{"id":14150,"date":"2024-12-03T01:47:28","date_gmt":"2024-12-03T01:47:28","guid":{"rendered":"https:\/\/imsfund.com\/?p=14150"},"modified":"2024-12-03T01:47:28","modified_gmt":"2024-12-03T01:47:28","slug":"the-obstacles-of-investing-in-u-s-real-estate-as-a-non-citizen-and-how-to-overcome-them","status":"publish","type":"post","link":"https:\/\/imsfund.com\/index.php\/2024\/12\/03\/the-obstacles-of-investing-in-u-s-real-estate-as-a-non-citizen-and-how-to-overcome-them\/","title":{"rendered":"The Obstacles of Investing in U.S. Real Estate as a Non-Citizen and How to Overcome Them"},"content":{"rendered":"<p> <br \/>\n<\/p>\n<div id=\"post-content\" :class=\"{ 'hidden': $store.proContent.showFullPrompt() }\">\n                            <!-- Table of contents: mobile --><\/p>\n<section class=\"px-4 relative border border-slate-200 mobile-toc lg:hidden\" x-data=\"{open:false}\">\n                    <button x-on:click=\"open = !open\" class=\"flex items-center gap-4 my-2 border-none w-full\"><br \/>\n                        <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"h-6 w-6\" fill=\"none\" viewbox=\"0 0 24 24\" stroke=\"currentColor\" stroke-width=\"2\"><path stroke-linecap=\"round\" stroke-linejoin=\"round\" d=\"M4 8h16M4 16h16\"\/><\/svg><\/p>\n<p class=\"font-semibold text-slate-800 text-base m-0 js-toc-ignore\">In This Article<\/p>\n<p>                    <\/button><\/p>\n<\/section>\n<p><span data-preserver-spaces=\"true\">There\u2019s something almost mythical about buying real estate in the United States.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The dream of owning American real estate spans across the globe. Since its foundation, people from around the world have sought after a piece of land in America. From settlers moving to California to <\/span><span data-preserver-spaces=\"true\">take part<\/span><span data-preserver-spaces=\"true\"> in the gold rush to new waves of immigrants searching for a better life, U.S. real estate has symbolized hope and prosperity. And you\u2019re probably reading this because you dream of building wealth through real estate investing.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The path to property ownership is <\/span><span data-preserver-spaces=\"true\">not the same<\/span><span data-preserver-spaces=\"true\"> for a U.S. citizen and a foreign national<\/span><span data-preserver-spaces=\"true\">, though<\/span><span data-preserver-spaces=\"true\">.<\/span><span data-preserver-spaces=\"true\"> Even so, much of the information <\/span><span data-preserver-spaces=\"true\">out there<\/span><span data-preserver-spaces=\"true\"> is geared toward Americans investing in U.S. real estate. This article <\/span><span data-preserver-spaces=\"true\">is intended<\/span><span data-preserver-spaces=\"true\"> as a guide for non-U.S. citizens.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">By understanding how to navigate the process and overcome some of the most common obstacles you might encounter, you\u2019ll be well on your way to achieving your \u201cAmerican dream.\u201d<\/span><\/p>\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Why Invest in U.S. Real Estate in the First Place?<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">Before taking another step, it\u2019s crucial to understand why you want to invest in real estate in the United States. There are houses in your home country and investment opportunities <\/span><span data-preserver-spaces=\"true\">around the world<\/span><span data-preserver-spaces=\"true\">, yet many people still opt to invest in American real estate. These are some of the most common reasons:<\/span><\/p>\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Political and economic stability<\/span><\/h3>\n<p><span data-preserver-spaces=\"true\">There are significant risks that political policies could drastically impact the economy each time a government changes. Given America\u2019s stability compared to other countries, it\u2019s no wonder the U.S. market <\/span><span data-preserver-spaces=\"true\">is perceived<\/span><span data-preserver-spaces=\"true\"> as a <\/span><span data-preserver-spaces=\"true\">safe<\/span><span data-preserver-spaces=\"true\"> haven for investment.<\/span><\/p>\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Historical performance<\/span><\/h3>\n<p><span data-preserver-spaces=\"true\">While there have been drops in U.S. home values during different periods <\/span><span data-preserver-spaces=\"true\">of history<\/span><span data-preserver-spaces=\"true\"> (the Great Depression and the 2008 housing bubble), these have been more of an exception than a rule. For the most part, American real estate has <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/fred.stlouisfed.org\/series\/MSPUS#0\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">climbed steadily over the past several decades<\/span><\/a><span data-preserver-spaces=\"true\">. This consistent growth over extended <\/span><span data-preserver-spaces=\"true\">periods of time<\/span><span data-preserver-spaces=\"true\"> has led to significant gains for property owners.