Moving from Singapore Back to 'Merica

[Andrew Anderson]

Hello BP!

I've browsed your forums for a few weeks and it seems you have some quality information--I hope that this will finally get me into the trenches as a principal in RE (outside of REIT investing and helping to broker a REPE deal while I worked at one of the big investment banks).

Goal: ~15-20 unit Multifamily value add (likely hold) in WA State; likely urban infill class C/C-; 20%-30% down on a total deal between $600k-$1.5mm

Problem: I have been working in Singapore as a C-suite exec at a software startup for the past two years (offices in Singapore and Manila), but recently resigned and will be moving back to good 'ole America (Seattle) on March 1. I will not have a job upon arrival (hopefully that doesn't last long) and thought it'd be a good time to hunt/work on a BRRRR property. I doubt that any bank/credit union would count my last two years of foreign earned income towards any loan and it won't look good applying for my first property without a job. My credit is great (~810). I'll be buying the property through a single purpose LLC, but would be unlikely to consider a HML. So... here are my questions:

1. Can anyone confirm that foreign earned income doesn't count in the loan process (in terms of income history with personal guarantees)?

2. Would the commercial loan kill eligibility for a future FHA loan? (I've always lived in high end apartment rentals--current landlord in SG is making 2.25% gross off me hah!)

3. The investor group (2-3 people) I'd be tapping has a significant amount of liquid investments (much more than the deal size)--how would that affect the loan process? I would be willing to do a personal guarantee myself (liquid assets at the lower end of the deal size), but wouldn't ask for it from other equity investors.

4. Recommended books/podcasts/forum posts on apartment loans? Sorry, I'm sure they're out there, but haven't been able to find them.

I realize that these are mostly questions for the specific bank/lender... but I'd like to be prepared as much as possible before their discovery meeting. All of this is hypothetical as I haven't found a specific property--let me know if you need me to answer any other questions.

Thanks!

[Adrian Chu]

1. You need a job when you apply for a loan for income to count.  As long as you were filing US tax returns, that work experience shall be sufficient.

2. It may.  Always better to get the primary residence loan first and then get a commercial loan because commercial loans are more generous at extending credit.

3. You can look at commercial loans that are non-recourse for your investors. Form an LLC where you would be the one taking on the liability.

4. Not sure.