How Paul Was Able to Fund His First Investment Property in the U.S.
Paul moved to Seattle, Washington in 2016 from Australia. Besides regular stock investing, Paul also invests in real estate outside of the U.S. Looking to grow his real estate portfolio within the country, Doorvest "ticks all the boxes for [him] to get into the U.S. real estate market."
Doorvest is built to advance financial security for all. Every day where we can help someone have direct ownership of an investment home is another day we get closer to democratizing financial security for all.
Enjoy our complete interview with Paul below!
What investments have you made over the last 5 years?
Buy and hold stocks and approach the investment with a long-term strategy. Most recently, I started day trading and swing trading to see if this is something I’d also be able to do one day. Swing trading captures short-to-medium-term gains in stocks over a few days to several weeks.
Why did you want to invest in real estate?
I wanted something tangible as part of my diversification strategy. It was never a question of if I wanted to get into real estate investing. I also wanted to have investment properties that I could pass on to my children when they’re at the right age.
How did you hear about Doorvest?
I looked into a couple of options initially. I tried to invest remotely by myself. I spoke with an agent in Ohio, and also looked at an online marketplace where I could buy properties. However, I didn’t feel comfortable, these methods had many unknowns for me - mainly when I lived in one state and wanted to invest in another.
I found out about Doorvest after further research, and I liked what I read on the Doorvest website. For me, what Doorvest offered was ideal - ticks the boxes for me to get into the U.S. real estate market. I then arranged to meet with a Client Partner, and they confirmed my research and understanding of the service. I submitted a deposit relatively quickly and found a property instantly. Although I didn't move forward with this particular home due to acquisition challenges, Doorvest helped me find another property that I eventually reserved.
What gave you the confidence to invest through Doorvest?
I have investment properties outside the US. With this experience, I know the challenges of going through remotely acquiring, leasing, and maintaining rental properties. Doorvest is an end-to-end real estate investing solution that met my challenges. All that is left to do on my end is get a lender and secure the funds.
What was your investment strategy with a Doorvest home?
I was going for a home with a balance between cash flow and appreciation. It would be good to have a self-sufficient home, where the rent covers taxes and extra income to cover any additional hiccups. However, I don't plan on living off the rental income. I want to buy and hold it for as long as it makes financial sense (maybe sell it and do a 1031 exchange, and hopefully, multiply the property) and pass it on to my children someday. They can then decide whatever they want with the property.
I recently closed on an investment property through Doorvest in April 2022. I’m happy to share that I am pleased with the renovation and that it was rented out within a month of closing:
What are your plans for the future?
I’ve got some investment properties outside the US. I got one in Australia, and I plan to add another in Australia and the U.S. My plan to purchase in Australia has been delayed another year, but I still plan to move forward in the U.S. I have submitted another fully refundable deposit to see more uniquely curated Doorvest homes and received a couple of interesting investments. I have yet to reserve any homes as I am waiting to form an LLC and want to move forward with my next purchase through an LLC.
How much did you save for the down payment?
I used some of my stocks to fund my deposit, but I didn’t sell them. Instead of selling my stocks - I did a stock-secured loan. While it worked for me, this may not be the case for everybody.
Anything else you would like to share?
You have to realize that there will be a lot of hesitations with many, many unknowns. Purchasing an investment property is not a small purchase; it will probably be one of the biggest purchases in your life. So it's entirely normal for anyone new to real estate investing to have hesitations.
Do your research, and ask a lot of questions – from lenders, real estate agents, and people who have done real estate investing. Make a mental list of the data points you need to make a decision to move forward (or not) with your acquisition.
For me, some examples were: where could I find potential properties, how do I manage the renovation, how do I find renters, and who’s going to maintain the property if I’m out of state? Doorvest addressed these issues by being a one-stop-shop solution. Most importantly, you’d have to be comfortable with transacting everything non-traditionally and entirely online.
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