Financing for Foreign Investors

Foreigners Buying in the USA
10yFollow

Financing for Foreign Investors

Account Closed
Lender · Fort Lauderdale, FL · Member since 2015 · 117 posts · 22 votes

We have a lot of Foreign Nationals call us and ask about the financing options they have. 

If you are a foreign national who invests in real estate, which is your preferred financing option if you don't have the cash yourself already? Why is this your favorite option? 

3Reply
232 views

Most Popular Reply

Maisa Vahedi
Realtor · Dubai, UAE · Member since 2015 · 45 posts · 30 votes
10y
Alexander: I'm a foreign investor and I've been looking all over for financing. What are the rules for offering the financing to foreign investors? Do you look at documents, income verification or you base it on the property (that's the best).
9Reply
See this reply in the discussion

54 Replies

Jump to latestLatest
  • Account Closed
    Miami, FL · Member since 2015 · 161 posts · 26 votes
    10y

    I deal with quite a few foreign nationals. I have an 75%-80% LTV 48 month hard money program that alot of them say it works for them.

    1Reply
  • Sandrine Rangeon
    Investor · Austin, TX · Member since 2015 · 4 posts · 2 votes
    10y

    I'm a foreign national, and I prefer when the loan is only based on the property itself and the cash flow it produces. It gets messy when it's based on my personal income and assets, since they're spread over several countries, some of which don't have any credit reporting system at all and very different financial and ownership systems. 

    1Reply
  • Maisa Vahedi
    Realtor · Dubai, UAE · Member since 2015 · 45 posts · 30 votes
    10y
    Alexander: I'm a foreign investor and I've been looking all over for financing. What are the rules for offering the financing to foreign investors? Do you look at documents, income verification or you base it on the property (that's the best).
    9Reply
  • Rasheed Chahal
    Developer · Los Angeles · Member since 2015 · 5 posts · 1 vote
    10y

    I am also a foreigner looking to invest in multi-family complexes in the US. Being a foreigner (Canadian), will it be possible to get commercial financing only based on the cash flow of the property itself? I would be purchasing the asset through a US LLC .

    1Reply
  • Darryl Dahlen
    Commercial Loan Officer · Southern Maine, ME · Member since 2009 · 782 posts · 415 votes
    10y
    Originally posted by @Rasheed Chahal:

    I am also a foreigner looking to invest in multi-family complexes in the US. Being a foreigner (Canadian), will it be possible to get commercial financing only based on the cash flow of the property itself? I would be purchasing the asset through a US LLC .

    Yes, it is possible to get financing solely based on the income of the property, and it is possible to obtain conventional financing as a Canadian.

    The terms of what you can obtain depend on large part to the market, size of the loan, caliber of the property, and the historical financials. The truth is, it's easier for a foreigner to buy a larger property (1MM+) than a smaller one since the lenders (outside of the few local banks who can help) who will lend to foreigners aren't typically suited for smaller loans. Too much risk.

    That being said, I see a LOT of foreigners who want to get into the value add game and buy an underperforming property and are seeking financing with good terms. This is not easy as most of the borrowers in this pool lack a track record of past performance, don't know the subject market, and the property has issues. None of which are attractive to any conventional lender.

    Hope this helps.

    6Reply
  • Mark Creason
    Real Estate Lender and Broker · Dallas, TX · Member since 2013 · 966 posts · 500 votes
    10y

    Our firm has completed loans for foreign nationals.  We are typically looking at the asset.  We work on loans at 3 million and above for foreign nationals, but they do exist.

    Mark

    6Reply
  • Joel OwensBusiness Member
    Moderator
    Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
    10y

    Be prepared as a foreign national if you want small value add even if you find a bank willing to fund the rates tend to be higher and the LTV lower.

    The national with having to put a larger payment down then has to look at low cash on cash returns.

    If a buyer is Canadian there are Canadian banks here in the U.S. in some states that will usually lend.

    RBC Bank is one.

    Some countries do not have tax returns and it's hard to see if the money was laundered etc.

    Larger properties as mentioned are more optimal for foreign investors because the lenders know an experienced property management  company can be put in place. If there is a problem then the foreign national doesn't have to travel thousands of miles to handle it.

