Hi Everyone
Can anyone offer some advise or ideas on how to borrow money to purchase some US property? Can you borrow here or there? Any idea
Cheers
Sean
Hey Sean,
I went over to the States last November and started buying some US property.
I spoke to Wachovia bank about the possibility of borrowing money, and the short answer was that it will be very difficult until you have a credit history and a banking history.
You can go with 'hard money' lenders, but I wouldn't.
Another option is to set up a structure with someone from the US as a director or member, and then use their SSN / history to help the entity gain finance.
If I find out any other options I'll let you know.
Regards,
– Steve McKnight
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi Sean
We have been involved in financing in the US since 1989 when i worked with Chase Manahattan and have seen many changes over 20 years.
Up until a year or so we had direct agencies with World Savings, Alliance Bancorp, Indy Mac and WAMU all of who took applications from Foreign Nationals.
All 4 lenders are now no longer with us or part of another US lender who doesnt accept FN lending.
Lenders have reduced their lending because of the changes in the "Patriot Act".
Now because of the demand we only finance clients into Florida which we do through a major US lender and who have no problem in still lending to Foreign Nationals. At the moment it is mainly British Citizens who buy in FL wanting a second home to escape the British winters but Australians are totally acceptable
Lending criteria is fairly straight forward but a minimum loan of $100K and 70% max lvr means the purchase price of the property needs to be $142K +.
Outside FL we mainly work with clients who have equity in the Australia properties.
As Steve has mentioned you will not finance property easily being a FN.
It is for this reason we stick to FL where we have had no issues to date.
Richard Taylor | Australia's leading private lender
Thanks Guys, very helpful
Cheers Steve thanks for the advise, ill see you at your Brisbane seminar.
Richard, is it possible to purchase 4 properties at say $50,000 each on one loan?
Nigel can i please get the details of your contact in Houston?
Sean Lister
Hi Sean
No unfortunately it is not.
Loans in the US cannot be cross collateralised (what a good thing) as the loans will be securitised.
Richard Taylor | Australia's leading private lender
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