Author: Premela R.

Three Wishes in Real Estate

Post author By Premela R.
Post date August 11, 2023

1. Wish I Could Time the U.S. Real Estate Market

“The market can stay irrational longer than you can stay solvent. That’s why it’s important to have a long-term investment horizon when you’re investing in real estate. Don’t try to time the market. Just focus on finding good deals and investing in properties that you believe in.” – John Maynard Keynes, Economist

The U.S. real estate market is an ever-changing landscape, but there has been far more success stories than not. However, understanding the factors that affect the market, such as interest rates, can increase your chances of making a wise investment in a timely manner.

For example, when interest rates are high, it’s an excellent time to buy since the marginal buyer can not afford the mortgage at current levels. This creates less demand and gives you pricing power over sellers to negotiate a better purchase price.

Conversely, when interest rates are low, it’s a great time to sell, as financing becomes more affordable and potential buyers emerge, creating more demand and giving more pricing power to sellers to negotiate higher selling prices.

Most sophisticated investors jump into this type of market immediately as property values will remain stable, and the opportunity to get not just a good deal but a great deal is much more possible. Remember, “Date the rate. Marry the property.” Interest rates will go up, and interest rates will go down. The unique aspect of U.S. real estate investing is that the U.S. allows you to fix an interest rate for 30 years regardless of the borrower’s age. If rates go down, refinance to a lower rate. If rates keep increasing, then you have the confidence of knowing that your mortgage payment is fixed. However, the likelihood of rental rates increasing is almost certain.

If you think interest rates are high, here’s a look at historical interest rates in the U.S.:

As you can see, interest rates have been trending downward for many years. This is good news for potential buyers because it means that monthly mortgage payments will be lower.

Bottom Line: The time you spend in the market is more important than timing the market.

2. I Wish Interest Rates Were Lower

Even though interest rates are higher now than they were a few years ago, they are still historically low. In fact, the average interest rate on a 30-year fixed-rate mortgage is currently around 7.50%. This is still much lower than the average interest rate of 14.6% in 1980.

So, why do investors still invest in U.S. real estate when interest rates are high? There are a few reasons:

Real estate is a tangible asset – Unlike stocks or bonds, real estate is a physical asset that you can touch and see. This makes it a more attractive investment for some people.

Real estate is a long-term investment – If you buy and hold onto a property long-term, you’ll likely see your investment appreciate in value.

Real estate can generate income – If you rent out your property, you can generate income to help offset your mortgage payments. With 30-year fixed rates (regardless of age), investors have the confidence of knowing their expenses are fixed, while rental rates increase over time.

3. I Wish Property Values Doubled Every Year

It would be great if property values doubled yearly, but unfortunately, that’s unrealistic. However, in some areas, property values appreciate more quickly than in others. For example, in hot real estate markets like San Francisco and New York City, property values can double in as little as 10 years.

In stable, consistent real estate markets such as the U.S., property values generally appreciate at an average rate of 3%-5% per year. However, several factors can affect the rate of property appreciation, such as the overall health of the economy, the supply and demand for housing in a particular area, and interest rates.

We at America Mortgages are here to help foreign nationals and U.S. expat investors navigate the intricacies of U.S. real estate investing. Our expertise and tailored mortgage options can help you achieve your investment goals and make the most of the opportunities in the market.

Our team of experienced loan officers is well-versed in working with foreign national and expat clients. We can help you navigate the complexities of U.S. mortgage options, ensuring that you have access to the most suitable financing solutions for your specific circumstances. Whether you’re looking to diversify your investment portfolio, purchase a home, or establish a foothold in the U.S. real estate market, America Mortgages is your trusted partner.

Contact us today at [email protected] to explore how we can assist you in achieving your U.S. real estate investment dreams. With our expertise and personalised approach, we are here to help you seize the opportunities and build a successful real estate portfolio in the U.S.

www.americamortgages.com

Want to Own a Tech Company? Get a 30-Year Mortgage

Post author By Premela R.
Post date August 4, 2023

Investment Property - Fixed Rate Mortgage

In the tech world, you will hear terms like “platform” and why they are so valued by investors. These are the Amazons and Facebooks of the world and it’s because once they cover their fixed costs, as their revenue grows, so does their profitability. It’s also called operating leverage.

