US lending to foreign investors

Please pass on the details thanks, can you pm me.

I would need to find out the criteria etc. were they done deals?? Without a credit rating, how can this happen???

We had a US lawyer trying to source bank finance for foreigners and it was a no go. Could only source hard money lenders, foreigners screaming for bank finance, as I said I know no one who has achieved this.

It could have something to do with the area Texas? we were buying in Atlanta for cash flow, Texas was a higher entry level and at the time did not meet our criteria. If properties have risen in this market as I suspect it would only harder to achieve cash flow positive.

 

Correct, it is financing for investments in Texas.

 

MTR - my past experiences are similar to yours. Filled with frustrations. We did go with a hard money lender recently since moving here because we currently do not have sufficient credit history/score in the US.....will now refinance, as well as seek other IP opportunities while we still can (i.e. as a foreign investor loan program).

 

Interesting, my concern is that it will be dependent on the property the State? and there lies the issue, they will lend areas which will not provide cash flow positive properties

 

MTR - rental returns in San Antonio is about 10-12%......and sometimes, better, if you are willing to take on renovations as well.

 

I think MTR is getting closer to 20%

Interesting info Ozzie. Thanks

Blacky

 

20% is awesome. No problem.

 

My interests are in Texas at the moment. I am willing to lay my bets on Texas as I think it has strong growth potential and tends to fair better than other states in the US regardless of market cycles.

My investment decisions are made in the same way as I would make for myself.

For example, I've worked in East LA (experienced drive by shootings and violence on a weekly basis) and while it may be more affordable than other parts of LA, it wouldn't rank on my radar because of its high crime rates.

 

I assume that you are referring to current rental returns when you say 10-12% against current prices. Also seems that your return excludes the cost of the reno?

MTR, myself and others were buying in Atlanta and various other locations in 2011-2012 where we purchased properties for $30-60k with additional renos required costing up to $20k and rents $1200-1350. My best returns are at 30% gross return based on cost plus reno.

I believe we can now get finance at 7% with a 2% establishment cost and fixed for 30 years. Substantial break cost within first 5 years.

 

Yes ya can, thats why we made a thread to discuss it

Yup, sounds awesome. But what about current day?

Terrific! can you share any more details on what requirements they have, which areas they'll lend in etc?

 

Im hunting as well @D.T - Ill let you know what I discover.

Blacky

 

Hi HA
Cant wait to see the documents on this, be interesting, especially dealing with US banks ... LOL

Just as much fun as IRS....

MTR

 

Al

There is a variety of financing options available and many lenders focus their home state.

No - 10-12% is based on a property that is rent ready. You can buy properties in the $30-60k range in San Antonio as well - but be prepared to renovate.

Personally, I don't want to invest in a high crime area. Atlanta doesn't interest me for those reasons.

 

As Handy Andy mentioned more like 30% now, that's is why we are continuing to buy in Atlanta, now if only I could source bank finance at the lower rates Ozzie mentioned that would be brilliant.

Problem is you really need these high yields for it to work, otherwise you will go backwards for sure because the costs are so much higher in US than in Australia, 12% would not cut it.

 

Is 30% with the exchange rate? Because then San Antonio is comparable - no?

MTR, I was asked about San Antonio and am happy to respond based on my experiences and knowledge of San Antonio. I don't claim to be an expert on the US. I have lived in California previously and now live in San Antonio. I can tell you about my experiences as a resident in both.
If Atlanta is your playground, that's great. The more knowledge we can collective share about the US paints a better picture.

 

What purchase prices and yields are around your areas, Ozzie? Do the un renovated ones work out better as the buy price is lower, even with reno costs added ? (thats usually our strategy here in Aust)

 

Of course - the more run down the property, the greater the discount. You will find that these as usually sold "as is" as it is priced according to its state of disrepair.

When buying property, there is an expectation that if you are buying at comparable market rate, the property has been well maintained. During the cooling off period is when you generally conduct your property inspection ......and this can be used to negotiate further with the seller. The outcomes of those negotiations can be that the seller agrees to undertake repairs prior to settlement or can agree to further discounts off the settlement price.....or you walk if an agreed cannot be had.

From my experience, we have been able to agree on both discounts and repairs.

An "as is" property is different. You can negotiate price upfront, but once agreed upon, that's it.

 

That's great, I thought we were having a discussion about USA and finance, I was sharing my experience regarding this as was @Handyandy which I would have thought would be of some value considering we have been playing in this market for some time.

I also believe it is also important to advice forum members if you have a vested financial interest? Paid for your services, or for sourcing properties or whatever etc etc.?

Look forward to you posting the deals, if they that good I will be the first to jump in, I have no real issue where I invest in Atlanta etc... as long as it ticks my boxes.



MTR

 

Please don't scare her away - she's providing good information on finance etc when others say it wasn't possible.

 

I have absolutely no vested financial interests.

If I decide to change my status in the future, I am more than happy to declare myself as a business member.

I don't and never have worked with bankers/lenders. I am not a licensed agent.

I work in admin (mostly in senior management) and get paid well because I do a great job.

If I was trying to spruik business for myself, I wouldn't be shy about declaring it.