Investing from Australia, BRRRR!

BRRRR - Buy, Rehab, Rent, Refinance, Repeat
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Investing from Australia, BRRRR!

Tae Kim
Member since 2020 · 18 posts · 10 votes

Hi everyone.

I am a beginner investor from Sydney Australia.

My plan is to set up a LLC and BRRRR in Michigan, Northern Ohio and Western New York ; Lake Erie surroundings :)

I'm looking for anyone I can take this journey together or share own story with me.

I don't really know anyone there, I did live in Buffalo for 4 years when I was in Uni though! ,so if you are a local or have invested there or you are in any industry relevant like Realtor or contactors, please connect with me.

Also any tips would be great please 😊

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Alex Olson
Real Estate Broker · Kansas City Metro · Member since 2015 · 2k+ posts · 1k+ votes
6y

@Tae Kim to add what @Remington Lyman said there is also several books out there on out of state investing. I have read and can recommend David Greene's book on Out of State investing. It takes a deep dive in to what exactly you should look for an how to get it done. The key is taking action, not just learning but doing. 

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  • Ethen Armstrong
    Financial Advisor · Erie, PA · Member since 2020 · 16 posts · 6 votes
    6y

    @Tae Kim That's awesome man! Congrats on getting started on your journey. My friends and I just started investing in real estate recently as well. They live out of state and I live in Erie. I'll give whatever help I can about the market/locations etc. Hit me up. I'm sure there are others here as well that will be willing to help.

    1Reply
  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    6y
    Originally posted by @Tae Kim:

    Hi everyone.

    I am a beginner investor from Sydney Australia.

    My plan is to set up a LLC and BRRRR in Michigan, Northern Ohio and Western New York ; Lake Erie surroundings :)

    I'm looking for anyone I can take this journey together or share own story with me.

    I don't really know anyone there, I did live in Buffalo for 4 years when I was in Uni though! ,so if you are a local or have invested there or you are in any industry relevant like Realtor or contactors, please connect with me.

    Also any tips would be great please 😊

    I recommend you read this article on OOS investing. It explains the importance of creating your core four. You will need to get a local, rockstar Realtor, contract, lender, and property manager.

    https://www.biggerpockets.com/blog/core-four-real-estate-team

    [email protected]614-541-8475Podcast Guest on Show My Job Laid Me Off, So I Replaced My Salary with Rentals
    Reafco512 Reviews
    WebsiteView Page
    2Reply
  • Khaled Morad
    Lender · Tampa, FL · Member since 2018 · 422 posts · 210 votes
    6y

    @Tae Kim Great to see another investor appreciating WNY. I'm a Real Estate Agent here in Buffalo. I'll connect with you!

    0Reply
  • Tae Kim
    OP
    Member since 2020 · 18 posts · 10 votes
    6y

    @Ethen Armstrong

    Hi Ethan.

    Thank you so much for your niceness!

    Yes please, I need to learn every aspects of this business from A to Z and a local like you is ones I need to follow :)

    It would be great if you can share your story and I'm very interesting to know.

    I will send you a connect request.

    Shortly after this.

    Thanks mate!

    0Reply
  • Tae Kim
    OP
    Member since 2020 · 18 posts · 10 votes
    6y

    @Remington Lyman

    Thank you Remington!

    Love your tips and will keep in mind.

    Thank you for the suggestion :)

    Do you know about Toledo,OH area any chance for BRRRR investing?

    Have a good weekend :)

    2Reply
  • Tae Kim
    OP
    Member since 2020 · 18 posts · 10 votes
    6y

    @Khaled Morad

    Thanks Khaled for your kindness and

    Good to see a Buffalonian :)

    I'm looking to learn from experience investors like yourself!

    0Reply
  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    6y
    Originally posted by @Tae Kim:

    @Remington Lyman

    Thank you Remington!

    Love your tips and will keep in mind.

    Thank you for the suggestion :)

    Do you know about Toledo,OH area any chance for BRRRR investing?

