Why do investors love real estate so much? For many, real estate is the IDEAL investment (income, depreciation, equity, appreciation, leverage); however, real estate investing requires financial intelligence.
Moving overseas is a major step for most Americans. They can use American real estate to help fund their overseas lifestyle; however, it will require a complex strategy.
Luckily, you can set up your passive real estate investing situation in America, long before you travel abroad. You’ll be on your way once you get the hang of managing your properties. Let’s begin.
Start a Blog for Passive Income
Why become a real estate investor? Ownership and managing real estate is the true path to wealth for most investors. Real estate offers a ton of benefits that the average person can use to create and maintain generational wealth. Here are some examples:
Income- Your real estate will eventually become cash-flow-positive. It may take a couple of years, but it will happen as long as you make good buying decisions.
Deprecation- This is phantom income. The tax code allows you to depreciate your property over 27.5 years, which lowers your taxable rental income.
Equity- As you hold your properties, their value increases. You can tap into this “equity” to purchase new real estate, greatly improving your situation.
Appreciation- Your property will increase in value in two ways: the physical structure will rise, and the amount of income it generates can increase its value in multi-family situations.
Leverage- By using leverage (loans), you can turn $10,000 into $100,000 (as an example). That means that your returns are leveraged by 10X.
These factors helped real estate become investors’ first tool to build long-term wealth. But how do you keep your real estate empire if you move overseas?
How Much Money Do You Need in an Emergency Fund?
Managing property from afar. I have a property in Arizona, although I live in Florida. I use a property management company to run this house in my absence.
Although the relationship started off rocky, we now have a great working situation. The best way to manage property from afar is to build a long-term, trustworthy relationship with a property manager.
My wife and I have owned our Arizona home since 2008, during which time I have moved to Japan twice. We were able to manage the property quite easily from overseas.
With the internet, things are never as far as they seem. However, money is the most important element of running a real estate business from afar.
That’s right; you’ll need to ensure you have a little nest egg (around $20,000) for emergencies. Anything can happen, and you won’t be there to solve the problem in the most efficient manner possible.
Imagine someone who doesn’t care about your money or your property; that person is your property manager. In any scenario, you cannot expect them to attempt to save you money.
Therefore, you will need cold, hard cash to ensure your properties survive. The longer you own real estate, the more accustomed you will become to this new reality.
The advantage of real estate over other passive income sources. But why choose to live overseas on rental income versus business, royalties, and dividends?
Being Broke Isn’t Cute IV: Saving and Investing
Real estate helps you beat inflation back home. As American prices increase, owning real estate will help you and your family stay ahead of the power curve.
You can write off your trips back to America to check on your property. Ensure you are following all appropriate tax guidelines.
Your rental income will continue to increase, ensuring that your cost of living in your current country stays above the line. You will also have a place to stay when you return to America—if one of your places is available.
Finally, real estate is the best way to ensure generational wealth. By collecting multiple properties, you will assist family members in starting their lives and building their livelihoods.
Debt-Free Society: Beat Student Loan Debt
How to get started with real estate. Most people struggle to get their first home. Once they get their first home, they stay in that home for the rest of their lives.
To become a real estate investor, you must think differently from most people. The average person sells a home to purchase a new home.
Real estate investors buy and hold their investments. They then use a cunning strategy to purchase a new home.
There are many ways to purchase real estate: fixer-uppers, multi-family, VA loan, FHA loan, equity cash out, conventional, mobile home, land, tiny home, RV, etc.
You’ll have to be creative in finding and buying your next property. There is no magic formula that will make you a real estate investor.
Being Broke Isn’t Cute III: Becoming Debt-Free
I recommend reading as many books as possible about real estate investing. Reading helps you feel confident when dealing with real estate agents, lenders, brokers, title companies, inspectors, and appraisers.
You’ll also need to deal with these people from afar. Moving overseas doesn’t alleviate your responsibility to your tenants or properties.
