OfflineWhen considering real estate investing in the USA you are dealing with assets, people and a legal system more than 3,000 miles away. The language and procedure may look the same, but there are enough differences to trap the solitary investor.
For British buyers, it can be tricky to know where to start. You want the right property in the right neighborhood of the right county of the right state, but that requires local knowledge. When you come from an island that’s smaller than the single state of Oregon, there’s quite some ground to cover.
Many Brits, even those who have found the right location, struggle with the complexities of the US home buying process — especially when they want a mortgage to finance their investment.
“Preparation is the key,” say American Mortgages, who specialize in offering mortgage services to foreign nationals purchasing property in the United States.
Education, Education, Education
How do you prepare yourself for the world of international real estate investing? You could start with a book. Literally thousands flood the market each year, running the gamut from beginner’s guides to specialist asset inventory, such as pre-foreclosures and short-sales. The chances are, if someone has found a way to make money out of real estate, they will have written a book about it.
The problem with books is they never move as fast as the market. What might have turned a lucrative profit in 2010 may fall flat on its face today. The world of real estate investing evolves faster than you can possibly imagine. And in a nation made up of 50 separate states, upswings and downturns are local. What happens in California doesn't influence what happens in Maine.
Get a Coach
The easiest way to educate yourself is through the services of a mentor, or guide.
Coaches know the market, have worked within the intricacies of the US home buying system and have assembled the right professionals to counsel foreign investors through the process.
The best coaches are themselves investors who enjoy sharing what they do. By employing their services, you have the opportunity to learn from someone who knows the pitfalls and has developed quality investing programs — over many years of trial and error — to help you succeed.
Coaches offer sound advice from the trenches. Most of us can get a feel for national trends in real estate, but when it comes to the nitty-gritty of local markets, expert knowledge is essential if we are to avoid expensive mistakes. Coaches have handled the keys to many doors, and have stress-tested investment opportunities for you. They know how to find the neighborhoods that generate the strongest returns, whether you want an income producing buy-to-let or a fast capital gain.
No single formula can bring you success, because every investor is unique. There’s no magic bullet for generating wealth when real estate investing, no matter what the blogs may tell you. But an experienced educator can ease you down the road as safely as possible.
Educators can help you learn the lingo. Novices can learn about income and expenses. The financially literate can learn how US property taxes, insurance, mortgage interest, management fees and voids reduce your monthly rent — and how to benefit through the tax man. You’ll understand that ROI (return on investment) is just financial-speak for the interest rate you’re going to make each year. They’ll show you how to conduct your own feasibility study to generate substantial returns.
Get educated, and you’ll be able to overcome that other investor’s pitfall — analysis paralysis. Plenty of people are convinced of the merits of purchasing US real estate, but few are brave enough to take the plunge. Everyone’s concerned that they’re going to make a mess of it. Education turns the most reluctant lurker into a confident participator, so they can begin making money.
Coaches show you how to learn from other investor’s mistakes. Like the buyer who wasn't primed to navigate the US closing system, and didn't understand that his US mortgage documents needed witnessing by an American Notary at the US Embassy in London. Or the investor who bought from a website listing without commissioning an independent property inspection, and didn't quite end up with the property he was expecting. Or that tax deed and REO (bank repossessed) properties are sold “as is,” with no warranty as to condition or title. Get the due diligence wrong, and you could land yourself with a huge liability.
A dozen people play a part in the US home buying process, including real estate agents, mortgage lenders, lawyers, title companies, home inspectors, appraisers (valuers), escrow agents, maintenance contractors and the tax office — enough to overwhelm the most seasoned investor. They key is finding the right people. The National Association of Realtors lists certified real estate agents on its website, but how do you choose the one who best suits your needs?
The best way to find a good agent, lawyer and so on is through referral. A decent educator has a network of tried and tested professionals who can identify a good deal, negotiate prices and help you maximize your ROI. Crucially, they assemble loan officers, title companies and tax advisers who understand the difficulties of entering a foreign market. If you’re going to play on the real estate investing field, the right team can position you for the win. PMI offers a lot of coaching through DG. this is the best way to go. InvestorEDU.
I feel truly fortunate that when i started as a real estate investor, I was able to work with a mentor, a man who had started investing in 1945, at the end of World War II. It was largely due to his influence and training that I was able to create success, get out of a difficult financial hole, and find passion as a real estate investor.
In the process, I was able to absorb many of the things that he taught me, they became a part of me.
Now, as I have been involved with training and coaching for over 16 years, I realize that I am a product of many many successful investors and the experience that they have imparted to me. That information comes out on a daily basis as I work with new investors. And I am happy to share something that has meant a lot to me in my life on a very deep level.
I have learned, more than anything else, that real estate investing is not actually about real estate, it is about people and problems and an opportunity to solve some of those problems and be well paid for doing so. I have also learned that real estate investing is actually more of a course on how to live a better life that happens to work very well with real estate.
The best counsel I could ever give, is find and work with people who are excited about what they do, are being successful with it, and who are willing to share everything they know with you. That is the definition of a coach/trainer/mentor.
Dallin Wall
Real Estate Training Team
Forum Blog Location--A collection of my
"Best of" posts:
http://www.deangraziosi.com/blogs/dwall
I am found people that are Coach Walls definition of a coach/trainer/mentor at my local REI meetings.
www.tw4homes.com website
https://tvallc.isrefer.com/go/RehabLite/reigirl/ FREE SOFTWARE FOR WHOLESALERS, REHABBERS AND AGENTS! Present professional looking deals to buyers and lenders as well as run your numbers and get the ROI.
Hi Dwall: I can feel your passion, you have said it all in a nutshell, real estate inve
sting is not actually about real estate, it about people and problems, and an opportunity to solve each problem, it always a pleasure to read what you have to offer to this business. I will be adopting you as my personalI mentor and coach. (LOL)
t.taylor
Femailceo, I share your esteem for the people at the REIA meetings, many of them have assisted me, and I've met leaders from these groups around the country--they are top notch people who are dedicated and committed to keeping the industry honest, ethical, and moral so that we can pass that along to the next generation.
T.Taylor, thank you so much, I am honored at your comments.
To all who read here, the program does offer multiple versions of coaching and training opportunities, I know that everyone I have met thus far in my involvement with this program shares that same commitment and passion. I could choose to do something different with my time, I am an active RE investor, and run two other companies, but I CHOOSE to be here for two reasons: 1) The association with incredible people in the program (Dean has brought in some phenomenal talent and knowledge); 2) The absolute thrill of seeing others succeed at something that means a lot to me. Take advantage of every opportunity, and be willing to invest in yourself and your future.
Dallin Wall
Real Estate Training Team
Forum Blog Location--A collection of my
"Best of" posts:
http://www.deangraziosi.com/blogs/dwall