Great news for non-resident investors eyeing U.S. real estate! Recent data from the Mortgage Bankers Association shows that U.S. mortgage rates have dropped significantly, reaching their lowest levels since early March. The average rate for a 30-year fixed mortgage is now 6.87%, while the 15-year mortgage rate has declined to 6.49%.
This drop presents a golden opportunity for foreign nationals and U.S. expats to move into the U.S. housing market. Lower mortgage rates mean reduced borrowing costs and increased potential for excellent investment returns.
Reduced Competition Benefits Overseas Investors
At the same time, the National Association of Realtors has reported a 36% drop in international buyers compared to last year. Contributing factors include high prices, limited supply, and a strong U.S. dollar, making U.S. properties even more expensive for some. This reduced competition gives foreign investors and U.S. expats an advantage in a less competitive market, allowing them to get better deals and potentially more attractive purchase prices.
At America Mortgages, we encourage investors to take advantage of these market conditions! To support your investment venture, we offer tailored loan programs so you don’t have to miss out on this opportunity:
AM Rental Coverage +
Property Type: 1-4 units (one property)
Minimum Loan Amount: US$100,000
Loan-to-Value: Up to 80% for purchase & 70% for cash-out
Underwriting: Based on property’s rental income
Credit Requirements: No U.S. credit required
Income Requirements: No personal income required
Closing Time: 30-45 days
AM Investor +
Property Type: 1-4 units (one property)
Minimum Loan Amount: US$150,000
Loan-to-Value: Up to 75% for purchase & 70% for cash-out
Underwriting: Based on an income letter, not personal tax returns
Credit Requirements: No U.S. credit required
Tax Requirements: No tax returns required
Closing Time: 30-45 days
Mortgage Refinancing Surges to 2-Year High as Interest Rates Drop
The decline in mortgage rates has resulted in a 15% increase in refinancing applications last week—reaching the highest level since August 2022, according to the Mortgage Bankers Association. This surge, up 37% from last year, highlights the growing interest as rates decrease. Non-resident investors now have the opportunity to reduce their monthly payments and enhance financial gains through refinancing.
Investors, seize the opportunity now! America Mortgages can guide you with specialized refinancing programs to maximize these favorable conditions.
Maximize Your Benefits with America Mortgages
At America Mortgages, we designed these programs to simplify the investment process and make it easier for foreign investors and U.S. expats to secure financing. With favorable mortgage rates and decreased market competition, now is a great time to explore investment opportunities in U.S. real estate.
What are you waiting for? America Mortgages approves 97% of all loan applications! Contact our experienced loan officers today via our 24/7 link to begin your U.S. real estate investment journey.
The world’s largest real estate market, the U.S.A., still has a lot of “undiscovered” housing markets where yield, undervalued pricing, appreciation potential, and low barriers to entry are a recipe for success. This week, we are going to feature a few of our picks.
According to Insider Monkey, an underpriced housing market is one where the median list price tends to be lower than the typical home value. Based on Insider Monkey’s analysis of Zillow’s February 2024 Housing Market Report, the following cities present significant opportunities due to their undervalued properties, each offering distinct advantages that cater to diverse investment strategies. Here are ten promising undervalued markets to explore:
10. Van Wert, OH
Situated between Lima, Ohio, and Fort Wayne, Indiana, Van Wert offers a small-town atmosphere at an attractive price point. This affordability makes Van Wert ideal for investors looking for steady cash flow through rentals. With its growing market, Van Wert presents a potential exit strategy for those looking to capitalize on appreciation.
Average Home Value: $160,108
Median List Price: $134,967
Median Rental Income: $1,500
9. Detroit, MI
Detroit, fueled by cultural revitalization and economic development projects, is attracting new residents and businesses. This positive momentum has the potential to translate into rising property values and strong rental yields, making it a market worth considering.
Average Home Value: $240,536
Median List Price: $211,633
Median Rental Income: $1,250
8. Cape Coral, FL
Cape Coral is known for its extensive canal system and abundant waterfront properties. This unique feature is a cash flow magnet for investors looking to turn a profit on rentals. Cape Coral’s thriving tourism industry, fueled by vacation rentals, makes it a potential hotspot for rental income.
Average Home Value: $396,012
Median List Price: $364,633
Median Rental Income: $2,290
7. Rochester, NY
Rochester, NY, boasts strong education and healthcare sectors, ensuring a steady economy and a solid real estate market. It’s an excellent choice for investors seeking a reliable long-term property investment.
