Do 80%LTV cash out refis exist for Foreign Nationals in the USA
My wife and I are Canadian. We own a USA based LLC for real estate investing. I have been speaking with lenders regarding cash out refis. Most are coming in at 60 to 65LTV for Foreign Nationals. With the high DSCR loan interest rates we're finding it hard to get decent returns when your leaving that much money in a deal.
Quote from @Tyler Livingstone:
My wife and I are Canadian. We own a USA based LLC for real estate investing. I have been speaking with lenders regarding cash out refis. Most are coming in at 60 to 65LTV for Foreign Nationals. With the high DSCR loan interest rates we're finding it hard to get decent returns when your leaving that much money in a deal.
Are you talking about institutional lenders or private lenders? Most private lenders lend a max of 75% LTV for cash out refis. And private lenders usually lend to the business entity and not the actual person so that might help your situation. However, I admit I'm not sure how many lenders would change their terms because you're Canadian. I'll send you a DM
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Lender
- The Trinity Company, LLC
Quote from @Tyler Livingstone:
My wife and I are Canadian. We own a USA based LLC for real estate investing. I have been speaking with lenders regarding cash out refis. Most are coming in at 60 to 65LTV for Foreign Nationals. With the high DSCR loan interest rates we're finding it hard to get decent returns when your leaving that much money in a deal.
Hi Tyler,
I personally have never seen 80% LTV cash out refi's available for foreign nationals. In fact, I think 80% LTV for a cash-out DSCR transaction in general is rare to find now a days. Even with having a US based LLC, most of these programs (I'm assuming DSCR since you mentioned it) will require a personal guarantee and the lender will see that you and your wife are in fact foreign nationals, and decrease the LTV accordingly. One sort of solution I see for you wanting a higher LTV threshold is to potentially add a US citizen to the LLC (friend, family member, or business partner perhaps if they have US Citizenship) and have them as the personal guarantor on the loan. Not sure if that option fits your game plan but just something that came to my mind when reading your post. Best of luck!
Quote from @Tyler Livingstone:
My wife and I are Canadian. We own a USA based LLC for real estate investing. I have been speaking with lenders regarding cash out refis. Most are coming in at 60 to 65LTV for Foreign Nationals. With the high DSCR loan interest rates we're finding it hard to get decent returns when your leaving that much money in a deal.
Not for Foreign Nationals. Most restrict it to 65% LTV for Cash-out.
If the deal makes sense, you could possibly do 70% on a hard money loan. Or if you partner up with a citizen, you can do up to 80% on a private money bridge loan.
Quote from @Brandon Beardt:
Quote from @Tyler Livingstone:
My wife and I are Canadian. We own a USA based LLC for real estate investing. I have been speaking with lenders regarding cash out refis. Most are coming in at 60 to 65LTV for Foreign Nationals. With the high DSCR loan interest rates we're finding it hard to get decent returns when your leaving that much money in a deal.
Hi Tyler,
I personally have never seen 80% LTV cash out refi's available for foreign nationals. In fact, I think 80% LTV for a cash-out DSCR transaction in general is rare to find now a days. Even with having a US based LLC, most of these programs (I'm assuming DSCR since you mentioned it) will require a personal guarantee and the lender will see that you and your wife are in fact foreign nationals, and decrease the LTV accordingly. One sort of solution I see for you wanting a higher LTV threshold is to potentially add a US citizen to the LLC (friend, family member, or business partner perhaps if they have US Citizenship) and have them as the personal guarantor on the loan. Not sure if that option fits your game plan but just something that came to my mind when reading your post. Best of luck!
Thanks!
Quote from @Erik Estrada:
Quote from @Tyler Livingstone:
My wife and I are Canadian. We own a USA based LLC for real estate investing. I have been speaking with lenders regarding cash out refis. Most are coming in at 60 to 65LTV for Foreign Nationals. With the high DSCR loan interest rates we're finding it hard to get decent returns when your leaving that much money in a deal.
Not for Foreign Nationals. Most restrict it to 65% LTV for Cash-out.
If the deal makes sense, you could possibly do 70% on a hard money loan. Or if you partner up with a citizen, you can do up to 80% on a private money bridge loan.
Thanks Erik!
@Tyler Livingstone if the deal makes since it is possible to get to 75% with either a DSCR or a Foreign National product.
Quote from @Melvin List:We would love to talk with the institution doing 75% LTV foreign national cash-outs on rental properties??????
@Tyler Livingstone if the deal makes since it is possible to get to 75% with either a DSCR or a Foreign National product.
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Lender
- 413-348-8346
- http://freecapfunding.com
- [email protected]
@Brandon Beardt what is the best way to add someone to an LLC with the least amount of liability for them? I have a couple people I could add, but I don't understand what's in it for them and how I would approach it. Is there a way to have them in your LLC but not really be a partner in the daily activity.
Quote from @Lianne Ottaviano:
@Brandon Beardt what is the best way to add someone to an LLC with the least amount of liability for them? I have a couple people I could add, but I don't understand what's in it for them and how I would approach it. Is there a way to have them in your LLC but not really be a partner in the daily activity.
Hi Lianne, that I am unsure of. An attorney would be better suited in answering how to decrease their liability. On the lending side, we just need to see that they have at least 20-25% ownership in the LLC in order for us to use them as the guarantor on the loan. I would imagine you can definitely have them in the LLC but not be part of the daily activity. You'd just need to have the conversation with that person(s) and tell them exactly what you're trying to do and what you expect of them. How they'll be compensated by being added on the LLC is also up to you.