\u00a0<\/span><\/p>\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Stable currency<\/span><\/h3>\n<p><span data-preserver-spaces=\"true\">The U.S. dollar constantly ranks among the <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.forbes.com\/advisor\/money-transfer\/highest-currencies-in-the-world\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">strongest currencies in the world<\/span><\/a><span data-preserver-spaces=\"true\">. <\/span><span data-preserver-spaces=\"true\">Compared to places where inflation is high <\/span><span data-preserver-spaces=\"true\">and<\/span><span data-preserver-spaces=\"true\"> currency values change rapidly<\/span><span data-preserver-spaces=\"true\">, the American dollar is very stable<\/span><span data-preserver-spaces=\"true\">.<\/span> <span data-preserver-spaces=\"true\">A currency that holds its value<\/span><span data-preserver-spaces=\"true\">, combined with<\/span><span data-preserver-spaces=\"true\"> a <\/span><span data-preserver-spaces=\"true\">real<\/span><span data-preserver-spaces=\"true\"> asset (real estate) that has historically grown in value<\/span><span data-preserver-spaces=\"true\">, <\/span><span data-preserver-spaces=\"true\">is a strong hedge against inflation.<\/span><span data-preserver-spaces=\"true\">\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">With these benefits in mind, you might <\/span><span data-preserver-spaces=\"true\">be wondering<\/span><span data-preserver-spaces=\"true\">, \u201cAre the challenges worth the benefits?\u201d If so, keep reading.<\/span><\/p>\n<div class=\"justify-center \" x-data=\"{ IabAdad_block_: popAd(['r720x90'], '1') }\" :class=\"IabAdad_block_.linkURL ? 'flex pt-8' : 'hidden'\">\n    <a x-show=\"https:\/\/www.biggerpockets.com\/blog\/IabAdad_block_.linkURL\" :href=\"https:\/\/www.biggerpockets.com\/blog\/IabAdad_block_.linkURL\" x-on:click=\"adClicked('https:\/\/www.biggerpockets.com\/blog\/how-foreign-investors-can-enter-us-housing-market', IabAdad_block_.sponsor, IabAdad_block_.title, IabAdad_block_.id, 'blockAdClicked', 'blockAd', 'postContent')\" target=\"_blank\" x-init=\"&#10;      analytics.track('blockAdLoaded', {&#10;        referrer: 'https:\/\/www.biggerpockets.com\/blog\/how-foreign-investors-can-enter-us-housing-market',&#10;        sponsor: IabAdad_block_.sponsor,&#10;        ad_title: IabAdad_block_.title,&#10;        ad_page_location: 'postContent'&#10;      })&#10;    \" x-intersect:enter.once=\"adViewed('https:\/\/www.biggerpockets.com\/blog\/how-foreign-investors-can-enter-us-housing-market', IabAdad_block_.sponsor, IabAdad_block_.title, IabAdad_block_.id, 'blockAdViewed', 'blockAd', 'postContent')\"><\/p>\n<div class=\" hidden sm:block\">\n        <img class=\"m-0\" :src=\"https:\/\/www.biggerpockets.com\/blog\/IabAdad_block_.r720x90\" :alt=\"IabAdad_block_.r720x90Alt\" loading=\"lazy\" fetchpriority=\"low\"\/>\n      <\/div>\n<div class=\"block sm:hidden\">\n          <img class=\"m-0\" :src=\"https:\/\/www.biggerpockets.com\/blog\/IabAdad_block_.r320x50\" :alt=\"IabAdad_block_.r320x50Alt\" loading=\"lazy\" fetchpriority=\"low\"\/>\n        <\/div>\n<p>          <\/a>\n  <\/div>\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Obstacle 1: Lack of Market-Specific Knowledge<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">Imagine going to a restaurant with hundreds of items on the menu. Some are delicious, some are bad, and others are mediocre. How do you know which menu items to select? That\u2019s the dilemma you\u2019re probably facing as you explore American investment property options.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">There are 50 states in the U.S., and each has its <\/span><span data-preserver-spaces=\"true\">own<\/span><span data-preserver-spaces=\"true\"> laws, climate types, and housing needs. On top of that, every real estate market within a state could have <\/span><span data-preserver-spaces=\"true\">totally<\/span><span data-preserver-spaces=\"true\"> different pricing, trends, considerations, job opportunities, and more.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Don\u2019t worry if you don\u2019t know where to start. Follow these steps to discover a market that meets your needs.<\/span><\/p>\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Start with strategy<\/span><\/h3>\n<p><span data-preserver-spaces=\"true\">It\u2019s no coincidence that <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/store.biggerpockets.com\/products\/start-with-strategy?srsltid=AfmBOoq8zv6SIp9Rn-6NIS6zoLQJs8M1Fjl7f8MNDwkvS8AgyXVRSyjQ\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">David Meyer\u2019s book<\/span><\/a><span data-preserver-spaces=\"true\"> goes by the same title. Determining your strategy allows you to <\/span><span data-preserver-spaces=\"true\">back<\/span><span data-preserver-spaces=\"true\"> into <\/span><span data-preserver-spaces=\"true\">certain<\/span><span data-preserver-spaces=\"true\"> locations. Are you looking for passive income? <\/span><span data-preserver-spaces=\"true\">Is real estate a way to<\/span><span data-preserver-spaces=\"true\"> protect your money from currency inflation in your home country?<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Whatever the case <\/span><span data-preserver-spaces=\"true\">may be<\/span><span data-preserver-spaces=\"true\">, you\u2019ll find that your unique situation is best suited for <\/span><span data-preserver-spaces=\"true\">certain<\/span><span data-preserver-spaces=\"true\"> approaches compared to others. For example, not everyone has the skill set or personality to live in Australia and flip houses in Alabama\u2014or \u201cwoop woop,\u201d as the Aussies say.