Foreign Mortgage on a RE portfolio for a US loan

6 Replies

Hi Everyone,

First of all, I'm relatively new on BP and have been passively following posts on this forum, excuses if the question I pose has been addressed earlier already.

I'm in the process to start an LLC, which is a joint venture between my business partner and myself. We're both Belgian citizens and non-immigrants in the US and lacking an SSN therefore also lacking any kind of credit score. I'm mostly based in the US under a E2 visa (in process, currently just business) while my partner remains most of the time in Belgium. Our goal is to build a buy-and-hold portfolia, acquiring properties through tax-deed sales, HUD's and other sources. We've build up a significant process to screen properties on a wider scale and are soon willing to start our operations full swing.

However, we intend to use several million EUR or mortgage-free properties in Belgium to leverage in the US and therefore we need to find bankers who are willing to accept foreign mortgages.

Does anyone has experience with foreign mortgages for local (US) loans.
Does anyone has any suggestions on which lenders/companies/brokers to contact (thus far I just started contacting hard money lenders-type of financiers and a few bankers, in my network)
Are there any pitfalls to pay attention to or caveats to look out for?

Thanks in advance

Have you talked to HSBS? While recently researching a loan for buying US property, I saw they had some options for foreign nationals investing in the US. I don't know if they will consider your foreign owned property as leverage but I remember the documentation stating something about using your 'international credit history' based on your global finances. Sorry, I don't have specifics since I didn't end up going thru them (I'm a US citizen so got a conventional loan)...good luck.

Hi Marcel, Thanks! Did you mean HSBC? I haven't but it's a good idea.. I was already excluding conventional banks due to their ever rigidness, but there's definitely a chance some departments in their might consider this as they have branches all over the world which they can use to foreclose on foreign properties in case needed..

@Denis Clijsters

Goed om een Belg te zien op dit netwerk!

We have been assisting foreign investors with their acquisition of US properties - many of those properties are buy and hold. I am not sure whether I fully understand your question around foreign mortgages but I do know that some US banks provide loans to foreigners. Or are you planning to refinance your properties in Belgium and use the cash to invest in the US? Feel free to message me directly and we could chat. Good luck!

Hi Sam!

Hell yeah, nog een Belg! Maar jij zit in Hong Kong?

We plan to refinance Belgians properties and invest the remaining in the US, for a few we're working with private investors, Belgians, but having more conventional loans would lower the cost and make things easier.

All information is welcome! :)

Hi Emre,

As I recently closed my first major deal my E2 application is currently finally in process and during my next trip back to Belgium I (hopefully) should get it.

I used Jacob Sapochnick
https://www.h1b.biz/

They are really good, maybe not the cheapest though, but an LLC incorporation is part of the deal (to be 100% sure all is within requirements) and I've had several good recommendations about them.

I'm not sure if Fixing & flipping can be considered, ... because this is considered as "active income" and not "passive income" or investment returns.. it's a fine line so best to ask their advice. Exception could be if you have major funding sources and plan to fix/flip 1 per week or so, .. and basically run a company in which you yourself aren't involved in any tradesmansship.

In my case, I'm for example not allowed to do any tradesman work in my building myself.. everything is outsourced to local contractors. E2 is unique that it allows indefinite stay in the US, however it's a non-immigrant visa and employment or other forms of active income aren't allowed. Tax-wise however the IRS only looks whether you stay 180 days in the country, if so they consider you to be the same, whether you are illegal, have a business visa or greencard...

Part of E2 is not only the size of investment, but also your plan towards, and eventually hiring of employees. So in your case you could hire 1 or 2 employees, .. .e.g. 1 GC and a handyman or so, to do all the work. Your job is finding deals and coordinating the work.

Denis