Think you have to live the United States to investing in the U.S.?

Not by a long shot.

If you’ve been reading my articles, watching my videos and following me in social media, you know you can invest in properties in the States even if you live and work abroad.

You also know that’s exactly what I do.

But what are the steps? That’s something I get asked a lot. While it is not as simple as I lay out in the following video, there are 5 steps in every transaction.

Give this video your attention for a few short minutes, then keep reading:

What else do you need to know?

If you just watched the video, you know I went over things quickly.

So let me elaborate.

When it comes to investing in properties – whether you’re interested in multifamily properties or single-family houses – there will always be 5 solid steps.

1.- Be very clear on your WHY and WHO you want to serve.

It doesn’t matter I you live in Europe, the U.S. or any other country, when you become a real estate entrepreneur, if you don’t know why you are pursuing deals in real estate you will get into trouble. You will waste time and money, too.

Quality of life and a better lifestyle is likely one factor. After all, if you do this investing thing right you can provide a better life for your loved ones. Or just yourself if you don’t have a family. We can all use more income, right? Well, investing in real estate is the best way I know of to get there. Invest in one single-family property and you won’t do much to better your situation… unless you change its use and turn it into a group home or vacation rental where you can earn thousands of dollars in revenue a month. For me, investing in multifamily properties just makes a lot of sense. Earning $100 per door, for example, in one single-family house… how much can I earn in cashflow if I have a 12-unit apartment building? What about a 60-unit building?

That’s why you need to be sure you understand who you are looking to serve.  – Tweet   For example, are you looking to rent properties to “A,” “B” or “C” Class tenants? For me, I love serving “B” Class tenants. I understand them; they’re hard-working, love their families, don’t damage my properties and they pay rent every month. While there are exceptions, this is what I’ve found so far. An “A” Class tenant is looking for luxury dwellings and they have a luxury (you-do-it-for-me) mindset. I don’t have time for their requests. They expect you to come out to change the batteries on their garage door remote because the door won’t open. No, thank you! The reverse is true of “C” Class tenants. There is greater likelihood that this class of tenant will actually damage your properties, which are in not-great neighborhoods with higher crime rates. Again, no, thank you.

2.- Find the properties.

Seems simple enough, but how do you go about finding your properties? Do you use LoopNet, Craigslist, an agent or a broker?  – Tweet   Do you network with fellow real estate entrepreneurs? Do you tell people what you’re looking for so when they find deals they’ll bring them to you? Or do you farm neighborhoods talking to homeowners so you could work a seller-finance deal? The answer is that you can do all of these things; all tactics work… but if you do none of them I promise nothing will happen and you won’t find properties.  – Get going and keep going. Make finding properties a part of your weekly ritual.  – Tweet  

3.- Get the control of the properties.

Once you’ve found properties in which you are interested, you need to move toward gaining control of the properties. That doesn’t always mean you have to plop down a big chunk of change or take out a bank loan. It could be that you use a creative acquisition strategy wherein you pay the seller out over time. Either way, you have the right to control the property and rent it out.

4.- Take due diligence seriously.

Verify that everything you think is true about the property and the owner or seller is in fact true.  – Tweet   For example, during your due diligence stage, you will have an inspection done. This is critical, because the seller may not be aware of problems with them property… or maybe he/she is and doesn’t want to divulge. You cannot take their word for things. You have a month or so to get through that process. You won’t sign any documents to take control of the property until you’ve gone through due diligence and have learned all you can about the property. If you’re satisfied with your findings, then you move forward.

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5.- Close on the property.

This is when you have taken control of the property, signed the paperwork and it’s officially yours to do with what you want… which is renting it out to paying tenants to earn an income. Once the deal is closed you have the right to rent it to tenants and earn income from your efforts. Whether that’s a traditional loan, private lender or you are working with seller financing or a lease purchase option, you have the control.

Here’s a BONUS tip…

Once you are clear on your WHY, you’ve found properties in which you want to invest, you’ve gained control of the properties, you’ve verified things and you’ve closed on our deals, you need to decide if you will be the person to manage the property or you will be hiring a property manager or management company to handle things for you.

In my case, because I live and work in Barcelona, I have no choice but to hire property management people. Fortunately, I have people who are really good at their jobs and I can trust them to do the tasks at hand month after month.

Because my properties are all located in two areas, which are New Jersey and North Carolina, the team in each location handles things for me. We stay in close contact and I speak with them frequently. When problems arise, which they will, the managers contact me immediately and we decide the steps to take to correct the issues. I literally could not do this without them.

Because I have a great property management teams and a good legal team both in Europe and in the States, I’m finalizing a very interesting multifamily property deal right now. It’s a mobile home park outside Charlotte and it will have an on-site manager. The mobile homes are well-kept and the whole park has been maintained. There is tremendous room for expansion, and I’m looking forward to this new leg of my real estate investing journey!

Stay tuned. I’ll keep you posted on what happens next.

If you have questions, I invite you to join me in my Facebook group. That’s where we can have conversations. You can get your questions answered. You’ll find the social media links up top and to the right on this page.

If you want to speak with me one on one via phone, that’s pretty easy. Just click the link below:

 

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You can also check out my latest podcasts and collaborations here keeponcashflow.com/podcasts/