Real Estate Investment Opportunities in the US for Foreign Investors

Real Estate Investment Opportunities in the US for Foreign Investors:  Real estate is real property that consists of land and improvements, which include buildings, fixtures, roads, structures, and utility systems. Property rights give a title of ownership to the land, improvements, and natural resources such as minerals, plants, animals, water, etc. On this Post I will show you Real Estate Investment Opportunities in the US for Foreign Investors.

 

Real Estate Investment Opportunities in the US for Foreign Investors

Anyone can invest in real estate in the US and at a certain threshold of investment, you can even get permanent residency as an investor. Thanks to rising interest rates and the impact of Covid, the real estate market in America is in turmoil right now. Another little-known fact is that there are lenders who will lend money to foreigners wanting to buy real estate in the US. There is negligible risk to the lenders because the property acts as collateral for the loans. Culturally, Nigerians and other Africans like to hold their money in real estate so there are individuals from Africa who now hold real estate assets in the US within their portfolio. You can start out in real estate as a loan signing notary in Washington DC, and you can have several closings with Nigerian Americans. Some invest purely under limited liability companies, and some are buying property for their primary residence.

The housing market has slowed down so much due to rising interest rates, but it is helping to cool down prices. Many professionals fled from large cities during the early days of the pandemic leaving more stable apartment prices behind. The biggest impact of Covid is on the commercial side where there are large vacancies in retail and office spaces. Less than 40% of workers in Washington DC have returned to the office. The government has tried unsuccessfully to bring in all workers who work from home. Whenever employers offer ultimatums, people quit and in a tight labor market, US employees cannot afford to lose those workers. The industrial sector offered more upside as companies like Amazon leased or built warehouse space but last week Amazon admitted they will have to sublet that space as they committed to more space than they need. Their stock tanked!

Briefly, the biggest opportunities for foreign investors in the US lie in the commercial real estate space because there is a glut of properties available for sale. The District of Columbia is urging investors to buy office towers for condominium conversions since there is still a shortage of housing. They are trying to attract new companies to come into DC, but they are competing with neighboring states like Virginia which are more business-friendly. The biggest challenge with downtown Washington DC is that there is extraordinarily little foot traffic. The city needs more cultural diversity, dining options, and shopping destinations. Washington is known as ‘Chocolate City’ but due to gentrification and decision-makers who do not live in the community, the city has become bland and mostly deserted. It is a vicious cycle because people feel unsafe when they are walking alone on empty streets.

There are endless possibilities with what you can do with all this excess commercial real estate stock in the US and the benefits of investing are endless. With an investment of $800,000, you get the EB-5 investor’s visa which gives you permanent residency and is helpful for those whose children are going to college at state universities because they pay lower tuition fees than foreigners. You can also get non-immigrant visas which make it easier to come and go into the US. A good immigration lawyer like Maryland-based Nigerian-born, Isaac Falusi, can help you navigate the application process. Even a lower entry point of investment will eventually add up to an easier path to permanent residency later. The pandemic coupled with inflation has created a perfect storm for commercial real estate in the US. This is a rare opportunity in the economic cycle to pick up some property bargains in a sector that has been traditionally hard to penetrate. As a new estate agent, I prefer dealing with commercial tenants because they know what they want. They are much more decisive when the premises suit their functions so as a landlord, you need not worry about income once you have the right tenants on your premises. As an African investor, never before has it been possible to get a foothold in the heart of the American capitol.
In Conclusion, I am excited to bring African investors into a market that is more stable and where the currency holds its value. This is the same strategy that Chinese and other investors have been using for years and there has never been a better time for Africans to acquire investment real estate in the US. Rising interests rate work in your favor and you can always refinance later once interest rates start coming down again.

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