<\/span><\/p>\n<aside class=\"my-10 xl:my-4\">\n<p class=\"font-bold mt-0 mb-4 text-xl text-slate capitalize\">You might also like<\/p>\n<\/aside>\n<p><span data-preserver-spaces=\"true\">There are <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/real-estate-niche\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">entire posts written on this topic<\/span><\/a><span data-preserver-spaces=\"true\"> that can give you direction. Take the time to read and reflect before making this decision.\u00a0<\/span><\/p>\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Find markets that match your <\/span><span data-preserver-spaces=\"true\">strategy<\/span><\/h3>\n<p><span data-preserver-spaces=\"true\">Once you find the right investment strategy, it\u2019s time to select a market. <\/span><span data-preserver-spaces=\"true\">At this point<\/span><span data-preserver-spaces=\"true\">, you can work backward from the <\/span><span data-preserver-spaces=\"true\">strategy<\/span><span data-preserver-spaces=\"true\"> you chose to <\/span><span data-preserver-spaces=\"true\">select<\/span><span data-preserver-spaces=\"true\"> a market. <\/span><span data-preserver-spaces=\"true\">This<\/span><span data-preserver-spaces=\"true\"> is crucial because a place that would make a great <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/buying-vacation-rental-property\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">vacation rental<\/span><\/a><span data-preserver-spaces=\"true\"> might not <\/span><span data-preserver-spaces=\"true\">necessarily<\/span><span data-preserver-spaces=\"true\"> be great for <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/guides\/how-to-flip-houses\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">flipping houses<\/span><\/a><span data-preserver-spaces=\"true\"> or long-term rentals.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Use BiggerPockets\u2019 <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/markets\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Market Finder<\/span><\/a><span data-preserver-spaces=\"true\"> tool to explore cities across the United States based on your strategy. For example, let\u2019s say you want to buy and hold rental properties. You can analyze rent-to-price ratios to see where you might get the best returns.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Spend some time narrowing down your market and come up with a short list of a few cities. Then, get even more specific.<\/span><\/p>\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Conduct market-specific research<\/span><\/h3>\n<p><span data-preserver-spaces=\"true\">You want to be extremely thorough when researching the specifics of a market. Here are a few key indicators to explore as you get started:<\/span><\/p>\n<ul class=\"wp-block-list\">\n<li><strong><span data-preserver-spaces=\"true\">Job market:<\/span><\/strong><span data-preserver-spaces=\"true\"> A strong job market drives demand for housing by increasing income levels and attracting new residents. Look into who the major employers are and see if there\u2019s diversification. <\/span><span data-preserver-spaces=\"true\">This<\/span><span data-preserver-spaces=\"true\"> reduces your risk because places, where one company employs a large proportion of the population, <\/span><span data-preserver-spaces=\"true\">are <\/span><span data-preserver-spaces=\"true\">greatly<\/span><span data-preserver-spaces=\"true\"> impacted<\/span><span data-preserver-spaces=\"true\"> if that industry does poorly or the company leaves for another market. Having various employers in a market makes your potential renter pool less tied to one <\/span><span data-preserver-spaces=\"true\">industry<\/span><span data-preserver-spaces=\"true\"> and spreads the risk around.<\/span><\/li>\n<li><strong><span data-preserver-spaces=\"true\">Population growth: <\/span><\/strong><span data-preserver-spaces=\"true\">Population growth signals rising housing demand, often leading to price appreciation and attracting businesses. Even within a city or town, <\/span><span data-preserver-spaces=\"true\">there are certain areas that grow<\/span><span data-preserver-spaces=\"true\"> faster than others. Pro tip: <\/span><span data-preserver-spaces=\"true\">Connect with<\/span> <a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/agent\/match\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">local real estate agents<\/span><\/a><span data-preserver-spaces=\"true\"> and investors on phone calls to ask what trends they\u2019re seeing.<\/span><\/li>\n<li><strong><span data-preserver-spaces=\"true\">Transportation:<\/span><\/strong><span data-preserver-spaces=\"true\"> Access to public <\/span><span data-preserver-spaces=\"true\">transportation<\/span><span data-preserver-spaces=\"true\"> or <\/span><span data-preserver-spaces=\"true\">major<\/span><span data-preserver-spaces=\"true\"> highways enhances a location\u2019s desirability. In cities where the subway is a <\/span><span data-preserver-spaces=\"true\">common<\/span><span data-preserver-spaces=\"true\"> mode of transportation, <\/span><span data-preserver-spaces=\"true\">a rental property near a train station would be viewed<\/span><span data-preserver-spaces=\"true\"> as more attractive to buyers and renters.