Out of Country Financing

Out of Country Financing

Member since 2018 · 2 posts · 0 votes

Hi all -

Excuse my ignorance as I'm new to the REI community. I'm interested to know what the different options are for buying property internationally. For instance, Mexico. Investment property or second home. Are the only options 100% cash or private lending? Or are there workarounds and ways to finance?

Thanks in advance

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  • Homeowner · Wilmington DE · Member since 2008 · 21 posts · 10 votes
    7y

    Finance is very country-centric. The laws for what lenders can do, how the title works, and other details matter a lot. You also have the issue of credit scores or accessing credit across a border. The lender here in the USA will not want to lend in another country unless they have the ability to foreclose or otherwise deal with a default there.

    There are other issues related to taxes, how the legal system works when it comes to the borrower plus landlord-tenant regulations. In some countries, like the USA, state-level laws and practices matter (agents and brokers licensed at the state level).

    So, assume you should create a local strategy for each country you want to invest in. You will quickly realize that you do not have the time to deal with many countries. 

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