In a way, so is owning an investment property with a 30-year fixed-rate mortgage. Your fixed costs are flat for 30 years (and if rates fall, you can refinance to a lower rate), but rental income and property values increase over time.

Rental prices, in particular, have been rising considerably, especially during the last 12 months, despite a rise in interest rates given the lack of property supply and also the marginal buyer who cannot own at 7% mortgage rates is forced to rent.

In a perverse way, the rate increases have made it a better environment to own an investment property, especially in states like Texas and Florida, where families prefer to migrate to, given low state taxes and affordable cost of living.

Here is a visual to explain this important point:

Amy, a savvy homebuyer living in Hong Kong, purchased her dream investment home in Los Angeles back in 2010. Recognising the benefits of a 30-year fixed-rate mortgage, she secured a loan at an interest rate of 5.25%. This meant that her monthly mortgage payment would be approximately $2,185.

Home price in 2010: $500,000
Rental price in 2010: $2,300/month
Monthly mortgage payment in 2010: $2,185/month
Home price in 2023: $2,000,000
Rental price in 2023: $4,500/month
Monthly mortgage payment in 2023: $2,185/month

As you can see, Amy’s monthly mortgage payments have remained the same over the years, while rental prices have steadily increased. This has resulted in a significant financial advantage for Amy.

Only in the U.S.!

The United States is the only country in the world that offers homeowners a 30-year fixed-rate mortgage, which provides stability and predictability. This means that your monthly mortgage payments will remain the same for the entire loan term, even if interest rates fluctuate. This can be a huge advantage, as it gives you peace of mind and financial security. When interest rates do go down in the future, you can refinance your mortgage and take advantage of the lower rate. This could save you a significant amount of money over the life of your loan.

What are 30-Year Fixed Interest Rates?

A 30-year fixed interest rate is a mortgage loan with an interest rate that remains constant throughout the loan’s entire term, typically three decades. This stability and predictability make it an attractive option for many homebuyers.

Advantages of 30-Year Fixed Rates:

Predictable Payments: Homebuyers benefit from knowing their mortgage payments will remain consistent over the long term. This predictability allows for better financial planning and budgeting.
Long-Term Stability: A 30-year fixed-rate mortgage offers homeowners extended stability. In uncertain economic times, this type of mortgage shields borrowers from sudden fluctuations in interest rates.
Protection from Market Volatility: Homebuyers can take advantage of historically low-interest rates when they lock in their mortgage for 30 years, safeguarding themselves from potential future rate hikes.

Key Takeaways

Foreign nationals can purchase homes in the United States, but they may face additional challenges, such as obtaining a mortgage.
A 30-year fixed-rate mortgage can provide stability and predictability for foreign nationals who are buying homes in the United States.
The cost of renting can increase over time, while the cost of a mortgage payment can remain the same.

Amy’s case study shows that a 30-year fixed-rate mortgage can be a wise financial decision for foreign nationals who are buying homes in the United States. By locking in a fixed interest rate, Amy was able to protect herself from market volatility and ensure that her monthly mortgage payments would remain the same for 30 years. This gave her peace of mind and financial security, even as rental prices in her area increased.

America Mortgage is a leading mortgage lender that specialises in working with foreign nationals and U.S. expats. We have a team of experienced loan officers who can help you navigate the mortgage process and find the best loan for your individual needs.

If you are a foreign national considering buying a home in the United States, we encourage you to contact America Mortgage. We would be happy to help you find the best mortgage for your individual needs. Get in touch with us at [email protected] to find out more.

www.americamortgages.com

10 Tips For Buying An Overseas Investment Property in 2023

Post author By Premela R.
Post date July 25, 2023

Like all investment types, knowing what you invest in is essential to meet your financial goals and timeline.

As we enter 2023 with a cloud of economic uncertainty looming overhead, it becomes more critical than ever that you consider the right moves before buying an investment property, especially overseas.

Clear Investment Goals and Motives

Before starting, we often ask potential investors some serious questions.

Have they invested before?

What asset class do they invest in, and what is the rate of return on your investment?

Get The Right Facts

Before investing in a foreign country, you must consider researching property trends and reading up on its economic and political situation to ascertain its investment viability better.

You may also wish to familiarise yourself with the targeted country by visiting it or talking to people who have lived there.

What additional or hidden costs (e.g., flying over to inspect the property) to the purchase?

