Looking to break into Real estate - from abroad!
William AlestamPro Member
Stockholm, Sweden · Member since 2026 · 7 posts · 5 votesLooking to break into Real estate - from abroad!
Most Popular Reply
Nicholas L.Pro Member
Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ voteshello! I don't think thinks makes any sense whatsoever.
19 Replies
- 2moG. Brian DavisPro MemberInvestor · Hatboro, PA · Member since 2016 · 3k+ posts · 866 votes
Welcome! Investing from another country definitely adds a few extra challenges, but plenty of people have done it successfully. I’d spend as much time building relationships as you do analyzing deals. One thing that’s been valuable for me is being part of a group of investors who regularly look at real deals together and learn from each other’s questions and perspectives. Best of luck!
- Stockholm, Sweden · Member since 2026 · 7 posts · 5 votes2mo
Quote from @G. Brian Davis:
Welcome! Investing from another country definitely adds a few extra challenges, but plenty of people have done it successfully. I’d spend as much time building relationships as you do analyzing deals. One thing that’s been valuable for me is being part of a group of investors who regularly look at real deals together and learn from each other’s questions and perspectives. Best of luck!
Thank you Brian! Did you find your group through BiggerPockets or anywhere else?
Best of luck to you too :)
- 2moNicholas L.Pro MemberFlipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
hello! I don't think thinks makes any sense whatsoever.
- Stockholm, Sweden · Member since 2026 · 7 posts · 5 votes2moDo you want to elaborate? Don’t think this comment makes any sense. Please provide some thoughts on why or anything helpful, super unnecessary comment.
Quote from @Nicholas L.:
hello! I don't think thinks makes any sense whatsoever.
- 2moNicholas L.Pro MemberFlipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
i don't think the returns will be high enough to justify how difficult it will be. i don't know anything about you, but i am sure you have other investment options you can consider.
the returns on non-value add, long term rentals in the US have gone to zero. certainly niches like short term rentals, new construction, notes, and other tougher, higher risk strategies can make money, but they are higher effort and higher risk.
i hope this helps - i was being sincere with my comment. i am on here to help new investors not lose money, and not to be a cheerleader.
- Stockholm, Sweden · Member since 2026 · 7 posts · 5 votes2mo
Quote from @Nicholas L.:
i don't think the returns will be high enough to justify how difficult it will be. i don't know anything about you, but i am sure you have other investment options you can consider.
the returns on non-value add, long term rentals in the US have gone to zero. certainly niches like short term rentals, new construction, notes, and other tougher, higher risk strategies can make money, but they are higher effort and higher risk.
i hope this helps - i was being sincere with my comment. i am on here to help new investors not lose money, and not to be a cheerleader.
Thank you for that, now I understand your comment!
How come there is no money to be made on MTR & LTR? Looking at the calculations it seems reasonable and also when listening to other investors. What am I missing here?
sorry if I came off as rude at first, appreciate it! - Real Estate Agent · Metro Detroit, MI · Member since 2023 · 20 posts · 15 votes2mo
Quote from @William Alestam:
Quote from @Nicholas L.:
i don't think the returns will be high enough to justify how difficult it will be. i don't know anything about you, but i am sure you have other investment options you can consider.
the returns on non-value add, long term rentals in the US have gone to zero. certainly niches like short term rentals, new construction, notes, and other tougher, higher risk strategies can make money, but they are higher effort and higher risk.
i hope this helps - i was being sincere with my comment. i am on here to help new investors not lose money, and not to be a cheerleader.
Thank you for that, now I understand your comment!
How come there is no money to be made on MTR & LTR? Looking at the calculations it seems reasonable and also when listening to other investors. What am I missing here?
sorry if I came off as rude at first, appreciate it!There is money in long-term rentals, it just isn't on a monthly cashflow basis. It's in long-term appreciation, while breaking even each month.
If you buy a 300k home in Royal Oak, Michigan and it appreciates to 600k in 20 years, you have turned your 75k down-payment (20% of 300k) into 600k in 20 years, assuming the home is paid off by then via your rents.It's really the only way in the world to turn 75k into 600k in 20 years.
