Real Estate in USA is finally breathing a sigh of relief
Long but find my way so far so after almost three years in the US real estate field here is my story
Has been dealing with real estate in Israel for over 10 years and still deals with it (agricultural land, leased properties in Israel, etc.)
Since laws were applied to real estate investors for a second and third apartment and so on, I decided to take some of my investments overseas for examination before selling everything here in Israel and transferring everything to overseas investments.
I chose the US for reasons of transparency and a lot of knowledge that people here in the country have invested compared to other countries and after my own inquiries.
Because I like to control decisions and my money I did not initially connect to a group of investors where I am a small part of a group with no decision ability and subject to the fate of the owners and managers of the group so I started with one property accompanied by one of my acquaintances who happened to meet Since we knew each other personally then the road was short for the first deal because there was trust and we started going hand in hand.
We sat down, met, presented a business plan and so it was, we purchased the property presented at the meeting, transferred ownership of HUD1) + DEED) of the property in the name of the company I own (of course after opening a US sole proprietorship LLC) and after getting EIN number.
After the company opened and the first property it was registered in its ownership we continued according to the business plan to renovate and then decide whether to sell or rent, while we opened a US bank in BOA Bank for the transfer of funds and also for receiving funds such as rental income, investments, profits etc.
After everything was ready for the company, the bank, the owner of the initial property, we continued according to the plan for the first property to renovate before selling / renting.
We encountered a lot of problems with the renovation and the time lengthened and I felt a bit frustrated that it was a pity I started with it but at the same time in investments like in investments who understand and know, need long distance and a lot of tolerance and certainly not break the tools because there is a learning process.
After about 4 months the property was advertised for rent and within a week the property was rented and we started getting monthly rentals as we expected and everything worked as in the plan.
After about half a year of the first lease I told myself not to rule out and test a group that way you enjoy spaces but do not mess with any "mess" with difficulties, but do not forget that you are in the hands of the decision makers and not you decide.
So I met with some companies that lend large buying groups and decided on one company that I most connected to and got into as part of a group and we set off with my second investment.
I will not say too much, but difficulties and inconsistencies according to the plan that was presented here also included unexpected delays, it is important for me to note that the company was indeed honest and open and even shared with all group investors in the situation and offered to think of a group of investor representatives to think together with decision makers. On a recovery plan, so when I was offered to be part of the investor representatives, I jumped at the opportunity to both learn about investor group management and also be part of the decision makers even though it is a large group with many investors, today we are on the right path to recovery and believe we will start seeing profits as expected In the business plan and we saved the money a little before it went to ruin.
After about half a year again I find myself looking for my next investment and I said go ahead we will try another investment place and not like the first investment and that way I will have a comparison between different investments in different places (all within the US) and I started looking for a lender again. And in a place that does not know the souls that operate and here begins a path in the search for a third investment.
I found a lender who offered a deal, I thought I checked and we started running, it was a flip deal (flip to buy a foreclosed property from the bank in this case renovate and sell at a profit).
Here too I will not exaggerate the words and the entanglement and surprises were not long in coming and a profit of several months became a deal of a financial burden that does not yield, but when I invest already inside remember from above patience then wait wait and in the end nothing happens, remember this third investment because it is the turning point .
After I had some money left over, I said, What do we do with it?
I was looking for another small investment and here I started with the fourth investment, I also found here in the US a nice lender like no other, a nice little deal but full of risk in terms of area, I said with the little money left suitable for me risk because risk is potential for profit and so was, I bought, we bought on The name of the company I own and so I already have in my company 4 properties in my name in different places all in the US.
In this investment there were no further problems until the corona arrived our company that accompanies us to this day with difficulties including restrictions on eviction of tenant in case of need, the tenant stopped paying due to problems handled along the way and then continued not to pay because of the corona.
After all the mess we went through because of the corona the tenant did not pay about 10 months (no small amount) but decided to leave the property without further difficulties.
Of course now that he's out he's starting a way in front of the US court to collect the debt, what I get is better than giving up and that's what guides me to fight for what I deserve.
