foreign national investor seeking 2nd investment property

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foreign national investor seeking 2nd investment property

Pilar Jin
Rental Property Investor · FL · Member since 2015 · 34 posts · 8 votes

Hi everyone,

My name is Pilar and started invest in property 2 years ago with a single family home in South FL. So I've got a little bit experience, a good team and enthusiasm in this field. Now I am ready to continue with the investment and seeking 2nd single family home or duplex. 

My first deal ran very smooth, but biggest challenge at that time was the mortgage for foreign national. As foreign national investor, the down payment will go up to 60% if I lend again from the mortgage lender.

Here are my questions:

1. Are there other financing available for foreign national without social security number?

2. Is the property better under my own name or LLC if the goal is to have positive cash flow to support quit job?

Look forward to hearing your kind advice.

All the best!

Pilar

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Sam Van Horebeek
Hong Kong, Hong Kong · Member since 2015 · 140 posts · 89 votes
11y

@Pilar Jin

1.  you could contact HSBC - they provide financing to our clients which are all foreigners (min. loan amount will be about 300K or 400K USD)

2. I don't see much difference between buying with an LLC or buying in your name to achieve your cash flow goals. The major difference is in liability protection and there are also differences in taxes. As a simple rule, if you only plan to purchase one property, it is probably not worth the time and expense to set up and manage an LLC. If you do more than one property, an LLC probably makes sense.

hope this helps!

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  • Justin Ericsson
    Professional · Glenview, IL · Member since 2015 · 114 posts · 65 votes
    11y

    what kind of property are you looking for?

    0Reply
  • Pilar Jin
    OP
    Rental Property Investor · FL · Member since 2015 · 34 posts · 8 votes
    11y

    single family home and or 2 units. 

    0Reply
  • Justin Ericsson
    Professional · Glenview, IL · Member since 2015 · 114 posts · 65 votes
    11y

    Pilar... I know lenders in chicago that can help you out if you invest locally in the Chicagoland area. Is that something you are interested in doing?

    0Reply
  • Sam Van Horebeek
    Hong Kong, Hong Kong · Member since 2015 · 140 posts · 89 votes
    11y

    @Pilar Jin

    1.  you could contact HSBC - they provide financing to our clients which are all foreigners (min. loan amount will be about 300K or 400K USD)

    2. I don't see much difference between buying with an LLC or buying in your name to achieve your cash flow goals. The major difference is in liability protection and there are also differences in taxes. As a simple rule, if you only plan to purchase one property, it is probably not worth the time and expense to set up and manage an LLC. If you do more than one property, an LLC probably makes sense.

    hope this helps!

    1Reply
  • Jane A.
    Investor · Shawnee Mission, KS · Member since 2015 · 428 posts · 117 votes
    11y
    Partnership with local may help to get financing
    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    11y

    @Jane A.

      if your looking for KC properties... check with Peak Lending ... JP Sauer

    they will loan to foreign nationals.. rates are higher of course. but they are non recourse loans.  And they are quite in tuned to KC market so you will know your also paying the correct amount for the asset

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    0Reply
  • Pilar Jin
    OP
    Rental Property Investor · FL · Member since 2015 · 34 posts · 8 votes
    11y

    Thanks for all the answers. I would like to seek properties in FL, but open to see other states. Would lend from other state work if I buy in FL?

    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    11y

    @Pilar Jin

      there are non recourse lenders in virtually every market you need to google for them.

    you will pay a premium in points and rates generally.

    Bridge lending out of Memphis will do foreign lending in FLA  I think they are 4 points and 12% fully amortized over 15 years. 

    Podcast Guest on Show #222
    JLH Capital Partners51 Review
    WebsiteView Page
    0Reply
  • Pilar Jin
    OP
    Rental Property Investor · FL · Member since 2015 · 34 posts · 8 votes
    11y

    Hi Sam, 

    Very much appreciate your answers to my questions. 

    I probably did not make myself very clear about my investment plan. The plan is to buy several properties in next 5 years. For this 2nd property, my previous lender would give loan with 50% - 60% down payment, 5/1 ARM 6%, 1.5% points. But for more, I don't think they will give. That's why I am thinking about move the 2nd property under LLC while buying and get commercial loans for later purchases since I've had a renting record.

    Does it sound feasible to you?

    Best Regards

    Pilar Jin

    0Reply
  • Pilar Jin
    OP
    Rental Property Investor · FL · Member since 2015 · 34 posts · 8 votes
    11y

    Hi Jay,

    Bridge loan is a bit too high for this purchase, but maybe an option for later years. Thank you for bring the idea to my radar.

    Best Regards

    Pilar Jin

    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    11y

    @Pilar Jin

      Bridge is the name of the company... there are two bigger semi private non recourse lenders in the mid south  Peak and Bridge..

    Podcast Guest on Show #222
    JLH Capital Partners51 Review
    WebsiteView Page
    1Reply
  • Pilar Jin
    OP
    Rental Property Investor · FL · Member since 2015 · 34 posts · 8 votes
    11y

    IC, new knowledge learnt! You are very patient with beginner. A lot of terms are confusing for me. Can you be kind enough to explain what does KC property mean?

    0Reply
  • Gautam Venkatesan
    Investor · Dallas, TX · Member since 2013 · 619 posts · 128 votes
    11y

    KC = Kansas City

    0Reply
  • Hai Loc
    Specialist · Toronto, Ontario · Member since 2012 · 2k+ posts · 891 votes
    11y

    @Pilar Jin

    I have seen foreign nationals buy all cash on the properties first and then after rehab and tenanted refinance the property with a small local bank. You really have to do your home work and call or network. You need to find a bank that will only look at the asset and not the owner. I have seen people do it in New York and Ohio.. Why not Florida? Good luck..

    0Reply
  • Mark Nolan
    Professional · Carlsbad, CA · Member since 2012 · 12k+ posts · 1k+ votes
    11y

    @Pilar Jin

    Consider sending messages to other members which is my favorite part of the website, for specific advice. 

    0Reply
  • Gordon CuffePro Member
    Investor · Roseville, CA · Member since 2009 · 1k+ posts · 587 votes
    11y

    I know that we can lend to foreign nationals in CA with good mortgage rates. You should look for mortgage brokers in the state that you want to buy in and ask them what rates and terms that can get you on non owner properties.

    0Reply
  • Dmitriy Fomichenko
    Solo 401k Expert · Anaheim Hills, CA · Member since 2012 · 18k+ posts · 6k+ votes
    11y

    Welcome to BP @Pilar Jin it’s good to have you here!

    0Reply
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