All Forum Posts by: Francois D.

Hi there,

I don't mean to challenge your decision to invest in Detroit, more over from being overseas, but why invest in a place where you had to change PM three times when you get similar returns elsewhere without the headache?

I would be curious to see your real returns compared to predicted, if you do not mind sharing.

Best

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.

Jackly,

You will likely need a commercial lender. I have done many such deals with chinese and indian clients. Feel free to PM me. I work only in Texas though, there are many ways to structure such deals.

I would be very carefull about investing in LA now though, it seams like it is reaching a new top. 
Anyhow, I am a bit bias as I help California investors do 1031s in Texas. 

Best of luck

Hi Aviv,

I was a foreign investor once but am now living in Houston, Tx. When I was in your position, I was able to buy 5 properties at a distance each with financing. 
You will be able to leverage your 200k into 800k of Assets. 
The key is to find the right agent / property manager / lender. I had to change the ones I was using so many times that I am now the three: licensed Texas Real estate agent, property manager and landlord lender.

My advice is to find people to work with that are used to working with foreigners and dealing with the countless little issues you need to work around, it will save yourself some time and frustration.

Best of luck,

Francois

Hi Tristan,

In short you would like to have no seasoning requirements but avoid the hard money lending which is expansive.  I have a landlord direct loan with a 30 year fixed rate and 3 weeks in underwritting which may help you. It is a little more expensive than Fannie Mae and you need to put 25% of value down. 
I would like to sum up a few of the answers for other readers which may be confused like we all where when first dealing with lenders:

1) HML conversion to Fannie Mae product > no need for seasoning but you are limited to the amount the hard money lender loaned you. Hence you probably still need a good amount down and you will have to pay the HML fees.

2) True cash out refinance with Fannie Mae type lender

You will be subject to seasoning requirements. Lender typically have overlay on top of Fannie Mae requirements, hence seasoning requirements will vary from lender to lender

3) Portfolio lender / small bank

They will not require seasoning but will be more conservative on their loan to value or loan to cost. Usually 70 to 75% of the lower of LTV and LTC. Some will do 70% of LTV regardless of cost but their appraisal may come back with a very conservative number.

4) Non bank lenders / investment funds

This a world of solution as they are not regulated by Dodd Frank. Some will be very expansive. The one I represent is the cheapest I have found and the more effective in underwritting. We lend in most states, with a 30 year fixed or 7 year ARM.

Good luck! Option 4 is the simplest as bank lending is a real hassle these days with the regulation burden. 

Best,

Interesting and great numbers, are these all in Huntington Beach?

His videos add keep popping up on my youtube and I am surprised that people go for that but I guess temptation and illusion work.

Chris,

35k down will enable you to buy a nice rental home in my market. Even if you do mistakes, you will come out ahead and make significant return.
If you have money use it for a deal. Learn by doing.

Cheers

Dear all,
Without analysis and just hear say from client and networking events, I have not met anyone who made more money in vaccation rentals / air bnb than by simply renting by the year. 
The only exception was a person who owned a full building, was living in it and it was her full time activity. Else what I saw was people are typically not getting as high an occupancy as they expect.

Any real life feedback?

Best

Hi Oded,

There is two kinds of 'foreign investors'

1) Those that were in the US in the past, have some residency here (VISA) and maybe some credit history. In short they have some trace in the 'US financial system'. Banks may lend to them, more so for a primary residence than investment loan. The process will always be longer and require more documentation.

2) Those that are true 'foreign person' per the IRS definition. They have neither residency nor credit history.

There are very very few lenders for them. Some are outrageously expansive, some are more reasonable. For my foreign clients, I have a landlord loan that is 30 year fixed or 7 year ARM. Rates are based on how much skin in the game you put (how much capital you contribute). Count 25% to be safe.

Hope that helps. If It can reassure you, I received 4 loans myself while leaving overseas, there was a few bumps on the road but it worked out.

Best.