Average Home Value: $233,753
Median List Price: $189,233
Median Rental Income: $1,375
6. Boone, NC
Nestled in the Blue Ridge Mountains, Boone offers a combination of scenic beauty and a vibrant college-town atmosphere. This city attracts tourists and students year-round, making it a prime spot for investors seeking steady rental income.
Average Home Value: $477,496
Median List Price: $421,000
Median Rental Income: $2,200
5. Santa Cruz, CA
California dreamin’? Santa Cruz offers a vibrant coastal community with stunning beachfront property. This high-demand market is perfect for long-term investors seeking reliable properties with the potential for value appreciation.
Average Home Value: $1,148,405
Median List Price: $1,065,167
Median Rental Income: $3,400
4. Okeechobee, FL
Okeechobee is known for its stunning natural beauty and plenty of recreational activities, making it an appealing investment city. Investors can benefit from the potential for significant property value appreciation and a healthy rental income stream.
Average Home Value: $264,907
Median List Price: $178,800
Median Rental Income: $1,500
3. Clewiston, FL
Clewiston, known as “America’s Sweetest Town,” offers a substantial perk for investors – a significant gap between property value and list price. This translates to a strong potential for appreciation, making Clewiston a great deal for investors seeking a good return on investment.
Average Home Value: $274,997
Median List Price: $181,033
Median Rental Income: $2,500
2. San Francisco, CA
San Francisco remains a magnet for investors, with a strong economy, world-renowned culture, and stunning beauty. Despite higher property prices, San Francisco offers robust long-term returns, making it a high-value option for investors with long-term goals.
Average Home Value (Feb 2024): $1,132,271
Median List Price (Feb 2024): $951,667
Median Rental Income (July 2024): $3,350
1. San Jose, CA
Sitting in the heart of Silicon Valley, San Jose is a goldmine for investors. With booming tech companies driving the economy, this city offers excellent potential for property value growth and steady rental income. It’s a prime spot for savvy investors looking to capitalize on the tech boom.
Average Home Value: $1,554,128
Median List Price: $1,315,463
Median Rental Income: $3,044
But how does a non-resident (Foreign National and U.S. Expat) qualify for a U.S. mortgage loan?
It’s easier than you think! Regardless of where you live, work or play, investing in the U.S. housing market can be an excellent way to diversify real estate holdings for non-residents and U.S. expats. As most of you are likely aware, at America Mortgages, this is all we do. America Mortgages offers specialized loan programs, such as AM Investor +, designed to help international investors navigate the U.S. real estate mortgage market. These mortgage programs provide competitive rates, flexible terms and common sense underwriting, making real estate investment accessible and financially viable.
AM Investor + Program Highlights:
1-4 units (one property)
Minimum loan amount: US$100,000
Loan-to-Value: up to 75% for purchase & 70% for cash-out
Underwritten using an income letter and not personal tax returns
No U.S. credit required
No tax returns required
Closing in 30-45 days
Suitable for non-resident entrepreneurs, self-employed, or pure investors
Approval within 72 hours of submitting all documents
Available in all 50 states
30-year amortization for all loans, regardless of borrower’s age
10-year fixed interest-only option available
Discover the potential of these top undervalued housing markets in 2024 with America Mortgages. Whether you’re a foreign national or a U.S. expat, our specialized loan programs like AM Investor + make investing in U.S. real estate accessible and potentially lucrative.
Learn how America Mortgages can help you secure U.S. mortgage financing tailored to your needs. What are you waiting for? If you’re wondering, “Will I get approved?” consider this: America Mortgages approves 97% of all loan applications. When this is all you do, no one does it better!
Contact our experienced loan officers using our 24/7 link to start your journey today!
Here’s this week’s top news in the U.S. real estate market. These highlights offer potential opportunities for U.S. expats and non-resident investors. Let’s dive into the news and insights that might shape your investment strategy.
KKR Acquires Multifamily Portfolio and Other Implications
KKR’s recent acquisition of Quarterra’s $2.1 billion multifamily portfolio has sparked considerable interest in the U.S. real estate scene. The strategic move reflects KKR’s confidence in the stability and growth potential of multifamily properties in U.S. markets. For U.S. expats and foreign national investors, the KKR investment suggests opportunities in multifamily properties, which our clients may want to explore.
At America Mortgages, we offer tailor-made lending solutions that help investors leverage multifamily assets similar to those acquired by KKR.
