Advice Guys. 650k cash to invest but no credit history in the USA

17 Replies

Hi Guys, have a (good) problem but need some sound advice. Myself and my wife will be moving to the US ( were from Europe) . We will have approx $650k cash to invest in Real Estate. Even though we have 4 star credit ratings in the U.K. , once we arrive in the USA ( will be living in Charlotte NC initially) , we will have NO ACCESS TO CREDIT for at least two years until we build up our credit history  in the US ( credit histories don't transfer abroad). My wife intends to take a regular W2 job. I will be self employed in the US so banks won't want to touch me a Real Estate Investment loan/ regular mortgage for about 3 years.

My Question -

Could I get your suggestions on what way you guys would go about investing the $650k cash into Residential Real Estate if you had no credit yet/ access to mortgages/ or loans etc. 

Naturally we would love to be able to utilise credit and leverage along with a lump sum however we're stuck with just the lump sum for now.

-We want to be monthly cash flow positive

- Looking longterm 15/20 years

- I have a construction background and could take a Contractors Licence to build/ sell 

-would you invest all pure cash in a number of single family units e.g. 10 at $60k average ......? Do Flips? Build/ then 'Sell one and Rent one ' Duplex units to build a small portfolio? Buy 2 properties for cash in v good areas, rent out for 2/3 years until we have credit built up then release equity from the first two to start building a postfolio utilising leverage ? Or are we simply too late in the game?

Any suggestions based on our situation i.e. $650k cash to invest but  no access to mortgages / leveraging for the forseable future would be REALLY appreciated.

Thanks in advance guys


No Dawn.  it's purely to invest. we have set aside a sum to buy a personal home for cash or may well rent for a bit until we find our feet/ get settled.

there are lenders that will lend to you.. rates are a tad higher but you can get loans.. 


Lima one



and there are a few mid west banks that would take you on.

as well as when you get to the states walk into a local credit union make your 1 million deposit and I suspect you will have the manger all over you and they will give you a loan as well. Small community bank may do this as well.

stay away from larger institutions.. small one to 5 branch community bank that you can talk with the owners of .. that's were you will find the love.. 

Welcome to Charlotte, it’s a great place to live and invest. We do have local banks andCU that will welcome you. We have a large number of real estate Meetup groups whereby you can get up to speed on the local area. I’m familiar with most, contact me and I’ll point you in the right direction if you need assist. 

You realize you have told many people you have $650,000 and are willing to spend it on real estate.  You might want to rethink how you operate.

@Ken Power if you do mange to get loans, without any credit history, you will most likely end up paying a much higher interest. (im talking double digits) which might make it very unfavorable for any longer time investments. Especially for those amounts you are referring to but definitely call the local smaller banks / credit unions as they would be the most likely to give you better financial advice on what to do in your case.

But what you said sounds about right. You will likely even have to get a secured credit card to kick start your credit. Many people who move here from overseas have the same issue and even having issues getting their first credit card to build the credit because you still need a credit to get the credit card... 

In your case, i would maybe just consider buying cash, then build your credit and couple of years later, refinance and have bunch of cash to triple your investments.

You might also need to do a little more research on Charlotte, NC. You mentioned purchasing 60k single units.. That is completely unrealistic expectation in that market that tells me, you need to do a better homework on seeing what is out there. Having 650k cash and not knowing anything about the market is a complete gamble, not an investment strategy.

@Jiri B.  many thanks for the sound advice. I should have been clearer regarding Charlotte. CLT will merely be a base for my family and business not a target investment city. I've watched  and put some money into CLT Before ( since '94 to 2000) and while the Queen City is a nice place to live with great flight connections, it's not on my radar to put anything into. 

Thanks for clarifying on that @Ken Power .

You also mentioned you have construction background and potentially could get licensed here as well. I think that is great benefit to do real estate close to where you live and take advantage of your background.

Definitely keep this thread updated with what you end up doing and how that worked for you. There are many potential investors here and in the future going through the same or similar situation that could learn from you or your journey!

@Ken Power you can always lend to other investors and get a good return on your money while trying to build your credit or why not partner with someone else on multi-family investments? They can secure the loan and you can use your cash for the reno.

@Ken Power

Speaking from experience, you can build up a good credit score in 6-8 months. You can be in the 700 range. Probably you’ll still have some problems because of the short credit history, but (again, based on my experience), you can get investor loans. After being in the US for 8 month, I got pre-approved by two different lenders. They were giving me fair market rates. Yes, I had to do some extra wheel spinning because I didn’t have 2 years of job and income history, but as long as your finances is in order - which is not a problem in your case, it seems - you should be good.

Maybe it’s going to be easier for your wife, because of the W2 job.

As far as the first 6 or so months go, as others suggested, you can be a hard money lander for other investors. 

@Ken Power  

1) I wouldn't advertise on a public forum as to how much money you make

2) while you're building up your credit in the US, you can make some money via direct lending or via notes. Neither one requires credit check or being accredited.

Best  of luck!

My idea is the same I think. Buy a multi unit that has cash flowing or maybe more than one with the 650 k In two years you can sell those and buy differently with your credit or you could cash out the equity in them and use that for the down payment once you have better credit. 

Good Luck

If you have any questions please feel free to tag me and I will respond. 

Thanks to all recent posters. 

@Kenya Teague @Michele B.

@Ferenc Spala @Alina Trigub  

Really appreciate it. 

All good advice. 

Just arrived in US on initial visit and have had some interesting and encouraging experience talking with two well established credit unions .....

Also exploring direct lending with some renovation folks plus a multi unit group. 

It’s a strange experience starting from scratch on credit in US considering I have had perfect credit in Europe but this simply comes with time , good financial choices and financial activity in the US.

@Ken Power just read your post from about a month ago. Have you considered doing a joint venture partnership?

My partners and I buy apartment building and JV with partners all the time.

Typically we pay our investors 10% on their money, while it is invested, then refi them out after 1-2 years, and then give them a 10% equity share. 

Great way to get cash flow, build credit and long term wealth. A lot of our partners re-invest with us many times. 

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