see how you should be managing and finding properties. Good luck!
Household income is calculated by combining all of the income from those living in a household together. The median is found by listing all of those household incomes from a given area from least to greatest, then finding the center of that list. The data point in the middle of the list is the Median.
I live in Seattle and invest in Norfolk, VA. I grew up near Norfolk, so I know the area well, and my team is comprised of people I've known for 15+ years. I still have family there, so whenever I want to visit them, I can write off some of the travel costs as a business expense (as long as I'm meeting with my team and/or visiting the properties). I intend to invest only in areas where I would want to visit.
@Jasraj Singh, I have invested long distance but not in a traditional sense. I'm in the navy and stationed in Norfolk, VA. I have researched and bought properties in my local area while I have been deployed to other parts of the world. Although, it's different than what a lot of people are talking about it requires a lot of the same processes. You need to make sure you have a team established in the area and you have to research the areas that you want to invest in. I will admit, it was helpful to have the firsthand knowledge of my investment areas to match up with what I was seeing online but if you have a good team you can over come that.
@Cheryl Vargas I would say our properties in the Alabama market give us the best cash flow. We are specificially in Montgomery and Prattville. There are other good markets in Alabama but we have not invested in those areas yet. The cash flow is specifically a result in the extremely low property taxes and affordable housing. Demand for rents has still be strong.
Thanks Kim!
I didn't know about the Montgomery and Prattville areas, but I'll look into those markets more. I'm looking to buy a duplex or 4-plex in the midwest within the next 6 months. Perfect time with our market downturn! Just trying to decide on a city now and then find a team.
Might you have any recommendations for realtors and property managers and contractors in that area?
@Cheryl Vargas yes, some of these markets outside of the popular ones like Birminghma or Memphis are sneaky good. I manage my own properties so I cannot recommend a property manager for you for I have a good realtor in Montgomery/Prattville that I could recommend. I also have maintenance resources there. Just message me if you need the information and I can make an introduction for you if you like.
Household income is calculated by combining all of the income from those living in a household together. The median is found by listing all of those household incomes from a given area from least to greatest, then finding the center of that list. The data point in the middle of the list is the Median.
I live in Seattle and invest in Norfolk, VA. I grew up near Norfolk, so I know the area well, and my team is comprised of people I've known for 15+ years. I still have family there, so whenever I want to visit them, I can write off some of the travel costs as a business expense (as long as I'm meeting with my team and/or visiting the properties). I intend to invest only in areas where I would want to visit.
@Jasraj Singh, I have invested long distance but not in a traditional sense. I'm in the navy and stationed in Norfolk, VA. I have researched and bought properties in my local area while I have been deployed to other parts of the world. Although, it's different than what a lot of people are talking about it requires a lot of the same processes. You need to make sure you have a team established in the area and you have to research the areas that you want to invest in. I will admit, it was helpful to have the firsthand knowledge of my investment areas to match up with what I was seeing online but if you have a good team you can over come that.
How is it investing a Costa Rica? My wife and I have been giving it some serious thought to do that but not sure of all the hopes we might have to jump through.. thanks for any insight!
@Mike Lambert this is an amazing thing you’re doing! I can’t imagine where I’d start if I wanted to invest in all those different countries. Let me first ask you. Are you see great returns from these countries? And has the governments from these countries done shady things with your real estate that you own? Thanks for any insight!
Of course, it depends on what you do. I focus on vacation rentals. You can get great returns but, of course, it depends what and where you buy and how good of an operator you are.
For example, you could typically earn as much as you'd do in Fort Lauderdale or more since the season could be longer. However, the price of the property would be (much) lower. Then, as many local governments restrict short-term rentals in the US, they are oftentimes highly welcomed and even encouraged overseas as they bring tourists that are a boon for the local economy. Since the wealthy locals are generally property owners and the rest of the population typically cannot afford to rent the type of properties that the visitors rent short term, it's practically guaranteed that no restrictions on short-term rentals will be implemented in the near future in many places.
The risk of governments tampering with the property rights for foreigners is inexistent to negligible in most countries, as it is against their interests to do so. There are a few exceptions, like Venezuela. They are pretty obvious though.
Hi @Kevin Sabatino. Whatever you do, I would recommend the new book The Hands-Off Investor by BP contributor, Brian Burke. As well as the recommended book by David Greene.
@Jasraj Singh You will find many people of invest outside of the market they live in. It is a skill and will require patience and fortitude. Define your metrics i.e price to rent ratio, cost of entry, landlord tenants laws, population growth, supply/demand etc.... Once you have nailed down your metrics, begin researching markets that fit. Here is a link that is great for understanding markets on a macro level
@Jasraj Singh You will find many people of invest outside of the market they live in. It is a skill and will require patience and fortitude. Define your metrics i.e price to rent ratio, cost of entry, landlord tenants laws, population growth, supply/demand etc.... Once you have nailed down your metrics, begin researching markets that fit. Here is a link that is great for understanding markets on a macro level