Lender · Chicago, IL · Member since 2016 · 653 posts · 313 votes
5y
Amedeo, I do these loans all the time.
Usually capped at 60% LTV. Rate is gonna be around 6.00-6.25% paying about 2.50% origination (depending on the deal).
Term can be structured to 5/1, 7/1, or 10/1 hybrid arm, either fully amortizing or interest only. 30 year fixed is also an option.
Properties need to meet a 1.20x debt service requirement (gross rent income/pitia), no personal income requirements, close in an LLC. Foreign nationals usually schedule an appt at a US embassy and close there, since the notaries at embassies have international jurisdiction.
Real Estate Professional · Memphis, TN · Member since 2009 · 1k+ posts · 1k+ votes
5y
@Amedeo M. I have seen private lending work best, but does come more expensive then banks. The private lenders I have worked with typically like 40% down and will charge a 2 to 3 points in origination (but no appraisal which can be up to $500) and 10% interest. They will lock in a term for 5 years and amortize over 15 to 20 years and some will do interest only. If the plan is to buy and payoff, this works well.