All Forum Posts by: David Gotsill

@Tom Wong & @Kevin Ing - my real estate partner is in and from Hawaii.  I can connect you guys, if you're interested in real estate shop-talk.  He's lived in Japan a few years as well (Fukuoka, I believe).

Hey @Benjamin Jones -  Fellow Japan-based investor here.  Sounds like @Tom Wong & @Aaron Ward are doing it, I'd love to connect with all of you.  Where are you three located?  I'm out West at the moment, but will probably be returning to Tokyo before too much longer.

At the risk of being contrarian, after picking up a couple of investment properties in Japan (one Tokyo, one outskirts), I shifted to a strategy of only investing in the US.  So, Benjamin, if you're American I would give that some thought.

Below is a link to a forum thread in which I outlined why, you can read if it'd be helpful.  I've written similar posts a handful of times, and there are other threads in these forums that discuss investing in Japan.  There are actually quite a few Americans investing in real estate in Japan, but more I think that invest only in the US.  

https://www.biggerpockets.com/...

The real threshold questions are: do you have Japanese permanent residency? how well do you speak Japanese? These are the key to getting a loan. Also, banks typically use a valuation process that does not favor the BRRRR strategy. If your house is old, value is low. End of story. You rehabbed the heck out of it?! Great. It's still old. Value is low. (particularly true for single family homes) Tom and Aaron may have different experiences.

One of the larger ex-pat directed real estate investment communities here in Japan targets all-cash buyers.  Which is fine, especially for non-American expats who can't get loans in their home countries.  BUT...if you're American and can still get loans in the US (the silver lining of having to still file US income taxes while living abroad), then why not use leverage?   

I'll wrap this post by pinging two other Japan-based American investors for their thoughts (until they actually tell me to stop doing this): @Steven E. Quasha & @Daniel Mills
 

@Derek Horn - I'm a Japan-based investor.  There are a handful of us here on BP.

In my experience investing in the US from Japan, the biggest hassle is closing. I believe that the only place you can legitimately get documents notarized is the US embassy/consulate for the area in which you live (maybe not the case if you're a service member). So, notaries are a pain, and quite pricey ($50 per page). With that in mind, having a POA set up with someone local that you trust in order to carry out closing may be something to consider.

Another consideration is if you'll be working at a US company or Japanese company, and if Japanese, then you would likely need to have all your income related documents translated into English for the benefit of a US-based lender.  Again, a bit of a pain.  

But as to the team, etc. - If you already have the people in place, there's really little else that you need to do.  Pinging a couple other Japan-based investors so that they can chime in: @Daniel Mills, @Steven E. Quasha

@Alan Sue & @Stephan Goodiwn - I'm also a Japan-based investor (investing mostly in the US), and would love to connect.  I'll follow up with DMs.  - David

Hi @Andre Lewis - Fellow Japan-based investor here.  Would be happy to jump on a call and talk shop, if  you're interested.  Long-and-short of my experience investing locally, is that most foriegners who do so acquire on an all cash basis.  Where I've heard of financing, it's always been on multi-family properties.

- David

@Colben S. - When we speak tomorrow, remind me to give you contact for a Japanese real estate attorney I know who's in Tokyo but from Aomori.  Great guy.

@Ryan Nicholas - Hey Ryan. Fellow Japan-based REI here. I'm in Kagawa, a stone's throw across Setonaikai from you.

Would love to connect and set up a time to chat, if you're interested.  I don't have any apps to share, but I'm interested in hearing out how you invest.  Always happy to share my experiences as well, to the extent they're useful for you.

I'll send  you a connection invite.

- David

@John Kamble - interesting question.  This isn't legal advice, but here are some thoughts.

If I understand the situation, Friend took out a loan to buy a property, which loan terms required that she move in within 60 days of closing and that she reside in the property for at least 1 year.  Instead, Friend closed, immediately listed the property.  Upon sale, she will repay in full the loan she used to acquire the property.

Although she might technically be in breach, I see this as no-harm, no-foul.  Friend's lender will get repaid, so what's their harm?  They might dislike it, and put her on their &*#$-list (if such a thing exists), but I would not expect it to go any further.

@Alison Zywicke - You might be able to convince the wife to sell, but there's really no way you can force her to do so, especially within your 1031 timeframe.  (even the optics are bad, if you consider it in terms of personal health and welfare of the couple against deferred taxes...)

Best option is probably to start looking for a different horse.  If timing gets really tight, you might reach out to tern-key providers and wholesales.  They may have off-the shelf properties that will permit you to at least complete your 1031, even if not as solid a deal as you had been hoping for.  

@Marcus Robert - Sounds like the prudent move, given what you've described.  You might also be able to get additional information on the liens from a title company, if you have one that you work with.