Finding a lender while living overseas

[Eric Sato]

Hi, 

I am new to the USA real estate game (new to real estate in general). 

Quick Version: How difficult will it be to find a lender for purchasing properties in USA, while my W2 income is entirely non-US based Income and while I am primarily a resident of Japan? 

Long Version: I live and work in Japan and my entire salary is Japan Yen based. I am however a US citizen with a 750-800 credit score (dropped from 800 recently as I opened 2 new credit cards, doing the flying/MileMethod/points strategy, and expect it to go up again in about 30 days). 

I have US tax returns, as I do need to file both in Japan and USA. I also send majority of my money back to the states for investment purposes. I also travel back to the states a couple times per year (and could travel more often if needed). 

Total Compensation (pre-tax) with Bonuses and RSUs is around 280-300k USD ATM. I also just purchased three single room properties in Japan, at 0% down, since Japan interest rates for investment loans are still only about 1.7% (0.3% for personal mortgage loans). 

I want to purchase a property in Colorado Springs this summer as either a long-term or midterm rental (traveling nurses, etc…), and I want to know my best chances for finding lenders. 

Any advice would be greatly appreciated. 

Cheers, Eric Sato

[Tanner Pile]

@Eric Sato

Colorado Springs is a great spot for MTR. There are a few spots I like that have clusters of hospitals and entertainment in the city that will be good locations. DSCR loans are great options however most of them will only qualify the property based off long term rents not MTR or STR.

When I have run my numbers I have found this difficult to do with high rates over 7% and still cash flow. Depending on what your goals are for the property and appreciation play with minimal to no cash flow could work however I prefer to see a little bit of cash flow from each investment. 

On average most DSCR loans require a debt service cover ratio (DSCR) of 1.15 meaning it rents at $1,150 and the mortgage is $1,000.

$1,150/$1,000 = 1.15 DSCR

I have some local lenders in Colorado Springs and Denver that I can connect you with!