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For International Investors

You’ve come to the right place. The professionals at Smartland® work with investors all over the world, so you are in very capable hands. Below you will find a step-by-step explanation of the purchasing process, followed by a list of frequently asked questions. Please do not hesitate to contact us with any further questions.

  1. You select a property which aligns with your investment strategy.
  2. As part of your investment strategy, you may choose to register an LLC. We recommend that you consult an attorney or an accountant in order to decide if this is the best option for you.
  3. Once a price has been agreed upon, the purchase documents will be signed by both parties (buyer and the seller). This can be done through email, there is no need to be present at the location.
  4. You make an earnest money deposit (directly to the title company).
  5. Once it has received the earnest money, the title company performs a title search. This is to make sure that you receive good title to the property.
  6. A professional home inspection should be carried out. (You can find list of inspectors by doing basic google search of “Cleveland Home Inspectors”)
  7. You must obtain a landlord insurance policy. Make sure it has coverage for any periods in which the property might be vacant. (So far, Foremost seems to be the least expensive insurance in our area)
  8. The title company will coordinate the closing with you. It will forward documents which need to be signed (and, in some cases, notarized). Again you do not need to be physically present to sign documents. Everything can be handled through mail/email.
  9. You pay the remaining balance to the title company.
  10. The deed is recorded and transferred by the title company.
  11. All closing documents are mailed to you by the title company.

You are a proud owner of the house.

Note, once everything is done we help you to switch all utilities (gas, electric, water, sewer) and with county and city registrations.

It usually takes 30 days for the entire transaction.

FAQs From International Investors

Do you have to be a citizen to buy real estate in the US?

No, you do not have to be an American citizen or a legal alien to purchase real estate in the US. The United States real estate market is open to anyone interested in investing.

Do I have to register an LLC?

No, although the majority of our investors choose to do so. It is best to discuss this option with an attorney.

Would I have to pay any commissions?

No. Commissions are paid by the seller, not the buyer.

How long does the closing process take?

The closing process takes 30-45 days.

Should I get a “Warranty Deed?”

Yes, always get a Warranty Deed. This will guarantee that you receive a clear title.

Can I back out if I do not receive a clear title/deed?

Yes. At the end of the title process, the seller should provide you with a clear title-deed. If they fail to do so, you can back out.

How much will a title company charge?

The services if a title company should cost about three to five percent of the total purchase price.

Will I have to open a US bank account?

No, you do not have to open a US bank account.

How much will it cost to register a business in the US?

We’re not suggesting that you take all of your money out of the markets to invest in real estate. What we advocate is the diversification of assets, not just ownership of multiple types of mutual fund, but diversification into investments that are not directly correlated to the ups and downs of the stock market. For specific suggestions as to diversification and portfolio allocations for your situation, we suggest a consultation with a certified public accountant (CPA) or certified financial planner (CFP).

Can I use property that I purchase?

It should only cost about 600 dollars to register a business in the US. Any attorney can help you.

Will I have to declare my income?

Yes. You will be required to declare income generated by US businesses. Any Certified Public Accountant can help you.

What form do I use to declare income?

IRS Form 1042-S is used to declare income.

What are the US income tax rates?

DollarThe US income tax rates vary and are applied on a sliding scale starting at ten percent on incomes up to 8,350 dollars and over 35 percent on incomes in excess of 372,950 dollars
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