Potential Buy-to-Let investor from overseas

Potential Buy-to-Let investor from overseas

Hamburg, Hamburg · Member since 2017 · 6 posts · 2 votes

Thank you for your interest. I am a well traveled BS graduate from Northern Europe and have lived in several European countries as well as Singapore. I currently work in consulting specialising on cross border business within the EEA structure. I have previous experience from the HoReCa sector and have served as a professional soldier in the Norwegian Army. I have held non-executive positions on the board of directors of entities in several sectors. 

I have no previous experience in hands on real estate investing. I have however held a non-executive position on the board of directors of a Norwegian company managing a portfolio of commercial properties to a value in excess of 110 million USD. Furthermore I have worked with large construction companies on road, railway, tunnel and bridge projects. At the very least I know my way around a building site and a little something about the thinking, planning, estimation, bureaucracy and evaluation that goes into a construction project.

After receiving a modest inheritance I was looking for an investment opportunity and turned to real estate as an asset class. Having looked at the ROI in European countries I expanded my research to other English-speaking countries. The US market has a combination of business and government transparency, as well as attractive ROI potential. And that's how I landed here. -After about a hundred podcastst on Youtube.

Last, but not least, I have had a fascination for the US since spending my youth in the Boy Scouts of America and gaining my Eagle Scout rank.

So, what am I looking for? Primarily I'm looking for turnkey companies that provide a BRRR option as well as property management. Being an out of state investor in every state, I'm looking for cooperation partners who want to build a lasting business relationship and are keen on repeat business, as well as tips of lenders who will work with LLCs in foreign ownership.

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Singapore, Singapore · Member since 2017 · 15 posts · 5 votes
9y

welcome aboard Kim! This is my first post here too. I am based in singapore and looking for the same criteria as yourself. Going to keep my eye on this thread!

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  • Michael S.Pro Member
    Biggerpockets Support · Las Pinas, Metro Manila · Member since 2015 · 7k+ posts · 1k+ votes
    9y

    Welcome to BP Kim and all the best in your investing. 

    BiggerPockets
  • Hamburg, Hamburg · Member since 2017 · 6 posts · 2 votes
    9y

    Thank you very much, @Michael S..

  • Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
    9y

    Welcome aboard @Kim M.

  • Hamburg, Hamburg · Member since 2017 · 6 posts · 2 votes
    9y

    Thank you @James Wise, I watched the podcast featuring you. You have an interesting story and I'm impressed by your company.

  • Singapore, Singapore · Member since 2017 · 15 posts · 5 votes
    9y

    welcome aboard Kim! This is my first post here too. I am based in singapore and looking for the same criteria as yourself. Going to keep my eye on this thread!

  • BiggerPockets Support · Manila, Philippines · Member since 2015 · 1k+ posts · 148 votes
    9y

    @Lorenzo Ferdinands

    Welcome to the Biggerpockets community! Glad to have you with us.

    BiggerPockets
  • Singapore, Singapore · Member since 2017 · 15 posts · 5 votes
    9y

    @Rachelle Rodavia, thank you very much!

  • Stockholm, Stockholms län · Member since 2017 · 7 posts · 4 votes
    9y

    Hi Kim, and everyone else.

    It's very nice to hear from other out of country investors since I am very much in the same position. To me the US market holds possibilities that you simply cannot find elsewhere in the world. At least as an English speaker. Europe is a huge market - and many of the countries are very interesting from a real estate investing point of view. The problem I have found is primarily the fact that everybody speaks different languages and many times the bureaucracy is outdated, cumbersome and backwards. Spain and Portugal are good examples of countries with great investment potential but the logistics are just a huge burden.


    I'm currently looking at acquiring an E2 investors Visa and setting up an LLC based on the West Coast, dealing in real estate, long term rentals and vacation rentals. A big part of this would also be to help foreign investors get a more direct access to the US market.
    I'm just starting out trying to be more active with Biggerpockets and I would love to keep in touch and connect further.

    //Ola

  • Hamburg, Hamburg · Member since 2017 · 6 posts · 2 votes
    9y

    Hei @Ola Rask, takk for hälsning!

    I agree with you, the places that have proper returns on investment in Europe are out of my comfort zone. Hungary, Portugal and Spain are a little overwhelming language-wise and from a legal, as well as practical standpoint. Whereas Germany, Austria and Sweden have tenant regulations that make these very unattractive markets. Not to speak of the overheated Norwegian market.

    I wish you luck in your endeavours of setting yourself up in the US, personally I will be investing from afar. Which of course also has its tax benefits. I'll allow myself to send you a colleague request. Would indeed be interesting to keep in touch.

    Brgds Kim  

  • Rental Property Investor · Ålesund, Norway · Member since 2017 · 48 posts · 24 votes
    9y
    Originally posted by @Kim M.:

    Hei @Ola Rask, takk for hälsning!

    Whereas Germany, Austria and Sweden have tenant regulations that make these very unattractive markets. Not to speak of the overheated Norwegian market.

     Hi Kim!

    Can you elaborate on your statements on the Austrian and Norwegian markets? Just curious to hear your opinions. I live in Norway, and I am Austrian, you see ;)

    From the little I have heard and seen, the US really does seem to offer opportunities that I just couldn't find. I keep hearing of deals on houses bought in the US for 50.000$ and rented out for 1.000$ per month. I can only dream of such numbers...

  • Hamburg, Hamburg · Member since 2017 · 6 posts · 2 votes
    9y

    Hi @Severin Sadjina 

    When it comes to Austria I'm uncomfortable with the strong legal situation the tenants find themselves in, with laws and regulations slanted towards them, as well as a very active national tenants association (Mietervereinigung) that will take landlords to court. In combination with a gross rental yield of just under 2,2% it's not worth the risk or the return.

    The Norwegian market has been driven by low interest rates and an oil driven optimism. The fall of the oil price has stabilised at under half it's previous "normal" price, yet people have been buying like they're running out. This has lead to a rise in the Oslo market of 24% in 2016 pulling the prices in the suburbs of the greater Oslo area with it (Which encompasses about a fifth of the population). 

    That was the situation when I wrote my comment three weeks ago. Since then new sales price reports have emerged showing a real drop of 10% in real estate prices in Oslo since January. It can look like the bubble might be about to collapse. Here's a link to an article http://e24.no/makro-og-politikk/renteraadet/sjefoe...

    I'm not going to call myself an expert on the US market, but from what I've read buying a USD 50.000 SFH might be like purchasing the sword of Damocles. A house like that is likely no in the best of areas and might not attract the best tenants. Even though it might cast off rents of USD 1.000/month, the state of the house could soon cost so much in maintenance and capital expenditure items that you have a negative cash flow situation. You might want to look at something a little more expensive.

    I'll send you a colleague request, would be interesting to stay in touch and see how it goes.

    Best regards

    Kim

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