Should the investment not pan out as expected, have you considered your exit strategy?

Use Professionals To Help

You may also want to seek out independent and experienced real estate agencies who may be able to help you source for the type of property you wish to invest in, in the location you want.

Do seek legal assistance to ensure your investment is legal and your rights are protected.

You may also want to chat with your tax consultant to be fully aware of applicable or deductible taxes to lower your taxable income.

Accumulating Foreign Currency Reserves

The stakes are higher when investing in foreign properties.

We gather the highs and lows from a seasoned property investor on potential pitfalls to avoid when buying offshore properties.

Tip #1: Know Your Exit Strategy When You Buy A Property.

Buying is easy, but selling is the problem.

The exit strategies in every country differ as much as the growth cycles.

Before investing, you need to know the cities the locals migrate to for job opportunities. How long you invest and how to exit.

When you buy the “wrong” properties in the wrong neighbourhoods, you may find yourself stuck when you want to sell.

Tip #2: Local Property Knowledge

Having local knowledge in the country you want to invest in is critical.

Knowing where the locals are buying, the law of the land, and taxation are essential.

In some countries, you can only sell your property to a citizen.

It is best to do independent research before starting your investment journey overseas.

Tip #3: Comply To Overseas Taxation Requirements

Rental properties may be subjected to income tax and yearly filing similar to Malaysia’s.

It is essential to find out how to do this correctly.

Tip #4: Currency Fluctuations & Exchange Rates

When you buy a foreign investment property, ensure that you are prepared for currency fluctuation, as the exchange rates may change dramatically.

Tip #5: Property Management, Maintenance & Tenants

A professional project management company takes care of tenants, turnover for Airbnb rentals, and general maintenance.

You wouldn’t want to deal with a clogged WC halfway around the world.

Tip #6: Retrace Past Property Performance For Future Potential.

Investing in foreign properties can run into management problems, especially regarding Guaranteed Rental Returns (GRR).

During the Covid-19 pandemic, property prices and mortgages fell – The market in 2022 has picked up significantly, and 2023 will be better for international property investment.

Tip #7: Bear in mind currency fluctuations, political changes, or conflicts

Pitfalls like currency fluctuations, international political situations, or conflicts can also affect investments.

Tip #8: More Countries, More Property Choices – How To Manage Distance & Time Zone

Investing in foreign properties opens you up to more choices in a larger property market, but the distance from your home base can be an issue.

Unless you outsource the project management of your properties, trivial matters like changing a lightbulb or unclogging a WC can become a problem.

Tip #9: Location Distance From Your Properties

Finding a balance of easy accessibility and being as close to your properties vs. your returns is essential.

Would you want a property close enough to drive by but earns little in ROI or somewhere further away that earns passive income?

Tip #10: Ascertain Your Objective For Investing In Foreign Properties

The scenario differed from five years ago when many were buying foreign properties in a hot market – a trend that will not likely be repeated.

The trend these days seems to be investing in properties with an intention or objective in mind, for example, for studies or retirement.

Property is a significant investment, so take your time to find the right one.

After all, property investment is about location, location, location, whether domestically or abroad.

America Mortgages for Overseas Borrowers

Financing U.S. real estate for overseas borrowers, including foreign nationals and U.S. expats, is indeed possible through America mortgages. These specialised mortgage options cater to non-resident borrowers, allowing them to invest in U.S. properties. With America Mortgages, overseas investors can make informed decisions and achieve their financial goals in the U.S. property market. Connect with us today at [email protected] to find out more.

What is the 1% rule? Investing in U.S. real estate.

Post author By Premela R.
Post date July 25, 2023

Building a real estate portfolio in the United States is easier than you’d think. As we all know, growing a real estate portfolio is an excellent way to provide long-term passive income and generational wealth building. For U.S. expats and non-residents, investing in the American property market might seem daunting, especially when you’re unsure about your mortgage options or even if there is an option to get leverage as a non-resident investor.

With strategic planning and an understanding of key principles, it’s possible to start real estate investing with less money and gradually expand a portfolio. This guide will explore practical strategies, the 1% rule, and how America Mortgages can assist U.S. expats and foreign nationals in financing their real estate portfolio.