<\/span><\/li>\n<li><strong><span data-preserver-spaces=\"true\">Neighborhoods: <\/span><\/strong><span data-preserver-spaces=\"true\">The characteristics of neighborhoods, such as safety, proximity, and amenities, significantly influence property values and investment potential. Don\u2019t worry about jumping on a plane\u2014use Google Maps to see an area\u2019s main attractions like restaurants, shopping centers, or transit options. You can also use Google Earth to walk the streets virtually to give you a feel for the area.<\/span><\/li>\n<\/ul>\n<p><span data-preserver-spaces=\"true\">Keep in mind<\/span><span data-preserver-spaces=\"true\"> that what looks good on paper doesn\u2019t <\/span><span data-preserver-spaces=\"true\">necessarily<\/span><span data-preserver-spaces=\"true\"> always match the reality of what\u2019s happening.<\/span><span data-preserver-spaces=\"true\"> It\u2019s always a good idea to connect with local investors to see what strategies they\u2019re using and in what neighborhoods.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Based on your findings, <\/span><span data-preserver-spaces=\"true\">you\u2019ll be able <\/span><span data-preserver-spaces=\"true\">to<\/span><span data-preserver-spaces=\"true\"> confidently select a real estate market<\/span><span data-preserver-spaces=\"true\">.<\/span><\/p>\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Obstacle 2: Finding and Managing a Remote Team<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">Living far away from your investments might feel overwhelming at first. Luckily, <\/span><span data-preserver-spaces=\"true\">there are many others who\u2019ve<\/span><span data-preserver-spaces=\"true\"> had success investing from a distance, which means you can too. <\/span><span data-preserver-spaces=\"true\">There are<\/span><span data-preserver-spaces=\"true\"> simple strategies and great resources available to help you build a strong team and make your real estate business successful without being located in the U.S.<\/span><\/p>\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">How to find your team members<\/span><\/h3>\n<p><span data-preserver-spaces=\"true\">When starting a real estate investing business, you\u2019re the boss! <\/span><span data-preserver-spaces=\"true\">To make sure<\/span><span data-preserver-spaces=\"true\"> your business runs smoothly without you<\/span><span data-preserver-spaces=\"true\">, you must build a strong team<\/span><span data-preserver-spaces=\"true\">.<\/span><span data-preserver-spaces=\"true\"> Whether you\u2019re searching for a real estate agent, contractor, lender, or property manager, the process to find them is the same.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">These recommendations will yield the best results:<\/span><\/p>\n<ul class=\"wp-block-list\">\n<li><strong><span data-preserver-spaces=\"true\">Build your network: <\/span><\/strong><span data-preserver-spaces=\"true\">Network on the <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/forums\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">BiggerPockets forums<\/span><\/a><span data-preserver-spaces=\"true\"> with investors operating where you want to invest. <\/span><span data-preserver-spaces=\"true\">More specifically, look for people using the same strategy <\/span><span data-preserver-spaces=\"true\">that you want to use<\/span><span data-preserver-spaces=\"true\">.<\/span><span data-preserver-spaces=\"true\"> You\u2019ll also find that most American cities have people from other countries\u2014if there are communities of people from your home country living where you want to invest, connect with them too!<\/span><\/li>\n<li><strong><span data-preserver-spaces=\"true\">Referrals:<\/span><\/strong><span data-preserver-spaces=\"true\"> If you build a network, they can introduce you to people <\/span><span data-preserver-spaces=\"true\">that<\/span><span data-preserver-spaces=\"true\"> they\u2019ve worked with and <\/span><span data-preserver-spaces=\"true\">even<\/span><span data-preserver-spaces=\"true\"> tell you who to stay away from.<\/span><\/li>\n<li><strong><span data-preserver-spaces=\"true\">BiggerPockets Team Builder:<\/span><\/strong><span data-preserver-spaces=\"true\"> Using <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/real-estate-companies\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">this tool<\/span><\/a><span data-preserver-spaces=\"true\">, you can plug in a variety of information, such as the team member you\u2019re looking for (real estate agent, for example), location, and other <\/span><span data-preserver-spaces=\"true\">key<\/span><span data-preserver-spaces=\"true\"> details. Based on your responses, you\u2019ll receive a list of people <\/span><span data-preserver-spaces=\"true\">that\u2019s been<\/span><span data-preserver-spaces=\"true\"> curated for you.<\/span><\/li>\n<li><strong><span data-preserver-spaces=\"true\">Research online reviews:<\/span><\/strong><span data-preserver-spaces=\"true\"> Leverage platforms like Google, Yelp, or local real estate websites. You can gather feedback on their reputation, helping you assess their reliability and performance before <\/span><span data-preserver-spaces=\"true\">even<\/span><span data-preserver-spaces=\"true\"> reaching out to them.