Lending in the USA

Has anyone mastered how to get finance in the USA, I have read you need massive deposit etc but I want to hear real examples.

Also these private money lenders, anyone had any success with them?

 

I would contact @GentleChief he has a handle on this. I think he has a list of lenders

From my research foreigners can only go for asset lend
Set up fees are expensive.
@Karina may also be another contact

 

From my experience it is possible to finance but as a non resident you will most likely need to finance through hard money lenders and pay a much higher interest rate than locals.

I would estimate around 8% in this market and you may be able to borrow 50 - 70% depending on the lender.

 

Just got approved at 65% Lend of the Appraised value (LVR) at 6.35% per annum.
I had the option of going to 70% Lend which increases the rate to 6.80%

 

Yes, there are a number of options available: traditional, private, HML's and owner financing.

 

Hi MTR
do you have the list of lenders?

 

Contact @GentleChief he may be able to help

 

I have just provided @JessyRQ with the list of US lenders

 

@JessyRQ What kind of deal are you looking to fund?

 

Hi
I want to purchase another property in Atlanta, looking at borrowing 75% lvr

 

Okay, all the best with that.

I am only aware of financing for foreigners in Ohio.

 

Sorry but there are no restrictions by "State" for "foreigners".

I have been able to successfully fund my properties in Atlanta and Detroit.
On 3 separate occasions with 3 different lenders.

The product ranges are very wide and new ones keep cropping every month from lenders.
I am working with a Belgian investor currently who is getting funding for the Detroit portfolio (6 properties) under the following terms:

• Interest - 5.66%
• 5 year term
• 30 year amortization
• 70% LTV
• 1 point origination fee
• Minimum appraisal value per property at 50K

 

For Atlanta market, you may wish to speak to @Karina

 

Last time I checked this though (earlier this year) you needed to already have a large portfolio to secure lending. I have a few unencumbered but the bank wanted a portfolio of 8-10 properties to secure lending.

 

Does this investor already have a sizeable US portfolio?

 

I should have worded this better. What I meant to say is I am aware of options currently available in Ohio. I am not aware of lending options in Atlanta.

At any rate, some lenders do have restrictions and will not lend in certain states to anyone. Foreigner or American.

 

Hi @ellejay
This Belgian investor has 6 properties - Loan amount is 300 ish
But I know one lender who's requirements are
minimum 150K Loan value
50K appraisal per property
70% LTV
They have 5 year, 7 year and 10 year periods.
The spread between 5 year and 10 year is about 0.75%

 

limaonecapital is doing up to 65% lend for foreigners , rates start at 7.7% on 50 percent LVR and go up into the 8's at 65% lend.
Its an asset lend (not based on your income or job)
$50,000 minimum loan amount
Loan is interest only for 3 year term, balloon payment at the end of the 3 years so you need some kind of exit strategy.

They used to offer a 30 year loan for foreigners but its no longer available. I think you will find this will be available across many states.

I would caution NEW investors in the US market to not go crazy with financing at high rates. I think its ok to consider if you already have a base portfolio that you have paid cash for and want to leverage off that to buy a few more.

 

Lima one sent out an email like a year ago saying foreign stuff had finished

 

Yes they discontinued the 30 year loan option for foreigners that was previously available. I had reached out to my contact at Limaonecapital who I have had some dealings with in the past and they have the short term loan available now which I mentioned above available to foreigners.