All Forum Posts by: William Anderson

A non-us person can buy here.  If you pay cash, buy all day.  For tax purposes you should create an llc and obtain an FEIN from the IRS.  You will still be subject to visa requirements.

Financing for a non-citizen is problematic.  It can be done with an experienced loan broker, there are a few programs that will work but interest rates are higher.  

Decide where you want to buy, contact a real estate agent there, that person will help you through he process.  If they don't know, they can get assistance from their broker.

It's time to think out of the big city box.  The larger cities and big metros are too expensive not only the cost of property but the taxes and fees required.  Not to mention crime and other reasons why people are leaving those areas.

This is a big country with lots of areas where you can invest and earn a profit.  Some areas offer much less risk than the big cities as well.  Tax policies in some areas are favorable in the long term which means that a few years down the road you will not be taxed out of your property.

Start looking in the $175-$250k range for good returns with less down.  The market that I serve is the Mississippi Gulf Coast where the median house price is just at $200k.  A client just accepted an offer on a $78k fixer.  You are on the right track.  Time for me to plug this course: 

https://keyladder-training.tea...

Everything you want to know about investing in residential real estate.  It may answer some of your questions.  There is a free mini-course.  

One last example, I have a client from another state in the closing stage on a property that started at $240k, he bought it for $160k. This property will require about $20k in work for a new roof and upgrades. He is going to use it as an STR.

Consider buying a second home along the Mississippi Gulf Coast with 10% down if you do not already have one.  You could put more down if necessary to make the numbers work but remember, leverage.  This new world with interest rates in the 7-8% range is causing most of us to reassess our goals about where to buy, when to buy and what to buy.   Fortunately rent rates are on the rise.  Good luck

Jim, if you ever come down to the coast, consider staying at one of our places:  ChristiesGulfBeachRentals.com 

People who visit the beach love pools.  I own many vacation rentals within walking distance of the beach on the Mississipppi Gulf Coast.  You would think that playing around at the beach would be all the water they want.  Not true.  Our property management company has several condo properties with pools and they get rented frequently.  You may not be able to charge more but if it rents more often the dollars may be there.

I think your research onto this by looking at ABB and VRBO can help.  

Logan, congratulations on starting your new career. Most real estate agents do not understand investment property. Some own a house or two they found a deal on but that does not make them an "investor". Look around and as others have mentioned ask if they own investment properties in the area you are interested in e.g. residential, STR, commercial, etc.

I would also suggest as you get started, understand the norms in our business.  I have a property listed for sale and I just received an offer from another agent.  The offer was for an amount that was 65% lower than the asking price.  I contacted the agent and he told me this was a young client just getting started.  If you want to build wealth, be serious and deliberate.  

That person wasted everyone's time.  The offer was rejected with no counter.  Most of us with investment skills will bend over backward for a talented and serious new investor but there are limits.  I mention this because it's important to respect the opinion of the experienced mentor.  

We may be able to work together.  I am a broker on the coast.  If you find a property that pencils out let me know.  Most of my clients don't care where they invest, they are just greedy, and they want to earn a profit. :)

I like Joseph's response about never being a perfect time to start investing.  He is correct.  I made my first investment decades ago and I have bought real estate in every type of economy you can imagine starting with the big decline in 1989.  Another thing that Joe mentioned is that you need to have the financial strength to get the best deals.  Get your credit score into the 800s, and have six months of operating capital to weather any ups or downs.

Rents are indeed up everywhere something that I have been waiting for.  Higher rents are the key to wealth building.  You can always find a deal on a property, it's your ability to capitalize on the higher rents.  I am looking at a property for a client now.  Current rents on the duplex are $550, the market is $1,150.  This is what I mean.  The same owners are struggling with higher utility rates, maintenance costs, etc.  This is a great time to make offers and get the rents up.

And hire a property manager.  If you want to grow your business get out of the weeds.  Work the cost into your calculations and if it does not work move to a property where you can afford a property manager.  In my area, they charge 10%.  

Forgot to mention that many utility companies will give you a free thermostat as Bill mentioned.  They do it all over CA and I recently saw a notice from my utility company.  You may want to look into it.  FYI, some come with requirements to be on their conservation program where they can control the thermost.  

Our property management company uses the Honeywell 9000 as John mentioned.  The property manager has all of them on his smartphone and adjusts them before a guest arrives and when they leave.  As Lauren mentioned, we monitor the humidity since all of ours are near the beach.

The guests often turn the fan on and we turn it off remotely.  People don't understand that the fan should not be turned on, not only for the humidity but because it's not good for the AC/Heating system to run when the climate part is off.

We have not yet installed the wifi water heater devices but we will. I still think that it's ironic when someone comes to the beach at 85 degrees, bakes all day in the sun, and comes back to the STR and turns the AC down to 50. They never get below about 65 but I see them try.

We have a few properties with views of the beach and when I drive by, I see the front door wide open with the AC down to 60.  The cost of each kWh went up this year and I am sure all of us are seeing the increase in power costs.  Where are all of these environmentalists?  Guess they don't use STRs.

Mississippi is an interesting state.  In general the lowest cost of real estate in the country.  My focus is on the Gulf Coast.  Our agency works with locals who are buying their first homes or just moving but my effort is working with out-of-state investors.  

I own several properties as full-time rentals and STRs on the Coast.  Prices here have gone up as they have everywhere making it a bit more difficult but not impossible to find a jewel.  We offer our clients the analytical approach.  They tell us what their goals are and we find what they want within their goals.  

I have a listing in Ocean Springs (county) for $75,000 the lowest price in the area on the MLS. $20k of improvements and it's good to go for the mid $ 150s or as an STR. A few years ago it was more common to find properties in this price range now most have moved into the $150k price and are up for a fixer.

Being on the coast, we have year-round visitors which is great for our economy and this good economy has been pushing rents up which is good for investors.