How to Invest in Real Estate in the United States

The United States of America is one of the best places for a foreign national to invest in real estate. The government is stable, taxes are relatively low, and there are legal protections in place to protect buyers from being taken advantage of by sellers. Follow the steps below to improve your chances of making a profitable investment in real estate in the USA:

Step 1: Consult an accountant or tax lawyer

Owning real estate in the USA has the potential to create tax liabilities for foreign investors. Local, state and federal (national) governments all impose different kinds of taxes on property owners. Before buying property in the USA, you should consult an expert on American taxes and on taxes in your own country to make sure you understand the relevant laws.

Step 2: Select one part of the USA to invest in

The USA is a large country. There is no national real estate market. Instead, each city or region has its own market, with prices rising or falling based on local factors, including employment, availability of credit, and quality of local services and amenities, among others. You should choose one area to invest in, in order to make managing your property easier. If possible, select an area that is easy for you to travel to, since you will probably want to visit your investments at least once per year to ensure that your managers are doing a good job.

Step 3: Select the type of real estate to buy

Real estate assets are divided into residential (single family homes and small apartment buildings between two and four units), multifamily / large apartment buildings, retail, office, industrial and raw land. Each of these types of assets has its own advantages and disadvantages. In general, residential real estate is the safest asset class for new investors, since the government has put in place many regulations to ensure that buyers of homes are not cheated by sellers. Buyers of other types of real estate do not receive the same type of protection.

Step 4: Select a real estate agent to assist you

You will need a real estate agent to assist you in purchasing properties in the USA. Fortunately for you, in most parts of the country, the agent representing the buyer is paid by the agent representing the seller, so working with an agent will not cost you money. You should select an agent who has experience with the type of asset you want to buy in the area in which you want to buy. To find a reliable agent, contact the National Association of Realtors, an organization which only includes honest, reputable agents.

Step 5: Select a management company

As a non-resident owner, you will need a management company to manage any properties you purchase. Your manager will lease your property, collect the rent, and make any necessary repairs. As with selecting your agent, it is very important to choose a management company with experience managing the kind of assets you are buying. A company that specializes in office buildings will most likely not know how to manage a portfolio of single family homes. Ask your agent to recommend some management companies to you. Contact them and ask them to submit a proposal for how they would manage your property. Make sure to ask for and check references from other property owners with whom they work.

Step 6: Make offers

Once you have an agent and a good management company, you are ready to begin making offers. You may have to make offers on many properties before you find one that you like at a reasonable price. Do not allow your emotions to overtake your rational mind. Understand in advance what you are willing to pay and be ready to walk away if the seller is not willing to take your price. Don't worry--you will eventually find the deal or deals you are seeking!

Buy Foreclosures with Other Peoples' Money

Over the next few years, millions of homes in the United States will be foreclosed on by banks. This is very sad for the owners. It's also the greatest buying opportunity in the history of American real estate.

Millions of homes are changing hands at very low prices, sometimes for as little as $10-15,000. Many times, you don't even need to renovate or remodel the homes to make a profit. Just buying them cheap and then holding on to them until prices rise is sometimes enough.

Some savvy investors have bought a foreclosure / REO property or two recently. But maximizing profits means buying as many of these properties as possible. And that takes using other peoples' money.

My good friend Adam Davis has been making money buying foreclosures since the crisis began. He's doing it in Detroit, which is just about the hardest place to make money in real estate in the country.

Adam has pulled together his strategies for doing foreclosure deals with other peoples' money. If this is the kind of opportunity that interests you, I'd suggest checking out his course: Adam's course



Bookmark & Share