All Forum Posts by: Kevin Leonce

Hey Sean,

Mortgage brokers are able to help find loan programs for non US citizens. I'm a non US citizen myself and I was able to find a broker who found a loan program for me. Subsequently, I was able to find other brokers and programs that were offered to non US citizens.

They typically offer ARMS (5/1, 7/1) and 30 yr fixed but the rates ofcourse are higher than those afforded to US citizens and the documentation process is very onerous and can delay the closing process on a property. 

The usual passport and VISA information will be requested and they will also do income verification and international credit checks. The rates were upwards of 6.5%, at times even 8.5% for 30 yr fixed and then there were 1 or 2 points charged as origination fees. I used North Point Mortgage Brokers on a couple of my transactions. There's also SIMS Capital (spoke to them but never used them). There was another company (don't have the name right now) but you either had to have done some deals already in the US or be partnering with a US citizen on the current transaction. North Point operates nationwide so I believe you can call a representative in your state and ask for assistance. 

There are others, you just need to check around and ask. I was in conversations with nexa mortgage last week and they also have loan programs for Non US citizens but because of the rapidly changing environment it'll be best to contact them and find out about the current rate and programs they have to offer.

Hope this helps.

Cheers!

How do you add your logo with the new calculators?

Congrats @Marcus B Hsu. Thanks for the detail explanation of your deal. It helps us all. 

I've dealt with @Dave Foster before (my transaction was a bit more complex and didn't work out) but he does indeed guide you with your 1031 and helps you every step of the way. Will definitely work with him again on another transaction.

Cheers.

Congrats @Nicholas Sheridan, Jr. It's a great feeling getting that first one completed. Like you I'm working on keeping the momentum going. Networking and more networking is what I'm doing presently. 

Keep it up man!!

I share the sentiments of most on the thread. Going to networking events and meetups is what I would have done first. But regardless of where you started, at least you're on your way towards your objective. That's most important.

Interesting and relevant topic @Account Closed.

I have always been advocating, that "work from home" is what most administrative functions of businesses, should be adopting. Ideally, it's not practical for all industries and all functions and as such I don't think the 9-5 will become obsolete. But it will definitely foster a happier workforce and a more disciplined workforce. 

In the work space it's not practical to work 8 hrs non stop as the laws of diminishing returns proves. So creating an environment where employees are given more autonomy and you are appraised on your deliverables, to me, leads to a more productive and happier workforce and environment.

Office buildings and office spaces maybe reduced in size as a result of this. But there may also be need for a redesign of the air circulation system as presently it facilitates the spread of the virus. Working from home also has the impact of less stress, as commuting is less and as a result of this, you have environmental benefits from lower vehicle emissions.

For college students I think it maybe a bit more difficult as their interactions and relations fostered in college has a significant impact on their future. Additionally, the hands on training and expertise will be lacking in an online environment. I also think that maturity and discipline has a large part to play in your ability to work from home and not all college students will be at this level.

As to the older generation, I definitely agree with you.

What happens next will be interesting to see but I do believe in some part, this is the beginning of the transition to online everything to some degree.

I contacted my mortgage broker and most lending programs have been put on pause and those that are still going are requiring 70% LTV to protect themselves. I do agree with @Alexander Roeschmann, as I too see the possibility of a hyper-inflationary situation due to the Fed continuing to print money, added to the fact that there's an increased demand to refinance loans (due to lower rates) that are causing lenders to have a backlog, which also impacts the interest rates.

Rising interest rates will have the effect of lowering demand and the system will adjust accordingly thus reducing housing prices. However, there is another side to it.... Most investors are wiser then in the last recession and banks have also been smarter/stricter in their lending since then. Presently, they are also implementing stricter lending requirements and are even verifying income up to the day of closing. So yes, I do believe that there will be a slowing down of the market but it may be a few months out before we feel the impact and it may also be specific to certain markets/states but it also may not be that bad.

Firstly, I'd follow my gut!

You should ask what's the reason for wanting to close earlier?.... Is it that they're doing a 1031?.... You should find out.

Secondly, in the current environment, I would be certain to stick to the original date and not try to close earlier because things may change suddenly and you want to have as much time as possible to make adjustments if necessary, as anything can happen.

Finally, another approach you can use (if you really want the property and can close sooner), if they want to renegotiate the closing date then you should be able to renegotiate some other term of the agreement that benefits you. For example, price, closing costs or some non monetary item.

Hope this helps.

If the numbers work for you, having the properties on the same parcel should not be an issue.  You can generate more income from the additional property and it will still be considered residential as there are only three units on the same parcel. It will not be difficult to sell when you're trying to exit.

If you just want a duplex, then this may not be the one for you. But you may not be able to split it and have it sold separately.

There are deals in every situation. 

Economic factors as well as personal factors affect an individual's circumstance, so you can find deals in any environment. In these times you'll have to pay more attention to your analysis of the deal as there will be a lot more uncertainty around the estimates that you use. So to answer your question directly.... it depends. But I wouldn't let it stop me if I found a property where the numbers work and I have a strong justification for the estimates that I use in my analysis.