Investing in the U.S. real estate market is a sound investment option, and foreign investors have taken note of the potential benefits of turnkey rental ownership.
Overseas investors can tap into this ripe income-generating opportunity in much the same way as U.S. citizens do, with the only difference coming from a few additional hoops to jump through.
A property management company can help you navigate the hurdles that foreign investors must overcome in their journey to purchase turnkey rental properties in Kansas City. In addition, a Kansas City turnkey rental company can help you find the best rent-ready properties for you to purchase.
Foreign investors should consider several things before purchasing U.S. real estate to use as a rental property:
- Setting up a business entity
- Applying for an EIN
- Setting up a bank account
- Finding the right property
- Working with a property management team
Investing in passive income real estate is relatively simple; purchasing a property that is ready to be rented out to tenants has several advantages, especially for long-distance investors. These advantages are magnified when a property management company is hired to maintain the property.
Setting Up a Business Entity
You’ll need to set up a C corporation or property LLC in order to invest in Kansas City turnkey properties. Doing so with the help of a good property management team will provide access to various corporate services to help set your company up for success, take care of the accounting details, and more.
While it can be difficult for overseas investors to search for the best Jackson County real estate, a turnkey rental company can be a great asset. A high-quality company will be able to find the properties with the greatest potential for these foreign investors according to their needs and budgets.
Retaining a property management company will allow you to optimize your income based on the country in which you live. In addition, these professionals can help you figure out the right tax structure to use for accounting according to your individual situation, in addition to harnessing as many deductibles as possible to increase your net profit.
Applying for an EIN
The United States government issues EIN numbers, or Employer Identification Numbers, as a designated form of identification for tax accounts and financial processes.
In other words, the Internal Revenue Service (IRS) uses this nine-digit number to identify businesses that are required to file tax returns. An EIN number is also sometimes known as a Tax ID Number.
As a foreign investor, you will need this number for all accounting transactions, financial transactions, and tax purposes. This is a vital part of turnkey ownership for foreign investors, as an EIN will help you obtain business loans, open a business bank account (see below) and register your business entity.
Setting Up a Business Bank Account
To set up a business bank account under the property entity you’ve created, the bank you choose will need to see the purchase agreement. In addition, they will also ask you for your EIN number.
Having a separate bank account for your business instead of using personal accounts makes accounting and bookkeeping easier. It also helps when it comes time to file tax returns each year.
Finding the Right Property
Finding the right property can be one of the most exciting tasks for overseas investors looking for turnkey investments. It can also be a frustrating one.
A top-notch rental company will find the right property for investors, facilitating the process of buying turnkey rentals in Kansas City.
Whether you’re interested in properties that generate high ROI and outstanding yields, (such as short-term vacation rental properties) or any other type of passive income, a turnkey rental company can relieve you of the burden of hunting down the right property for your needs.
Working with a Property Management Team
Working with a team of professionals to manage all of the above requirements can be a critical asset in your goal of purchasing turnkey property as a foreign investor. This team knows the laws, processes, and procedures and can assist you with any hurdles you might come across.
These companies can provide assistance that spans across several industries, from legal services and accounting help to property maintenance and even unit furnishing, so that as a foreign investor, you can receive a solid monthly cash flow while the management company takes care of everything else.
If you are planning to retain the services of a property management team, make sure you choose one that is within close proximity of the turnkey property you are interested in purchasing.
While you are overseas, these professionals can effectively oversee your investment, making sure rent is collected, the property is kept in excellent condition, and that all maintenance and documentation is done accordingly.
If you’re in need of the best turnkey rental company in Kansas City to assist in your search for turnkey properties, contact Real Deal Properties today.