My wife (a USA citizen) and I have just attempted to buy a property in Texas and after attempting a number of finance options it seems it is to hard for them. Our problem is working and spending in Oz doesn't give you a credit history here.
Does any one have suggestions of how we can approach the banks – short of paying the whole thing up front in cash.
Below is an email from the senior lending officer at HSBC in NY. Because they are an international bank with branches in Australia, by the way, they are not as closed as US banks.
They may be a way for you to continue.
Also contact the guys at GlobalProperties.com who arrange for Aussies to buy in Texas through their contacts. They probably would prefer you buy from them though. At the least they may have some info on their website.
PS: Don't tell Jeff I sent you 'cause he doesn't know me
Ian
Subject: Re: Foreign loan
Yes, I can help.
We do Non-Resident loans with 40% Minimum downpayment and 4 credit reference letters (letters from anyone whom you use credit with – i.e. credit card companies, mortgage companies, other loans, etc) stating that you have paid on-time for the last 24 month period.
We would need proof of income (tax returns, year end statements, letter from your Accountant?) and Bank Statements.
You do not need a social security #. THe approval time is about 2-3 weeks from application to approval (that is pre-approval). On a "LIVE LOAN" (property located and you pay your application fees) it's about 30-60 days from application to closing.You can only buy a 2nd home as a Non-Resident, no "Investment properties" – so that would permit you from doing a Multi-Family purchase with us.
Thanks, I hope this helps!
Jeff Ihrig
Senior Mortgage Lending Officer
HSBC Mortgage Corp. (USA)
110 William St., 1st Floor
NY, NY 10038
[email protected]
646-372-5181 (Cell)
212-981-3727 (eFAX)
Thanks Ian….what a guy!! I'll get in touch with him and get the paperwork rolling.
I appreciate the leg work…and sorry you can't make a spotters fee or something?
Mike
Hi Friend…
The investment in property are always beneficial .
if you want invest in USA ..So approach the banks is not difficult here .
__________________________
Bucks County Real EstateIt seems that US banks (with the exception of HSBC and wells fargo from memory) arent interested in dealing with foreigners, regardless of whether they have cash – thats why their banking system is going down the toilet. Best bet for financing there is owner financing (thats what I did for my US properties).
Mike and Bron have some links for US financing on their site:
http://usaforeclosures.blogspot.com/2009/12/finance-for-foreign-nationals-and-llcs.htmlCheers
JoshThanks Josh…agree on the Dunny Bank Inc. philosophy – how hard is it to be proactive??. We are currently getting good service from HSBC….but there are a lot of hoops to jump. I'll look up your reference. Thanks
Mike
Mike,
I have purchased several properties in the US (Texas). My business partner and I have used several different stratergies to buy these properties. I mainly buy renovate and sell (flip) or sell to a rent to own. We are currently holding onto 2 properties as they are are returning higher than average returns.
We are just in the process of closing on another property were I will be obtaining finance.
I am more than happy to explain in more detail of my transactions if you like.Peter
Hi Peter…I love a success story…congratulations! My Wife and I are currently working on our first (well, wading through paperwork at the moment anyway). It would be interesting to hear your story and get some help to get over the hurdles. We are on a similar objective as you albiet in the first instance to help out family. Hopefully going on from there will be a little more fun!!!
My email is [email protected] if you want to jump off this site. Just head teh subject logically like "investing in teaxs" etc.
Thanks
MikeMike,
I have been investing in TEXAS for several years now, and I understand there has been a few people that have not had great experiences, but the reason for responding to this post is to let people know that it has been a very smooth transaction for me to date, A brief overview on how my transactions are as follows;
Property # 1
The first property was bought as a "Subject 2" deal, We put in $32,000 cash into the deal and this covered the rehab costs as well, being nervous for my first purchase we went into this deal 50/50 with my business partner who lives in Texas and runs the whole rehab process, This way the risk is minimised, this deal is rented out at 22% (to a rent to own tenant) and has approx $50,000 in equity at the moment.
Property # 2
This purchase is similar to the above as it is a "Subject 2" deal, and again I bought into this deal with my partner in Texas so it is a 50/50 split. This property was $20,000 into the deal including rehab the return is approx 20% but the equity which I have not worked out excactly yet is going to come in around the $70,000-$85,000 mark.
Although the numbers are not to bad on the deals I have done, I am more pleased about the way my business partner has conducted himself, any problem we had during the rehab process was bought to my attention and attended to right away. Photos of the whole process were sent to me along the way, I must admit I have read alot of horror stories about the US, but my experience has been great. I believe now is the time to be investing in the states, this is why I believe it is so important to have someone on the ground in the states that you can really trust.
Anyway Im working on my 3rd 4th 5th ………………. deals, I will keep you posted on how things are going, and if I can help in anyway just let me know.Peter T
Hiya Peter……
Thanks for the note. Looks like you got it in one….have someone local to work through. Well Debi and I just got preapproval. We also have a property picked out but want to reneg on the choice….prices are still going down so we want to offer them less or look for something better value. Thanks and good luck….and, staying in touch is a good idea for us? Regards Mike
Mike,
My wife is a US Citizen as well and like yourselves we reside here in Aus without any credit history as a couple in the US. We have approached the banks in the US with regards to getting a loan to purchase property and without us working in the US they just don't want to know about it. I have read your blogg and it sounds as though you are now obtaining your finance through HSBC. Is that HSBC here in Aus or in the US? Also, have you been given any other advice on financial options since going with HSBC? I have the State and area down to the school district that we want to buy in preparation for living over there in the future. I have all the other components of a real estate team organised in the US, we are just finding it difficult, short of paying in cash, to obtain a mortgage in the US. Any assistance would be greatly appreciated from you or anyone else, thank you,Darren
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