How to Start Real Estate Investing in the USA with Less Money

For U.S. expats and non-residents looking to begin their real estate journey with leverage, there are several entry points to explore:

Understanding the 1% Rule in Real Estate Investing

The 1% rule is a fundamental principle used by real estate investors to evaluate the potential profitability of a property. According to this rule, the monthly rental income should be at least 1% of the property’s total acquisition cost. For instance, if a property costs $200,000, the monthly rental income should be $2,000 or more to meet the 1% rule.

Adhering to the 1% rule ensures that the property generates sufficient cash flow to cover expenses such as mortgage payments, property management, and maintenance while leaving room for a positive return on investment (ROI).

Determining a Good Cash Flow on an Investment Property

When it comes to investing in U.S. real estate, the location of the property is a critical factor that significantly impacts the cash flow potential. A good cash flow on an investment property refers to the surplus income generated after covering all operating expenses. Positive cash flow is essential for long-term sustainability and building a strong real estate portfolio. To calculate cash flow, deduct monthly expenses (mortgage, property taxes, insurance, maintenance, etc.) from the rental income.

According to iPropertyManagement, rental prices have soared by an average of 8.85% annually since 1980. As of May 2023, here are the top 10 hottest U.S. rental markets, offering attractive opportunities for investors looking for profitable real estate prospects.

Median Monthly Rent Nationwide Since 1940, Selected Years

A positive cash flow indicates that the property generates more income than it costs to maintain, providing a buffer for unexpected expenses and contributing to the investor’s overall financial stability.

The Ideal Cash Allocation in a Real Estate Portfolio

While building a real estate portfolio with minimal cash outlay, investors should carefully consider the allocation of their funds. It is generally advisable to keep a portion of the portfolio in cash or liquid assets to handle any emergencies, vacancies, or unexpected repairs.

The exact percentage to hold in cash may vary depending on an investor’s risk tolerance and investment strategy. However, keeping around 10-20% of the portfolio in cash is a common approach to ensure stability and flexibility in managing the portfolio.

America Mortgages U.S. Portfolio Financing

Investors living overseas interested in purchasing multiple investment properties face challenges with multiple lenders and varying rates for each property. America Mortgages’ AM Portfolio+ loan program provides a solution with unique portfolio loans, offering long-term financing at fixed rates, either “Principal + Interest” or “Interest-only payments.” This flexibility simplifies the process, allowing one mortgage and payment as your portfolio grows.

AM Portfolio+ Lending Terms:

Loan to Values:
- U.S. Citizens: Up to 75%
- Foreign Nationals: Up to 65%
1 Loan over multiple different properties – meaning one loan payment monthly and one underwriting process.
Rates are fixed for up to 30 years, allowing investors to plan for a constant rate and payment over the lifetime of the loan. There is no need to restructure the loan during the 30 years unless your plan is to extract equity in the future or lower the rate if interest rates improve.
Flexible prepayment penalties – Most people agree that we are at or near the high for interest rates in the near term, and eventually, they will start to come back down. Flexible prepayment penalties allow you to plan a potential refinance sooner if you feel rates will come down in the near term or longer out if you think it will take a few more years for rates to decline.

AM Portfolio+ Lending requirements:

Properties must be owned by a U.S. entity. America Mortgages Concierge can assist you in setting up a U.S. entity to hold the properties
Properties must be cash flow positive – generally 1.25 : 1 – meaning the property is bringing in $1.25 in rental income for each $1 in loan payments
Minimum property value: $75,000 per property
Minimum loan amount: $250,000

Portfolio loans are a great way to quickly jumpstart or increase your real estate holdings in the U.S. As with most other items, buying in bulk can often result in lower prices per property or embedded equity in the portfolio versus buying the same homes individually.

Build a U.S. real estate portfolio with minimal cash outlay—achievable and rewarding for U.S. expats and non-residents. Explore financing options, understand the 1% rule, focus on positive cash flow, and maintain an appropriate cash reserve.

Ready to start? Contact us at [email protected] and seize opportunities in the thriving U.S. property market. Visit www.americamortgages.com for more information.

