Mortage for European investor

On our way, to start investing in US RE, we ran into the financing problem.
With so many things going on in the States, about financing RE, we found out, that we aren't welcome anymore at conventional lenders. They will only except foreign investors, when living in the US AND having a job in the US.

I was wondering how we can work around this.

I've heared and read something about private lenders. How will I find private lenders? Is it easy to get a private loan, or is everybody looking for them?
What conditions are normal, when it comes to privat lenders to foreigners?

Are there other ways, to get RE in the US financed?
Are there people here who've faced the same problems?

If anyone could help us on more information, we 'd be very thankfull!

Edited: 06/26/2010 at 05:37AM

Cornell James

Real Estate Investor · Birmingham, Alabama

40 posts
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Aug 09 '08, 12:17 PM

I have some private lenders I can run your questions by and I'll PM and let you know what they say.

Edited: 06/26/2010 at 05:38AM

Michael Madill

Real Estate Investor · Tavares, Florida

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Aug 22 '08, 09:01 PM

Interesting dilema. I will also ask around about that. What type of investing are you looking to do?

Edited: 06/26/2010 at 05:44AM

Bryan B

Real Estate Investor · Monroe, OH

17 posts
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Aug 26 '08, 09:21 AM

I can tell you that I have 40 Euro investors and NONE of them are able to obtain financing. About 8-9 months ago I had a few sources, but now none at all. The only offer I found recently was a HML at 15% with 10 points and 70% LTV. Needless to say, usury rates. Hope you have better luck!

Edited: 06/26/2010 at 05:46AM

Tim W.

Real Estate Investor · Indiana, Indiana

Donor

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Aug 29 '08, 08:57 PM

An option is to create a US LLC and obtain business credit in that LLC to purchase property with. It's a process that will take time. Consult an attorney on this one. You may need a US citizen partner. I don't know.

In the interim, have you settled on a geographic location? If you have, you can approach smaller banks and credit unions that operate in that area to see if they do portfolio or committee lending. Typically it is a local committee who decides whether or not to extend the loans and you stand a better chance of being taken seriously.

Tim

Edited: 06/26/2010 at 05:47AM by Tim W.

Emmy B.

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Sep 12 '08, 02:02 AM

Thank you all so much for your replys.

At this moment, it looks like we've found a very interesting loan for foreign investers. One with 80% financing and around 8,5% interest.

We are aplying for pre-approval at this moment, so I hope it will turn out ok.

Edited: 06/26/2010 at 05:54AM

F Zalazar

1 post
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Oct 05 '08, 11:12 PM

Originally posted by Emmy Broeders

Thank you all so much for your replys.

At this moment, it looks like we've found a very interesting loan for foreign investers. One with 80% financing and around 8,5% interest.

We are aplying for pre-approval at this moment, so I hope it will turn out ok.

Hello Emmy,

My name is Fernando and live in the USA, near Boston. I work in mortgages and I am looking for investor in USA to finance European buyers just like yourself.

I would very much aopreciate if you could provide me with information on your source.

Thank you and best regards,

Fernando Zalazar

Edited: 06/26/2010 at 06:04AM by Moderator : email removed

Pauline Wright

Real Estate Investor · San Diego, CA, Alabama

53 posts
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Nov 05 '08, 02:16 AM

Emmy,

I am working with a few investment Companies overseas who are running into the same loan issues. Did you have any luck with finding a good source? If so, could you possibly share the details of the Company?

Many thanks.
Pauline

Edited: 06/26/2010 at 06:18AM

Ben Carmona

· Wentzville/St. Louis, Missouri

359 posts
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Nov 21 '08, 04:35 AM

I found a source that says they can do foreign national loans at 90%. Rates in the mid 7s 30yr int only but points were around 10. Min $100k.

Emmy, please let us know how your loan went and who it was with.

thanks

Edited: 06/26/2010 at 06:27AM

Christopher Wong

Banker · Chicago, Illinois

30 posts
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Dec 16 '08, 07:17 AM

Hi,

I have a loan product that requires no credit or income verification.