America Mortgages offers this loan program to help you invest using the KKR strategy;
AM Multi-family +
5-8 units (one property)
Minimum loan amount: US$250,000
Loan-to-Value: up to 75% for purchase & 70% for cash-out
Underwritten on property cash flow
No U.S. credit required
Foreign National and U.S. Expat
No personal income required
Closing in 30-45 days
Investors can qualify based on property cash flow, making the process easy and flexible when investing in U.S. real estate.
Manhattan home sales surged unexpectedly, with closings on apartments up 12.2% in the second quarter. This surge is powered by an increase in buyer activity aiming to take advantage of current market conditions before any Federal Reserve rate adjustments. This uptick indicates a strong demand in the market and a perfect timing for foreign national and U.S. expat investors who are looking to take part in Manhattan’s prestigious real estate market before potential price escalations after interest rates decrease. Marry the property. Date the rate.
America Mortgages offers a well-positioned loan program to help you invest in U.S. real estate as a foreign investor or U.S. Expat;
AM CashFlow +
1-4 units (one property)
Minimum loan amount: US$100,000
Loan-to-Value: up to 80% for purchase & 70% for cash-out
Barbara Corcoran’s Best Cities for Real Estate Investing
World famous “rags to riches” real estate investor Barbara Corcoran has identified three cities poised for significant growth and investment potentials:
Pittsburgh, Pennsylvania: With an average home value of $227,329, Pittsburgh has seen a 6.2% increase in home values in the last year. The city has diverse advanced manufacturing and a strong base in education, hosting many colleges and universities.
Columbus, Ohio: Columbus’s average home value is $243,838, up 6.9% year over year. Its strong business climate, with major companies like JPMorgan Chase and Nationwide based there, contributes to a strong demand for housing.
Indianapolis, Indiana: Indianapolis’s average home value is $224,099, up 2.3% in the past year. Known for its diverse economy driven by the education, healthcare, and finance sectors, Indianapolis also benefits from sports tourism and major events like the Indianapolis 500.
These cities represent strategic investment opportunities where home prices are expected to rise due to economic growth, job creation, and strategic market conditions. For foreign national and U.S. expat investors looking to diversify their portfolios, Barbara Corcoran’s recommendations provide valuable insights into emerging markets with major potential for long-term investment.
AM Investor +
1-4 units (one property)
Minimum loan amount: US$150,000
Loan-to-Value: up to 75% for purchase & 70% for cash-out
Underwritten using an income letter and not personal tax returns
It turns out that owning a home was likely your best bet for hedging against inflation during this cycle. This chart from “A Wealth of Common Sense” illustrates the performance of real estate as an inflation hedge.
Historically, real estate has consistently outperformed inflation, protecting investors’ purchasing power over the long term. This is especially relevant in the current economic climate, where inflation rates have been rising steadily. The stability and growth of real estate values provide a reliable safeguard against the effects of inflation, making it a tactful choice for investors looking to preserve their wealth.
This week’s news highlights often overlooked opportunities from industry experts in the U.S. real estate market. From KKR’s strategic investment in multifamily properties to Manhattan’s surge in sales activity and Barbara Corcoran’s city picks for growth and profits, the U.S. real estate market offers diverse avenues for growth and profitability.
At America Mortgages, we’re dedicated to helping U.S. expats and foreign nationals navigate these opportunities with confidence. Whether you’re interested in multifamily investments, luxury properties in Manhattan, or overlooked markets like Pittsburgh and Columbus, our specialized financing solutions and expert guidance are here to support your investment journey.
We work in your time zone, speak your language, and know this type of mortgage lending better than any other company in the industry. Use our 24/7 calendar link to schedule a meeting with one of our loan officers, and visit www.americamortgages.com to learn more about how we can help you achieve your real estate investment goals.
As always, thank you for your trust and your business. We look forward to a successful closing!
Speed a priority – funding times as fast as 1-2 weeks
Cash-out refinance
Exactly the same as a conventional 30-year fixed-rate mortgage
Qualify using your salary or rental income of the property
30-45 days funding times.
$17 trillion in home equity!
In Q1 2024, CoreLogic reported that U.S. mortgage holders collectively held over $17 trillion in home equity, nearing the previous record set in 2023. With home values rising and equity growing, many homeowners now have significant capital appreciation. America Mortgages has loan programs designed for foreign nationals and U.S. expats looking to use their existing equity for short-term needs or long-term investment opportunities.
Average home equity changes by U.S. state year over year, Q4 2023
Two Ways to Access Your Home Equity
Foreign nationals and U.S. expats often face unique challenges when leveraging home equity in the U.S. America Mortgages’s loan programs are designed to meet these needs, making the process smoother and more accessible.