<\/span><\/li>\n<\/ul>\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Tips for vetting real estate professionals<\/span><\/h3>\n<p><span data-preserver-spaces=\"true\">You\u2019ve created a list of potential team members\u2014now what?<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Vetting real estate professionals effectively is essential to long-term success as a real estate investor. It\u2019s even more <\/span><span data-preserver-spaces=\"true\">important<\/span><span data-preserver-spaces=\"true\"> if you live in another country because you can\u2019t just drive to your rental property whenever you feel like it. This step can help ensure that you collaborate with trustworthy, knowledgeable individuals who understand the local market.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Here are some <\/span><span data-preserver-spaces=\"true\">key<\/span><span data-preserver-spaces=\"true\"> tips to guide you through the vetting process:<\/span><\/p>\n<ul class=\"wp-block-list\">\n<li><strong><span data-preserver-spaces=\"true\">Check credentials:<\/span><\/strong><span data-preserver-spaces=\"true\"> Verify licenses and certifications <\/span><span data-preserver-spaces=\"true\">so you know that<\/span><span data-preserver-spaces=\"true\"> they are qualified and compliant with local regulations. You can often find this information on a state or city website.<\/span><\/li>\n<li><strong><span data-preserver-spaces=\"true\">Ask for references: <\/span><\/strong><span data-preserver-spaces=\"true\">Request references from past clients. Take the time to follow up with them to gain insights into their experiences and the quality of service provided. Don\u2019t skip this step\u2014it\u2019s worth the time.<\/span><\/li>\n<li><strong><span data-preserver-spaces=\"true\">Conduct interviews:<\/span><\/strong><span data-preserver-spaces=\"true\"> Schedule video calls to discuss their experience, approach, and understanding of the local market and gauge whether <\/span><span data-preserver-spaces=\"true\">they\u2019re a good<\/span><span data-preserver-spaces=\"true\"> fit personality-wise. If they speak your native language, that could be a huge plus! In contrast, note that it\u2019s a <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/red-flags-to-avoid-with-contractors-and-how-to-escape-a-bad-hire\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">major red flag<\/span><\/a><span data-preserver-spaces=\"true\"> if they aren\u2019t willing to do calls.<\/span><\/li>\n<\/ul>\n<p><span data-preserver-spaces=\"true\">As you complete the vetting process, always trust your instincts. <\/span><span data-preserver-spaces=\"true\">Pay<\/span><span data-preserver-spaces=\"true\"> attention to your comfort level and gut feelings about their reliability, expertise, and overall character.<\/span><\/p>\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Tools to manage your team<\/span><\/h3>\n<p><span data-preserver-spaces=\"true\">Once your team <\/span><span data-preserver-spaces=\"true\">is established<\/span><span data-preserver-spaces=\"true\">, it\u2019s time to start finding deals and setting up systems. You always want to have an open line of communication so that you\u2019re informed about what\u2019s <\/span><span data-preserver-spaces=\"true\">going on<\/span><span data-preserver-spaces=\"true\"> regularly.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">These are some <\/span><span data-preserver-spaces=\"true\">useful<\/span><span data-preserver-spaces=\"true\"> tools to find deals and manage your team from outside the U.S.:<\/span><\/p>\n<ul class=\"wp-block-list\">\n<li><strong><span data-preserver-spaces=\"true\">WhatsApp: <\/span><\/strong><span data-preserver-spaces=\"true\">No American cell phone plan? No problem. Just have your team members get <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.whatsapp.com\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">the app<\/span><\/a><span data-preserver-spaces=\"true\">\u2014it\u2019s <\/span><span data-preserver-spaces=\"true\">just<\/span><span data-preserver-spaces=\"true\"> like texting.<\/span><\/li>\n<li><strong><span data-preserver-spaces=\"true\">PropStream: <\/span><\/strong><a class=\"editor-rtfLink\" href=\"https:\/\/www.propstream.com\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">PropStream<\/span><\/a><span data-preserver-spaces=\"true\"> provides access to property data, analytics, and marketing tools, helping you identify profitable deals and analyze potential investments.<\/span><\/li>\n<li><strong><span data-preserver-spaces=\"true\">RentRedi:<\/span><\/strong><span data-preserver-spaces=\"true\"> This <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/rentredi.com\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">property management platform<\/span><\/a><span data-preserver-spaces=\"true\"> is designed for landlords and simplifies tenant screening, lease management, and rent collection, making it easier to manage rental properties remotely.