The market for existing U.S. homes is booming. The boom is attracting real estate investors from abroad.
Foreign buyers bought 154,000 homes in the U.S. in the year ended March 2020. That’s about 3% of all U.S. home sales, says the National Association of Realtors.
To succeed as a foreign investor in U.S. real estate takes an experienced guide like Alvernia’s founder, Dr. Rudolph Francis.
Dr. Francis brings you decades of experience in U.S. real estate investing. Born in the Bahamas, he’s launching a foundation to help underprivileged individuals in the Caribbean and Bahamas develop their talents.
Foreign investors need a thorough game plan to avoid traps that many new investors fall into. Working with a knowledgeable, experienced guide increases your chances of success.
10 Ways We Help You Succeed
We help you succeed 10 ways as you:
- Address legal, tax and banking issues that are particular to foreign investors.
- Find promising U.S. housing markets where the local economy is growing.
- Avoid markets that are likely to turn into capital traps.
- Locate good turnaround neighborhoods where most houses are owner-occupied and most tenants are renting long-term.
- Analyze investment fundamentals objectively.
- Ensure you perform thorough due diligence on deals. You’ll need to work with 3rd party appraisers and inspectors before closing – without skipping steps or delegating.
- Estimate future vacancy and maintenance costs.
- Choose the right property.
- Avoid buying through real estate agents, amateurs, friends or family members.
- Develop an exit strategy before you begin to invest.
With Alvernia as your guide to U.S. real estate, you can be more objective about each property. That means you won’t overpay or get surprised by unexpected costs later on.
To hold U.S. real estate as a foreign investor, you must choose from 4 options.
You can hold real estate in your name. But many U.S. investors avoid holding properties in their own names since all your U.S. assets can be seized by a court ruling.
Or you can form an LLC, LP or LLLP. To help you make a good choice, consult Opportunities for Foreign Investors in U.S. Real Estate.
Since U.S. income is taxed at 3 levels of government – federal (U.S.), state, and local – you will need to make the right choices to lower your tax bill. Expect to pay transfer taxes on property sales, local property taxes, capital gains tax, and estate tax.
You may also need:
- An individual taxpayer identification number (ITIN)
- A Social Security number, if you reside in the U.S. as a green-card holder or citizen.
- An Employer Identification Number (EIN) for your business.
- A state tax ID number.
- A U.S. bank account.
Building Opportunities, Rebuilding Communities
With all these complexities, it’s not easy to succeed as a foreign investor in U.S. real estate. That’s why investors like you work with Alvernia as a guide. We focus investments on underserved markets such as affordable housing.
We can help you create a U.S. tax, legal and banking plan, make good choices on each property, and get your due diligence done right.
Questions on investing in U.S. real estate? Email us for the answers you need.