While I don’t usually invest for appreciation, sometimes properties do go up in value. If your property appreciates immensely, should you sell it and make a profit? That’s the first question I’m answering on this Q&A episode!
On this episode of Investing in Real Estate, I’m answering your questions from my voicemail. Today’s questions include topic like how to determine what to do with an appreciated property, arm’s length transactions, and how to buy real estate in the US from overseas. Click play to hear my answers to your questions!
On this episode you’ll learn:
- What to consider when your property appreciates in value.
- Some tips for dealing with arm’s length transactions.
- How to invest in the United States as an international investor.
What to Consider When Your Property Appreciates in Value
If the property in question is a rental property, this is where nurturing your portfolio comes into play. You can certainly utilize a 1031 exchange and swap out this property for multiple rentals and increase your monthly cash flow.
Remember, you can’t eat equity, and oftentimes a highly appreciated property does not keep up with the rental amount. I’d certainly suggest looking into your options, running the numbers, and looking for a way to utilize your equity.
Some Tips for Dealing with Arm’s Length Transactions
I’m going to be honest: I don’t know much about arm’s length transactions. From what I understand, there is no issue with selling property to relatives, but I’m not a lawyer or CPA. Here’s what I would suggest:
- Reach out to a great real estate lawyer for advice. We like Corporate Direct.
- Talk to a realtor in your market to see what their knowledge base is like.
- Find a lawyer in your state that knows your state’s specific legislation.
How to Invest in the United States as an International Investor
At Morris Invest, we work with international investors on a regular basis. I highly suggest looking into our international program to see if it’s a fit for you. Here are some of the benefits of the program:
- Uses non-recourse financing (not based on you, but the asset itself)
- Interest rates are low (slightly higher than conventional rates)
- Your credit score isn’t a big part of the equation.
- You don’t need a lot of US infrastructure or entities beforehand.
To learn more about our International Program, you can schedule a free call here.
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DISCLAIMER: I am not a financial adviser. I only express my opinion based on my experience. Your experience may be different. These videos are for educational and inspirational purposes only. Investing of any kind involves risk. While it is possible to minimize risk, your investments are solely your responsibility. It is imperative that you conduct your own research. There is no guarantee of gains or losses on investments.
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