Foreign investor SFH/MFH in Michigan

8 Replies

A non-US citizen friend is interested to partner with me to purchase a rental property in the Detroit metropolitan area. Ideally not a cash deal. Timeline by March or April 2021. 

Justin, I’m selling off a portion of my single family portfolio in metro Detroit. Solid B and C neighborhoods. My team is also willing to stay on as property manager. Feel free to reach out if you’d like to explore some options 

@Michael Helfant thanks for your reply. A few include:

1) How should we structure the deal, I qualify for the loan and then transfer into an LLC? I am thinking 30-70 split of ownership. I am a little concerned a won't qualify bc all my 2021 income is from overseas (though filing as showing of course) and made minimal income in 2020 as shown in W2s. Any loan officers you could guide me to?

2) I’d prefer to ge the loan in my name to build my equity and credit history unless you suggest otherwise? This would be a buy and hold investment but would be interested to flip with the same partner.

@Carson M. thank you let’s connect. I am back in Michigan for the holidays and could have a brief chat by Whatsapp if you’re up to it. My questions above are the main ones right now but also would like to get into wholesaling - I have a young staff I could commit virtual wholesaling for about an hour a day to learn the ropes with a partner

You may have some challenges getting a FNMA type mortgage due to your income. Will you be in the same line of work in 2021 as you were in 2020? You'll also have to qualify with your current housing costs.

What is your partner bringing? Cash for down payment? He can't just lend you the money to get a mortgage! He can't gift it to you either for a mortgage on an investment property. Probably can't be on the mortgage either - which would allow him to contribute the money to the purchase. He could give you the money now and you could let it age in your bank account for 2-3 months, but you'd want to speak with someone about avoiding potential mortgage fraud.

So, you may need to explore a commercial type loan to purchase a property. Your partner can then either be on the loan with you or probably be able to give you the money.

Structure - how does your partner want to protect their cash investment? He can either put a 2nd position lien on the property, go on the deed with you or own a part of the LLC that owns the property. Each has different tax implications and lender may or may not allow.

The two of you should have a conversation with a knowledgeable real estate attorney, just be careful they don't gouge you.

Let us know how else we can help:)


Great post.

I am out of state investor and have us partner. We would like buy property for cash, next cash out refi. How can I be on the tittle when us partner takes the loan on his name ?

Thank you


Welcome Justin. Partnerships are a great way to get started. You should definitely align yourself with your partner on the equity split and make sure you have proper documentation. 

I suspect you can get a loan Tenants in Common otherwise an LLC will also work.

Good luck!