All Forum Posts by: Cole Puterbaugh

DSCR does often have prepayment penalties which will make refinancing ugly.

Bank statement loans are another choice if you are depositing your shanghai income into one account over past 12 or 24 months. 

Your address is not the problem, whoever told you that is incorrect. You need a US bank to make payments, a physical not PO box disguised address (relative in US perhaps?), US credit with 4 tradelines which it sounds like you have, anything not written in english must be translated to english by appropriate vetting, you need to go to US embassy to be notarized, and you need a team of people in the city where the property is to trust. If you don't have a local team you are burning money and the learning curve will ruin you.

"turn key cash flow vetting" hmmm I would not trust this slogan in a million years. Norada address is located inside a UPS mail box about four inches by five inches, near where I reside happy to send a photo but look it up 
30251 Golden Lantern, Suite E-261

Managing property from far far away will require a team and travel. Any management company is going to charge you a great deal more than 10% - think 75%

@Cole Puterbaugh I concede I will be in the minority but I believe you are making a huge mistake to make this investment regardless of loan type.  To find and control a truly good, honest and honorable property management company is not easy and with your lack of RE investment background you don't have sufficient experience or context by which to vet them or control them or to gauge the quality of the properties you will be presented by agents.  You have a wealth of free information on BP which might help mitigate some of the problems (something us geezers who started in the 1980's didn't have) but, in my humble opinion, your lack of experience and the distance make this dicey at best.  There's an old saying - a largely true statement - that you make your money in real estate when you buy; i.e., you buy with equity built in and with cash flow built in (or easily obtainable by better managing a property that is not doing well).  By both knowledge and distance, you are poorly positioned to be certain you are getting either.

If you choose to ignore this advice, I hope that you find what I've written here doesn't apply to you for some reason unknown to me.

@Cole Puterbaugh I would stick with conventional since this is your first time investment and as long as you file taxes you may still have chance but you have to look for lender that work similar cases and have broader clientale, with Dscr they have pre-payment penalty for may be first 5 years, I think that will penalize you incase you want to refinance for better rates etc

I am a U.S. citizen who has been living abroad for the past nine years. I work for an Australian company, so I've filed taxes in the U.S. for years as required by law, but haven't had any W2 forms. I don't own any property anywhere, but I want to purchase a home in the U.S. for investment purposes. Has anyone in a similar situation been successful at obtaining a mortgage in the U.S.?

What rate range are you looking for? DSCR loans don't have as big of a margin vs. conventional loans as you'd think right now.

@Raymond J. Rodrigues is the guy you want to talk to on this!

You have to pay to play. There are only so many conventional loans you can take. Make sure you are buying a good enough deal to where you are still cash flowing after DSCR rates.

Where are you trying to buy (what state) and is it for you to live in it or to rent it out? DSCR loans are for rental properties.