The only issue is you won't really see monthly or yearly income from it, but it's an A+ strategy to park money and be super rich by the time you retire and your kids will be set.
- 2moEvan HoppleBusiness MemberReal Estate Agent · Columbus Cleveland Dayton, OH · Member since 2023 · 284 posts · 420 votes
Quote from @William Alestam:
Hi, I'm an 27 year old Swede and big fan of Bigger Pockets. I've been researching and planning my first investment in real estate in the US. I would love to get in touch with people that has done this themselves, out of state or out of country. To look for inspiration but also for knowledge sharing and guidance!
Welcome to BP!
One thing I've noticed with successful international investors is that they're very active in the market, even from abroad. They spend time learning the market, building relationships, and putting together a strong local team. The time difference can be a challenge, but they do what they can to make it work.If you're buying with cash, the process is generally much simpler since you don't have to navigate U.S. financing as a foreign national. Once you have the right team in place, each additional acquisition becomes much more straightforward.
Reafco Real Estate- Stockholm, Sweden · Member since 2026 · 7 posts · 5 votes2mo
Quote from @Evan Hopple:
Quote from @William Alestam:
Hi, I'm an 27 year old Swede and big fan of Bigger Pockets. I've been researching and planning my first investment in real estate in the US. I would love to get in touch with people that has done this themselves, out of state or out of country. To look for inspiration but also for knowledge sharing and guidance!
Welcome to BP!
One thing I've noticed with successful international investors is that they're very active in the market, even from abroad. They spend time learning the market, building relationships, and putting together a strong local team. The time difference can be a challenge, but they do what they can to make it work.If you're buying with cash, the process is generally much simpler since you don't have to navigate U.S. financing as a foreign national. Once you have the right team in place, each additional acquisition becomes much more straightforward.
Thanks for the input Evan!
Totally agree on that
- Member since 2026 · 4 posts · 0 votes2mo
Nice to meet you!
Maybe it's because I'm in Florida, but I've actually met quite a few people who buy rental properties here from abroad. They all have different reasons — hoping to send their kids to a specific college someday, wanting to take extended family vacations, hoping to rent to travelers from their home country. Honestly, I think it's great that you're taking this leap!
My first recommendation is to nail down where you want the property located, if you haven't already (I noticed your post is tagged Detroit — is that already the plan, or still open?). The US is huge, and every market functions differently — flight paths, specific destinations, all of it matters. Figuring out a market from abroad is genuinely challenging, but a forum like this is full of people who are passionate about where they live or invest, so lean on that.
US real estate has a lot of nuance that even people who grew up here don't always know — most people have a ton of questions on their first deal, US-born or not. One thing worth knowing: if you secure financing in your home country and pay cash in the US, you end up with a US-based asset that can serve as collateral for future properties. Lenders can get cautious underwriting deals when everything — buyer and assets — is based abroad. So finding not just an investor-friendly agent, but one who's specifically experienced with international buyers, is going to matter. Depending on the market you choose, that skillset might be harder to find.
Once you close, you'll also want a property management company to be your boots on the ground. Start that search early, and see if you can get an agreement that includes walkthroughs and check-ins on your behalf — that'll give you more confidence before putting real money into something sight unseen. That PM relationship is probably going to be one of the biggest factors in how this goes for you.
- Stockholm, Sweden · Member since 2026 · 7 posts · 5 votes2mo
Thank you so much for all the information! I’m doing my dd before I dive in, Florida is an option as well, but from what I’ve seen Michigan might fit my initial budget best!
appreciate that, thank you! - 2moDrew SygitBusiness MemberProperty Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
Quote from @William Alestam:
Hi, I'm an 27 year old Swede and big fan of Bigger Pockets. I've been researching and planning my first investment in real estate in the US. I would love to get in touch with people that has done this themselves, out of state or out of country. To look for inspiration but also for knowledge sharing and guidance!
We've helped a LOT of foreign investors in our Detroit market.
What specifically do you want to know?
