Important things to consider when buying real estate in the US
Important things to consider when buying real estate in the US
- Post number 4–
** Important things to consider when purchasing real estate in the US **
Understanding the Gaps: Language, Time, Concepts, and Culture
As a foreign investor, that is, someone who lives outside the United States, it is very important to understand that there are many gaps and no less important to learn how to act taking these gaps into account. Beyond the issue of time and language differences there are also gaps in concepts and culture. Concepts like "foreclosure" or "tenant eviction" and others may be understood a little differently while talking to an American. No need to be ashamed and ask the caller what he / she meant and sharpen the point.
Subtleties of media culture
In a conversation with an American, many times we will not get a direct answer, "Dogri" does not really exist here, most of the time these will only be implicit answers. Although the conversation will be full of text and content, many times at the end of the conversation we ask ourselves "what did he / she tell us now" - that is, turn around the point without answering directly.
- Another point is politeness.
We may have a very pleasant and good conversation, we will end it with a great feeling and yet nothing came of it. Why? The American will not directly say that they have no interest in working with us and it is rare that they will express orally or in writing that they are not interested.
Last point on the subject - self-mining caution.
Humor is good and helpful but you have to be careful, even with those we already have a business / personal relationship with. We may feel comfortable talking to someone and "throw" some comment or joke and the other party may not get hurt but will feel uncomfortable and will not let us know and it will affect the relationship.
- One last point really - small talk is very important.
Transfers the conversation to a calm and friendly tone and gives a sense of coziness and a bit of familiarity before talking business - let's not underestimate this.
Bank account - critical Yes or no?
Is a US bank account essential for making an investment in the US? The short answer: no. But it definitely simplifies things and helps and eases the whole financial issue. I would not perceive it as something that stops making an investment and there are other ways you can get by without a bank account, but without a doubt it is very convenient if you have a bank account in the US.
Tax number for tax reporting
Sooner or later you will need a tax number in order to file U.S. tax returns. It is a somewhat long and bureaucratic process and it is better to prepare for it in advance than at the last minute.
US mailing address or email conversion service
It is important to have letters in the United States. There are also mail services that convert regular mail into a scanned document sent by email. If you work with a property management company they may already be prepared to receive mail for you.
It is important that the mailing address is not the property - you can be sure that the tenant will not send you mail that will reach the property but will be thrown in the trash.
Local phone number
There are quite a few services or applications for free or for a nominal fee that allow you to issue an American phone number. For most people, a call from an international number may appear to be spam and will not be answered.
Taxman
Sooner or later you will have to file a tax return. It is advisable to find a tax person who is well acquainted with the subject of real estate in the United States and the subject of submitting reports in two countries. Luckily, there are quite a few such people in Israel and the United States.
Money transfer service
There are quite a few companies that provide this service. In order to test and decide which company to work with, I would recommend sending a small amount of money with a company or two, learning how to work, understanding and knowing how complex it is and not waiting for the 90 minute to learn the complexity of the subject.
Legal consulting service
In the US there is a monthly subscription service for legal advice. It costs about $ 30 per month and provides a wide range of legal services such as consulting on documents / contracts, professional questions on one subject or another, and provides answers in every state in the US. For example, advice on a contract with a property management company or advice on problems with a tenant and many other issues that are not related to real estate.
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Thanks Danny 🙂
A recommended company that gives an address to mail services that convert you to an email. Thanks