    Have a good weekend :)

    I have only been to Toledo twice when my girlfriend interned there. Lots of distressed properties which make great opportunities for BRRRR investors. I am a buy and hold investor so I prefer Columbus, Ohio

    [email protected]614-541-8475Podcast Guest on Show My Job Laid Me Off, So I Replaced My Salary with Rentals
    Reafco512 Reviews
    WebsiteView Page
    1Reply
  • Alex Olson
    Real Estate Broker · Kansas City Metro · Member since 2015 · 2k+ posts · 1k+ votes
    6y

    @Tae Kim to add what @Remington Lyman said there is also several books out there on out of state investing. I have read and can recommend David Greene's book on Out of State investing. It takes a deep dive in to what exactly you should look for an how to get it done. The key is taking action, not just learning but doing. 

    2Reply
  • Michael King
    Rental Property Investor · Navarre, FL · Member since 2019 · 913 posts · 640 votes
    6y
    Originally posted by @Tae Kim:

    Hi everyone.

    I am a beginner investor from Sydney Australia.

    My plan is to set up a LLC and BRRRR in Michigan, Northern Ohio and Western New York ; Lake Erie surroundings :)

    I'm looking for anyone I can take this journey together or share own story with me.

    I don't really know anyone there, I did live in Buffalo for 4 years when I was in Uni though! ,so if you are a local or have invested there or you are in any industry relevant like Realtor or contactors, please connect with me.

    Also any tips would be great please 😊

    G'day mate! We have a thread also for Aussies, you may want to have a look through it to find some information for Aussies.  https://www.biggerpockets.com/forums/311/topics/801577-calling-all-aussies

    Welcome aboard! 

    2Reply
  • Tae Kim
    OP
    Member since 2020 · 18 posts · 10 votes
    6y

    @Michael King

    Thank you so much Michael!

    I'm following the threads now. So hope to chat more soon.

    Are you an Aussie expat living in the states to invest?

    Cheers mate!

    0Reply
  • Tae Kim
    OP
    Member since 2020 · 18 posts · 10 votes
    6y

    @Alex Olson

    Thank you Alex for your genuine help, you are so nice.

    Yes I will have a look at that book :)

    My first question is actually as a alien newbie to find out which state is best to set up a LLC and I'm planning to put another question in the forum.

    Happy investing mate and stay in touch :)

    0Reply
  • Tae Kim
    OP
    Member since 2020 · 18 posts · 10 votes
    6y

    Hello savvy investors :)

    I'm from Sydney Australia,and planning to invest around the lake Erie starting from Detroit area.

    Where would be the best state to set up LLC?

    Is it Wyoming, solely based on the tax?

    I need to set one up ASAP and this is my very first step in this journey to be full time BRRRR investor :)

    Also what would be the cost to set up and annual running cost? Me and wifey will be the joint owner of the LLC.

    Lastly, do you know anyone can good at this at good prices? Or would you say this is something I can do it myself(and no trouble later! :) )

    Love to hear from you all please !

    1Reply
  • Alex Olson
    Real Estate Broker · Kansas City Metro · Member since 2015 · 2k+ posts · 1k+ votes
    6y
    Originally posted by @Tae Kim:

    @Alex Olson

    Thank you Alex for your genuine help, you are so nice.

    Yes I will have a look at that book :)

    My first question is actually as a alien newbie to find out which state is best to set up a LLC and I'm planning to put another question in the forum.

    Happy investing mate and stay in touch :)

    Missouri of course! But I would go to legal zoom or incfile and get one set up right away! ;)

    0Reply
  • Jordan Sinclair
    Investor · Adelaide, South Australia · Member since 2015 · 136 posts · 78 votes
    6y
    Originally posted by @Tae Kim:

    Hello savvy investors :)

    I'm from Sydney Australia,and planning to invest around the lake Erie starting from Detroit area.

    Where would be the best state to set up LLC?

    Is it Wyoming, solely based on the tax?

