Are you searching for information on how to buy multifamily real estate in the USA? If so, you’ve come to the right place!
Real estate in the United States is still one of the very best assets, especially in 2020, when the stock market has seen its ups and downs.
The good news about real estate is that it remains a stable investment because people are always going to need a place to live regardless of the state of the economy or which President sits in the Oval Office.
In this article, I will share with you tips that will help you get started with buying multifamily real estate in the United States.
Tip #1 – You Can Borrow Money Here To Buy Multifamily Real Estate In The USA
One of the biggest myths that overseas investors have fought over the years is that they cannot borrow money to purchase a home or rental property in the United States.
Thankfully, this myth is untrue because, lenders in the United States will give foreigners mortgage loans of up to 50% of the sales price of the property but, some basic requirements do apply.
For example, you must have an existing bank account in the United States with deposits totaling $100,000 or more.
The bank that you approach for a mortgage loan may also want to meet with you in person so that they can “get a sense of you” and determine if you may have any additional financing needs for other multifamily real estate in the USA that you are planning on buying.
Tip #2 – Be Ready To Pay Taxes
Even though you may be excited about potentially being able to finance up to 50% of the purchase price on the property that you want to buy multifamily real estate in the USA, it’s also important for you to be aware that you will have to pay tax on the money that you borrow.
Example: In the state of New York, the tax is typically around 2.8% of a mortgage loan so this means that if you were to borrow let’s say $1 million, you could be subject to paying around $28,000 in taxes.
Tip #3 – Hiring A Real Estate Agent Is Optional
Another important thing to know about buying a home or multi-family investment property in the United States is that you don’t need to hire a real estate agent, because they are strictly optional, and you won’t have to concern yourself with paying their commission.
If you plan on looking at more than one multifamily property here in the states, you should consider hiring a real estate agent because of the simple fact that they’re going to save you the time, money and hassle of looking at multiple properties yourself.
Tip #4 – You May Have To Disclose Your Identity
If you’ve purchased properties in other countries in the past through your offshore company to protect your identity, this may not be possible in the future when you purchase properties in the United States.
As of 2020, some states have laws that require overseas buyers to reveal their identities when purchasing properties here, especially if those multifamily real estate in the USA that are valued at $1,000000 or more.
More states are requiring overseas buyers to reveal their identities because before they want to make progress in the war against money laundering since money launderers typically hide identities and assets when they purchase properties abroad.
Tip #5 – Get Ready To Pay Annual Taxes On The Property That You Purchase
In the second tip of this article, I mentioned that depending upon the state that you purchase the property in, you could be required to pay taxes on the money that you borrow. Besides this tax, you also will be required to pay property taxes as well.
Property taxes are a fact of life in the United States, especially when someone purchases real estate regardless if it’s a single-family home, commercial, or multifamily real estate in the USA
Even though property taxes can sometimes seem like a pain, the reality is that every buyer has to pay them and foreign investors should not assume that they are immune from having to pay property taxes.
The good news is that property taxes have gotten easier to pay than ever before and, most mortgage companies can include property taxes with a buyer’s monthly mortgage payment so that everything is handled monthly and the buyer or investor won’t have to worry about paying property taxes all at once the following year.
Tip #6 – Additional Fees
Before wrapping up this article, it’s also important for you to know that when purchasing a multifamily real estate in the USA, depending upon where the building is located, you may also be required to pay additional fees every month.
The additional fees that you can be expected to pay to vary from city to city and they’re often classified in different ways. For example, in Manhattan New York, the city charges multi-family Property Owners “common charges” which can range anywhere from $5,000 or more per year.
In the city of Miami Florida, multifamily owners can expect to pay monthly maintenance fees which can range anywhere from $0.82 to $1.20 per square foot.
Contact Trier Capital
After reading this article, you may feel slightly overwhelmed by everything that you have to know about buying a property in the United States.
When you partner with Trier Capital, you can invest in tax-advantaged real estate without having to deal with the nuance or complication of purchasing and managing a property yourself.
Our simple step-by-step process allows you to accelerate your wealth creation so you can live a magnificent life on your terms, whether that means traveling the world, spending more time with family and friends, or making an impact.
To learn more about how to invest in multifamily real estate in the USA, or to speak with me about the services we can offer you, contact me today by calling (630) 229-2383 or click here to connect with me online.