1. Conventional Cash-out Refinance Mortgages
Cash-out refinance mortgages are a good option if you have consistently made regular mortgage payments in a timely manner since owning the property or if you have no existing mortgage on the property. However, we recognize that securing a mortgage can be challenging for foreign nationals and often U.S. expats because they lack a U.S. credit history. At America Mortgages, we can use international credit reports and other financial documents in lieu of U.S. credit. It’s so straightforward that Foreign nationals are eligible to borrow up to 75% of their property’s appraised value, while U.S. expats can borrow up to 80%.
Key Loan Features and Requirements
Income: Foreign income accepted
Credit: No U.S. credit is required
Term Lengths: 30-year and 40-year fixed-rate mortgages regardless of the borrower’s age
Term Options: Fixed 10-year, Interest-Servicing Only (Interest-Only) mortgages available
Loan Amounts: From US$100,000
Cash-out Refinance Loan-to-Value (LTV): Up to 80% for a U.S. expat and 70% for a Foreign National
Amortization: All loans can be amortized over 30 years, regardless of age
Closing Time: 30-45 days
2. Asset-backed real estate bridge loans
Asset-backed bridge loans are designed for U.S. expats and foreign nationals who need flexibility and quick access to funds. These loans are perfect for short-term financial needs or investment opportunities and normally do not require the borrower to provide financials.
Key Loan Features and Requirements
Income: No income required
Credit: No U.S. credit is required
Eligible Loan Types: Purchase, refinance, and cash-out refinance
Term Lengths: 12-24 months
Loan Amounts: US$200,000 to US$100m
Payment Options: Monthly, interest-only, interest rolled up
For investors looking to release equity from their property globally, our parent company, Global Mortgage Group, offers bridge financing in Canada, U.K., Europe, Australia, Dubai, Singapore, Hong Kong, Philippines, and Thailand.
Bridging loans are short-term loans, usually 1-2 years, used to bridge a funding gap where banks cannot meet borrower requirements such as speed of funding, loan-to-value, and certainty. These loans are asset-backed, relying on the collateral value of the property rather than the borrower’s personal financials. They typically feature “interest-only” or “interest-servicing only” payments with a bullet repayment at the end of the term. Bridging loans have become popular as retail banks globally reduce their lending on property, with private credit filling the gap.
Basic Details:
Get approved in 48 hours and funding in as fast as 7 days
Up to 70% of your home’s value
Available for primary homes, second homes, and investment properties
Priority is speed of funding, certainty, and high loan-to-value
Short-term and not meant to replace a bank loan
No age restriction in many countries
America Mortgages and Global Mortgage Group aims to simplify the process for foreign nationals and U.S. expats, providing the financial flexibility they need. Our tailored loan programs are designed to suit your unique situations, helping you make the most of your property’s equity.
With our fast approval process, flexible terms, and international reach, we’re here to support your financial needs. Schedule a meeting with one of our loan officers using our 24/7 calendar link and let’s turn your home equity into cash for whatever you need. Get started now!
There is obviously an overlap but for this article, we focus on #2 – education-related.
This was my co-founder’s journey when he left Asia to study in the U.S., as did most, if not all, of his friends. In fact, through our research, we have concluded that education is the most popular reason to invest in overseas property.
Top 10 Asian countries with students attending U.S. universities as of 2023:
China – 289,526
India – 268,923
South Korea – 43,897
Vietnam – 21,900
Taiwan – 21,834
Japan – 16,054
Bangladesh – 13,563
Indonesia – 8,467
Hong Kong – 5,867
Singapore – 3,182
I’m fairly sure that most of these parents would also like to own an investment property – now they can!
Your child gets accepted to a U.S. university, and you want to buy a home nearby….
After 4 years of university, you can:
Sell the home, and the capital gains can be used to recoup the college tuition
Have your child stay in the apartment while they work in the U.S. to get “international” experience before they come back home
Transfer to your child’s name to build credit and or earn rental income while they are living in the U.S.
Keep it to earn rental income
What happens next?
You speak to your local bank, and they do not offer U.S. mortgages – no overseas banks offer U.S. mortgages (but you don’t know that).
You search online and do not see any U.S. banks – U.S. lenders do not advertise outside the U.S. (you didn’t know that either).
You give up and pay for the home with cash!
Foreign home buyers face this problem every day!