    I need to set one up ASAP and this is my very first step in this journey to be full time BRRRR investor :)

    Also what would be the cost to set up and annual running cost? Me and wifey will be the joint owner of the LLC.

    Lastly, do you know anyone can good at this at good prices? Or would you say this is something I can do it myself(and no trouble later! :) )

    Love to hear from you all please !

    Hi Tae, 

    Some say it's best to decide if a LLC is needed. Depending on the strategy, the LLC could help or hinder. Generally speaking, the LLC is established in the same state as the property.

    Cheers!

    1Reply
  • Tae Kim
    OP
    Member since 2020 · 18 posts · 10 votes
    6y

    @Jordan Sinclair

    Hi Jordan.

    Good to see a fellow Aussie here and thank you for the message mate :)

    Please I will connect you and PM you, it would be great if we can stay in touch.

    Cheers

    1Reply
  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    6y

    @Tae Kim most of the benefits of creating an LLC in Wyoming or Deleware, are misunderstood. You're usually best off creating the LLC in the state where the property is located.

    Let us know if you have any other Detroit area questions:)

    [email protected]248-209-6824
    Logical Property Management4.9458 Reviews
    WebsiteView Page
    1Reply
  • Tae Kim
    OP
    Member since 2020 · 18 posts · 10 votes
    6y

    @Drew Sygit

    Thanks mate for the reply.

    What about I plan to operate 2-3 states? Still set up one let's say in MI?

    Do you look after or have a connection in Detroit area?

    I am looking for my own team of professionals ; although for first 2 I will try to use existing team from an Aussie group :)

    If you can share any info, it would be great.

    Hopefully I'm not waking you up!

    Cheers

    0Reply
  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    6y

    @Tae Kim Most states will require you to register an LLC from another state if you want that LLC to hold a property. This allows them to track your business for state income tax purposes. So, there's little benefit vs headaches of NOT creating an LLC in each state you buy.

    We're heavily involved in the Detroit Metro area, look us up:)

    [email protected]248-209-6824
    Logical Property Management4.9458 Reviews
    WebsiteView Page
    1Reply
  • Tess L.
    Investor · Dubai, United Arab Emirates · Member since 2020 · 45 posts · 73 votes
    6y

    Ahoy Aussies! 

    I'm also a new investor, dipping my toes in Norwich, NY, Cleveland, OH and Detroit, MI. My LLC is set up in Arkansas because that's where I was originally planning to invest, but at the moment I'm trying a few other markets.

    Thanks for the link to the Aussie forum, I hadn't realised that was there; following now.  

    And BTW, how crap is Australia's real estate market? I'm so glad I realised there are better options elsewhere!

    All the best for sound investing, Cheers

    1Reply
  • Tae Kim
    OP
    Member since 2020 · 18 posts · 10 votes
    6y

    @Tess Lambourne

    Thanks for the msg.

    Sounds exciting investing from Dubai!

    I sent you a connection request so let's plan stay in touch.

    Actually which company did you use for setting up LLC? And how much did it cost?

    I need to set one up asap and here in Aus they are charging me a lot over 1100$usd!

    0Reply
  • Christopher B.
    Investor · Southeast, MI · Member since 2016 · 425 posts · 184 votes
    6y

    I'm local to the Southeast Michigan (greater Detroit area) and Northwest Ohio (Toledo area), so if you have any questions, don't hesitate to ask.  

    1Reply
  • Tess L.
    Investor · Dubai, United Arab Emirates · Member since 2020 · 45 posts · 73 votes
    6y

    @Tae Kim, I set it up myself in Arkansas. It was really easy, you don't need to pay anyone else to do it. You just find a registered agent (via Google) and pay them $50-$100/year, then you can apply online via the state website. 

    There's a company called Northwest Registered Agent, they have a website that has the forms and good explanations. They can also be your registered agent if you want. I found their guides very helpful so that is what I used.

