Rental Property Investor · Utrecht, Netherlands · Member since 2016 · 21 posts · 11 votes
Good morning and a happy new year to the BP community!
I am an American living in the Netherlands, and will be investing in the Kansas City area this year together with my husband while living abroad. We are looking to own about a dozen or so SFH's to start with.
Our situation is a bit tricky with regards to securing financing. I have not been working for the past two years, but we have savings set aside. Our income is from my husband's work, but he does not have an American passport, or an ITIN (he is from New Zealand). I have all my tax returns in order up until the end of 2018, which is when I stopped working.
My questions are:
What type of borrower would we be categorized as?
Any suggestions on who we could possibly contact for this type of financing?
Any information/leads, no matter how small, would be greatly appreciated!
Investor · Atlanta · Member since 2016 · 57 posts · 54 votes
5y
Happy New Year Natasha!! I'm not a US citizen nor do I live in the US. I use NORTHPOINT MORTGAGE (a branch of Fairway Independent Mortgage Corp.). They're in several states so you can find one where you want to invest. Additionally, any mortgage broker will be able to help you secure financing, so you can look for others as well.
You are a US citizen so it should be a lot easier for you than it was for me. I believe that there are some on BP as well. So you can check in the network menu (on top) under recommended vendors and get a few more options.
Investor · Atlanta · Member since 2016 · 57 posts · 54 votes
5y
Happy New Year Natasha!! I'm not a US citizen nor do I live in the US. I use NORTHPOINT MORTGAGE (a branch of Fairway Independent Mortgage Corp.). They're in several states so you can find one where you want to invest. Additionally, any mortgage broker will be able to help you secure financing, so you can look for others as well.
You are a US citizen so it should be a lot easier for you than it was for me. I believe that there are some on BP as well. So you can check in the network menu (on top) under recommended vendors and get a few more options.
Rental Property Investor · Utrecht, Netherlands · Member since 2016 · 21 posts · 11 votes
5y
@Kevin Leonce Thanks for the info! I do agree that it will be easier for me being a US citizen, and I know it can be done. Just looking for some friendly advice from people in similar situations. I will definitely check out your mortgage broker, thanks!
Rental Property Investor · Rome Italy · Member since 2020 · 42 posts · 19 votes
5y
@Natasha Hardy Hi Natasha, happy new year! My wife and I are in a very similar situation. She is American and has been living and working abroad for the last 7 years and I am Italian. We are both living in Italy and are also looking to start investing in the states. We contacted a few small credit unions about mortgages, however without current US work history, we were not able to get any leads. It was interesting to read what others are suggesting. Thanks for the question, and best of luck to you!
Rental Property Investor · Utrecht, Netherlands · Member since 2016 · 21 posts · 11 votes
5y
@Enrico Angella ciao! Nice to hear from people in similar situations, I will let you know when I find a lender. Which market are you looking to invest in?
Rental Property Investor · Rome Italy · Member since 2020 · 42 posts · 19 votes
5y
@Account Closed ciao!
Sure, please keep me posted on your search, my wife and I are currently in Austin until the end of the month. Next week we are going to meet a few lenders and see what they tell us.
Our plan is to move to the US in 2/3 years and we really love Austin. Therefore, we are looking at San Antonio or other towns here in Texas that are within a 2 hour drive to Austin. I would like to hire a property manager, but I would want to be able to drive by my properties unannounced every 1/2 months, to ensure that the manager is on top of it!
Why did you guys decide to look at KC? Do you plan to move back to the US in the next years?
Rental Property Investor · Winnipeg, MB · Member since 2021 · 35 posts · 9 votes
5y
@Kevin Leonce
Kevin, I’d love to connect to pick your brain and learn from your experience. I’m in a similar situation to yours. I live in Canada and will get started investing in the US as soon as I find proper lending, which is the only thing I have left to do.
I’m a new investor and have everything lined up to get started in long distance investing except for lending.
Real Estate Agent · Austin, TX · Member since 2014 · 636 posts · 486 votes
5y
Hi Natasha,
I'm kind of in the opposite situation; I'm in the US and doing the initial research to buy in the Netherlands (dual US/Dutch citizen, spend about a month there every year). I have had clients from Mexico and Israel get loans for property here in Austin from one of my lenders, but I'm not sure how the rules would apply in your situation. He only lends locally, but he might be able to at least give you advice on where to go. PM me if you'd like his contact information.
In a very similar boat; I am Scottish, my wife is American, we are currently based in Rome, Italy and are looking to invest in the U.S. with a view to moving there in a couple of years.
Rental Property Investor · Utrecht, Netherlands · Member since 2016 · 21 posts · 11 votes
5y
@Enrico Angella We decided on KC because of cash flow and price to rent ratio. Generally, you can find some very good deals in the Midwest.
We are not planning on moving to the US at all, so we will be doing it all remotely. It's pretty incredible what technology allows us to do these days! We just moved to the Netherlands 2 years ago, and really love it here. We also have two kids, and the education system here is top notch. This country checks all the boxes for us, except for the weather! 😬
Rental Property Investor · Utrecht, Netherlands · Member since 2016 · 21 posts · 11 votes
5y
@James Ewing Good on you! You've taken the first step, which is connecting with people. I wish you all the best, and hope to hear about your first purchase soon!
Real Estate Broker · Kansas City, MO · Member since 2017 · 535 posts · 292 votes
5y
Hey, @Account Closed, we're seeing some of the best opportunities here with SFH's using the BRRR strategy. Going for vacant houses or soon-to-be vacant houses have yielded the best return for us, our customers, and our clients.
In general, what we've been seeing over the last handful of years is that if the house is tenant-occupied & cash flowing well or a performing turnkey property then odds are it won't be quite as good of a deal. You gotta wonder, unless it's part of their business model, why would an investor sell a "golden goose" or a property that's fixed up, rented, & performing well? What's their motivation?
As a rule of thumb, in order to find the best possible deals, we have to deal with motivated sellers. There needs to be some type of really strong need or desire for them to sell besides just convenience, market conditions, or just because... I'm just sayin'... Think before you start buying stuff that's getting presented to you and because the #'s look good ON PAPER. Have a third-party agent or investor send you legitimate comps. Do your own due diligence and decide how you want to play the game.
There's nothing wrong with either way of investing. It all can work well. Just know that if you plan on getting a good property, that's supposedly rent & performing and in solid condition, that you're going to be paying a premium for it. You'll get a decent return and the process will be streamlined for you.
However, if you want a better return and more bang for your buck, go for vacant or soon-to-be vacant houses, pick your own rehab crew or one that's been highly recommended & vetted, choose a property manager that you have vetted and want to work with, and use the BRRR strategy.
Reach out if you have questions. I have a business partner who lives in Canada and we've successfully worked with a few hard money lenders and private lenders, who we can reommend to you as well, doing just as we've proposed here. You might consider some creative financing strategies to get an even higher ROI. We'd be happy to talk shop with you about those as well.