Did you know that over the past 10 years, non-U.S. citizens have purchased $1 trillion worth of U.S. real estate, and almost 70% of it is paid with cash because of the problems mentioned above?
America Mortgages is the world’s only U.S. mortgage broker outside the U.S., focusing on overseas borrowers, both foreign nationals and U.S. expats – that is all we do.
Some common misconceptions:
My child/student can not be the tenant – wrong!
Our “AM Student +” loan program is the world’s only mortgage that allows this – just need a F-1 student visa.
My child/student can not qualify since they have no income – wrong!
We use a rental comparable to qualify – if it the comparables exceed the mortgage expenses – you qualify!
I need U.S. credit – wrong!
We accept overseas credit or a letter from your accountant
I need to be a salaried employee – wrong!
You can qualify with the rental income of the property – no need to show income!
I need to be living in the U.S. – wrong!
All of our clients are living outside the U.S.
I can’t get a mortgage – obviously wrong!
We founded America Mortgages to fix the problem of obtaining a U.S. mortgage while living overseas
I’m too old to qualify for a loan – wrong!
There are no age restrictions in the U.S.
Banks don’t give loans to foreigners – wrong!
We created loan programs specifically for foreign borrowers
I can’t borrow much as a foreigner – wrong!
Our programs can lend up to 75% of the property value
The process is very difficult and takes too long – wrong!
We have streamlined the process with technology and our average loan takes 30-45 days to close – faster than any bank!
I need to stay up late at night to speak to a loan officer – wrong!
We have loan officers in your timezone, speaking your language, 24/7
Investing in a home near your child’s university in the U.S. offers financial benefits, from potential capital gains to rental income. At America Mortgages, we make it easy for international buyers to secure U.S. home loans, debunking myths and simplifying the process. Ready to invest? Contact us today at [email protected]
Looking to access liquidity quickly and easily from your U.S. real estate? AM bridge loans can help! Bridge loans are short-term loans that help cover immediate financial needs until longer-term financing is secured. This is excellent for non-resident investors and U.S. expats who need quick access to liquidity.
What is a Bridge Loan?
Bridge loans provide fast approval and flexible repayment terms, allowing investors to act on opportunities quickly for a purchase or release equity from a property when “conventional” bank options are not available or are not practical. There are a variety of reasons sophisticated real estate investors use bridge funding – it can be used to purchase a new property while selling an existing property, fund renovations on a property before renting it out, or obtain almost immediate access to liquidity tied up in real estate for higher return investments.
As reported by CoreLogic, in Q1 2024, the total home equity for U.S. mortgage holders exceeded $17 trillion, nearing the previous record set in 2023. The increase in home values and equity growth suggests many homeowners have significant potential capital. AM Bridge loans allow foreign nationals and U.S. expat investors to leverage their existing equity to finance short-term needs or seize investment opportunities.
How Can Bridge Loans Help?
Bridge loans can be a vital tool for non-resident U.S. investors and U.S. expat investors. Unlike conventional mortgage loans, bridge loans can be structured to the exact needs of the borrower. Often with high LTV, no monthly debt servicing, and quick closing times – often as short as one week. Bridge loans can provide the needed capital to:
Facilitate Property Purchases: Investors can secure properties quickly without waiting for the sale of another asset.
Avoid Foreclosure: Quick access to funds can prevent the loss of property due to foreclosure.
Expand Business Ventures: Investors can use the equity from high-value properties to invest in other business opportunities.
America Mortgages Case Studies:
Canadian Businessman Leverages $10M California Property to Expand Business
A Canadian businessman owned a $10 million property in California. To expand his business, he pulled out 65% of the LTV from his property, amounting to a $6.5 million loan. With an interest rate of 10% over a 12-month term, this bridge loan provided the necessary liquidity to invest in his business without selling the property.
Bridge Loan Helps U.S. Expat Avoid Foreclosure
Facing foreclosure, a U.S. expat property owner sought help from America Mortgages. We helped to secure a $500,000 bridge loan at a 70% LTV and 12% interest over 18 months. This quick access to funds eased his financial strain, preventing foreclosure and protecting his investment by paying off the existing lender and structuring the loan so that he did not have to make monthly payments for 6 months. This allowed the client to relax, reset, and focus on getting back on track.
What is Needed to Qualify?
Equity: Qualifying for a bridge loan is primarily based on the existing equity in the owned property. Bridge loans will typically allow for up to 70% of the current value of the existing property. If there is an existing mortgage, it will need to be paid off through the transaction.
