HOW TO FINANCE MY FIRST DEAL

Question

Hello everyone,

I'm looking for ways to finance my first investment property and would like your opinion on how can I play my cards right.

I'm in the US with a tourist visa so I'm allowed to stay up to 6 months so I don't have SSN. I opened an LLC, got 50k$ saved up, the properties I'm aiming for costs around 170k including fixing and everything.

What would be the cheapest way to finance or even refinance a long term deal if I don't have SSN or credit score at all?

Thank in advance.

Eliott Elias · Answer

Creative finance, subject to and owner finance.

Sanat Bhandari · Answer

@Dean Diamant You're looking at a foreign national DSCR loan in your situation. Most private investors limit the leverage to 65% on such loans due to high flight risk of default since you're not a US person

Cheapest way is potentially going through a local bank/credit union that won't dock any points for you not being a US person. They may be comfortable with higher leverage since it's in their backyard, so to say

However, the best way might be to partner up with a US-based investor. They would have the credentials to be able to warrant higher leverage and more favorable terms

Lyndsay Zwirlein · Answer

Without US credit, you can do DSCR and typically the max LTV is 75% on a purchase.

Jason Wray · Answer

DSCR but as a Foreign National.