Liquidity on Demand: Real Estate Bridge Loans for Savvy Investors

Post author By Premela R.
Post date July 17, 2023

In the world of real estate investing, opportunities often arise that demand swift action and access to immediate liquidity. Whether it’s seizing a lucrative investment, capitalising on a time-sensitive deal, or making cash available to expand your business, savvy investors need a financial solution that bridges the gap or “bridge” between the present and the future. Enter real estate bridge loans – a powerful tool that provides experienced and sophisticated U.S. real estate investors with the flexibility and speed they need to navigate the dynamic landscape of property transactions. In this article, we delve into why real estate bridge loans are not only for the Ultra High Net Worth and now has emerged as an excellent option for anyone seeking liquidity – a true game-changer in the market.

Speed and Surety: One of the most significant advantages of real estate bridge loans is their ability to expedite transactions. Traditional financing methods, such as mortgages or bank loans, often involve lengthy, often complicated approval processes and extensive paperwork, which can hinder the momentum of time-sensitive deals. Bridge loans, on the other hand, are designed for speed, enabling borrowers to access funds quickly and capitalise on time-critical opportunities. America Mortgages’ streamlined application process and reduced documentation requirements make bridge loans an attractive option for those seeking liquidity within a short timeframe.
Flexibility to Maximise Returns: Real estate investments come in various shapes and sizes, and each opportunity demands a unique approach. Bridge loans provide investors with the flexibility they need to customise their financial strategies. Whether it’s acquiring distressed properties, renovating assets, or transitioning between different projects, bridge loans offer borrowers the freedom to act on their investment ideas without being constrained by rigid terms and conditions. This flexibility empowers U.S. real estate investors to make swift decisions, seize opportunities, and maximise their returns.
Mitigating Risks and Overcoming Hurdles: Real estate transactions often encounter obstacles and uncertainties that can hinder the flow of traditional financing. Bridge loans have proven to be a reliable solution for overcoming these hurdles and mitigating risks. For instance, investors may face challenges when purchasing properties that do not meet the stringent criteria of conventional lenders, such as distressed assets or properties requiring significant renovations. Bridge loans bridge this gap by providing financing options based on the property’s potential value rather than its current condition. By evaluating the underlying asset’s potential, bridge loans offer borrowers the ability to navigate challenging circumstances and unlock hidden value.
Competitive Advantage: In a highly competitive real estate market, having a competitive edge can make all the difference. Real estate bridge loans provide U.S. real estate investors with a unique advantage by allowing them to act swiftly and confidently. This advantage allows borrowers to negotiate more effectively, secure desirable properties, and position themselves as reliable buyers in the eyes of sellers. By leveraging the liquidity and flexibility bridge loans offer, investors can differentiate themselves and stay ahead of the competition.
Seamless Transition and Timing: In the real estate market, timing is everything. Bridge loans enable investors to align their financial strategies seamlessly, eliminating the need to wait for the sale of existing properties or long-term financing to materialise. These loans allow borrowers to secure the necessary funds quickly, ensuring a smooth transition from one project to another. By bridging the gap between selling one property and purchasing another, investors can maintain their momentum and capture opportunities that may otherwise be missed.

In conclusion, America Mortgages’ U.S. real estate bridge loans have emerged as an excellent option for those seeking liquidity in the dynamic world of real estate. The ability to facilitate swift transactions, offer flexibility, bespoke structure, mitigate risks, ensure seamless timing, and provide a competitive advantage has made them an invaluable tool for investors. As the market continues to evolve, America Mortgages’ bridging loans will undoubtedly play a pivotal role in empowering U.S. real estate professionals to seize opportunities, unlock hidden potential, and achieve their financial goals. With their unique advantages, real estate bridge loans are indeed a game-changer for those looking to unlock liquidity and navigate the ever-changing landscape of property transactions.

When it comes to U.S. bridging loans, America Mortgages sets itself apart as a member of Global Mortgages Group (GMG), a Singapore-based real estate financing firm with offices in 12 different countries. Regardless if you’re looking for a bridge loan in the United States, Australia, Canada, UK, Singapore, Hong Kong, India, Thailand, Philippines, Dubai, or elsewhere, America Mortgages and Global Mortgage Group (GMG) is the firm trusted by investors around the world. For more information: www.AmericaMortgages.com or www.GMG.asia

Can’t Snag Taylor Swift Tickets? Well, You Can Invest Like Her!

