Advice Guys. 650k cash to invest but no credit history in the USA

[Ken Power]

Hi Guys, have a (good) problem but need some sound advice. Myself and my wife will be moving to the US ( were from Europe) . We will have approx $650k cash to invest in Real Estate. Even though we have 4 star credit ratings in the U.K. , once we arrive in the USA ( will be living in Charlotte NC initially) , we will have NO ACCESS TO CREDIT for at least two years until we build up our credit history  in the US ( credit histories don't transfer abroad). My wife intends to take a regular W2 job. I will be self employed in the US so banks won't want to touch me a Real Estate Investment loan/ regular mortgage for about 3 years.

My Question -

Could I get your suggestions on what way you guys would go about investing the $650k cash into Residential Real Estate if you had no credit yet/ access to mortgages/ or loans etc. 

Naturally we would love to be able to utilise credit and leverage along with a lump sum however we're stuck with just the lump sum for now.

-We want to be monthly cash flow positive

- Looking longterm 15/20 years

- I have a construction background and could take a Contractors Licence to build/ sell 

-would you invest all pure cash in a number of single family units e.g. 10 at $60k average ......? Do Flips? Build/ then 'Sell one and Rent one ' Duplex units to build a small portfolio? Buy 2 properties for cash in v good areas, rent out for 2/3 years until we have credit built up then release equity from the first two to start building a postfolio utilising leverage ? Or are we simply too late in the game?

Any suggestions based on our situation i.e. $650k cash to invest but  no access to mortgages / leveraging for the forseable future would be REALLY appreciated.

Thanks in advance guys

Ken

[Jiri B.]

@Ken Power if you do mange to get loans, without any credit history, you will most likely end up paying a much higher interest. (im talking double digits) which might make it very unfavorable for any longer time investments. Especially for those amounts you are referring to but definitely call the local smaller banks / credit unions as they would be the most likely to give you better financial advice on what to do in your case.

But what you said sounds about right. You will likely even have to get a secured credit card to kick start your credit. Many people who move here from overseas have the same issue and even having issues getting their first credit card to build the credit because you still need a credit to get the credit card... 

In your case, i would maybe just consider buying cash, then build your credit and couple of years later, refinance and have bunch of cash to triple your investments.

You might also need to do a little more research on Charlotte, NC. You mentioned purchasing 60k single units.. That is completely unrealistic expectation in that market that tells me, you need to do a better homework on seeing what is out there. Having 650k cash and not knowing anything about the market is a complete gamble, not an investment strategy.