Financing for Foreign Investors

47 Replies

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

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.

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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

@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.

Any foreigner found a finance in normal rate?

All what i found was 6.75%-7.5%.

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!.

Anyone found better deal than i did?

@Yonatan Nir who did you find to get the loan through ? i'm happy to pay a bigger deposit. did you apply for the loan through an LLC

Hey,

i was about to get 6.5% rate 5/30.

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.

Also there is cost for refi every 5 years,....

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!

But I would make sure to find out each lender's policies before you commit to anything!

@Vincent Pace Thanks for your comment! Those lenders will loan for hard money only or also for long term loan?

Thanks again!

It depends on the lender, but I would assume most lenders have multilingual employees.

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.

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I'd appreciate info on specific lenders who do SFH/short-term rental investments (Orlando-Disney area)... please and thanks!

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.

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).  

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 love more info on #1 & #3.

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! ;) 

Will be interested also in having the contacts of lenders who will be able to finance purchasing loans for foreign-investors.   

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