Post author By Premela R.
Post date July 6, 2023

If you’re one of the many people in Asia who have been caught up recently in the frenzy for tickets to see the American Pop-Idol, Taylor Swift – you’re not alone. With one million tickets sold in just three hours in Singapore, the demand is undeniably impressive. However, it is Taylor Swift’s exceptional investment strategies in U.S. real estate that is truly impressive.

Taylor Swift, the renowned singer-songwriter, has not only conquered the music industry but has also showcased her acumen in real estate investing. As of 2023, Swift’s impressive $150 million U.S. real estate portfolio is a shining testament to her success. Now, with America Mortgages by your side, you too can embark on your “Taylor Swift” journey to building a U.S. real estate portfolio like hers.

Swift’s keen eye and deep pockets are evident through her strategic acquisitions and remarkable portfolio growth. Let’s dive into some of her notable investments:

1. “The Condo of Beginnings,” Nashville, Tennessee

Taylor Swift’s first real estate investment in Nashville was a $2 million penthouse condominium. This marked the beginning of her journey into the world of real estate.

Purchased in 2009 for: $2 million
Current Estimated Value: $4 to $6 million
Bed & Bath: 3 bedrooms, 4.5 baths
Sqft: 3,240

2. “Greek Revival Dreams,” Nashville, Tennessee

Swift’s “Greek Revival Dreams” became a reality with the purchase of a magnificent 5,600-square-foot mansion on a 5.23-acre estate. This grand property showcases her penchant for timeless architecture and luxury living.

Purchased in 2009 for: $2.5 million
Current Estimated Value: Est $8 million
Bed & Bath: 4 bedrooms, 4.5 baths
Sqft: 5,600

3. “Cottage House,” Beverly Hills, California

In Beverly Hills, Swift embraced a country vibe with a charming cottage-style house. Purchased for over $3.5 million, this home offers a delightful blend of rural charm and Beverly Hills allure.

Purchased in 2011 for: $3.55 million
Sold in 2018 for: $4 million
Bed & Bath: 3 bedrooms, 3.5 baths
Sqft: 2,800

4. “Goldwyn’s Mansion,” Beverly Hills, California

A true Hollywood gem, “Goldwyn’s Mansion” became part of Taylor Swift’s real estate empire. Previously owned by the family of legendary producer Samuel Goldwyn, this seven-bedroom mansion was acquired for a staggering $25 million.

Purchased in 2015 for: $25 million
Current Estimated Value: $30 million
Bed & Bath: 7 bedrooms, 10 baths
Sqft: 10,982

5. “Beverly Hills Bungalow,” Beverly Hills, California

A lavish abode spanning 2,950 square feet, Swift’s Beverly Hills home boasts a modern, light-filled design. The property, sold for $2.95 million, exudes elegance and sophistication.

Purchased in 2012 for: $1.775 million
Sold in 2018 for: $2.95 million
Bed & Bath: 4 bedrooms, 5 baths
Sqft: 2,950

6. “Tribeca Tale”, New York City, New York:

Taylor Swift’s Tribeca holdings are estimated to be worth over $100 million. She owns four townhouses and one apartment in the neighbourhood, and the combined value of these properties has increased significantly since she purchased them.

In the prestigious Tribeca neighbourhood, Swift made a mark with the purchase of a remarkable townhouse for $19.9 million. This property reflects her love for iconic locations and sets the stage for her New York City story.

Purchased in 2014 for: $19.95 million
Current Estimated Value: $30 million
Bed & Bath: 10 bedrooms, 10 baths
Sqft: 8,309

7. Additional Townhouse, Tribeca, New York:

Swift expanded her real estate holdings in Tribeca by acquiring the townhouse next door for $18 million in 2017. This strategic purchase allowed her to create a seamless and expansive living space in one of New York City’s most sought-after neighbourhoods.

Purchased in 2017 for: $18 million
Current Estimated Value: Est $25 million
Bed & Bath: 4 bedrooms, 5 baths
Sqft: 5,143

8. Additional Apartment, Tribeca, New York:

Swift’s real estate adventures continued with the purchase of another apartment in the Sugar Loaf building for $9.75 million in 2018. This addition showcases her ability to curate her own personalized living space in the heart of Tribeca.

