069: How to Invest in US Real Estate as an Australian Citizen with Reed Goosens

The United States has a very unique real estate market. People in the US might not realize it, but this is one of the best places to invest in real estate in the world. The US has great financing for real estate, great rent to value ratios, and affordable properties in most of the country. Reed Goosens is from Australia and always had an interest in real estate investing, but investing in Australia is extremely difficult.

The minimum prices in Australia are over $300,000 for a property and it is almost impossible to cash flow. The banks are requiring as much as 40 percent down for the investors as well. Reed knew he wanted to buy rentals, but also knew he needed a different part of the world to invest in. As a structural engineer he had a job that allowed him to travel the world. On this episode of the InvestFourMore Real Estate Podcast we talk about how Reed started investing in US real estate as an Australian citizen and how he has moved on to syndicating large apartment deals.

How did Reed Goosens get started investing in real estate in the US?

Reed wanted to start buying real estate in 2009, but it was not until 2012 that he actually bought his first investment property in the Unites States. Reed bought a duplex in Syracuse New York that needed some work, but was a great deal. Reed continued to buy multifamily properties on the East Coast and build his portfolio. Eventually Reed decided to go after bigger and better deals. He started to invest in large apartment complexes with other investors. This is commonly known as syndication.

How did Reed get started syndicating apartment complex deals?

Reed is an Australian citizen, but he now resides in the US. He has a US girlfriend, who he is engaged to, and he will be a US citizen soon. Reed has faced challenges being an Australian citizen that we will get into soon. When Reed wanted to invest in big apartment deals, he found he needed a mentor for people to take him seriously. He found a mentor, learned the game, and bought his first deal in Houston Texas, which was a 250 unit apartment building.

Reed found other investors to fund the down payment and gave them a preferred return of 6 to 8 percent. Reed owns 30 percent of the deal and the investors own the rest. Reed buys properties that are mismanaged or under performing, fixes them, raises rents, and then plans to sell in 4 to 6 years.

What challenges did Reed face being an Australian citizen?

Reed bought his first investment property for $38,000 with cash. Reed could not find a bank that would lend to him, because he was not a US citizen. However, after doing some research, fixing up the property, and renting it, he was able to refinance with a local bank in New York. Reed says the key to financing properties as a foreigner is finding local banks. However, the banks will not give the best rates and terms to foreigners, because they see more risk. The banks may require 30 percent down, over 6 percent interest rates, and it could take months to close. That was one reason Reed moved into syndication with other investors, it was easier to finance the big deals than the small ones as a foreigner.

How can you contact Reed Goosens?

Reed has started a website and podcast to help educate others on how to invest in large apartment buildings. You can find it right here: RSNpropertygroup.com. Reed also gives us a few parting tips for foreign investors.

• Make sure you get a US tax id number
• Make sure you have a US bank account
• Make sure you check tax laws in your country and the US