    I haven't worked on smaller properties in a very long time. Value add,  crappy seller records, etc. equals many deals falling out and the ones that do close are a low commission. These days most of my deals are minimum 3 million and up. 2 million in certain situations.

    Podcast Guest on Show #47
    NNN Invest53 Reviews
    WebsiteView Page
    3Reply
  • Jonathan J. Miller
    Lender · Denver, CO · Member since 2015 · 275 posts · 35 votes
    10y
    There are definitely lots of options out there for foreign nationals ranging in ltv from 70 to 80 percent. The different variables in each deal allow for that ltv range. The higher the ltv the more stringent the guidelines may be. ~Jonathan
    1Reply
  • Rasheed Chahal
    Developer · Los Angeles · Member since 2015 · 5 posts · 1 vote
    10y

    Thanks to all for the valuable information. 

    0Reply
  • Richard Scholtz
    Lender · Greater Seattle Area, WA · Member since 2015 · 80 posts · 57 votes
    10y
    Originally posted by @Rasheed Chahal:

    I am also a foreigner looking to invest in multi-family complexes in the US. Being a foreigner (Canadian), will it be possible to get commercial financing only based on the cash flow of the property itself? I would be purchasing the asset through a US LLC .

     In Seattle you will find that some local Banks actually have Special Loans for Canadian Citizens  ... because the Canadian economy and finance so similar to ours in the North West.  THERE IS NO NEED for you to pay hard money rates and terms when you can get 30 year Long Term conventional financing under 5.5%.  Of course the usual 30 year Hedge Fund Stated Loans are available too to any foreigner which is cash flow based lending...

    BUT .....but I would recommend you check out the traditional Seattle portfolio lenders first.....They cater to Canadians. If you have good credit and income in Canada - some Seattle lenders want your business when you buy across the border here ...shoot me an email if you want a rate sheet and terms,...

    2Reply
  • Alex Allemand
    Investor · Aix en Pce, France · Member since 2015 · 21 posts · 10 votes
    10y

    So is it nearly impossible for a foreigner to get a bank financing? Is Private lender/hard money the easiest way to invest in US?

    0Reply
  • Martin Yung
    Tampines, Singapore · Member since 2014 · 68 posts · 21 votes
    10y

    I have contacted Firstkey Lending last year and they do provide financing base on the asset for foreigners. I am not sure whether B2R will provide financing for foreigners. 

    2Reply
  • Xing Z.
    New York City, NY · Member since 2016 · 10 posts · 2 votes
    10y
    Originally posted by @Alex Franks:

    Folks I have been selling to international clients for a few years. One company has done all the loans for our clients. Be a bit since we sold any properties. We made the jump to commercial side of things. They do 65 % LTV and not the best rates but was based on the property not the lender.


    We had clients from Singapore, Malaysia, UK , Israel, Dubai , and Canada

    If you would like to know more PM me

    Alex

     Which company is it?

    I cant pm you yet. 

    0Reply
  • Rich Hupper
    Broker / Investor · Tewksbury, MA · Member since 2008 · 1k+ posts · 351 votes
    10y

    invest in or around boston, this city has a very high rents and a constant stream of renters. Your vacancy rates will be very low and i know the city inside and out to help. Most renters are professionals, students with guarantors, or graduate students. There is also a large group of section 8 renters however they are being pushed further outside of boston because landlords know voucher limits and price their rentals just above them.

    2Reply
  • Xing Z.
    New York City, NY · Member since 2016 · 10 posts · 2 votes
    10y
    Originally posted by @Account Closed:

    All of our programs are available to foreign nationals - our rehab/construction and 30 year program. We do require that you have a bank account in the US and a US LLC to close your loan under.

     What program is it?

    1Reply
  • Xing Z.
    New York City, NY · Member since 2016 · 10 posts · 2 votes
    10y
    Originally posted by @Rich Hupper:

    invest in or around boston, this city has a very high rents and a constant stream of renters. Your vacancy rates will be very low and i know the city inside and out to help. Most renters are professionals, students with guarantors, or graduate students. There is also a large group of section 8 renters however they are being pushed further outside of boston because landlords know voucher limits and price their rentals just above them.

     What's the cap in boston area you mentioned?