Purchased in 2018 for: $9.75 million
Current Estimated Value: Est $12 million
Bed & Bath: 3 bedrooms, 3.5 baths
Sqft: 2,500

9. “Seaside Serenity,” Watch Hill, Rhode Island:

A waterfront mansion known as “Seaside Serenity” became a part of Swift’s real estate empire with its purchase for $17 million. This stunning property offers breath-taking views, extensive amenities, and a sense of tranquillity by the sea.

Purchased in 2013 for: $17.75 million
Current Estimated Value: $22.5 million
Bed & Bath: 8 bedrooms, 10 baths
Sqft: 11,000

10. “Castle on the Cape,” Hyannis Port, Massachusetts

In Hyannis Port, Swift made her mark with the purchase of a beach house. In less than a year, she made a profit of $870,000 by using the fix-and-flip strategy, showcasing her ability to add value and make astute real estate transactions.

Purchased in 2013 for: $4.8 million
Sold in 2014 for: $5.67 million
Bed & Bath: 7 bedrooms, 5.5 baths
Sqft: 4,400

Swift’s success in real estate investing lies not only in her choice of properties but also in the appreciation of her assets over time. With America Mortgages, clients can tap into similar opportunities and realize their dreams of building a U.S. real estate portfolio.

America Mortgages specializes in assisting clients, including international investors, in navigating the U.S. real estate market. Our tailored mortgage options are designed to meet the unique needs of our clients, enabling them to embark on their own real estate ventures. Here are some of the mortgage options available:

“Fearless” Portfolio Loans: Finance multiple investment properties with a single loan. This option streamlines finances and simplifies management for those aiming to build a diverse real estate portfolio.

“Big Reputation” Jumbo Loans: When purchasing high-value properties exceeding conventional loan limits, our jumbo and super jumbo loans provide the necessary financing. With no mortgage insurance requirement, clients can seize opportunities in sought-after locations.

“Cash Flow Bliss” Interest-Only Loans: For clients seeking to maximize cash flow, our interest-only loans allow borrowers to pay only the interest portion of the loan for a specified period. This flexibility can be advantageous, particularly during the early stages of real estate investment. This interest-only terms can be set at a fixed rate for up to 10 years giving clarity to your investment cost.

At America Mortgages, we understand the intricacies of the U.S. real estate market and the challenges faced by foreign national and U.S. expat investors. Our team of experienced loan officers based in 12 different countries is committed to providing exceptional service, quality mortgage loan programs and professional advice.

Whether you’re a first-time investor or an experienced player in the real estate game, America Mortgages is your trusted partner. Connect with us today at [email protected]

www.americamortgages.com

Source: Business Insider, AD, Yahoo Finance

Interest Rate Pause: Great News for Overseas Investors

Post author By Premela R.
Post date June 28, 2023

The Federal Reserve’s pause on interest rate hikes is a boon for foreign nationals and U.S. expat investors looking to obtain a U.S. mortgage. With interest rates on hold, investors can lock 30-year and potentially 40-year fixed rate mortgage loans with lower borrowing costs, which can save them thousands of dollars over the life of a loan. This is especially important for investors who are looking to use leverage with rental properties, as the lower interest rates will help to boost their cash flow.

The interest rate pause is a limited-time opportunity for investors to take advantage of these benefits. If you are considering buying an investment property in the U.S., now is the time to “marry the property and date the rate.“

Here are some of the positive ways that the interest rate pause can benefit foreign nationals and U.S. expat investors:

Overall, the interest rate pause is a positive development for foreign nationals and U.S. expat investors who are looking to buy investment property in the U.S. As rates increased, the FOMO frenzy has died down allowing investors time to search for the right property and not get involved in bidding wars.

Although interest rates are slightly higher than they were during the pandemic, they are still historically low when compared to historical 30-year mortgage data, as below:

Another advantage for overseas investors is that the housing market in the U.S. is currently a buyer’s market, as with the current interest rate there may not be as many owner-occupied buyers as there were when interest rates were at their lowest. This makes it an excellent opportunity for real estate investors to be able to negotiate not only on the price but potentially on the closing cost or certain contingencies with the property. This itself exceeds any benefit of potentially lower interest rates as your rate can be lowered with a refinance down the road when interest rates do decrease.

At America Mortgages, we offer a variety of flexible loan products that can be tailored to your specific needs. We understand that not all investors are the same, and we want to make sure that you get the loan that is right for you. If you are a foreign national or U.S.

expat investor who is interested in learning more about the interest rate pause and how it can benefit you, please us at [email protected] today.

