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Getting a USA investment mortgage loan

Discussion in 'Property Finance' started by B17, 30th Aug, 2016.

  1. B17

    B17 New Member

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    Hi there

    Has anyone on here gotten finance through an American bank? If so can you pass on the information of who you used. I have been looking but cannot find anyone who can help. Thanks.
     
  2. MTR

    MTR Well-Known Member Premium Member

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    Regardless of what you may read......It will be very difficult to source finance unless you are a US citizen.
    I know many people who have tried with no success.

    Many talk about getting loans in US but they wont be bank loans, higher interest rates and entry/exit fees are higher and time frame/life of loan will vary. If you are accessing equity in US the security will be a major consideration. I personally would not touch these unless you have a huge portfolio of cash cows.

    I know a few who have sourced US loans direct from banks but this is only for a second property considered a holiday home, not investment loans. They also needed to provide full financial documents, the process was horrendous.

    We are currently sourcing commercial loans direct from banks but we have US citizen involved who is working with us. Favourable conditions and rates are low.

    MTR
     
  3. D.T.

    D.T. Adelaide Property Manager Business Member

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    It'll generally be hard money lenders for your first couple of deals. If you do well on them, you might be able to take an unencumbered title to the bank and get a loan that way, or at least build up some experience for when your credit file starts to build.

    Happy to link you some past threads on this if need be.
     
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  4. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    This is tempting to me at the moment - for the deposit on a decent house in Oz you can buy a house in the US outright with amazing yield. It's worth looking at, but well outside the comfort zone!

    Have you bought over there @D.T.
     
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  5. MTR

    MTR Well-Known Member Premium Member

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    Jess

    Most people got burnt in US when I was buying, they were buying from spruikers who were spinning these hard money loans where they were marking up properties by at least 100% and then taking high % on the loans and selling inferior products for huge profits I know quite a few unfortunately who lost money.

    Most of my properties were purchased for around $35k-50K in 2011/12 they are now worth at least $150K each, I have 9 of these, yields of over 25% gross.

    Today you wont get cash cows due to the recovery and you need to use different strategies to achieve cash cows. Competition is fierce coming from foreign investors, US investors, Hedge Funds, Home buyers. We recently had I think about 30 offers on one property alone, its hot hot hot

    Buying in US is very difficult at the moment because its very competitive markets, I would easily say 80-90% that is on the markets is rubbish that locals are ditching.

    I love the US market and am buying up at the moment, its very exciting times. Will post some deals shortly.

    MTR
     
  6. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    @MTR - would love to hear about some of the pitfalls and tips to doing it right. I have no interest in spruikers, would rather fly there myself than trust a RE type person over there.

    It's a very interesting market I agree.
     
  7. MTR

    MTR Well-Known Member Premium Member

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    Will start a thread as mentioned let you know what we are doing etc. its just too early at the moment to share.
    keep researching/learning and googling plenty of stuff.



    MTR:)
     
    Last edited: 30th Aug, 2016
    Jess Peletier likes this.
  8. B17

    B17 New Member

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    Hi MTR

    Do you know of any lenders in the US who will lend to Australian investors as I would really love to start buying some investment properties there. I have a few investment properties in QLD and I would like to get involved in US real estate. I can't save $60-100k to buy one outright but I can save 20-30k and with the help of a loan I could start with buying one then moving on from there.
     
  9. B17

    B17 New Member

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    Hi D.T

    Can you link some past threads on this topic please. Thanks.
     
  10. MTR

    MTR Well-Known Member Premium Member

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    no one I will recommend. Sorry, drop me a pm

    MTR:)