Finance Options for US investor Buying Foreign Property

Finance Options for US investor Buying Foreign Property

Chicago, IL · Member since 2017 · 6 posts · 1 vote
I'm a US citizen interested in learning about finance options for buying rental properties in major foreign cities. My understanding is that banks will offer a 50% loan at 10%. That's high. Any recommendations for places to look for better rates? (Local banks in the market I'm targeting offer about the same rate). If I bought all cash, would it be possible to refinance at a better rate after establishing a record of income from the property?
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  • Chris MasonPro Member
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    Lender · CA · Member since 2015 · 9k+ posts · 10k+ votes
    9y
    Originally posted by @Account Closed:

    I'm a US citizen interested in learning about finance options for buying rental properties in major foreign cities. My understanding is that banks will offer a 50% loan at 10%. That's high. 

    50% LTV @ 10% is horrible! My first response is to suggest doing a cash out refinance on a US property, under normal US financing terms... If the overseas markets really are so attractive, you could mix the two (buying in the US, buying overseas), and come out ahead relative to foreign-locals who only have 50% LTV @ 10% available to them.

  • Chicago, IL · Member since 2017 · 6 posts · 1 vote
    9y
    Thanks, this is very helpful. I'll look into this.
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