Affect of US and foreign partner when seeking funding?

[Larry Smet]

Hi All,

I've been exploring partnering with a US citizen (I'm Canadian) to purchase small (i.e., "residential") multifamily properties together in Chicago - 2-flats or 3-flats.

Traditionally banks don't want to have anything to do with lending to foreigners like me, but I think having an American in the partnership would make a positive difference.

Does anyone know what effect the partnership would have on getting funding? Or better yet, does anyone have an institution to recommend where they've successfully done something similar?

Thanks,

Larry

[Brie Schmidt]

@Larry Smet - Ashlee is a good person to ask. From what I know you would need to set up an American LLC. Then depending on how the LLC is structured any person with more than 20% ownership would need to be on the loan app. We just did this for a portfolio loan we are doing. You would need an American partner with strong credit and reserves and assets, but I am not sure how the Canadian citizens we be looked at. I can ask my lender if you want?