Originally posted by @Ephraim Lett:
Good day everyone. I am new to the industry of real estate and I have been reading and educating myself on some steps and procedures of purchasing real estate in America; particularly Florida.
Being a foreign national, I realise that there is some red tape that I need to overcome;
1) Such as creating a bank account (which I read only two banks offer to create accounts for foreign nationals and I must come to America to create it).
1.1) I've also read that I should open a business account to pay less taxes. I'm not sure how that works though.
2) Downpayment for foreign nationals are set between 35%-40%... nothing lower!
3) Lenders only offer to purchase properties for a minimum of $150,000.
Basically I would like to know if these obstacles are accurate and if so how do I overcome them. Personally I have no problem with coming to America to open the account, however if I can do it eletronically it would be a big help.
Also, is 35%-40% the best offer available for me?
Finally, why can't I purchase a cheaper properties through lenders?
Thank you guys for your help in advance.
As a Foreign national you need to have two forms of id to open a bank account.
1) Passport
2) Utility Bill for a property you are renting in the US or US Driver's License or US Bank Card (Master/Visa/Amex)
This is a 100 point KYC norm.
Be it a business or a personal. These are required.
If it is a Business, in addition to the above, you would need your EIN and Articles of Organisation.
Secondly, Lenders (tier 2) will only Lend on "Cash out loans" at 65-70% LTV.
Mainline banks won't. As you don't have a SSN (Social Security Number). And no Credit History.
As a sugestion, you should have the asset purchased in Cash and then work out with a Lender to Cash Out on appraised value...
