All Forum Posts by: Ryan O'Mara

Many lenders I work with will go up to 75%.  I don't know specifics about your deal, but the mere fact that it's a rental should not be the issue.  Lenders I work with only do non-owner occupied investment properties.

Not sure if 1031 would be any different for a foreign national but my understanding is that you can 1031 any investment property as long as you exchange for something of like kind.  Talk to a 1031 expert for clarification.

As a foreign national you will have less flexibility for financing.  Many lenders will lend to you but they often will require lower LTVs so you'll need more cash for the deal.  But many lenders will not lend to foreign nationals at all.

It will also be helpful if you have a US corporation, ITIN, and file taxes in the US.  

There are many loan options for 5+ units.  You can even possibly get a fully fixed 25yr rate.  There are many with 30 yr AM and fixed periods of 3, 5, 7, 8, 10,....and even 25yrs.

For 1-4 unit properties there are even more options including a full 30 yr fixed rate.  And seasoning is less for these properties.

What kind of property is it?  You can get commercial loans on 1-4 unit properties for full 30 year fixed rate as low as 6.5%.  If pure commercial property, the most you'd likely get is 25 years.  Again lowest rate would be 6.5%. Obviously rates/terms depend on many factors so these are best case.

Is it stabilized?  Does it need rehab?  Why is the price so low?  

If it needs to be stabilized or rehabbed then you're looking at hard money loans.  And the lender will want to see that you have good reserves and experience with these types of properties.   But yes you have options.

If all you need is acquisition funding then this would be too small a loan for most lenders since PP is $50k and LTV would be no higher than 75%. Talk to smaller local banks.

There are many lenders who will lend on purchase and rehab.  Generally they fund 80% of purchase and 100% of rehab.  These are short term (usually 12 months) interest only loans.

You definitely have options.  There are stated lenders who will do this so no tax returns needed.  PM me if you want.

You need a "bank alt" perm lender who won't require tax returns.  Also, I would imagine, this property would be treated as a mobile home park which is a hard assert class to find lenders for.  Another reason to look outside of the bank realm.

Seasoning is the main factor here.  Most banks will want 12 months of seasoning.  Some lenders will allow less.  Some will lend 70% of appraised value after only 1 month of ownership.  Others want to see 6-12 months to lend off the appraised value.  But the most you'll get is 75%.

What is your concern with the 30 yr am?  As you already realize, this will lower your payment and increase your cash flow.  You can always choose to pay more towards principal (as long as you don't trigger a PPP) but you don't have to.  It gives you more flexibility and greater cash flow.  Win win.

Also, you might find better rates than what you're listing above...

You can certainly cash out refi if there is enough equity. As previously mentioned, the highest LTV you'll get is 75%. Seasoning is a factor. There are some lenders who will lend off of full appraised value with only 1 month of seasoning, but LTV would only by 70%. To get to 75% you would need at least 6 months seasoning.