Thanks to BP fellows for the inspiring suggestions in my another thread of investment opportunities.
This is a continued question from that post: what's the financing options on commercial real estate properties, for foreigners. FYI, I am a Canadian permanent resident.
Thanks in advance! :)
@Aaron Xie Yes, it is possible for foreign nationals to get loans on US properties, there are several I know who have recently expanded their program for lending to foreigners. Now, when you say commercial properties, not sure whether you're referring to multi (5+) units or other such as retail plazas, offices, etc?
Depends on the loan size and the asset type.
Non-bank lenders tend to be more forgiving for foreigner loans and offer non-recourse.
Local to regional banks tend to want more down and recourse.
Liquidity and net worth are important and source of funds.
TD Bank works great with Canadian Investors. I've also recently closed a deal with a canadian borrower with Fairwinds.
@Joel Owens hit the nail on the head. Completely dependent upon the transaction and it will vary depending on property type and loan size. You will need to find lenders who usually offer loans to foreigners and thus, offer non-recourse financing. Usually these will be non-bank entities. Larger loan amounts are usually easier to finance. We work with many foreign investors - Canadian, Israeli, Chinese, Swedish, just to name a few, and help them obtain financing for their commercial real estate needs.
@Johnny P. is right too. TD Bank is usually pretty lenient towards Canadian investors because they are headquartered and have branches there. We've utilized them before also.
Hope that helps.
yes, depends on deal and structure.
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