Nathan has been in the real estate industry for 15 years. He started investing in other countries five to six years ago and has been sharing his experience with others who want to do the same ever since.
In this episode, join us as Nathan shares his real estate journey in international investing.
Nathan began as a local real estate wholesaler to supplement his income while working two to three jobs at the time. He studied real estate for two years, attending seminars and reading many books, determined to learn more about it. During this period, he landed his first deal, for which he hired a coach to assist him. Together, Nathan and his coach made 11 offers, and four of the 11 offers were accepted. He was able to earn roughly $18,000 on the two deals.
When he was starting out, Nathan’s strategy for finding potential properties was to hunt for ones with issues such as mold. He had a list of approximately 60 investors who were seeking these types of properties in Massachusetts and Rhode Island at the time, so he would simply email them and wait for them to contact him.
When asked how he was able to come up with a list of 60 buyers, Nathan said that he has experience in direct sales. He approached real estate agents and brokers, brokerage houses, insurance agents, and developers, asking them about the types of properties they wanted to buy, and he worked his way up from there.
Nathan’s coach was a big help in closing his first two deals. They collaborated on the contracts and offers, which mainly included condemned properties.
He said that he had employed coaches on several occasions before he started investing in real estate. If you want to speed up the learning process, Nathan said you should try hiring a coach who has previously been there since they have tips and tricks from their experience that you won’t find in books.
Coaches can also assist you in improving your self-discipline. In Nathan’s case, his coach sets deadlines that he must meet or else they would miss out on opportunities.
Nathan worked with David Lindahl, a seasoned investor in Massachusetts. They first met when David came to their area to deliver a presentation. Following that, they were able to talk, and he hired him to work in his office. Nathan learned how to acquire his own apartments while working for David for three years.
He has dealt with various short-term rentals over the last five to six years. In fact, he just purchased a huge commercial building with 26 apartments and 40 rooms, which was converted into a senior care center.
In 2010, Nathan moved around from state to state quite a bit. While residing in North Carolina at the time, he began purchasing houses remotely, which he does three to four times a month. After seeing how effective this strategy is, he started doing it in Georgia and other states.
In 2013, he traveled to Uganda, Africa, to see a friend. During his stay, he fell in love with the culture and the environment. He returned to the United States after seeing the potential of the real estate industry in Uganda, sold all of his properties, and moved to Uganda a month later.
At present, Nathan gave rough percentages on how he allocates his resources: 60% in the U.S., 10% in Uganda, and 30% in Portugal. Most of his assets are in the United States, where he is more familiar with the market.
When asked how investing in Portugal differs from investing in the United States, Nathan said taxation is the primary difference. For example, if you get a mortgage from a bank, you will be taxed twice: first, as a tax charge for obtaining the money, and second, as a tax on your personal income.
When it comes to tax regulations, the United States has much more than Uganda. According to Nathan, you can do nearly anything with your property in Uganda, which is difficult to do in the United States.
People may acquire properties in other countries, according to Nathan. However, certain countries require additional steps. For example, in some, you may only purchase a property under a company name, not your personal name, provided that one of the board of directors is a citizen of that country.
Nathan said that you could do almost all of the negotiations remotely, but you need to make a personal appearance when dealing with big properties like the big commercial building that he mentioned before.
The United States has the largest capital incentives to get loans, making it a loan-driven market. Uganda, on the other hand, is a cash-rich nation where individuals pay in cash for houses and cars. In some places, such as Portugal, it’s a combination of the two, but in Portugal, the laws are strict since the government is in charge of lending money to the people.
In terms of interest rates, if you deposit your money in a bank in Uganda, the interest rate is around 13%, which is relatively high in comparison to other places. If you get a loan, you will also be subject to a high-interest rate of 17% to 18%. However, as previously said, the majority of individuals prefer to pay with cash.
Portugal’s savings interest rate is lower than Uganda’s. Their lending rates, on the other hand, are lower than those of the United States and Uganda. A commercial loan with a 6% interest rate in the United States is equivalent to a 1.8% interest rate in Portugal.
Major businesses include agriculture and food. The soil is very rich there, which is probably why they have the best coffee globally. There is also an abundant food supply since farms can be found nearly everywhere.
Properties in Portugal range in price from $200,000 to $500,000, depending on location. The closer the property is to the coast, the greater the price. If you want to rent out your property, expect to charge between $100 and $300 each night, depending on the location.
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