    To get a bank account, I needed an EIN from the tax authorities. I filled out form SS-4 as a Foreign-Owned US-disregarded entity Form 5472, and faxed it to the IRS.

    2Reply
  • Jason Smith
    Flipper/Rehabber · Kalamazoo, MI · Member since 2015 · 34 posts · 22 votes
    6y

    Welcome to the BP family @Tae Kim you will find that many folks on here are very helpful in seeing new investors succeed. I am in the lower part of Michigan (Kalamazoo to be exact) and would be glad to assist you in the areas that you are lacking in. We have a lot of hot deals in this area of Michigan (Specifically rentals) that has cash on cash returns reaching 21% conservatively. If you have any questions regarding the temperature in the MI and the OH markets ( I am currently working in) don’t hesitate to ask.

    Happy hunting

    2Reply
  • Nate Miersma
    Rental Property Investor · West Michigan · Member since 2013 · 130 posts · 25 votes
    6y
    Tae,

    Just a few thoughts from someone who has learned things over the years, sometimes the hard way.

    1. First, first, first - focus on meeting the right person or people who you’ll work with on your investments. Whether related to finding, evaluating/valuing, buying properties, renovating them, etc, it’s by far the MOST important to find trustworthy individuals whose values are aligned with yours. There are a LOT of questionable people in real estate who will be happy to “help” - and who will ultimately cost you far more than you planned for.

    2. Second, do your research for a while until you’ve chosen a region to invest in, then travel there and spend a few days driving the streets you had already researched online and asked about. Do it on your own first so there’s no bias introduced, then maybe bring one or two locals you’re considering partnering with on your first BRRR to hear what they have to say and use the time to get to know them better as well. If they can’t make time to join you, they probably can’t make time to be a good partner for you down the road. 

    3. There are lots of people here and elsewhere who fit the great Texas description “all hat, no cattle.” Take advice from people who are DOING what you want to do and doing it well. If they have advice and want to help but are not involved in real estate investing and can demonstrate they’re experienced and successful at it, you’re listening to bad advice. Maybe good to ask them to show you some of their rental properties while you’re in town doing your personal research of the area (maybe without letting them know ahead of time).

    4. Last, use the BP calculators and cross check them with local “rules of thumb” and other knowledge from investors who are active IN that specific area. They can usually look at a property, look at your numbers, and very quickly tell you if you’re spot on or if you’re missing something bigtime. 

    Hopefully you‘re picking up what I’m putting down here. Focus on getting the people (talent) right first and do it REALLY well, and you will be far more likely to succeed. 

    Nate




    Originally posted by @Tae Kim:

    Hello savvy investors :)

    I'm from Sydney Australia,and planning to invest around the lake Erie starting from Detroit area.

    Where would be the best state to set up LLC?

    Is it Wyoming, solely based on the tax?

    I need to set one up ASAP and this is my very first step in this journey to be full time BRRRR investor :)

    Also what would be the cost to set up and annual running cost? Me and wifey will be the joint owner of the LLC.

    Lastly, do you know anyone can good at this at good prices? Or would you say this is something I can do it myself(and no trouble later! :) )

    Love to hear from you all please !

    2Reply
  • Mike Mocek
    Property Manager / Licensed Realtor · Toledo/Columbus, OH · Member since 2019 · 244 posts · 262 votes
    6y
    Originally posted by @Tae Kim:

    Hi everyone.

    I am a beginner investor from Sydney Australia.

    My plan is to set up a LLC and BRRRR in Michigan, Northern Ohio and Western New York ; Lake Erie surroundings :)

    I'm looking for anyone I can take this journey together or share own story with me.

    I don't really know anyone there, I did live in Buffalo for 4 years when I was in Uni though! ,so if you are a local or have invested there or you are in any industry relevant like Realtor or contactors, please connect with me.

    Also any tips would be great please 😊

    Hello There!  I am a local Realtor and Property Manager in Toledo, OH.  I would be more than happy to network with you and assist where I can :) 

    0Reply
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