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

Joyce Robinson

Commercial Lender · Royal Palm Beach, FL

7 posts

Icon_minipost Aug 05 '08, 09:39 PM

Emmy...Private investors will fund around 60% of the loan with about 3% of the loan amount in points and an interest rate of 10%-13%. It is expansive money. Perhaps you can create an investor group with like minded people in your area and create a joint venture with them. If you do not live here, bank money is hard to come by.

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

Emmy B.

10 posts
18 Influence
1 Award

Icon_minipost Aug 07 '08, 09:38 PM

Ouchâ€¦
That doesn't seem like an interesting deal!
It sure takes the glamour away from investing in the USâ€¦

Are there any other ways of getting properties financed, maybe someone knows a creative way of financing.

I don't know if creating an investment group is a good idea, since we are mainly looking for good cashflow deals. The cashflow will be lowered dramatically when using this construction, am I right?

We have thought about getting some private loans with people we know. However, we thought to use this money to pay part of the downpayment. But we weren't counting on a 40% downpaymentâ€¦and I don't know if we can raise enough money for this.

Would it make a different, when we would start an American business? Then we do have an American income. Will conventional lenders be willing to lend us money then?

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

Darien Chrysos

Property Manager · San Francisco, CA

14 posts

Icon_minipost Aug 12 '08, 08:49 AM

I was looking for something else but found this recently wandering around the internets ........

We specialize in foreign national mortgages, commercial mortgages and residential mortgages. If you are a foreign national that is looking to refinance foreign national mortgage or purchase a new home, we have the experience to make sure that your foreign national mortgage loan gets closed quickly and with less paperwork. You can obtain a foreign national mortgage if you are looking to purchase a second home or an investment property in the US. If that's the case, now is a great time to buy real estate property in the United States due to declining property values and a weak US dollar. We'll handle your foreign national mortgage loan application from start to finish to get you the best interest rate with the best mortgage terms. It's easy to apply for a foreign national mortgage, either on our website, or by calling us at 1-866-771-1594 or 954-636-3783. Our mortgage consultants are available from 9am to 9pm est to discuss your foreign national mortgage needs.
http://www.lowestraterefi.com/

Edited: 06/26/2010 at 05:40AM

Thomas Muttwill

Real Estate Investor · Austin, Texas

28 posts
5 Influence
1 Award

Icon_minipost Aug 13 '08, 11:43 PM

Wouldn't it be possible to get financing through a company structure. I know it would take some time to establish credit that way. Or maybe through an existing shelf company with an established line of credit. Does make more sense to me even with the costs involved compared to the high interest you would pay for private funding or HML.

Edited: 06/26/2010 at 05:41AM

Emmy B.

10 posts
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1 Award

Icon_minipost Aug 15 '08, 03:09 AM

Hi Thomas,

We will start looking at starting an American company soon, also for other reasons.

Do you think this will open the road to more financers?
Do you have any clue on how long it would take a company to build credit?

Edited: 06/26/2010 at 05:41AM

Emmy B.

10 posts
18 Influence
1 Award

Icon_minipost Sep 12 '08, 02:03 AM

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

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