German investor investing in US real estate market

11 Replies

Hello everybody! I am new to BiggerPockets and super excited to use this resource and hopefully be able to help others out as well.

My question is regarding a German resident who has reached out and asked about how it would work if he wanted to invest in US real estate. I was made aware of the following options, but these are not in the books for this specific investor:

         Establish permanent residency through US Immigration

        Obtain a non-permanent resident visa (temporary work authorization). There are a number of classifications for this type of residency with only certain ones being          eligible for loans.

I was also told he could potentially obtain a non-resident private mortgage loan. Does anyone have experience with this?

Also, are there options I'm missing or ways to get creative with this?

Thanks in advance for your replies!!

@Alline Birkel

Real estate investments are not eligible for any kind of visa...

Tell him to come here and swin in the see...

I am from Germany I came here opened a bank account bought first property cash... my us bank is offering ne financing with 80% down...

Just my 2 cents

@Tobias Stoll

Nein, ich hab gesagt dass die Optionen die mir präsentiert wurden und die ich in meinem ersten post erwähnt hab für diesen Investor nicht klappen. :) Dass ich aber davon gehört hab dass er potenziell einen non-resident private mortgage loan bekommen kann. Do you have experience with this type of loan?

@Alline Birkel

Aso dachte er wollte die residency...

No I dont I have talked with my bank for a normal commercial loan for my llc... he could probably do the same or always talk to hard money lenders... or better for him get a low interest loan in Germany and invest the money here...

Just my 2 cents

@Tobias Stoll

Can you talk me through the process of how getting a loan in German would work for an investment here? Can you use a German mortgage on a US property? Interesting concept, never even crossed my mind because something tells me the rules and regulations differences wouldn't allow for that. 

@Alline Birkel

Geld geht immer dahin wo es die besten

Vorraussetzungen hat wir haben ein internationales finanzsysem.... es kann dir doch niemand vorschreiben wo du dein geld anlegst... mehr sag ich dazu nicht da mir mein mind sagt das dich ein investor angesprochen hat noch das du selbst irgend ne ahnung hast

... wieso gibt es Goldman Sachs in deutschland????? Wieso fie Deutsche bank in den USA??? Nur einige von vielen

If purchasing residential properties 1-4 units, there are many banks and lenders that will do with approx 30-40% down. They have to verify the income in Germany to apply lower rates (4-5%). Private lenders are more flexible, but their rates are higher at 7-10%. And of course, there is hard money. 

If commercial, you will definitely need you/your company to show track record here in the US. Just merely setting up a LLC or Corp will not get you a loan. As a non-work visa foreigner, you cannot do any work, but you can own a company, and the company can hire people to work for the company.

If your client is serious about this, you need to talk to an attorney.