All Forum Posts by: Francois D.

Hi Charlie,

I have been in the same position both for I and clients. The person taking on the loan will need to have a personal guarantee. You can charge your partners a % of the loan for rewarding you on assuming this risk, that is a typical structure. You could also 'simply' take the loan and your partner provide all the capital. You can also have a combination of these two.

Where are you all looking to purchase?

Best

I have found a few deals by calling directly the owner.
These were situation where I managed to find their phone numbers in the public records, sites like yellowpages.com or spokeo.com
The challenge is the phone numbers found there is accurate only 10% of the time at best.

Does anyone know of an efficient skip tracing system that is more accurate? Ideally you need to able to find their cell phone. Maybe someone working at a cell phone company might know?

@Manvir G.

The US has non double taxation treaties with most developed countries including Canada.

If the property you are investing in is the only US asset you own, taxation will likely be 0 or close to it. The US tax code is very friendly to real estate owners and investors.

Hi Manvir,

There are many Canadian investors on this site and there is also many Canadians buying in the USA. In Texas, Canadians are the first nationality for foreign buyers, closely followed by Chinese.

My company helps foreign investors purchase in Texas and provides financing for foreign investors throughout the US (long term landlord loans).

In my experience, Canadians buy in Texas for the following reasons:

1) They want a US dollar denominated asset for diversification purposes

2) US / Texas Investments are tax efficient and laws protect the investor and landlords.

3) Texas provides good yield and has good appreciation as well.

4) Last but not least: Texas is very affordable

I have had experienced clients who already had Canadian portfolios and wanted to buy here for diversification. I also had new investors who are mainly attracted by the affordability and the ease of purchase here.

Happy investing.

Hi There,

I can't give legal advise as I am not an attorney but I can tell you a trick I used not to have that issue of tenants coming and claiming they had left property. The Fort bend county judge ruled in my favor very quicly and complimented me. A realtor is not an attorney. I am a realtor and investor and I have read the property code from A to Z which most realtor do not. There is one precaution to take before your rekey the whole house, PM me for more info.

Best.

Hi Robson,

The underwritng for foreigners is essentialy property based.
Based on the debt coverage ratio and loan to value, the rate is determined (It is a matrix). 
For example you will get a better rate if you only finance 50% of the property and your debt coverage is 1.4. If you max out the loan to 75%LTV and your debt coverage is close to 1.2, the rate is slightly higher. We will not go higher than 75%LTV.

Hence for a purchase you will need 25% down. For a refinance, you can take out a maximum of 75% of the appraised value of the property.

 I have pdf docs I can email you, PM me the best email for you. 

Best.

Hi Nick,

Just curious: why did you pick Florida? I am helping a few Florida owners doing 1031s to Texas because they think the market is at his pick there.
Anywhere Florida is well known for its tourism and I think that is why it attracts foreign investments but it is not favored by US investors now.

I would be curious to hear your thougths.

Cheers.

Hi Michael,
Good to see you on this forum. Through my finance company, I have access to a Texas investment funds who lends 30 year fixed 75% LTV or 7 year arm.
Although we lend nationally at the same terms, we are quite fast to fund in Texas 3-4 weeks is normal. B2R will take 45 days. The minimum loan amount is 50k, if I remember well your property should be above that. 

Cheers.

If you are looking for long term financing for rental SF, that you are maxed out with Fannie Mae loans or that the banks will not loan you anymore, we have a great 30 year amortization loan starting at 5.99% IR and 75%LTV. There is both a fixed rate and a 7 year ARM product.

This is an asset based loan without limitation in number of properties and open to foreign nationals. The underwritting is quick: 3-4 weeks both for cash out refinance and direct purchase transactions. The only real criteria is that it requires a 25% down payment.

Hi Lisa,

Are you thinking of a short term line of credit? A regional bank will do that.
For larger cash out refi on your rental portfolio, a national lender can help.

Best.