Financing in Detroit

14 Replies

Hi, 

I am a resident of Canada, do you know if any financial institutions would finance detroit Real estate with 50% down or more?

I know I cannot get 20% down but I wonder if I could get 50%....

thank you

Filipe

Try BMO Harris & RBC bank, they both claim to lend in all 50 states, but the loan must be >$65K I believe. They will lend to Canadians, 50% LTV but only one investment property.

I will check around for you with some banks in the area.

Yes, this is the struggle every Canadian faces. Getting financing that still makes the numbers work. Interested in the result here. @Al Neal thanks for looking out for us.

@Filipe Matos  how is your experience in the Detroit market? Investing on the outskirts I assume?

Thanks guys, I will look at the canadian banks with connections in US,

as Al will verify soon, there might be even small banks that could lend at least with 50 or more % down.

What I heard before is that US banks can lend after purchase/renovations done at least at 50%.

My experience in Detroit and US is null, I have been investing in Toronto downtown and I might pull out of there now. As of now I am looking at cities with major potential growth like Hamilton and Detroit.

Since I am used to downtown Toronto investing, I would be interested in trying Downtown Detroit and close by hoods. Yeah, I know, I am going totally against the norm, but I see more potential for growth in those areas although is much more risky, I think....

wish me luck :)

I've tried recently (a week ago) to do a cash out refinance with RBC USA but to no avail. The broker went cold as soon as I mentioned that it was on an investment property and it was to purchase another investment property. I'm hoping that it was just that rep and not an overall policy change so I'll try again in a week or so. I'll keep you all posted. 

@Filipe Matos If you need a referral to someone who can help you submit your ITIN application/ US taxes then please send me an PM. 

Please let us know how things go. 

Good Luck

It seems RBC does not finance properties with over 2 units, I just completed a form a few hours ago, I had to increase the loan value over 75K and select a single family or a duplex.

Originally posted by @Ajay Kahlon:

Yes, this is the struggle every Canadian faces. Getting financing that still makes the numbers work. Interested in the result here. @Al Neal thanks for looking out for us.

@Filipe Matos how is your experience in the Detroit market? Investing on the outskirts I assume?

 It seems a lot of people forget the financing aspect, I can get a better cash on cash returns with 20% down in Canada than with 40% down in US... so it does not matter if the property is super cheap.

Several canadian companies advertise returns of 10-15% on US investments.... why do investments out of your sight if you can get the same returns around your backyard with 20% down?

Check out prices on MLS or ebay. You can probably charge about 20 houses in Detroit on a credit card and maybe get about 6-11% interest if you have good credit.

I'm checking the MLS out right now for Detroit and see a nice house for $1.

TD Bank will do 20% for two investment properties, but they must be located in any of the eastern seaboard states to qualify.  I don't think Michigan qualifies as an eastern seaboard so count Detroit out, LOL.  

Originally posted by @Chad Urbshott:

TD Bank will do 20% for two investment properties, but they must be located in any of the eastern seaboard states to qualify.  I don't think Michigan qualifies as an eastern seaboard so count Detroit out, LOL.  

 go figure... LOL 

Originally posted by @Jassem A.:I'm checking the MLS out right now for Detroit and see a nice house for $1.

 I see on that one the furnace has been stolen and by the condition of the bathroom, most likely the copper has been ripped out.  Yeah, that's a great property.

$1 haha lol I really want to know what it will sell for. Maybe the person who stole the furnace will take it.

I think the $1 property could be a good investment to someone already based out of Detroit since running pex or cpvc is easy enough especially using push-fittings and many tenants in this area would be happy with window units, a fan, space heaters, or a fireplace/woodstove.  However the taxes could be too high to justify the effort or the tenant-base might be slim or non-existent since they could just go get themselves a house for the price of a soda. 

Of course many tenants are probably clueless about real-estate and repairs in general so they'd probably pay their whole welfare check to live in this house if someone came along and made it nice again.

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