Financing options for a new LLC / foreign investor

Juan YepesBusiness Member

Lender · Miami, FL · Member since 2025 · 130 posts · 38 votes

Hi @Luca Marotta

Foreign investor DSCR loans are more straight forward than people think. You don't need US credit history and your LLC doesn't need to be active for minimum period of time. 25% down payment helps the lenders mitigate the risk from lack of credit history. Getting a fix-and-flip loan to cover the renovation costs would be the path for BRRRR strategy but consider two things - these type of loans don't always allow foreign investors and you'll have to pay closing costs at purchase and again at refinance. Finding a solid property with strong rental potential as-is might be the best path for your 50k capital.

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Luca Marotta
OP
Investor · Ohio · Member since 2026 · 14 posts · 5 votes
1d
Thanks, that makes sense. My main goal is to put as little cash down as possible so I can acquire multiple properties rather than putting most of my capital into one property. I'm particularly interested in seller financing or DSCR options with low down payments for foreign investors.
Do you think there are realistic opportunities around $100k–$130k where I could minimize the down payment while keeping the property cash-flow positive?
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Juan YepesBusiness Member
Lender · Miami, FL · Member since 2025 · 130 posts · 38 votes
1d
DSCR for US Citizens and residents is 20%. So 25% as a foreign investor is a good option. The only way to reduce your down payment is getting a conventional investment loan (15% down payment) where the property qualifies based on personal income + rental income but that isn't available for foreign investors.
With 50k, you can look for single family or duplex property worth 200k. In this current market, your realtor should be able to get seller to cover closing costs so you only need to worry about down payment.
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Erik EstradaBusiness Member

Lender · Member since 2022 · 6k+ posts · 1k+ votes

[email protected]818-269-7983

Hey Luca,

Congrats on starting your investing journey. I would highly suggest building your U.S. credit early. While there are options that allow foreign investors to purchase real estate with no U.S credit score, having it allows you to get better LTVs and better rates.

I would save a bit more cash as well. $50k might get you in the door for $100k properties and below, but realistically, you will need 25-35% down + closing costs and 6-12 months of reserves to get the best financing.

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Luca Marotta
OP
Investor · Ohio · Member since 2026 · 14 posts · 5 votes
1d
Thanks! I've already opened my LLC and US bank accounts. I'm mainly looking for the best way to build my US credit score quickly and find financing with the lowest possible down payment. I'd prefer to keep as much cash available as possible for multiple investments.
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Flores MarcusPro Member
Investor · TX · Member since 2025 · 9 posts · 3 votes
1d
@Luca Marotta I do have a lender that can provide funding for this project and hold 1st lien position requesting 10% down payment only and provide funding for your deal. Let’s connect. We used them on previous deal.
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Matthew MorrowBusiness Member

Investor · PA - NY - NJ · Member since 2019 · 793 posts · 273 votes

[email protected]484-791-6200

@Luca Marotta foreign national lending isn't something I know well, so I'd find a lender who does DSCR loans for foreign nationals all the time. They'll tell you pretty quick what works with a new LLC. On seller financing, just ask, especially on listings that have been sitting. Worst they say is no. And I wouldn't put all $50K into the first deal. Keep some back.

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Luca Marotta

OP

Investor · Ohio · Member since 2026 · 14 posts · 5 votes

Thank you all for your replies and support, you guys are amazing. I hope this community continues to grow with the same values and with everyone sharing useful information and helping each other. Wishing you all the best, and thanks again!

Felipe LecarosPro Member

Member since 2026 · 24 posts · 2 votes

Hi Luca,

My wife and I have been investing remotely from Santiago, Chile, for four years now, using both of these strategies. My wife is Italian, so we know well what it's like to invest in the U.S. as foreigners. Here's my perspective.

One thing I'd consider before you pick a strategy for Toledo is whether you already have a network on the ground there: a reliable agent, a contractor you trust, a property manager, and ideally a wholesaler or two bringing you deals.

If you do, a BRRRR can make a lot of sense. It lets you force appreciation, get most of your capital back on the refinance, and put it into the next property. The catch is that a BRRRR depends heavily on your team. Rehab budgets, timelines and the final appraisal are all in their hands, and managing a renovation remotely without people you trust is where a lot of foreign investors get burned.

If you don't have that team yet, it may be wiser to make your first investment a turnkey property. You buy something already renovated, often already rented, and you use that first deal to build your team and learn the market. In that case, everything said above about DSCR loans applies directly. The property qualifies on its own rental income rather than your U.S. credit history, and that's exactly why it works for a non-resident.

Once that first property is running smoothly and you know who you can count on locally, doing a BRRRR on your second or third deal is a much safer step.

If you'd like more details on how we've handled either strategy from abroad, I'd be happy to share. Feel free to send me a direct message.

Best of luck in Toledo!