This is all we do, and no one does it better. We would be happy to discuss your options and help you to find the right investment property for your needs. Connect with us today!

www.americamortgages.com

Top Ways to Build a Real Estate Portfolio as an Investor

Post author By Premela R.
Post date June 22, 2023

USA International Mortgage | Real Estate Portfolio

Investing in U.S. real estate as a U.S. expat or foreign national can be a profitable endeavour with a potential for significant returns. However, it can also be complex and challenging without the right knowledge and strategies in place. At America Mortgages, we offer these proven strategies to help you build a solid real estate portfolio, focusing solely on investment properties for rental income and appreciation. According to the National Association of REALTORS, foreign buyers accounted for an estimated $59 billion in U.S. residential real estate purchases in 2022, up 8.5% from 2021.

Understand the Financing Options

“Traditional” bank mortgages may be difficult if you have no U.S. credit and may require a significant down payment or AUM. However, as an expat or foreign national, America Mortgages offers financing solutions specifically designed for foreign nationals and U.S. expats. With a minimum of 25% down as a foreign national and 20% down as an expat, with no requirements for AUM, it helps facilitate your entry into the property market as a beginner or grow your portfolio as a seasoned investor.

Diversify Your Portfolio

Avoid putting all your eggs in one basket. Investing globally and diversifying in various real estate asset classes is becoming a successful tool for sophisticated investors. With the U.S. being the largest real estate market, it makes sense to build a portfolio with properties that will appreciate in value while also maintaining a steady yield. It’s also important to consider investing in different property types (such as single-family homes, apartment complexes, and commercial properties) and various locations to mitigate risk and boost potential returns.

Leverage Equity

As your properties appreciate in value, you build equity. Use this equity to finance the purchase of additional properties. America Mortgages can guide you in leveraging your equity effectively.

Prioritize Location

The adage ‘location, location, location’ holds true in real estate investing. Prioritize properties in areas with steady job growth, good schools, and amenities like shopping and public transport. These factors can enhance rental demand and property values.

Here are the top 10 best places to buy rental property in 2023 for cash flow and appreciation, according to RealWealth:

Optimize Property Management

Efficient property management significantly affects your rental income and property values. America Mortgages works closely with reliable property management partners to ensure optimal handling of tenant relations, maintenance, and legal matters.

Marry the Property, Date the Rate

A principle America Mortgages upholds is to focus on the property first and the mortgage rate second. Choosing the right property that suits your investment goals is crucial, while the mortgage rate can be adjusted over time.

As a company, our only focus is providing U.S. mortgage financing for foreign nationals and U.S. expats. With America Mortgages as your trusted partner, building a robust U.S. real estate investment portfolio as a U.S. expat or foreign national is a very achievable goal. Our experienced team can guide you through this exciting journey, ensuring you’re well-equipped to make informed decisions and optimize your investment potential. We are with you for the long haul and not the short journey. Start your journey with us at [email protected]

www.americamortgages.com

“The Matrix” – Where Do You Fit Here?

Post author By Premela R.
Post date June 16, 2023

Happy Friday and we thought a reference to the 1999 Sci-Fi movie would be a nice way to end the week.

I am not Neo, and we, of course, are not referring to “The Matrix” movie but how you fit into our “Loan Program Matrix.”

❌ Traditional Banks = one product to fit all borrowers

Offering a wide variety of mortgage options is something unique for international clients because we are conditioned to use a bank for a mortgage. Every bank more or less has the same loan anywhere in the world and qualifies more or less the same way as well.

✔ America Mortgages = many products to match the client’s needs

In a world with more entrepreneurs, people having more than one income stream, or even the affluent with low reported income but significant assets – we need the right loan program for each borrower type.

An entrepreneur with no reported salary and working for equity in their startup would not be able to qualify for a traditional mortgage.

A high-net-worth individual that is very busy or too private to bother with a traditional mortgage would need something that suits their requirements.

A parent who wants to buy an apartment in the town where their child is attending university and wants their child to “pay rent” to build up credit will also require a very different solution.

The Matrix

Where do you fit here?

Loan Programs for Foreign and U.S. Expats

Get in touch with us today to find out all about our loan programs for Foreign Nationals and U.S. Expats today! www.americamortgages.com

[email protected]