The great recession is well and truly behind us and this means that foreign investors and buyers are starting to once again look at the US real estate market. There is some disagreement on just how we covered the housing market is, but foreign investors seem to agree that it is certainly interesting. This is also true due to the fact that the dollar is still quite weak, which means that people can strike really good deals in both commercial and residential properties. However, the US is also home to very complex money transfer rules, title holding rules, and taxation laws, which means that there are some important things to consider. Gordon Tang is happy to help with all aspects of this.
Gordon Tang on Getting Investments Right
First of all, you need to make sure that you document absolutely everything period if a transfer is in excess of $10,000, it will automatically be reported to the authorities. In 2001, the Patriot Act and First of all, you need to make sure that you document absolutely everything. If transfer is in excess of $10,000, it will automatically be reported to the authorities. In 2001, the Patriot Act was put in place and the 1986 money laundering control act is also still in place. This means that you do have to be able to document where your money comes from.
Secondly, you need to consider whether you would be able to buy all cash. If you can, it is likely that you will find motivated sellers who are happy to quickly close a deal and even give you a significant discount. However, the reality is that financing can at times be more beneficial and give you a greater return on investment. Hence, do make sure you speak with an experience real estate investor to talk about this. If you do want to finance, be prepared to find this incredibly difficult. You are usually expected to put down at least 30% as a down payment. This is particularly true if you are considered a foreign national, even if you have worked in the United States for a long time and have a good credit history. Indeed, it is often easier to ask a bank in your home country to finance your deal.
Next, you need to consider how you will control your assets. In the United States, you’ll do that as an entity such as a pension fund, a living trust, a partnership, a limited liability company, a domestic or foreign corporation, or as an individual. Each of these options brings with it some specific advantages and disadvantages and you need to be ready to compare those to find out which one is best for you.
Furthermore, you need to have an exit strategy ready before you even consider getting into the market. You need to know what you are looking for in terms of games and what will be required of you when you are ready to sell. Last but not least, you should never purchase a property that you have not seen in person, which means you also have to make visa considerations.
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