Hi
Thanks for taking time to read my question. I'm a Canadian investor looking to buy investment properties in the US to rent and hold. Lately someone told me i could get 90% finance if i used my business to buy these. I'm do not work or live in the US.
Could anyone advise me on the best strategy or refer me to someone specialising in this area.Thanks
Simon
?? ummm from your post i take it your NOT a Australian resident or citizen?
Then NO. sorry –If you are an Australian resident or citizen- then yes i can help, i have done it plenty of times for a selected bunch of my clients.
Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
S.Imetuti wrote:HiThanks for taking time to read my question. I'm a Canadian investor looking to buy investment properties in the US to rent and hold. Lately someone told me i could get 90% finance if i used my business to buy these. I'm do not work or live in the US.
Could anyone advise me on the best strategy or refer me to someone specialising in this area.Thanks
Simon
Simon,
I can help you my email is [email protected]
Simon,
As a Canadian, you might have a better chance than other non-resident investors, although I am not sure that buying thru the business is going to make it easier. Assuming you want to borrow 90% based on the value on the property and with no recourse to any other assets held by the LLC, you might have a hard time. We have tried to assist other foreign investors wanting to do the same thing, but we did not find a broker who could do it – a lot SAID they could do it, but in the end it wasn’t happening.
You might be able to find some with seller financing, what areas are you looking at?At 90% it’s impossible…even private lenders wont touch this deal:(
If your asking 80% LVR, with a house as equity in Australia when we are in business
Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
Have you tried Loans USA? We went to a seminar a couple of nights ago and saw the owner speak, they can arrange US finance for anyone from any country.
This is a question for Troy & Michael.
Troy – how confident are you getting 75% LVR for foreign national? I read a lot of posts here and most of them are having trouble sourcing finance in the US? What sets your business a part from them, say Loan USA who operate locally?
Michael – can you elaborate more of using equity of your property in Australia and use it for borrowing as you've described such as 80% LVR? I'm about to sign on the document for mortgage increase to access my equity with ING, since Simon and Myself are both foreign national who wanting to invest in the US, what's my chance of getting my finance approve in the US?
Thanks a lot!
Simon,
Are you based in Canada? If so I have contacts in Canada that can assist you….if you are living in Australia and from Canada that’s different.
i have emailed you before.Hi Leo
Financing in the US is markedly different than in Australia. The two countries have very little in common.
I have been the owner of a mortgage broking firm in Australia for over 10 years, and also have an office in the US; where I base myself for a lot of the year. I can't comment too much on Loans USA, but it is probably a good idea to speak to past customers that they claim to have helped. In addition, they limit their loans to purchasers of their own property, which seems a bit self-serving to me.
What is possible LVR wise depends on: State the property is located in, purchase price of the property, type of property, visa status, and net worth – to name a few.
If you wanted to purchase a condo in Manhattan for $750K, yes I could probably help you. If you want to purchase a single-family home in Rochester for $45K then maybe not (but possibly if you have a valid US visa).
Every borrowers circumstances are different. But from what I see on here, most buyers are looking at acquiring sub $50K properties, and then only have the capacity to purchase 1 or 2.
Feel free to e-mail me at [email protected] if you want one on one advice.
Troy: I agree, financing in the US is completley different to Australia. Just to bring you up to date, Loans USA do not only limit loans to purchasers of their own property.
Leo: An LTV of up to 75% is highly achievable in the US. In states and suburbs where properties are in the lower price bracket LTV achievements of up to 70% is most favorable.
This assists you in leverage, allowing more purchases. Cash out is also a possibility. This is a great advantage if you have purchased in cash and would like to leverage to your next property. Blanket loans can also be achieved.is Kansas city still a "no loan zone "
Hey Rick
Kansas is no longer a no loan zone. Really does depend on the property though.
Great to hear you went well with your purchases.
