Please wait as we prepare your PDF file ....

Mission Chronicle Blog

Search Blog

our goal is to help you stay informed by providing timely and interesting articles.

Podcast: 4 financing routes for international real estate buyers

02/22/2017

Download PDF

Have you been wondering if foreign buyers of U.S. real estate could be your local real estate market niche?

Entrepreneur, investor and founder of RSN Property Group Reed Goossens found that to be the case after immigrating to the United States from Australia, by focusing on closing deals for international buyers.

One of the reasons Goossens has been so successful working with foreign buyers looking for real estate investments is that he personally went through the process of purchasing property in the U.S. as an Australian citizen.

Below are just a few of the useful snippets Goossens shared in his podcast interview, including information on how to guide international buyers through the purchasing process and some potential financing options available.

http://traffic.libsyn.com/hibandigital/Reed_Goossens.mp3 Regulations and taxes

Purchasing property in the U.S. isn’t as easy for an international investor as it is for an American citizen.

Fortunately, if you’re familiar with the relevant regulations, you can help these clients make the necessary preparations and improve your chances of closing sales.

Contacting a good CPA is the best way to get the ball rolling. A CPA can apply for an Individual Taxpayer Identification Number (ITIN) on behalf of your client and can also set up a Limited Liability Company (LLC).

Your client can then use the Employer Identification Number (EIN) associated with their LLC to open a bank account in the U.S.

Even once your client has an ITIN, an LLC, and an U.S.-based bank account, there’s still an additional hurdle to overcome: transferring money from an international account to fund the purchase of a property.

For this, Goossens recommends using a company that handles foreign-exchange transactions.

However, keep in mind that these companies are required by law to scrutinize large foreign transfers into U.S. accounts. If your client already has an established LLC, they’ll have a much easier time getting their transactions approved in a timely fashion.

4 financing options

In the event that your international buyer client doesn’t intend to pay cash, there are four potential financing options that may be available:

1. Portfolio-based lending

If your client has a large portfolio ($1 million-plus), some international banks may be willing to finance a portion of their purchase.

However, these financing options typically require down payments in excess of $300,000, so this obviously isn’t a viable option for all international investors.

2. American bank loans

Some American banks do have lending programs in place for international investors.

Unfortunately, these programs require higher down payments than loans for residents and they also tend to have higher interest rates.

3. Department of Housing and Urban Development (HUD) loans

A less common, though still viable, option for financing property as a foreign buyer of U.S. real estate is to utilize a private lender through the Department of Housing and Urban Development.

Again, higher interest rates are one of the downsides associated with this option.

4. Partnerships

Partnering with an American-based investor is one way to get better rates when financing properties. When possible, this is often the most appealing option to lower their rates and their down-payment requirements.

Pat Hiban is the author of NYT best selling book “6 steps to 7 figures – A Real Estate Professional’s Guide to Building Wealth and Creating Your Destiny”, the founder of Rebus University and the host of Pat Hiban Interviews Real Estate Rockstars an Agent to Agent Real Estate Radio Podcast with Hiban Digital in Baltimore, Maryland. Follow him on Instagram or Twitter.

Email Pat Hiban

Source: click here

Read More

INSPIRED, INTELLIGENT, INSIGHTFULL

STAY INFORMED WITH TIMELY AND INTERESTING ARTICLES FROM OUR BLOG, MISSION CHRONICLE. OUR ASPIRATION IS TO PROVIDE REALTORS AND OTHER REAL ESTATE INDUSTRY PROFESSIONALS WITH EXCEPTIONAL RESOURCES AND SHARE OUR KNOWLEDGE TO PROPEL YOU TO YOUR GOALS.

  • Looking for a simple solution to social media? Try PropertySimple

    Have suggestions for products that you’d like to see reviewed by our real estate technology ex...

  • Furnished or unfurnished? 3 agents weigh in

    When putting a property on the market, a seller has a variety of options: list the home fully furnis...

  • Want video landing pages in a snap? Real Estate Shows might be for you

    Have suggestions for products that you’d like to see reviewed by our real estate technology ex...

  • Renovation-averse buyer? We have tips for that

    Luxury real estate buyers lead increasingly complex lives, so it’s no surprise that many are optin...

  • Openhouse Live makes Matterport tours a group event

    Have suggestions for products that you’d like to see reviewed by our real estate technology ex...

  • Rethinking home: How buyers are reprioritizing amenities

    Among all the shifts that have happened this year, the fact that businesses rely on a distributed wo...

  • Not good at arranging throw pillows? Good thing there’s Stagerie

    Have suggestions for products that you’d like to see reviewed by our real estate technology ex...

  • The Instagram playbook: how to make your listings stand out in the age of visuals

    When today’s emerging affluent consumer wants to curate a gallery of their lives through video and...

  • PureAgent CRM reduces automation dependency, ups ante on live tours

    Have suggestions for products that you’d like to see reviewed by our real estate technology ex...

  • ‘How I built my team’

    Sometimes, providing the highest quality of service to real estate clients requires a collective eff...

September 2020
Mon Tue Wed Thu Fri Sat Sun
 123456
78910111213
14151617181920
21222324252627
282930  

  • Polls

    What information you are looking for?

    View Results

    Loading ... Loading ...
  • Last month Results

    How Is My Site?

    • Good (100%, 3 Votes)
    • Excellent (0%, 0 Votes)
    • Bad (0%, 0 Votes)
    • Can Be Improved (0%, 0 Votes)
    • No Comments (0%, 0 Votes)

    Total Voters: 3

    Vote

    Loading ... Loading ...