Income: Normally, there are no income requirements for these types of loans. However, the borrower should be able to either service the monthly payments or have sufficient equity to “roll up” or pay any interest payments due upfront out of the loan proceeds.
Credit: No U.S. credit is required
Eligible Loan Types: Purchase, refinance, and cash-out refinance
Term Lengths: 12-24 months
No U.S. Credit Required
Loan Amounts: US$100,000 to US$100m
Payment Options: Monthly, interest-only, interest rolled up, no prepayment penalty
America Mortgages offers bridge loans designed to bridge that gap for non-resident U.S. investors and U.S. expats. Our fast approvals and flexible terms empower investors to access liquidity quickly, whether buying, renovating, or avoiding foreclosure. With substantial home equity available, our bridge loans help leverage existing assets for short-term needs and investments. Trust America Mortgages to support your U.S. real estate goals with tailored solutions that ensure confidence and success.
Schedule a meeting with one of our loan officers using our 24/7 calendar link. Contact us today at [email protected] to start your investment journey!
The U.S. housing market’s ongoing resilience and potential present unique opportunities for foreign nationals and U.S. expats. According to CoreLogic’s June 2024 Home Price Insights report, it is projected that U.S. home prices will increase by 4.6% over the next year, indicating the market’s stable growth. With projected home price increases, robust support for navigating currency risks, and a streamlined remote mortgage process, now is an ideal time to invest.
Why Now Is a Great Time to Invest
Despite higher interest rates, the U.S. housing market remains resilient. Experienced investors understand that waiting for lower rates may mean missing potential appreciation gains. The present market circumstances indicate that it’s a strategic moment to invest, as home prices are projected to keep rising. By acquiring properties now, investors can benefit from both rental income and long-term capital appreciation.
Navigating Currency Exchange Risks
One primary concern for global investors is currency exchange risk. Through our trusted partners, America Mortgages offers customized options to minimize these risks, allowing foreign investors to oversee their investments effectively. Through the use of hedging techniques and collaboration with financial professionals, investors are able to safeguard their profits from negative currency changes.
Seamless Mortgage Process from Abroad
America Mortgages offers a remarkable feature that allows the entire mortgage process to be completed remotely. This convenience is particularly beneficial for expats and non-resident investors who may not have the opportunity to travel frequently. This ensures a stress-free experience for international investors.
As the U.S. housing market continues to thrive, investors can utilizeAmerica Mortgages’ Investor + Program, designed specifically for foreign nationals and U.S. expats looking to capitalize on these opportunities.
Loan Highlights:
Competitive Interest Rates: Based on Loan-to-Value (LTV), America Mortgages offers the best potential market rate available
High LTV Ratios: Up to 75% LTV based on the cash flow of the property and NOT your personal income
Flexible Loan Amounts: Minimum loan amount of $100,000 with no maximum cap
Extended Loan Terms: Up to 30 years, providing lower monthly payments with an option for a 10-year fixed Interest-Only structure
No U.S. Credit History Required: Credit report from your home country or country of residence instead of U.S. credit. If that isn’t available, we have alternative options for establishing credit
Remote Application Process: Complete the entire mortgage application and approval process from anywhere in the world. Open and close your transaction without travelling to the U.S.
Tax Advantages and Upcoming Webinar
Investing in U.S. real estate offers numerous tax advantages for foreign investors that many may not be aware of, including deductions on mortgage interest, property taxes, and depreciation. These benefits can significantly improve investors’ overall investment return. To provide more in-depth insights, America Mortgages will be hosting a webinar on “3 Tax-Smart Strategies for U.S. Real Estate Investing” on June 13th at 6:30 PM SGT. Join us as we explore how strategic tax planning can enhance rental income for overseas investors and gain valuable insights into U.S. tax strategies that reduce liabilities and boost cash flow.
The U.S. housing market offers opportunities for foreign nationals and U.S. expats. With projected home price increases, support for navigating currency risks, high leverage, and creative yield-optimizing mortgage options, now is the time to invest.
America Mortgages is here to provide expertise and support for your investment journey. Explore your U.S. mortgage options and schedule a meeting with one of our loan officers using our 24/7 calendar link. Contact us today at [email protected] to start your investment journey!
As savvy investors already know, U.S. real estate investment has long been considered a fantastic opportunity for building wealth and ensuring financial stability. Until this week financing for foreign nationals and U.S. expats has been mainly limited to 1-4 unit properties. America Mortgages is proud to announce that we have made these mortgage loans available to all our clients regardless of their residency or passport!
