Are you interested in buying an investment property in the United States but, you’re not a United States citizen?
There’s no doubt that the United States real estate market has been a haven for overseas investors over the last several years because it continues to offer excellent returns while other markets around the world have faltered.
In this article, I’ll answer the question of if you can buy real estate in the United States even if you’re not a United States citizen. I’ll also provide you with tips on how to navigate this process successfully.
Things to Know About Buying An Investment Property in The United States for Non-U.S. Citizens
Yes, you can indeed buy an investment property or Primary Home in the United States, even if you are not a United States citizen.
Here in the United States, anyone can purchase property regardless if they were born in this country or not. This is why the United States real estate market has been particularly attractive to people from all over the world over the last several years, including China.
Overseas investors know that they can get an excellent return on their investment by investing in property in the United States.
Besides purchasing commercial properties, including multifamily and apartment buildings, many foreign investors over the last several years have purchased shopping malls, business properties, vacation homes, and also single-family homes.
Cash Vs. Financing
Let’s say that you’re planning on paying for an investment property in the United States with cash, in this case; you’re not going to have any problem at all whatsoever moving forward with purchasing a property but, if your goal is to buy a multi-family or commercial property through financing, you may have a steep road ahead when it comes to getting approved for funding.
Why? Mortgage companies in the United States will view a borrower’s credit history to determine their eligibility for qualifying for a mortgage loan. Since you are not a citizen of the United States, you’re not going to have credit history here, and this means that it will be difficult for a lender to analyze your financial situation to determine if they should approve you for financing or not.
Depending upon the property, some lenders may choose another method of evaluating your financial situation to determine your risk as a borrower. In contrast, other lenders may tell you that they won’t lend to you.
The most important thing to do as a foreign citizen, when purchasing an investment property in the United States, is not to give up and take no for an answer. If you keep searching, you may ultimately find a lender who wants to work with you, but it could take longer for you to qualify for a mortgage loan with them, and you could ultimately pay a higher interest rate.
What Happens If You Sell Your U.S. Investment Properties as A Foreigner?
Over the years, many successful overseas investors have purchased properties in the United States and have been able to enjoy the benefits of owning property here, but what happens when those investors decide to sell their properties?
If you decide to sell your US base investment property, you need to know the requirements and rules that you’re going to have to follow if you choose to move forward with that sale.
The Internal Revenue Service (IRS) requires foreign citizens to hold 15% of the money that they earned or realized from the sale of their property. If a foreign citizen does not withhold this amount, they may be responsible for paying additional taxes.
Although the rules may sound complicated for the first time foreign investors, the reality is that the IRS has laid out everything that you need to know regarding how this process will work in their FIRPTA Publication, plus their International Tax Gap series.
How to Get Started with Buying an Commercial Properties in The United States
Ready to start buying your first property in the United States? Once you’ve established a budget for how much money you want to spend on that property and determine the locations that you wish to purchase multi-family properties in, the next step is to connect with a real estate agent who specializes in those locations.
Hiring a Realtor® is essential because of the simple fact that they’ll save you the time, money, and hassle, of searching for a property yourself and they will also help you to thoroughly understand the areas that you plan on investing in including if they are up-and-coming areas, or possibly locations that you want to steer clear of.
Once you purchase an investment property in the United States, the obvious next step is to hire a property manager to manage that property for you because of the simple fact that your property management company will save you the time, money, and hassle of having to manage that investment property yourself.
When it comes to choosing a property management company, make sure that you have a hire a property management company that has a team that specializes in all the services that you need including rent collection, maintenance, customer service, and more.
The property management company that you choose should also have an online portal that you can use to view documentation regarding your multifamily property so that you can stay up to date regarding the latest information about your rentals while not having to be in the United States.
Simplify the Process of Buying Properties in The United States with Trier Capital
Are you excited about the opportunity of purchasing an investment property in the United States, but you don’t want to have to go through the process of hiring a real estate agent in a property manager?
Instead of having to do everything yourself, the most efficient way to purchase investment properties in the United States is to work with Trier Capital.
At Trier Capital, our company has created a hassle-free way for investors around the world to enjoy the benefits of investing in multifamily properties within the United States.
Over the last several years, we have perfected a proven way to create multiple tax-efficient passive income streams for our clients, many of which who had been burned out with the volatility of the stock market and we’re looking for a safer, more consistent way, to invest.
As a private Equity Firm, we make it possible for you to passively invest in lucrative Apartment indications from anywhere in the world.
Our team specializes in sourcing, acquiring, and managing investment properties so that you can live life on your terms without having to deal with the complicated tasks involved with Purchasing and managing a portfolio of multifamily investment properties.
To get started with Trier Capital, contact us today by calling (630) 229-2383 or click here to connect with us online.