Rich,

I will suggest doing a little more research on the US locations, shortlisting the market to 3-4 locations and then fly down to visit each location personally and invest in one you feel most comfortable with. If you are looking to buy multiple properties, then it would definitely make sense to fly down and pick a location that you have…[Read more]

Hi John,

Good post. I have some comments.

1) Property Management – Property Management is a necessary evil for long distance property owners. The simple fact is no one will care about your property as much as you would, but you have to have a property manager involved if you own a property overseas. The best thing to do is find a property…[Read more]

janemcewen wrote:
Baruchmax : can you explain your comment 3.3) If you are purchasing a multi-unit, PLEASE make sure that all the units are legal per the city and any other government authority. You can find this out by calling the city's building department. Just give them the address and ask them "What is the zoning for this property?" and…[Read more]

Jay,

Thanks for that information. I am considering getting a real estate license. From your note, it definitely sounds like it will be beneficial. Thanks again for the information

Jane,

I am glad you found the information useful. Good luck in your search. Make sure you do all the due diligence. Below are some of the things I consider in my purchase of investment property, I hope you find this helpful:

1) Does the property appear to be in a safe neighborhood? What is the condition of the other houses on the block? If the…[Read more]

Alex SC wrote:
Strongly disagree some of the strongest teams  in the USA buy fix, and manage there properties in house.We have over 150 in house adding 10 – 15 monthly. Biggest Memphis team has 800  properties and Indianapolis team has over 1000. I not sure  about Jay  please chime in I think you manage over 200 .

Alex,

I agree with the poi…[Read more]

Hi Jane,

It is definitely a very exciting to be buying first investment property, specially as an overseas buyer. Below are some of the questions I would ask:

Realtors

1) How many overseas investors have you worked with?
2) Can you provide me references for these overseas investors?
3) If you like some property, ask the realtor to provide you…[Read more]

No, I am not a licensed real estate agent. My main source of income is from the rental properties that I own and my long term goal is to keep buying as many properties as I can.

I help some overseas buyers purchase properties that I would purchase myself, if I didn’t have my cash tied up right now. I would never sell someone anything that I…[Read more]

Really great advice on purchasing properties from someone local who has knowledge of the area AND who owns some properties in the area themselves. If they say they own some properties in the area, ask for proof of ownership AND do an independent check to make sure they are being honest.

DUE DILIGENCE DUE DILIGENCE AND SOME MORE DUE DILIGENCE!

I…[Read more]

My Australian client actually flew down and walked through this property before purchasing it. He couldn’t believe the returns that he could get in this market. I gave him a tour of all my properties and showed him the REAL numbers.

He felt comfortable and made an offer the same day.

I agree with Jay above. I just mentioned in my other post that condos are rarely a good investment deal, because of the reasons Jay mentioned above. Also, because you NEVER own the condo free and clear, you ALWAYS have the monthly HOA bill whether you have a mortgage or not.

If you must buy a condo, like Jay said, purchase in a complex that is…[Read more]

The Australian client is paying me for my time for this property, around $2k. I helped my Australian client with some properties in Phoenix, but I wanted to help them purchase something that actually makes money and I told them, just pay me for my time and if you like this property, we can set up some compensation structure for any future…[Read more]

Sorry, one thing I forgot to add was that the property I am helping my Australian client purchase tomorrow is NOT in a bad neighborhood.It’s in a diverse neighborhood made of blue collar working class people. I own multiple properties in this neighborhood myself and I have visited my properties after dark without any fears

Jay,

I agree with your approach for the most part. Generally, people selling to overseas investors calculate cash flow using the following formula:

Cash Flow = Rent – PITI (Principal, Interest, Taxes, and Insurance)

There a lot of other expenses that go into owning a rental property. Though this is a GREAT rental market, but there has to be at…[Read more]