All Forum Posts by: Matt E.

Hi Walter,

I've been meaning to go back and read all of your posts. Keyword: Japan. I'm interested in at least learning about investing in Japan--thinking about it in the long term. I'm paying rent in Tokyo. I've had thoughts of buying a 3LDK and renting out two rooms. For now, I'm starting off back in my hometown (where there definitely aren't any earthquakes). I'm purchasing my first multi-family in the middle of June. It's my summer project and a way grow some roots back home. Giving it a try to see what can be done from overseas.

@kristin shitara

Hi Kristin,

You might have a way around the no credit issue if you find the right lender that is willing to translate your credit in Japan.(????) Maybe a big bank like HSBC or Citibank or the other end of the spectrum, a local bank that is willing to do an in house loan for you.

Also, if your US credit card had a 2% foreign transaction fee, I can recommend the US credit card I use.

????????^_^

Previously, my bank wrote:

Freddie Mac/Fannie Mae provide the funding for fixed rate loans, and require that addresses on tax returns are US addresses. Your tax returns have a Japan address. It's kind of a catch-22, because as I understand it you can only get the tax exemption from the IRS if your tax returns show an overseas address. So – what we can consider for you is a 5/1 ARM at 4.75%, where the interest rate is fixed for the first 5 years, then can adjust annually thereafter. The rate after the initial 5 years is set by using the 1 year treasury bill rate plus 3%. The rate can adjust by no more than 2% annually and 6% lifetime. We also have 3/1 and 1/1 ARM's, but I recommend the 5/1 so your initial rate is set for a longer period of time.

@Marco Santarelli

Thank you for your advice! I'm looking into it. When I file my US tax return, I list my Japan address to be eligible for foreign tax exemption. I assumed this meant that I'm not a 'legal resident' of the US. Perhaps, I can still be considered a resident. I'm usually in the US just a couple weeks per year. Anyway, it's worth knowing if I qualify for a fixed loan.

@Patrick Chu

@Marco Santarelli

I've been reading through your posts. Thank you. The local bank I am using in Wisconsin told me that I can only apply for a variable loan (Fannie Mae) because the address I list on my tax returns is outside of the US. I'm in the process for applying for 30 year 5/1 ARM at 4.75%. Do you think I'd have any luck securing a fixed loan next time around? I'd appreciate your advice.

Happy Golden Week, Kristin and Patrick!

Thank you very much for the recommendations.

Could anyone recommend a real estate lawyer in central Wisconsin (Stevens Point, Waupaca, Appleton area)? Because I live overseas I need to give one of my parents Power of Attorney to purchase my first property in May.

I appreciate your advice.

Thanks for your advice, Kyle. I think that's what I'll do. My parents aren't too far from where you are.

I'm supposed to be closing on the property this May but the bank says the title insurance company requires me to be present at the closing. I would prefer closing in July when I'm home but the seller has to work around her next property and 1031 exchange.

I would appreciate your suggestions. Does being present mean in the US or the state of Wisconsin because of the Patriot Act? Could I sign documents at the US Enbassy in Tokyo using their notary service? Or flying to Guam or Hawaii? Otherwise, I will use a real estate attorney to give one of my parents Power of Attorney. Will that be difficult to do from overseas?

Thank you!

Keywords: long-distance, international, Wisconsin, POA, Japan

I also found out from my bank that I can't get a fixed loan rate, only a 5/1 ARM because my tax home is overseas. Did you have a similar experience?

Hi Dimitri, I'm also based in Tokyo and just starting off in real estate. I'm in the process of purchasing my first property. The majority of banks were not willing to work with me; fortunately, one small community bank in my hometown would give me a fixed rate mortgage. Filing US taxes every year and having a credit rating helped, and patience. My landlady here in Tokyo bought a 3LDK and rents out two of the bedrooms using Craigslist and more recently airbnb. Her new strategy is to buy a place in an older building and completely remodel the interior. For tax reasons, she prefers to move every five years because the tax rate increases after that. Also, she targets mansions with low monthly fees 'mansion' (condo) fees. Wish you all the best. Matt