<\/span><\/li>\n<li><strong><span data-preserver-spaces=\"true\">Airtable:<\/span><\/strong> <a class=\"editor-rtfLink\" href=\"https:\/\/www.airtable.com\/lp\/campaign\/brand?utm_source=google&amp;utm_medium=paidsearch&amp;utm_extra5=kwd-325289323194&amp;utm_extra2=936407691&amp;utm_extra10=47735600558&amp;creative=464489871110&amp;utm_extra8=c&amp;cx=us&amp;utm_campaign=demand_br_brand_creator&amp;utm_content=text&amp;utm_term=airtable&amp;gad_source=1&amp;gclid=Cj0KCQjwveK4BhD4ARIsAKy6pMLijFG0mO20fsb2xV-7TonXVJ6qpSVO4g1rZkMdPQCwYBXAv9EaUJwaAvlQEALw_wcB\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Airtable<\/span><\/a><span data-preserver-spaces=\"true\"> combines spreadsheet and database functionalities, allowing you to create custom workflows, track deals, and manage your team\u2019s tasks in a visually appealing format.<\/span><\/li>\n<\/ul>\n<p><span data-preserver-spaces=\"true\">The list of software is endless, but these tools will help you get started and build from the ground up.<\/span><\/p>\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Obstacle 3: Finding Financing as a Non-U.S. Citizen<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">According to a recent <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.nar.realtor\/research-and-statistics\/research-reports\/international-transactions-in-u-s-residential-real-estate\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">NAR<\/span><\/a><span data-preserver-spaces=\"true\"> report, 50% of all international buyers paid cash for real estate in the United States, whereas about 28% of all existing buyers paid cash.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">You might interpret that to<\/span><span data-preserver-spaces=\"true\"> mean that foreign investors are more affluent.<\/span><span data-preserver-spaces=\"true\"> On the flip side, it reveals something about the U.S. mortgage industry\u2019s inability to provide financing to non-U.S. citizens. These are common reasons foreign nationals feel stuck:\u00a0<\/span><\/p>\n<ul class=\"wp-block-list\">\n<li><strong><span data-preserver-spaces=\"true\">Limited financing options: <\/span><\/strong><span data-preserver-spaces=\"true\">Many lenders are hesitant to provide loans to non-U.S. citizens due to perceived risks. For those seeking primary mortgages or financing for second homes, options from government-sponsored entities like Freddie Mac and Fannie Mae are typically <\/span><span data-preserver-spaces=\"true\">not available<\/span><span data-preserver-spaces=\"true\"> to non-residents. <\/span><span data-preserver-spaces=\"true\">Investment property-specific loans <\/span><span data-preserver-spaces=\"true\">are even <\/span><span data-preserver-spaces=\"true\">harder<\/span><span data-preserver-spaces=\"true\"> to come by.<\/span><\/li>\n<li><strong><span data-preserver-spaces=\"true\">Lack of credit:<\/span><\/strong><span data-preserver-spaces=\"true\"> If you don\u2019t have a credit history in the United States, it\u2019s hard for lenders to assess your creditworthiness. Without a credit score or established financial history in the U.S., your options are more limited and likely come with higher interest rates\u2014that is, if you find a lender to work with you.<\/span><\/li>\n<li><strong><span data-preserver-spaces=\"true\">Income verification:<\/span><\/strong><span data-preserver-spaces=\"true\"> Lenders want to <\/span><span data-preserver-spaces=\"true\">make sure<\/span><span data-preserver-spaces=\"true\"> you\u2019re not engaged in <\/span><span data-preserver-spaces=\"true\">any<\/span><span data-preserver-spaces=\"true\"> illegal activity.<\/span><span data-preserver-spaces=\"true\"> As such, they\u2019ll dig deep into your financial records to verify your income. Even if you\u2019re not a drug dealer <\/span><span data-preserver-spaces=\"true\">and have<\/span><span data-preserver-spaces=\"true\"> strong finances, your lender will likely ask for translations of all documentation. That\u2019s because money coming from outside the United States <\/span><span data-preserver-spaces=\"true\">is viewed<\/span><span data-preserver-spaces=\"true\"> as a higher risk\u2014it can be <\/span><span data-preserver-spaces=\"true\">harder<\/span><span data-preserver-spaces=\"true\"> for lenders to pinpoint where money <\/span><span data-preserver-spaces=\"true\">is coming<\/span><span data-preserver-spaces=\"true\"> from abroad.<\/span><\/li>\n<li><strong><span data-preserver-spaces=\"true\">The banking system and currency exchange:<\/span><\/strong><span data-preserver-spaces=\"true\"> Navigating the banking system and currency exchange can be daunting. There may be additional fees, fluctuations in currency value, and limitations when transferring funds internationally from your home country to the United States.<\/span><\/li>\n<\/ul>\n<p><span data-preserver-spaces=\"true\">While this may seem discouraging, know that if you\u2019ve read this far<\/span><span data-preserver-spaces=\"true\">, you\u2019re not a quitter<\/span><span data-preserver-spaces=\"true\">.<\/span><span data-preserver-spaces=\"true\"> Rest assured that there are ways to overcome these obstacles.<\/span><\/p>\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Cheat Codes to Financing American Real Estate\u00a0<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">It <\/span><span data-preserver-spaces=\"true\">probably<\/span><span data-preserver-spaces=\"true\"> crossed your mind to marry an American citizen.