    0Reply
  • Rich Hupper
    Broker / Investor · Tewksbury, MA · Member since 2008 · 1k+ posts · 351 votes
    10y

    @Xing Z.

    I am not familiar with commercial leasing as I am with residential. With that being said if you invest at least 20% into a 3, 4, 5, 6 family in or around boston, you will see a great return of  10 - 15 percent.

    1Reply
  • Robert AdamsBusiness Member
    Real Estate Broker · Henderson, NV · Member since 2009 · 1k+ posts · 373 votes
    10y

    From what I have found it is easier for Canadians than most other foreigners. I have a n Australian client looking for financing. Please feel free to contact me directly if you have a program that may work for them.

    [email protected]702-349-9175
    The Adams Team at Rothwell Gornt Companies4.972 Reviews
    WebsiteView Page
    1Reply
  • Alex Franks
    Rock Hill, SC · Member since 2015 · 1k+ posts · 597 votes
    10y
    Originally posted by @Robert Adams:

    From what I have found it is easier for Canadians than most other foreigners. I have a n Australian client looking for financing. Please feel free to contact me directly if you have a program that may work for them.

    @Robert Adams

    Look up peak lending

    Tell then Alex refered you

    JP or Shane Sauer good guys to now they have helped may of my Australian clients in the past

    Alex

    2Reply
  • John Broussard
    Lender · Houston, TX · Member since 2008 · 252 posts · 60 votes
    10y

    We work with Foreign investors seeking financing for Residential and Commercial properties. We can offer stated income loans or loans based of off the properties cash flow. These loans are investor friendly and there is no limit to the amount of loans a borrower can have financed.

    3Reply
  • Ariel G.
    Investor · Jerusalem, Israel · Member since 2016 · 52 posts · 8 votes
    10y
    Originally posted by @John Broussard:

    We work with Foreign investors seeking financing for Residential and Commercial properties. We can offer stated income loans or loans based of off the properties cash flow. These loans are investor friendly and there is no limit to the amount of loans a borrower can have financed.

     Non residing non US residents? For what minimum amount? Period? Rate aprox. TLV?

    Thanks.

    1Reply
  • Ariel G.
    Investor · Jerusalem, Israel · Member since 2016 · 52 posts · 8 votes
    10y
    Originally posted by @Rich Hupper:

    @Xing Z.

    I am not familiar with commercial leasing as I am with residential. With that being said if you invest at least 20% into a 3, 4, 5, 6 family in or around boston, you will see a great return of  10 - 15 percent.

     Hi Rich.

    In Boston, where do you find the deals? What's the lower property cost you can find there that has a good cap rate with a low risk?

    3Reply
  • Mylene Bel
    Fort Lauderdale, FL · Member since 2017 · 20 posts · 6 votes
    9y

    @Alex Allemand hello, entre temps as-tu trouvé une solution ? Je cherche un retour d'expérience d'un ressortissant français. Merci !

    0Reply
  • Francois D.
    Investor · Houston, TX · Member since 2014 · 81 posts · 25 votes
    9y

    I work a lot with foreign investors and used to be one myself, here is what I found out:

    1) For Single familly, there is only one company that will do landlord loans nationwide with decent rates and good underwritting times.

    2) For small commercial properties, it is hard as lenders see it as too much work and risk for not enough money. The best bet is to have a local partner with good credit who guarantees the loan

    3) For large commercial properties (Loan>$1M) there will be more lenders as it becomes financially interesting for them. They will likely ask for more money down.

    1Reply
  • Yoni Rozenstein
    Investor · Tel-Aviv, Israel · Member since 2015 · 36 posts · 6 votes
    9y
    Originally posted by @Francois D.:

    I work a lot with foreign investors and used to be one myself, here is what I found out:

    1) For Single familly, there is only one company that will do landlord loans nationwide with decent rates and good underwritting times.

    2) For small commercial properties, it is hard as lenders see it as too much work and risk for not enough money. The best bet is to have a local partner with good credit who guarantees the loan

    3) For large commercial properties (Loan>$1M) there will be more lenders as it becomes financially interesting for them. They will likely ask for more money down.

     Would like to get more information about the first option you mention for single family. Thanks

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free