“These types of properties present another opportunity for U.S. expats and foreign national investors seeking to invest in U.S. real estate, and America Mortgages is thrilled to introduce our newest mortgage program, AM MultiUnit+, designed specifically for non-resident investors looking to acquire 5-8 units,” states Nick Worthing, Vice President of Residential Lending.
In this article, we explore why multifamily homes stand out as an excellent investment opportunity.
Why Invest in Multifamily Homes?
Steady Cash Flow: Multifamily properties provide several rental income sources from each unit, making sure that investors have a steady and reliable cash flow. This reduces the risk of losing all rental income in the event that one unit is vacant, unlike single-family homes where vacancy results in a complete loss of rental income.
Cost-Effectiveness: Managing multiple units within a single property is often more efficient and cost-effective than managing multiple single-family homes spread across different locations. Consolidating expenses such as maintenance, property management, and renovations can lead to lower per-unit costs and an increase in profitability.
Appreciation and Value:Multifamily properties typically appreciate in value over time due to the increasing demand for rental housing and strategic property improvements. Investors can boost their property’s value through renovations, leading to significant long-term capital gains.
Year-over-year multifamily rent growth, all asset classes. Yardi Matrix
Types of Multifamily Homes
There are various kinds of multifamily homes to consider, each offering different layouts and living spaces.
Apartments: Apartments are owned by a single entity and rented out to residents. They offer a range of affordability, from budget-friendly options to upscale and luxurious living. Some apartments have amenities like community pools, theatres, exercise facilities, gardens, or game rooms catering to various lifestyle preferences and budgets.
Condominiums: Condominium ownership is divided by each unit, with buyers sharing ownership of communal spaces. These units are designed to appeal to specific buyer markets, such as working professionals or seniors. Condominium communities offer the benefits of homeownership along with amenities and low-maintenance living, making them an attractive option for many.
Mixed-Use Developments: Mixed-use developments combine residential units with commercial, retail, entertainment, or cultural spaces. These developments offer residents convenience, with everything from grocery stores to public transit stations within close proximity. Living in a mixed-use development provides a blend of urban living and access to various amenities.
Student Housing: Modern student housing goes beyond basic dorms, offering luxurious amenities and contemporary designs. These spaces are located near university campuses and cater to the lifestyle preferences of today’s students. Many student housing developments feature amenities like spas, game rooms, and fitness centers, enhancing the overall living experience for residents.
Age-Restricted Communities: These neighborhoods are typically limited to residents aged 55 and older, focusing on social engagement and lifestyle amenities. Lifestyle directors, fitness classes, and social clubs are common features, providing ample opportunities for residents to stay active and engaged. Age-restricted communities offer a sense of community and camaraderie for those in the same stage of life.
Low-Income Housing: Government programs aim to make housing affordable for low-income families and individuals. Subsidized housing options are integrated into multifamily developments, providing essential support for millions of households. These units are often indistinguishable from market-rate units, offering affordable housing options without compromising on quality.
Benefits of Owning Multifamily Homes
Diversified Risk: Owning a multifamily property spreads the risk across several units. If one tenant moves out, the loss of income is less impactful compared to a single-family rental. This diversification makes multifamily homes a more stable and secure investment.
Scalability: Multifamily properties provide an excellent opportunity for investors to quickly expand their real estate portfolio. By acquiring a multifamily property, investors can increase their rental units and income potential without the need to purchase multiple single-family homes.
Community and Management: Multifamily properties often creates a sense of community among tenants, leading to higher tenant retention rates. As an investor, managing multiple units in one location simplifies property management tasks, making it easier to maintain the property and address tenant needs promptly.
AM MultiUnit+ Loan Program
At America Mortgages, we provide mortgage solutions for U.S. expats and foreign national investors. AM MultiUnit+ is designed to make the process seamless and accessible, especially for non-residents and U.S. expat investors.
Loan Highlights:
5-8 units
Minimum loan amount: US$250,000
Loan-to-Value: up to 75% for purchase & 70% for cash-out
Underwritten on Property cash flow
No U.S. credit required
No personal income required
Our seasoned mortgage advisors specialize in navigating the complexities of securing financing for multifamily properties. With personalized guidance from pre-qualification to closing, we ensure a seamless and hassle-free experience every step of the way.
Experience the simplicity of our streamlined approval process, specifically designed to meet the unique needs of foreign national investors. We consider factors such as projected rental income, making it easier than ever for investors to qualify for a mortgage.