Logical Property Management4.9459 Reviews- Stockholm, Sweden · Member since 2026 · 7 posts · 5 votes2mo
Quote from @Drew Sygit:
Quote from @William Alestam:
Hi, I'm an 27 year old Swede and big fan of Bigger Pockets. I've been researching and planning my first investment in real estate in the US. I would love to get in touch with people that has done this themselves, out of state or out of country. To look for inspiration but also for knowledge sharing and guidance!
We've helped a LOT of foreign investors in our Detroit market.
What specifically do you want to know?
Hi Drew,
Are you able to help and source listings? let's have a chat? - 2moDrew SygitBusiness MemberProperty Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
Quote from @William Alestam:
Quote from @Drew Sygit:
Quote from @William Alestam:
Hi, I'm an 27 year old Swede and big fan of Bigger Pockets. I've been researching and planning my first investment in real estate in the US. I would love to get in touch with people that has done this themselves, out of state or out of country. To look for inspiration but also for knowledge sharing and guidance!
We've helped a LOT of foreign investors in our Detroit market.
What specifically do you want to know?
Hi Drew,
Are you able to help and source listings? let's have a chat?DM us please as we cannot post an answer here in violation of BP rules.
Logical Property Management4.9459 Reviews
- 2moArman AhmedPro MemberReal Estate Agent · Columbus Cleveland Dayton, OH · Member since 2024 · 2k+ posts · 948 votes
Quote from @William Alestam:
Hi, I'm an 27 year old Swede and big fan of Bigger Pockets. I've been researching and planning my first investment in real estate in the US. I would love to get in touch with people that has done this themselves, out of state or out of country. To look for inspiration but also for knowledge sharing and guidance!
Investing in the U.S. from abroad is definitely possible, but having the right local team is the key. A lot of international and out-of-state investors are finding opportunities in Midwest markets like Ohio because of the lower acquisition costs, strong rental demand, and cash flow potential. Focus on learning how to analyze deals, build relationships with local professionals, and create a team you can trust before jumping in. - 2moVijay FriedmanBusiness MemberMiami, FL · Member since 2026 · 766 posts · 123 votes
Quote from @William Alestam:
Hi, I'm an 27 year old Swede and big fan of Bigger Pockets. I've been researching and planning my first investment in real estate in the US. I would love to get in touch with people that has done this themselves, out of state or out of country. To look for inspiration but also for knowledge sharing and guidance!
@William Alestam
Welcome! There are quite a few investors who have successfully built U.S. portfolios while living abroad. I'd spend time learning the local market, building relationships with a great property manager, agent, and contractor, and understanding the financing options available to international investors before making your first purchase. That groundwork can make a huge difference. - Real Estate Agent · Chicago, IL · Member since 2017 · 2k+ posts · 2k+ votes2mo
Buying from out of the country in a cashflow low income area will be a nightmare you are better off lighting the money on fire. Yes anywhere that cashflows on smaller price points will be low income tenants who wreck the place and do not pay rent. I have had out of country buyers do well but they buy class A and B 3 or 4 units around a million dollars.
- 2moDrew SygitBusiness MemberProperty Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
Quote from @William Alestam:
Hi, I'm an 27 year old Swede and big fan of Bigger Pockets. I've been researching and planning my first investment in real estate in the US. I would love to get in touch with people that has done this themselves, out of state or out of country. To look for inspiration but also for knowledge sharing and guidance!
The biggest mistake we see OOS investors making in our market, over and over again, is not fully understanding Neighborhood/Property/Tenant Classes and how they impact your probability of success!
They all run their ROI numbers assuming Class A results – when buying Class B, C & even D rentals.
Then they’re shocked when their performance expectations aren't met😞
If you choose to invest OOS, and have little to no landlord experience, we highly recommend targeting Class B Neighborhoods/Properties/Tenants. If you target Class C, you better be prepared emotionally & financially for plenty of challenges.
You can find Class B properties in the Midwest to BRRRR, but it will take more digging and YOU will need to understand how to analyze & identify them - because a lot of agents, wholesalers, PMCs, etc. will try to sell you Class C or D misrepresented as Class B:
- Many of them don't know/care what Class the properties are, so they're incompetent.