<\/span><span data-preserver-spaces=\"true\"> Then, you\u2019d have plenty of financing options!<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">In all seriousness, <\/span><span data-preserver-spaces=\"true\">there are other ways<\/span><span data-preserver-spaces=\"true\"> to <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/business\/finder\/lenders\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">obtain financing<\/span><\/a><span data-preserver-spaces=\"true\"> as a foreign investor. Here are some potential solutions, depending on your situation:<\/span><\/p>\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Hard money<\/span><\/h3>\n<p><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/real-estate-companies\/hard-money-lenders\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Hard money loans<\/span><\/a><span data-preserver-spaces=\"true\"> provide quick access to capital based on the after-repair value (ARV), <\/span><span data-preserver-spaces=\"true\">which is<\/span><span data-preserver-spaces=\"true\"> ideal for flipping houses. However, these often have double-digit interest rates, and lenders will likely ask for a personal guarantee tied to you personally, even if the property <\/span><span data-preserver-spaces=\"true\">is purchased<\/span><span data-preserver-spaces=\"true\"> under a business entity.\u00a0<\/span><\/p>\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Private money<\/span><\/h3>\n<p><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/private-money-lending-is-a-perfect-alternative\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Private <\/span><span data-preserver-spaces=\"true\">money<\/span><span data-preserver-spaces=\"true\"> lending<\/span><\/a><span data-preserver-spaces=\"true\"> refers to raising money from individual investors rather than traditional banking institutions. If you can raise money for the <\/span><span data-preserver-spaces=\"true\">full<\/span><span data-preserver-spaces=\"true\"> purchase price amount, it will appear as cash to the seller. <\/span><span data-preserver-spaces=\"true\">Keep in mind<\/span><span data-preserver-spaces=\"true\"> that borrowing money from individuals also comes with strings attached, like higher interest rates.<\/span><\/p>\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Seller financing<\/span><\/h3>\n<p><span data-preserver-spaces=\"true\">With <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/seller-financing\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">seller financing<\/span><\/a><span data-preserver-spaces=\"true\">, the property seller acts as the lender, allowing you to bypass traditional financing barriers and negotiate payment terms directly, <\/span><span data-preserver-spaces=\"true\">which can simplify<\/span><span data-preserver-spaces=\"true\"> the purchasing process. This creative solution doesn\u2019t work in all situations, but it can be a great option if you want to spend time negotiating the structure with the seller.<\/span><\/p>\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Debt-service-coverage ratio (DSCR) loans<\/span><\/h3>\n<p><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/dscr-loans-what-are-they\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">DSCR loans<\/span><\/a> <span data-preserver-spaces=\"true\">are evaluated<\/span><span data-preserver-spaces=\"true\"> on a rental property\u2019s performance, not your <\/span><span data-preserver-spaces=\"true\">personal<\/span><span data-preserver-spaces=\"true\"> income. It <\/span><span data-preserver-spaces=\"true\">takes into consideration<\/span><span data-preserver-spaces=\"true\"> the amount of rental income a property can produce compared to the monthly mortgage payment. Sounds perfect for foreign investors!<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">These loans are made to business entities and may require credit reviews<\/span><span data-preserver-spaces=\"true\">, depending on the lender<\/span><span data-preserver-spaces=\"true\">.<\/span> <span data-preserver-spaces=\"true\">As such, <\/span><span data-preserver-spaces=\"true\">there are<\/span><span data-preserver-spaces=\"true\"> only a handful of companies <\/span><span data-preserver-spaces=\"true\">that<\/span><span data-preserver-spaces=\"true\"> offer DSCR loans tailored to foreign nationals.<\/span> <a class=\"editor-rtfLink\" href=\"https:\/\/www.getwaltz.com\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">The leader in this space is Waltz<\/span><\/a><span data-preserver-spaces=\"true\">, which specializes in working with non-U.S. citizens. In addition to lending, they have solutions for forming an LLC, obtaining a U.S. bank account, and currency exchange capabilities.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">All these financing options <\/span><span data-preserver-spaces=\"true\">provide ways for<\/span><span data-preserver-spaces=\"true\"> foreign investors like you to start investing. It\u2019s up to you to determine which one is right for you.