As a foreigner (South-African) how can I invest in the USA's property market, be it in my private name or a LLC using as much gearing as possible?



  • As a foreigner (South-African) how can I invest in the USA's property market, be it in my private name or a LLC using as much gearing as possible?


  • admin

    My suggestion:
    Invest with a USA company that invests in your desired market.
    Combo of lending to a company, and Investment in the business. Designate 65% to lend at a set rate of return,interest-only payments, locked in at 1st position only mortgage. Invest balance in business as a shareholder.
    As an example: 65% at a guaranteed rate of 8% per yr interest only. This is your guarantee xx earnings, providing the funds are immediately put to work. This protects the backside of an Investment plan with a set rate of return and gives you safety, which helps protect against the risk of loss if say a bad investment is made. You still get a guaranteed rate if the business took a loss…… I think this is best set on a 3–5yr plan to see operators have a solid average return over the life of Investment.
    So, if you do not like the avg returns, you can reassess whom you invest with ….
    My suggestion would be lender is an LP, with general fund manager being an outside 3rd party to report and assess the assets as a source other than investor running the real estate company. This depends on $$ and finding a team that is your eyes and ears. The downside is a lag of Investment due to people and extra steps, but acts as a barrier of protection….money likes safety….

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    There are various ways in which you can achieve that. I have done so myself with great success.
    You can invest directly by opening bank accounts, LLC, and buying a property in the US. This has the most admin involved, and using trusted partners is a necessity.
    You can go the route of crowdsourcing where there are companies that source great commercial deals and offer it up as investment stakes where your investment pays out dividends quarterly.
    The last that I know off to get into the property game in the US is to partner with more prominent players in the market.
    There are higher net worth individuals that diversify their risk by investing offshore in commercial and development real estate.
    They then offer a partnership in the form of investment into the deal. This makes for great deals if you have enough capital, and they do all the work, and you get to invest in deals you could only dream off as an individual.