With nationwide availability across all 50 states, you can confidently invest in the best markets for multifamily properties, whether bustling urban centers or high-growth suburban areas. Let America Mortgages be your partner in unlocking the potential of your multifamily investment journey!
Investing in U.S. real estate can be an amazing opportunity for non-U.S. residents, offering opportunities for substantial yields, capital appreciation, stability and portfolio diversification. However, navigating the complexities of the U.S. tax system and legal environment requires expert advice, and America Mortgages, besides being your mortgage partner, is there with you at every step of the process. One of the most common and effective strategies for foreign national investorsis to use a U.S. Limited Liability Company (LLC) combined with smart and logical tax planning. Here’s why;
1. Liability Protection
An LLC offers liability protection, meaning that investors are typically not personally responsible for the debts and liabilities of the company. This is crucial for foreign investors who may not be familiar with U.S. litigation risks. Should any legal issues arise, the LLC structure can help shield personal assets from lawsuits or creditors.
2. Flexible Tax Treatment
LLCs provide flexible tax options. By default, a single-member LLC is treated as a disregarded entity for tax purposes, meaning income is reported on the investor’s personal tax return. Multi-member LLCs are treated as partnerships. However, an LLC can also elect to be taxed as a corporation. This flexibility allows foreign investors to choose the tax treatment that best suits their financial situation and goals.
3. Simplified Estate Planning
Every investor should be aware of U.S. estate tax laws, especially in the event of the property owner’s death. By holding property through an LLC, foreign investors can structure ownership in a way that may mitigate these estate tax implications. For example, ownership interests in the LLC can be transferred more easily than direct ownership of property, simplifying estate planning and succession.
5. Operational Efficiency
Owning U.S. real estate through an LLC can simplify the daily operations, especially if the LLC holds multiple properties. This centralization can streamline property management, accounting, and tax filing processes, making owning and managing real estate from abroad as easy as owning it in their home country (maybe even easier).
6. Proper Tax Planning
While an LLC offers numerous benefits, proper tax planning is essential to maximize those benefits and ensure compliance with U.S. tax laws. America Mortgages works with professionals who understand the complexities of foreign-owned or U.S. expat-owned real estate. Here are key considerations for foreign investors:
7. Understanding U.S. Tax Obligations
The U.S. tax filings are not as complicated as many people believe. It is important that foreign national investors understand their U.S. tax obligations, including federal, state, and local taxes. Engaging a tax professional experienced in international taxation can help navigate these obligations and identify opportunities for tax savings.
8. Utilizing Tax Treaties
The U.S. has tax treaties with many countries that can provide benefits such as reduced withholding rates on dividends, interest, and other income. Investors should review applicable treaties and incorporate them into their tax planning strategy.
9. Structuring Investments
Proper structuring can minimize tax liabilities. For example, layering LLCs or using a combination of LLCs and other entities, like corporations or trusts, can provide tax advantages and additional asset protection.
10. Consulting with Experts
Given the complexity of U.S. tax laws, consulting with legal and tax professionals who specialize in real estate and international taxation is essential. They can provide tailored advice, ensuring compliance and optimizing the investment’s tax efficiency.
In conclusion
For foreign nationals, investing in U.S. real estate through an LLC offers significant advantages, including liability protection, flexible tax options, and simplified estate planning. However, these benefits can only be fully realized through careful tax planning and compliance with U.S. tax laws. By leveraging the expertise of professionals and utilizing strategic planning, foreign investors can navigate the complexities of the U.S. real estate market effectively and achieve their investment goals.
Contact us today at [email protected] for a seamless investment experience.
Want to learn more?
We are excited to invite you to our month-long webinar series, offering a wealth of information on U.S. real estate investment.
First, join us for an informative session on “Why and How to use an LLC for U.S. Real Estate Investing.” Discover the benefits of forming an LLC for overseas property investment, including legal protection, asset security, tax advantages and cost of set-up.
Next, don’t miss our session on “3 Tax-Smart Strategies for U.S. Real Estate Investing” Learn how strategic tax planning can enhance rental income for overseas investors, offering insights into U.S. tax strategies that reduce liabilities and boost cash flow.
Get ready to elevate your investment game! We can’t wait to see you there.
America Mortgages Inc. is a mortgage broker focusing only on U.S. Expats and Foreign Nationals living overseas. We offer over 150 U.S. bank and lender programs direct to our international clients. America Mortgages is wholly-owned by Global Mortgage Group Pte. Ltd. an international mortgage specialist based in Singapore.
