Brokering Notes to Foreign Investors

[Michelle Robbins]

Hello BP community,

I am a note investor currently living in the states. I have plans in the future to broker mortgage notes to foreign (European) investors. 

I'm looking for advice and was wondering if anyone has any experience brokering notes internationally. What are the logistical things to consider? What are the tax/legal implications?

If anyone has ever done anything like this or has suggestions about where to get more information, I'd love to hear from you.

Thanks,

Michelle

[Dave Van Horn]

@Michelle Robbins

Since we take title to all of the notes in our portfolio, we don't broker here or internationally, but we have sold to plenty of foreign investors.

We've found it best to require international investors to have either a U.S. Entity or an account with a U.S. Bank (which does their own vetting) to comply with anti-money laundering laws, CFPB requirements, Fair Debt Collections, and Gramm-Leach-Bliley regulations.

If you decided to go this route, I would consult with an attorney since there's a lot of compliance involved. You may find it easier/safer to just form an entity and raise capital from foreign investors to purchase notes that you place with a licensed servicer.

Best of luck,

Dave