- Others know exactly what they are doing, so should be labeled as crooks!
EITHER WAY YOU LOSE!
Why is Property Class so important for investors to understand and apply in their investing strategies?
Because the Property Class dictates the Class of the tenant pool that the property will attract.
The Tenant Class greatly impacts rental income stability and property maintenance/damage by tenants.
Both Property Class and Tenant Class will affect what type of contractors, handymen and property management companies you should target and be willing to deal with a property.
The Property Class will also impact the maintenance & renovations you do to, “Maintain to the Neighborhood/Market”.
Why is that important?
Well, if you buy & renovate a property in Class D area to Class A standards, what Tenant Class will actually rent it?
Or, if you put several Class D tenants in a Class A four-plex, what do you think will happen to the property?
What do you think will happen if you rehab a Class D rental to Class A standards?
So, if you fail to apply the correct assumptions to a property, your expectations won’t be met, and it may even be a financial disaster.
We use the following to rank Property Classes, in order of importance:
- Property Tenant Pool: closely linked to location, but not always.
- Property Location: closely linked to tenant pool, but not always.
- Property Condition & Amenities: it’s important to, “Maintain to the Neighborhood/Market.”
Key metrics for each Property Class:
Class A Properties:
Tenant Pool: Majority of FICO scores 680+, no convictions/evictions in last 7 years.
Tenant Default: 0-5% probability of eviction or early lease termination.
Section 8: Class A rents are too high and won’t be approved.
Vacancies: 5-10%, depending on market conditions.
Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Class B Properties:
Tenant Pool: Majority of FICO scores 620-680, some blemishes, no convictions/evictions in last 5 years.
Tenant Default: 5-10% probability of eviction or early lease termination.
Vacancies: 10-15%, depending on market conditions.
Cashflow vs Appreciation: Typically, 1-3 years for positive cashflow, balanced amounts of relative rent & value appreciation.
Section 8: Class B rents are usually too high for the Section 8 program.Class C Properties:
Tenant Pool: Majority of FICO scores 560-620, many blemishes, but should have no convictions/evictions in last 3 years. Verifying recent 2-years of rental history very important! Same for 2-years of job/income stability.
Tenant Default: 10-20% probability of eviction or early lease termination.
Section 8: Class C rents usually meet program requirements, proper screening still recommended.
Vacancies: 10-20%, depending on market conditions and tenant screening.
Cashflow vs Appreciation: Should cashflow immediately, at the lower end of relative rent & value appreciation.
Class D Properties:
Tenant Pool: Majority of FICO scores under 560, little to no good tradelines, lots of collections & chargeoffs, but should have no convictions/evictions in last 12 months. Verifying last 2-years of rental history and income/employment extremely important to find the “best of the worst”.
Tenant Default: 20-30% probability of eviction or early lease termination.
Section 8: Class D rents meet program requirements, often challenges to pass Section 8 inspection.
Vacancies: 20%+, depending on market conditions and tenant screening.
Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciation.
Where did we get our FICO credit score information from?
Check out this chart:
FICO Score
Pct of Population
Default Probability
800 or more
13.00%
1.00%
750-799
27.00%
1.00%
700-749
18.00%
4.40%
650-699
15.00%
8.90%
600-649
12.00%
15.80%
550-599
8.00%
22.50%
500-549
5.00%
28.40%
Less than 499
2.00%
41.00%
Make sure you understand the Class of properties you are looking at and the corresponding results to expect.
For example, Metro Detroit has 132 cities and the City of Detroit 183 Neighborhoods, which we’re analyzing and classifying to make better investing decisions.
Horror Stories from those that did NOT Understand What they were Buying:
https://www.biggerpockets.com/forums/48/topics/1137397-baltimore-a-path-to-never-ending-pain
https://www.biggerpockets.com/forums/432/topics/1231840-sell-at-a-loss-or-rent-at-a-loss
https://www.biggerpockets.com/forums/311/topics/840134-memphis-turnkey-tenant-turnover-costs
Logical Property Management4.9459 Reviews
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