Felipe

Luca Marotta
OP
Investor · Ohio · Member since 2026 · 14 posts · 5 votes
1d
Thanks a lot, I really appreciate you sharing your experience. I completely agree with your point. I'm still building my network in Toledo, so starting with a turnkey property and then moving into BRRRR once I have the right team makes a lot of sense to me.
I’m also trying to keep as much capital available as possible so I can scale into multiple properties. I may reach out to you for some advice as I move forward. Thanks again!
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Felipe LecarosPro Member
Member since 2026 · 24 posts · 2 votes
22h
@Luca Marotta Sure. Reach out to me whenever you want. I’ll be happy to help.
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Dan Duenas

Lender · Member since 2026 · 45 posts · 25 votes

20h

Luca — welcome to the US side of this, and here's the good news first: the new LLC is not your problem. DSCR loans underwrite the property's rent, not your personal income docs, and a fresh LLC is normal in this lane.

The foreign-national part is where the terms change. Expect a bigger down payment — think 25–30% plus — and a lower loan-to-value cap than a US borrower would get. And do the size math on your $50K: at 25–30% down it supports roughly a $167K–$200K purchase, and a lot of DSCR lenders won't go below a $125K loan, so a $150K buy at 25% down is only a $112.5K loan and can get turned down on size alone. Your money is a down payment, not a purchase price — plan the buy around the loan size, not just the cash you have.

The move that saves people real pain: confirm the takeout lender accepts foreign nationals BEFORE you close any bridge or short-term money. Finding out at the refi stage that your lender doesn't do foreign nationals is how people get stuck holding a balloon they can't refinance. Longer term, an ITIN and a secured card start building you a US credit footprint — slow, boring, and worth it. And seller financing sidesteps most of this underwriting entirely, if you find a seller open to it.

Happy to walk through what a deal at your numbers actually looks like — just say the word.

Luca Marotta
OP
Investor · Ohio · Member since 2026 · 14 posts · 5 votes
14h
Thanks. My goal is to use the minimum cash possible per deal so I can acquire multiple properties. Which foreign-national DSCR lenders offer the highest LTV and what is their minimum loan amount?
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J CastroBusiness Member

Lender · Florida · Member since 2025 · 730 posts · 259 votes

18h

Quote from @Luca Marotta:

Hi everyone,

I’m a European investor and I’m currently starting to invest in U.S. real estate.

I recently formed a U.S. LLC and I already have U.S. bank accounts. My next goal is to build a U.S. credit profile and eventually qualify for financing for investment properties.

I have around $50,000 available for my initial investment, but I would prefer to use as little debt as possible and leverage the capital strategically.

I’m particularly interested in DSCR loans and BRRRR financing, but I’m also open to seller financing / owner financing or other options that could work for someone in my situation.

Since my LLC is brand new, I'd really like to understand what my realistic financing options are at this stage and what steps I should take first.

I’m especially interested in hearing from lenders, mortgage brokers, private lenders, or investors who have experience working with foreign investors and newly established U.S. LLCs.

I’d also appreciate any advice on how to start building a U.S. credit score / business credit profile as a new LLC.

Any recommendations, experiences, or guidance would be greatly appreciated.

Thank you

Hey @Luca Marotta welome to BP and to the U.S. real estate investment market!

We work with real estate investors on financing strategies designed to help them acquire properties, renovate, and build long-term rental portfolios.

Depending on your experience, financial profile, property, and investment strategy, there may be financing options worth exploring, even with a newly established U.S. LLC.

DSCR loans, fix-and-flip financing, and BRRRR strategies can all be worth considering. However, foreign nationals and newly formed LLCs may face additional qualification requirements, so identifying the right program from the beginning is important.

With $50,000 in available capital, I would recommend starting by evaluating your investment goals, target market, and the type of property you want to acquire. From there, you can determine how to structure your capital and financing to maximize opportunities while managing risk.

I'd be happy to connect and discuss your situation, explain the financing options we may have available, and help you identify potential next steps.

Feel free to send me a direct message. I'd be glad to learn more about your plans and explore how we may be able to assist.

JCREIG Capital Funding

[email protected]818-770-0340

Stacy RaskinBusiness Member

Lender · Member since 2022 · 1k+ posts · 518 votes

10h

Foreign national DSCR loans for non owner occupied rental properties will generally require a minimum of 25% down if it's a $100K loan amount of more on a single family rental. There are different loan programs. If a non owner occupied rental property and you are not a U.S. citizen or green card holder, then that eliminates many loan programs.

Also, DSCR, BRRRR and other type of business purpose loans are not regulated the same way as an owner occupy conventional loan so rates and fees can go up all the way until you get to the day of funding. These changes can happen even if nothing changed on the deal such as the appraisal coming in lower and having that affect the loan's LTV. Because of that it's important to do your research on what mortgage professional you will be working with.

Depending on the loan program, you will be required to have reserves for monthly payments such as six months of the property mortgage, taxes and insurance (and HOA if that applies).

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Ashish AcharyaBusiness Member

CPA, CFP®, PFS · FL · Member since 2017 · 5k+ posts · 3k+ votes

10h

Luca, you’re actually at a good point to get the structure figured out before you buy the first property.