Please contact me for more details.

interests rates 3-5%

Chris

[REMOVED]

Edited: 06/26/2010 at 06:40AM by Moderator : Contact Info Removed

Hitesh Patel

Real Estate Investor · Cumming, Georgia

36 posts
2 awards
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Jan 23 '09, 06:56 PM

I am a UK citizen looking to buy investment properties in FL, GA and CA. Do you have any lenders that actually closes, been promised so many things.

Edited: 06/26/2010 at 07:02AM

Scott Allan

Real Estate Investor · Hoboken, New Jersey

109 posts
2 awards
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Feb 03 '09, 12:23 AM

Currently there are very few lenders offering foreign national financing on guaranteed mortgages. I ran by one a few weeks ago that was 60% but I'm not even sure that exists anymore.

I am working with a lender on a multiple amount of foreign national contracts. They are a private money firm offering stated/verified loans. The terms are for only 3 years and interest only at 7.5%. They do charge 10% upfront for their fee.

I will let you know how it goes. So far contracts and docs have been with them for over 3 months and we have not closed although closing packages were sent out just last week on 2 of them.

Right now, my confidence in them is very low but if something happens I will let you know.

Edited: 06/26/2010 at 07:08AM

Ben Carmona

· Wentzville/St. Louis, Missouri

359 posts
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Feb 03 '09, 04:57 AM

Scott,

We are set up to use the same lender you mentioned and have heard the same thing about time frames. Apparenlty they are 90 days out right now. The account executive I use told me that their first 2 deals should be closing this month. He mentioned my March turn times should be back to 30 days.

Edited: 06/26/2010 at 07:09AM

Hitesh Patel

Real Estate Investor · Cumming, Georgia

36 posts
2 awards
50 influence

Apr 23 '09, 01:42 AM

Did either of you close on the foreign national loans?

Edited: 06/26/2010 at 08:01AM

Scott Allan

Real Estate Investor · Hoboken, New Jersey

109 posts
2 awards
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Jun 22 '09, 01:23 AM

Just closed our first loan with a lender who will do foreign national financing. It is NOT Harbor Funding so if you are referring to, it is not them. If you want a copy of the terms/ guidelines, PM me. It is a 75% loan

Edited: 06/26/2010 at 08:41AM

Chris Bridgeman

Real Estate Investor · Auckland, Select a State

33 posts
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Jun 22 '09, 10:16 AM

Hi Scott

I would be interested in the contact details and terms. I can't PM you as I am not a collegue :-)
I am an New Zealander with a syndicate of overseas investors looking to buy and having a challenge getting debt funding

Chris

Edited: 06/26/2010 at 08:41AM

Kevin Macadam

Banker · Hessle, East Yorkshire

24 posts
2 awards
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Jun 23 '09, 06:08 PM

Hi All

We've been working with a number of banks that will fund overseas mortgages for foreign investors so please pm details of what your clients are looking for and hopefully we will be in a position to help.

regards

Kevin

Edited: 06/26/2010 at 08:43AM

Simon C

10 posts
50 influence

Jul 07 '09, 02:02 PM

Hello Scott, Kevin,

I would be very interested in the mortgage deal you have had recently, as I have been unable to find anything out there that is less than 10%.

Many thanks

Simon

Edited: 06/26/2010 at 08:53AM

Kevin Macadam

Banker · Hessle, East Yorkshire

24 posts
2 awards
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Jul 07 '09, 03:50 PM

Hi Chris. Simon

I've sent you a message with my email address so that you can email me details of what you are looking for,

regards

Kevin

Edited: 06/26/2010 at 08:53AM

Simon C

10 posts
50 influence

Jul 26 '09, 03:38 AM

Hi Kevin,

Any news on finance for foreign investors?

Cheers

Simon

Edited: 06/26/2010 at 09:07AM

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