Loans USA wrote:Troy: I agree, financing in the US is completley different to Australia. Just to bring you up to date, Loans USA do not only limit loans to purchasers of their own property.Leo: An LTV of up to 75% is highly achievable in the US. In states and suburbs where properties are in the lower price bracket LTV achievements of up to 70% is most favorable.
This assists you in leverage, allowing more purchases. Cash out is also a possibility. This is a great advantage if you have purchased in cash and would like to leverage to your next property. Blanket loans can also be achieved.Sounds great but somewhat misguided… maybe dishonest..?. don’t know but I do know that I have chased Loans USA for 3 months and is getting nowhere
IMC Newbury
The information you have been waiting on has just come to hand. Cash out is available up to 50% of the purchase price. I you would like to email or return the phone call we would be happy to start the process for you ASAP.
So no dihonesty, just a lot of hard work to get what you wanted.
Awaiting your phone call and email
cash out ??
please explain ?
Loans USA wrote:Troy: I agree, financing in the US is completley different to Australia. Just to bring you up to date, Loans USA do not only limit loans to purchasers of their own property. Leo: An LTV of up to 75% is highly achievable in the US. In states and suburbs where properties are in the lower price bracket LTV achievements of up to 70% is most favorable. This assists you in leverage, allowing more purchases. Cash out is also a possibility. This is a great advantage if you have purchased in cash and would like to leverage to your next property. Blanket loans can also be achieved.say i find a property thats 50k, i have 30%, therefore loans is 25k, how much in fees would i be expected pay to loansUSA and the actual finance company in the US (not buying through MYUSA)?
cheers
RickH wrote:cash out ??please explain ?
Refinacing existing US properties paid for by cash.
However, the offer, which I thank you for, cost about $5K plus in fees at 9.75%. hmmmmmm. Think I pass
My experience with refinancing US properties with out of US investors is that I have assisted with the process as their property manager with a local lender. The lenders know the majority of the funds stay local and only the profit goes elsewhere. It is much more comfortable for a lender to lend on something they can put their hand on then something they've never seen. Local lenders are more willing to lend. This has worked well on several different occasions. We know the lenders and the lenders trust our information on the properties we manage, so they are willing to hold paper on those properties for clients who live anywhere really. I hope this helps.
HighIncomeProperty wrote:Simon, As a Canadian, you might have a better chance than other non-resident investors, although I am not sure that buying thru the business is going to make it easier. Assuming you want to borrow 90% based on the value on the property and with no recourse to any other assets held by the LLC, you might have a hard time. We have tried to assist other foreign investors wanting to do the same thing, but we did not find a broker who could do it – a lot SAID they could do it, but in the end it wasn't happening. You might be able to find some with seller financing, what areas are you looking at?I agree about it being difficult to borrow money if you don't have any assets or income to borrow against, but what are your thoughts about investing in commercial properties via an LLC? I remember reading somewhere that the borrowing for commercial properties is based on the asset and its income itself, rather than your personal assets/income.
Kong,
That’s a valid question, and to an extent, you’re certainly right. A buy-to-let mortgage on a residential property will still always to a large extent be based on your personal credit, but a mortgage for a commercial property is, at least in theory, based more on the strength of the leases and the current tenant.
It is very important to consider this when looking at something – even if the cap rate looks really good, have a look at what kind of companies are in there. Are there a lot of mortgage brokers, insurance brokers, realtors etc, or do you have established tenants? What are the length and terms of the leases?Buying thru an LLC generally makes sense in my opinion, more for tax reasons than for reasons related to liability.
I would say tha even though in theory it probably should be possible to finance 100%, you’re probably still better off the more money “down” you can bring, and also if you work with an established U.S. partner as they might be able to point you in the right direction.One thing you might want to consider is purchasing a commercial building in need of some rehab, as you will get it for a much better price. Carry out the work, get a local broker to rent the units for you, and then use the improved property to pull out equity using a line of credit.
Does that make sense?
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