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?
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).
@Alex Franks did the company you used offer products for foreigners investing in SFRs?
@John Broussard do you guys do residential loans from properties in Florida for foreign investors? What are the rights like? So far the best I've seen are between 7-8%. Most lenders are quoting 8-11%...
@Ariel G. did you find a good solution for Israeli nationals looking to finance investments in the US?
@Francois D. which company had decent rates for SFRs?
@Yoni Rozenstein if you come across a good solution for Israeli nationals looking to finance SFR investments in the USA please let me know.
points in the beginning and in the end of the loan.
Very expensive penalty if you want to finish the loan before the time.
And maximum 5 years loan authorization of 30 years. Which means every 5 years you need to refinance the loan want cost you more money and again points to pay!.
but there was'nt option to pay penelty and finish the loan before the time.
What also i didn't like is that the loan is for 5 years and after 5 years you need to refi the loan.
It means if the price will go down next few years when i will refi the loan, the property will worth less than i bought and i will need to add money from my pockets to refi again because the value of the property.
Some hard money lenders do not distinguish a difference between lenders base on nationality and give people the same rate regardless of where they were born. I suggest calling a bunch of lenders to see what their policies are, some hard money lenders will have people who speak multiple languages and can explain their terms in your preferred language. For example, where I work we can readily accommodate 7 languages. Best of luck!
There used to be limited financing options for foreign investors in U.S. real estate. But I have seen certain small local banks offer programs recently. So they do exist, you just will have to put more money down and pay a higher rate.
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.
If you are still in the business of providing loans to foreigners, please pm me. I am an American living and working in China looking for creative ways to offer financing to my local investor contacts. Thx!
Does anyone have experience or info on us/foreign combo investments? If I partnered with a foreign investor, what greater benefits to the loan (i.e. lower rate, deposit) would my US citizenship bring (if any).
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.
I've been working with FNBA (First National Bank of America) based up in Michigan. I've so far found them very good to work with, with decent LVR's and small minimum loan sizes. Their rates... aren't the best, but hey you can't have it all! ;)
Some good advice in this thread. However, is it against BP’s policy to post details regarding specific companies that offer financing options? I expected to find much more info on actual companies and actual prices in this thread...
@James York PM people directly if you have a question about something that may be sensitive. I don't post too many details on Japan bank loans as every person is different depending on income, residential status, record with REI etc. The best way to get good details offline is to PM the person who wrote something that caught your eye.
Hope to see you at the meetup on Thursday! I don’t make that many due to travel but will be there this week.
@Account Closed I deal with a lot of international buyers especially Chinese buyers. Some lenders provide loan program for those buyer. They require 35% down payment. 65% LTV. 3-5 years ARM with interest rate around 4.8-5.11. They also need 6 to 12 month reserve (PITI). Those fund can be overseas. Some lenders do not need down payment to be seasoning for 2 months. They need credit report from buyer's own country and their income in that country. It's easier to get it approved than a 20% down payment conventional loan.
@Xing Z. I would also appreciate if you can share with me the same information on lending to foreign nationals who are looking to buy commercial multifamily property.