<\/span><\/p>\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Move Obstacles Aside and Start Investing<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">Investing in U.S. real estate as a noncitizen presents unique challenges, including navigating market knowledge gaps, assembling a trustworthy team, and securing financing. Just know that U.S. real estate investing is attainable and within your grasp.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Over the last year or so, <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.nar.realtor\/research-and-statistics\/research-reports\/international-transactions-in-u-s-residential-real-estate\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">about 54,000 purchases<\/span><\/a> <span data-preserver-spaces=\"true\">were made<\/span><span data-preserver-spaces=\"true\"> by foreign investors across the United States. By following these recommended measures, <\/span><span data-preserver-spaces=\"true\">you\u2019ll be able to<\/span><span data-preserver-spaces=\"true\"> add to this number and inspire others to do the same.<\/span><\/p>\n<div id=\"visibility-group-block_580f143f1572cd75108bf1cd3e47d086\" class=\"visibility-group alignwide  hidden\">\n<div id=\"hero-block_4339c3a303a839bf43c4204018220b5b\" class=\"first:mt-0 hero-block py-4  alignwide   has-background has-slate-200-background-color has-text-color has-theme-gold-color\">\n<div class=\"gap-10 lg:gap-20 flex flex-wrap lg:flex-nowrap max-w-screen-xl mx-auto px-4 relative lg:items-center \">\n<div class=\"relative z-30 lg:w-1\/2 \">\n            <main class=\"py-4\"><\/p>\n<p class=\"has-slate-800-color has-text-color has-large-font-size\" style=\"font-style:normal;font-weight:800\">Find the Right Agent, Close the Best Deal<\/p>\n<p class=\"my-3 md:my-5 lg:my-8 has-slate-900-color has-text-color\" style=\"font-size:18px\">Step #1: Use Agent Finder to match with top <em><strong>investor-friendly<\/strong><\/em> real estate agents to help you find, analyze, and close your next deal.<\/p>\n<p>            <\/main>\n        <\/div>\n<div class=\"lg:w-1\/2 first:mt-0 relative h-full lg:flex lg:items-center\">\n            <img decoding=\"async\" class=\"object-cover w-full relative z-20 my-0  rounded-md hidden lg:block\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2021\/08\/Marketplace-Blog-Blocks-Agent-v3.png\" alt=\"investor friendly real estate agent\" title=\"The Obstacles of Investing in U.S. Real Estate as a Non-Citizen and How to Overcome Them 2\" loading=\"lazy\" fetchpriority=\"low\"\/>\n        <\/div>\n<\/p><\/div>\n<\/div><\/div>\n<div class=\"wp-block-group\">\n<div class=\"wp-block-group__inner-container\">\n<div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<div id=\"visibility-group-block_64dd31c79f00f\" class=\"visibility-group  \">\n<div id=\"hero-block_64dd2875dba9d\" class=\"first:mt-0 hero-block py-4    has-background has-slate-100-background-color has-text-color has-theme-slate-color\">\n<div class=\" flex flex-wrap lg:flex-nowrap max-w-screen-xl mx-auto px-4 relative lg:items-center \">\n<div class=\"relative z-30 w-full \">\n            <main class=\"py-4\"><\/p>\n<p class=\"my-3 md:my-5 lg:my-8 has-theme-slate-color has-text-color\" style=\"font-size:16px;font-style:normal;font-weight:400\">Ready to succeed in real estate investing? Create a free BiggerPockets account to learn about investment strategies; ask questions and get answers from our community of +2 million members; connect with investor-friendly agents; and so much more. <\/p>\n<p>            <\/main>\n        <\/div>\n<\/p><\/div>\n<\/div><\/div>\n<\/p><\/div>\n<\/div>\n<p class=\"italic\"><b>Note By BiggerPockets:<\/b> These are opinions written by the author and do not necessarily represent the opinions of BiggerPockets.<\/p>\n<\/p><\/div>\n<\/div>\n<p><br \/>\n<br \/><a href=\"https:\/\/www.biggerpockets.com\/blog\/how-foreign-investors-can-enter-us-housing-market\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In This Article There\u2019s something almost mythical about buying real estate in the United States.\u00a0 The dream of owning American real estate spans across the globe. Since its foundation, people from around the world have sought after a piece of land in America. From settlers moving to California to take part in the gold rush [&hellip;]<\/p>\n","protected":false},"author":5,"featured_media":14151,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"fifu_image_url":"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/12\/canada_canva-1024x517.jpg","fifu_image_alt":"","footnotes":""},"categories":[9],"tags":[],"class_list":["post-14150","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog"],"_links":{"self":[{"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/posts\/14150","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/comments?post=14150"}],"version-history":[{"count":1,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/posts\/14150\/revisions"}],"predecessor-version":[{"id":14152,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/posts\/14150\/revisions\/14152"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/media\/14151"}],"wp:attachment":[{"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/media?parent=14150"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/categories?post=14150"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/tags?post=14150"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}