On the financing side, I'd definitely talk with lenders who regularly work with foreign investors and newer U.S. LLCs. DSCR, seller financing, and other options can all look very different depending on the property and how the LLC and ownership are structured.

I'd also get the tax side reviewed before you start acquiring properties. Being a foreign investor with a U.S. LLC can create additional U.S. tax and reporting considerations, and you want to make sure the LLC, ownership, banking, and tax setup all work together before you start moving money into deals.

Since you're planning to build a portfolio, I'd think beyond just getting the first loan approved. The structure you choose now should make sense for the next few acquisitions as well.

And with $50K available, I'd focus on preserving enough liquidity for reserves and closing costs rather than putting every dollar into the first deal.

Feel free to DM me, I’d be happy to send over a few resources that might be helpful.

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Marcus Auerbach

Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes

7h

@Luca Marotta - nobody is real with you here, or at least they don't know what they are talking about. This is a bad idea and also not realistic.

I moved from Austria to the US and have been investing here in Milwaukee for 15+ years. Getting a loan and setting up an LLC is the easier part. But it is true, you'll need more capital to meet DSCR requirements and buy a decent property. Median home price in the US is over 400k. Yes, there are some pockets where poverty keeps prices lower, but that comes with some problems.

The bigger issue is that you have a completely different understanding of what is "normal". For starters, houses are built very different here. You have never seen a forced air system nor would you be able to explain to a tenant how to change a filter. Talking to contractors is extremely hard. And you always have to worry who is taking advantage of you - because many will try.

You also can't understand US landlord/tenant law, which is State specific. Rental and tenant cultural norms are very different, also expectations and what's normal.

And we have not even touched the topic of double taxation for a foreign resident. Yes, you can hire a tax advisor specialising in international taxation, but that will cost you half of your investment capital just to get an initial review done.

For my American peers here: you would be equally lost investing in Europe! For example in many parts of Europe apartments are rented without kitchen cabinets - the kitchen is actually provided and installed by the tenant.

-- a lot of people will tell you what you want to hear (yes, great idea, I can help you...) and then take your money.

Justine Sanchez

Member since 2020 · 8 posts · 0 votes

4h

Hi Luca, welcome. The good news is that DSCR loans are one of the few options where a brand-new LLC isn't a dealbreaker, because they're underwritten mostly on whether the property's rent covers the payment, with you personally guaranteeing the loan. A lot of DSCR lenders also run foreign national programs that don't require a U.S. credit score, but expect a larger down payment and bigger reserves than a U.S. borrower would need, so with $50k it's worth asking each lender early what they'd require at your price range. BRRRR is harder on day one, since both the rehab loan and the later refinance need lenders who work with foreign nationals, and the refi may require a seasoning period before they'll use the new appraised value.

On credit, if you're eligible for an ITIN or SSN, a secured card in your own name is the simplest start. For the LLC, get an EIN and a D-U-N-S number and open a couple of vendor accounts that report to the business bureaus. And before you start talking to lenders, have your passport, LLC formation docs and operating agreement, EIN letter, and a few months of U.S. bank statements ready, since they'll want to see where the down payment is coming from.

[email protected]330-548-3340

Ryan BakerBusiness Member

Lender · Strongsville / Cleveland, OH · Member since 2026 · 32 posts · 4 votes

1h

Hi Luca, welcome. A few thoughts from the lending side. Foreign national DSCR programs do exist, and they qualify off the property's rent rather than US income or US credit history, but they usually want a bigger down payment, cash reserves, and a US bank account for the LLC.

With about $50k, that points you toward lower-priced Ohio markets, and you'll want to budget for closing costs and reserves on top of the down payment. For BRRRR, remember the refinance step usually has a seasoning period, so plan how you'll fund the rehab and how long the money will be tied up before you buy.

On credit, get the EIN and business bank account set up, and if you can get an ITIN, that opens more doors over time. Happy to walk through what a realistic first deal could look like on a quick call. My direct line and email are on my profile.

(Drafted with AI assistance.)

[email protected]614-412-2912

Min ZhangBusiness Member

Real Estate Agent · Member since 2022 · 1k+ posts · 1k+ votes

1h

Hi Luca! Welcome to U.S. real estate investing! I'd start by talking to a few DSCR lenders who work with foreign investors to understand their down payment, reserve, and LLC requirements. I'd also look into seller financing as another option and start building business credit through accounts that report payment history. That way, you can compare your options before committing too much of your $50k upfront.

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Nyisha Walton

Lender · Houston, TX · Member since 2026 · 70 posts · 18 votes

42m

Luca, welcome to Toledo, where $50K actually goes somewhere lol. No U.S. credit isn't a dead end, since foreign national DSCR programs mostly look at the rent versus the payment and how much cash you have in reserves. Keep a few months of payments sitting in that U.S. account and you'll look a lot better to lenders. Happy to talk through it if you want.