Is it really possible to get a loan in US for a multifamily property in US, me being a non resident alien?

Hello
I am an investor from Mumbai,India and want to buy multifamily property in US. I already own 2 Florida condotel properties. Is it really possible for me to get a loan for a Florida Multifamily. I am always asked for some fees upfront from people offering to arrange financing which I am not keen on paying. I can make the downpayment with a title insurance company and nothing else. I do not have a bank account in US, credit history in US or an ITIN number, but can provide a credit score from Equifax India.Should I just quit trying to get a loan and try for a smaller property with cash down or is it really possible for me to get a loan without paying any fees upfront?
In Buying Property - Asked by Mukund S. - Oct 14, 2010
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Answer(s)

jacob s.
Owner/Investor
Danbury, CT

YES IT IS..... I AM AMERICAN ALBANIAN AND OUR COMMUNITY OWENS ABOUT 46 % OF THE BRONX STATISTICALLY ... UMMM YOU WOULD NEED A 40 TO 50 % CASH DOWN PAYMENT AS A NONE RESIDENT!

Oct 14, 2010
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Jeffrey P.
Broker/Agent
Pacific Palisades, CA

I have many off-shore clients who own multifamily properties in the US and have financed the acquisition with local banks. Have you looked into the EB5 program? Some of my clients have been very happy with the results.

Oct 14, 2010
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Charley C.
Broker/Agent
The Woodlands, TX

Good thing you didn't pay up those up front fees. My opinion: You are going to need real apartment landlord history to get that kind of larger loan. If you are talking about owning apartment complexes; most lenders that will lend, require history than the condotels. If you are talking about smaller purchases (forget about the condotels, there is no money I know of for those) but loans for things such as a 4 plex or duplex, yes we got it. You will need to show income and reserves here in the U.S.
I would partner up with some experienced players to get started.. Sounds like you got the down payment money, you need a partner with his/her own income and landlord experience. Good luck

Oct 15, 2010
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sudersan j.
Broker/Agent
Houston, TX

Let me know your investment criteria. Remember that it is also important where you invest (product/place). If you need to invest with partners or general help you can contact me. sudersan@century21.com

Oct 18, 2010
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Mukund S.
Corporate Investor
Valley Cottage, NY

Thank you everybody for all the answers..Honestly I would like to do these without partners as it is going to be very difficult trusting someone without knowing him/her.So I will keep on looking for lenders who can lend based on the property and downpayment without asking for upfront fees. If you do come across any such person please oblige me and refer.Thank you all!!!

Oct 25, 2010
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Glen W.
Lender/Mortgage Broker
Atlanta, GA

it is possible to finance foreign nationals. Most folks that fall into this category end up going hard money until they can get their ducks in a row, stabilize the property, etc... If do do go hard money, be careful and make sure you don't get caught up paying huge due diligence fees

Oct 29, 2010
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Steve M.
Owner/Investor
Plano, TX

Hello Mukund,
We have been doing multifamily investments, turnarounds, rehabs, and contruction for about a decade with good results for our investors.
I would say that living a world away you would be hard pressed to have a multifamily deal work out well for you without a local partner even if you could place the debt. The reason that I say this is that this business is just not that easy to make money in and to run strong properties takes full time dedication and commitment. If you buy your properties yourself you will still be subjected to the agency issues related to all the people that you will be forced to hire to run the property for you anyway- and they will not be incentivised or have skin in the game to perform like a partner would.
Third party management will be required by any lender even if you do get approved. They come with good and bad reputations and you have to actually trust them more than you would have to trust a local partner with the right profit sharing structure in the deal. My point being that if you have a partner like we structure our deals with our equity partners we don't ever make any "real" money until the deal performs to certain levels financially. With a third party management company and all their favorite contractors you don't have this true allignment of goals and I have seen it become very costly for investors from out of state, much less out of country.
That being said, cash is king in the distressed market but with distress usually comes the need for rehab, renovation, and management turnaround.
If you would like to get to know a good local partner that has integrity and a great track record and will let you talk to his current investors- contact me.
Regards,
Steve McCrann
President
MB 35, LLC
steve@mb35.com
Dallas, Texas

Nov 3, 2010
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Robert W.
Owner/Investor
Marietta, GA

If you are looking for real, long-term financing, you will not be able to find it. The agencies (Fannie Mae, Freddie Mac, HUD) are pretty much the only game in town to that end and they will not lend to foreign owners, even through a domestic shell. As mentioned in some other posts, you may be able to find hard money, but it will be expensive and short term.
You should never have to pay up front fees for someone to find financing in this market.
You could buy a smaller property with cash, but that will be even harder to run from India as you will either pay more for management services or you will get what you pay for if you pay less. As a foreign investor in US real estate you may be best served by investing in a real estate fund or partnering with a domestic investor - someone who also puts money into the investment and can make sure you're choosing a solid investment. Most of the foreclosed properties that I have seen were owned by investors in another state who couldn't stay on top of the assets. I can only imagine that it would be even harder to keep an eye on your investments from across the world!

Nov 3, 2010
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Tom T.
Broker/Agent
Rumson, NJ

Hey Mumbai! That's great! Please email me so I can answer your questions and assist you in finding a multi-family.
Best Regards,
Tom Thompson
Coldwell Banker Residential Brokerage (NRT)
NE/VIP Senior Associate Realtor® in NY, NJ & CT
“2011 Excellence Award Winner – Platinum”
Cell: 917.302.0344 | Fax: 914.633.5576
OFFICES:
NJ: 732-842-3200/fax 732-842-9197 | 17 West River Road, Rumson, NJ 07760
NY: 914-633-5540/fax 914-633-5576 | 1331A North Ave, New Rochelle, NY 10804
CT: 203-322-2300/fax 203-842-0892 | 925 Long Ridge Road, Stamford, CT 06902
Member of The National Association of Realtors
Member of Empire Access mls in Westchester NY & NYC
Member of Greater Fairfield County mls in CT
Member of Monmouth & Ocean Counties mls in NJ
http://www.trulia.com/profile/tom_thompson/

Aug 5, 2012
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Tom T.
Broker/Agent
Rumson, NJ

Hey Mumbai! That's great! Please email me so I can answer your questions and assist you in finding a multi-family.
Best Regards,
Tom Thompson
Coldwell Banker Residential Brokerage (NRT)
NE/VIP Senior Associate Realtor® in NY, NJ & CT
“2011 Excellence Award Winner – Platinum”
Cell: 917.302.0344 | Fax: 914.633.5576
OFFICES:
NJ: 732-842-3200/fax 732-842-9197 | 17 West River Road, Rumson, NJ 07760
NY: 914-633-5540/fax 914-633-5576 | 1331A North Ave, New Rochelle, NY 10804
CT: 203-322-2300/fax 203-842-0892 | 925 Long Ridge Road, Stamford, CT 06902
Member of The National Association of Realtors
Member of Empire Access mls in Westchester NY & NYC
Member of Greater Fairfield County mls in CT
Member of Monmouth & Ocean Counties mls in NJ
http://www.trulia.com/profile/tom_thompson/

Aug 5, 2012
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