So as of this point in time I am with 4 properties in the name of the company I own and there are difficulties along the way but do not give up, but now I am ready to deal with everything alone without any accompaniment because I went through a lot of things and know what to watch out for
I no longer have money to invest but I have holes left that must close with my investments and see how 4 properties operate on their own without lenders in different places
One Friday night I sit with my mother for dinner with my children, and my mother tells me listen I have money in the bank that yields nothing, what do I offer to do?
I told her I'm investing in the US and this is my mom so lying and playing with other people's money is not for me
I told her let me think a little and I will update you
On Saturday morning the next morning I got up motivated and told myself that if I did not take care of myself no one would take care of me, in addition to that I said to myself now after 4 properties I am sure he knows how to do things alone and willing to take responsibility for my mom's money I will only pay because it's my mom and it's my tuition
Of course it was my fire test so I was willing to do it and take responsibility for money not mine even though it's my mom, which I would not suggest to any other investor to take 100% responsibility for their money but I had to try to prove to myself that he does not talk nonsense and really knows how to do the Things alone.
So I decided to go for the team that knows well and manages the property from my first investment, only this time I worked with a wholesaler who markets properties directly and does not buy with a lender who takes escort money and also earns a little on the purchase, it makes sense and for me it is the price of knowledge and investment. From their time and their knowledge that it is worth money and a lot.
I purchased a property directly from the wholesaler of course with the help of my local staff who checked in as I landed the property and condition of the property before purchasing and purchased it, we made a small renovation to bring it into rental condition and within two and a half months of purchase we started getting rent as I planned. As of today it has been almost a year since the fifth property that is actually my mom's yields exactly as she was promised and everything is going as smoothly as I wanted for her.
Remember my third investment I said it was my turning point (flip that got tangled up)
About two months ago after about a year and a half that the money of my third property stands and complicated I decided to break the tools with the confidence that knows what I am doing and nothing moves without someone really moving things
So I told everyone to go back from now on I run things because I already know what to check and how to run, I found a big and orderly serious management company that knows and understood the situation and agreed to go through with me and now I run things because it's my money and I decide.
I called the county offices to find out where the problems of the permits were, I talked to the (HOA-Homeowner Association) where I found out I had a past debt that I did not know, when I understood what to do and who to contact including the local inspector.
We started running things and at a good time we are behind it with municipal approvals and tomorrow the 01st of August 2020 the property will be rented because the return I will get is higher than expected.
So to sum things up I am already after 5 real estate deals overseas
1. The first through a lender who worked at first got a little tangled up and when I went in to run the business myself started running and a new tenant came in two weeks ago.
2. The second asset within a buying group that also got entangled but on the way to recovery and as part of a representative of investors and decision makers.
3. The third property in question that gave me a turning point, was finally rented out and a tenant came in tomorrow after about a year and a half of complications.
4. The fourth small property is at risk, the tenant has left and is now taking care of the required renovation and will be rented and Yaniv assumes about two months.
5. The fifth and first property I purchased on my own without lenders works as I wanted and expected and the investor (my mom) is enjoying as planned.
I wrote it all down not just but just to let people understand that before getting into real estate investing and in any field, not everything is pink and marble and there can be difficulties but do not give up and certainly do not despair because the end is where you aim and want to get and I got and where I was going
I would love to help those in need in places that know people who are Detroit MI, NEW JERSY and Jacksonville FL.
If you want can refer you to a friend who is an experienced wholesaler in Jacksonville and you can examine properties from him
Thanks for sharing, are you really inspiring to keep overcoming challenges?
Bravo!
Well done for sharing and having the courage to tell about the process you are going through in the field of real estate investing in the US. Straighten up and lots of success.
Well done?
?
Thanks for sharing and inspiring. ??
Well done for sharing a rare post within us!
Evyatar Gerzi
Well done, straighten up.
Tal Shine
Well done for the patience. An important message for investors at the beginning of their journey
Raz Rosa Shreve
Thanks for sharing, and the way you did.