Lending in the USA

Discussion in 'Loans & Mortgage Brokers' started by Rick Mick, 11th Mar, 2019.

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  1. Rick Mick

    Rick Mick Member

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    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?
     
  2. MTR

    MTR Material Girl Premium Member

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    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
     
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  3. Karina

    Karina Well-Known Member

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    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.
     
  4. GentleChief

    GentleChief Cash Flow Positive Business Member

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    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%
     
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  5. Jordan Sinclair

    Jordan Sinclair Active Member

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

    JessyRQ New Member

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    Hi MTR
    do you have the list of lenders?
     
  7. MTR

    MTR Material Girl Premium Member

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    Contact @GentleChief he may be able to help
     
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  8. GentleChief

    GentleChief Cash Flow Positive Business Member

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    I have just provided @JessyRQ with the list of US lenders
     
  9. Jordan Sinclair

    Jordan Sinclair Active Member

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

    JessyRQ New Member

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

    Jordan Sinclair Active Member

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    Okay, all the best with that.

    I am only aware of financing for foreigners in Ohio.
     
  12. GentleChief

    GentleChief Cash Flow Positive Business Member

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    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
     
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  13. GentleChief

    GentleChief Cash Flow Positive Business Member

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    For Atlanta market, you may wish to speak to @Karina
     
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  14. ellejay

    ellejay Well-Known Member

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    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.
     
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  15. ellejay

    ellejay Well-Known Member

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    Does this investor already have a sizeable US portfolio?

     
  16. Jordan Sinclair

    Jordan Sinclair Active Member

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    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.
     
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  17. GentleChief

    GentleChief Cash Flow Positive Business Member

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    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%
     
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  18. Karina

    Karina Well-Known Member

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    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.
     
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  19. D.T.

    D.T. Specialist Property Manager Business Member

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

    Karina Well-Known Member

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    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.