Domestic funding... International properties?

[Jon Huber]

Hello BP Nation!

I'm in the midst of a Europe trip and me being the maniac I am, I see these old buildings in Luxembourg, Prague, Sweden, etc... And can't help but to see opportunity. I'm thinking rehab costs, tenancy, etc. I am here often (at least once/twice a year) as I'm visiting family out here, so I'd be able to have eyes across the Atlantic. Now, I know International Financing can be tricky and expensive... Just as if a European resident attempted to get a loan here without US residency or a social security number. Has anyone been able to use Domestic funding for International properties? 

Regards,

Jon

[Eric Tait]

On our International Property Funds, we have had to use equity financing to get into our deal in Belize.  There are private lending sources that are often willing to finance international properties, but their rates were cost prohibitive and our business model is a longer term cash flow and appreciation play.  

So I would recommend looking at private investors at the outset on the equity side, that way you do not have the ticking clock of debt payments (although you could let interest accrue and pay on the back end if you can get someone/lender to go for that).

Once you have established a track record and a fairly predictable outcome, then you may want to look more at the private lender model (these are not mom and pop people, they are more like institutional money) to expand.

Good luck.