I love real estate investing. Each purchasing scenario is vastly different from the last. You’ll need to stay on your toes, or someone may get over on you.
Moving overseas when owning real estate. Before going overseas, you’ll want to build and stabilize your real estate empire. Better yet, start building a successor, preferably a son or daughter, to look over things.
Debt-Free Society: Beat Automobile Debt
The fact is that no one is going to fight on your behalf to lower costs. Let’s say you need to replace a refrigerator in one of your properties.
If a new refrigerator costs $3,000, your property manager will probably charge you $5,000. They would need to shop for, buy, move the new item, and remove your old refrigerator. These things cost money.
If you have someone stateside, you can save lots of money. That’s why it’s ideal to hire a manager with your best interests in mind. Trust me; things get very expensive, very quickly.
The good news is that after some years, the power of compounding makes real estate investing quite lucrative. You’ll just have to live to see that day.
Being Broke Isn’t Cute II: Getting on the Right Path
Conclusion. Moving overseas can be stressful—I know because I have done it six times. However, having stable rental income can cushion your move.
Once you have a stable real estate portfolio, a lot of money in savings (say $100,000), and a lot of rental income, you can consider moving overseas.
You don’t want a bunch of strangers running your empire; family is best. Therefore, consider hiring a family member as a manager before you leave.
Some property managers are great; however, you can’t expect them to go out of their way to lower your cost or make improvements that generate more cash flow.
Income Investing vs. Inflation
You and your family are the only people who will look out for your best interests. Remember this before moving overseas, and you’ll be fine.
I currently own four properties, and am looking to purchase more. I love real estate because of the tax benefits. You may also be able to buy real estate in your new country.
Real estate investing requires strong financial intelligence. If you’re up to the task, it can be quite rewarding. Once you have a stable real estate empire, consider moving overseas to maximize how far your rental income goes. Good Luck!
- PDF of the Month: Don’t Gamble with Retirement 13 (Free 460-Page PDF)
- Free PDF Downloads: Download FREE PDF LIST here
- Financial Mindset: Become CEO of Yourself 2 (Free 196-Page PDF)
- Retirement Planning: Your Retirement Planning Guide 2 (Free 255-Page PDF)
- Investing: How We Plan to Retire on Dividends 4 (Free 139-Page PDF)
- Cryptocurrencies: Counting on Crypto 2 (Free 159-Page PDF)
- Real Estate: Financial Independence through Real Estate 4 (Free 112-Page PDF)
- Business: Retire Rich, Retire Comfortable with a Business 4 (Free 149-Page PDF)
- Latest DGWR: Don’t Gamble with Retirement 11 (Free 410-Page PDF)
- Everything!: The Biggest Book on Passive Income Ever 4! (book)(Web Edition)(Art Edition)
- Writer’s Comparison: M1 Macbook Air vs. GalaxyBook3 Pro 360
- Read My Books for Free: Free Kindle Books Schedule
- Book Design: Design Tips on YouTube
- Kindle Unlimited: Why I Finally Subscribed Kindle Unlimited (learn more)
- Book Reviews: 505 Takeaways from 101 Books (pdf)
- Writing: The Publishing Chronicles (Part 1, Part 2, Part 3, Part 4, Part 5)
- Best REIT- Fundrise: Fundrise vs. US Treasuries (Join Fundrise)
- Follow us: On our Facebook Page and Join our Facebook Group
- Support the Channel on Cash App: $Kingmarine1981
- For more detailed analysis, join my Youtube: MFI YouTube Channel
PDF of the Month: Don’t Gamble with Retirement 12 (Free 460-Page PDF)
Disclosure: I am not a financial advisor or money manager, and any knowledge is given as guidance and not direct actionable investment advice. I am an Amazon Affiliate. Please research any investment vehicles that are being considered. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article. All Right Reserved Military Family Investing
Leave a Reply