The Roaring 2020s?

The “Roaring 20’s” is often considered as one of the most prosperous times in the West. WWI had just ended, and the housing market’s growth, the development of infrastructure, telephone networks, automobiles, etc., was the centerpiece of growth. America’s wealth more than doubled in the years between 1920 and ’29 with most of the wealth invested into finance and industry but there was enough trickle-down to lower-income earners to help buoy a new consumer culture.

Doesn’t this sound familiar?

In 2020, FAANG stocks (our version of industrial stocks in 1920s) doubled as well!

Meanwhile, as the world heads towards being incrementally more vaccinated, we are seeing inflation expectations rise, the first wage growth in over a decade, and a potential $3T infrastructure plan in the U.S. which draws some comparisons to FDR’s The New Deal.

Personally, I find it remarkable how the global macro narrative has shifted 180-degree only one year out from the start of a global pandemic, and also not far from when the discussions among leading economists were ‘when’ deflation would happen, not if. Now consensus, in under 12 months, has gone from deflation to inflation.

If you are looking for evidence that inflation is back, look no further than housing prices. Knight Frank reports that worldwide home prices rose 5.6% in 2020, and CoreLogic says U.S. home prices increased 10.4% year-on-year in February 2021, the highest in 15 years!

Taking some data points from Knight Frank’s survey, look at the annual % change in home prices in the major cities that Global Mortgage Group offers mortgages in.

Can you guess which city had the highest growth in the U.S., U.K., France, Canada, Australia, and Singapore? Read here to find the answer!

U.S.
Phoenix, California+14%
Seattle, Washington+13%
Los Angeles, California +10%
New York City, New York+10%
Atlanta, Georgia+8.9%
Dallas, Texas+8.4%
Miami, Florida+9.2%
Switzerland
Geneva, Switzerland+7%
France
Lyon, France+8.9%
Paris, France+7.7%
Australia
Sydney, Australia+4.5%
Brisbane, Australia+4.2%
Melbourne, Australia +3.6%
U.K.
Manchester, UK+8.7%
London, UK+4.3%
Canada
Montreal, Canada+15%
Toronto, Canada+10%
Vancouver, Canada+7%
Singapore
Singapore+2.2%

Sources: World Property Journal, High Finance, History.com

American School in Bangkok offers GMG U.S. home mortgage seminar for their teachers and staff.

The Client

One of the American curriculum schools in Bangkok wanted to offer their teachers the benefit of learning about U.S. mortgage loans.

The Property

Multiple locations

The Deal

GMG U.S. mortgage financing seminar explains the pros/cons of obtaining a U.S. mortgage in a clever and informative two hour class.

The Challenge

Foreign earned income. No W2 for U.S. citizens. Lack of credit. Some teachers not being U.S. citizens.

The Solution

GMG loan officers explained the options for U.S. Expats and for non U.S. citizens on how they can purchase or refinance U.S. real estate specifically for their situation. Being an Expat shouldn’t keep you from getting the exact benefits as any U.S. citizen when allying for a U.S. home loan. GMG are experts in U.S. Expat financing.

Loan Details

Loan TypeProperty ValueLoan AmountLTVGMG Program
Purchase or Refinance (class)min property value $150,000 min $100,000 - max $5,000,000up to 80%GMGUS Expat-2
Loan TypePurchase or Refinance (class)
Property Valuemin property value $150,000
Loan Amountmin $100,000 - max $5,000,000
LTVup to 80%
GMG ProgramGMGUS Expat-2

Overseas Investor uses GMG bridge loan to purchase cannabis facility.

The Client

Indonesian business man with numerous business and real estate assets around the world.

The Property

Mixed use commercial property in Reno, Nevada.

The Deal

To secure a 12 month bridge loan to purchase another property in California.

The Challenge

Client had several business around the world, Indonesia, US, Canada and Thailand. While some businesses have been very successful others have struggled due to increased competition and tighter regulation. Showing current financials would be challenging.

The Solution

GMG engaged a pocket asset based lender with the understanding of the complex financial structure of each business/entity. Equity release from the commercial property in Reno, NV was sufficient enough to structure a purchase. 12 months later both properties were refinanced into low interest commercial structure loans.

Loan Details

Loan TypeProperty ValueLoan AmountLTVGMG Program
Refinance / cash out$3,450,000$1,500,00043%GMGUS Bridge 1
Loan TypeRefinance / cash out
Property Value$3,450,000
Loan Amount$1,500,000
LTV43%
39%GMGUS Bridge 1

Chinese National closes US$5.6m purchase with GMG Bridge.

The Client

A married Chinese couple with a five-year goal of having their children study in NYC purchase a luxury condo.

The pair were looking to for a safe, investment grade condo near NYU for their two twin boys to study at the same university as their family in 5 years.

The Property

A luxury two bedroom Washington Square condo within walking distance to NYU.

The Deal

Non US citizen with no US credit. Looking for 65%LTV.

The Challenge

Property was being sold “fire-sale” and clients needed to act quickly as there were multiple back-up offers.

The Solution

As time was of the essence, the clients did not have time to organize their financials GMG suggested a quick close with GMG Bridge and then within six months refinance into a long term, fixed mortgage at a significantly lower rate.

Loan Details

Loan TypeProperty ValueLoan AmountLTVGMG Program
Bridge Purchase$5,600,000 $3,640,000 65%GMGFN Bridge
Loan TypeBridge Purchase
Property Value$5,600,000
Loan Amount$3,640,000
LTV65%
GMG ProgramGMGFN Bridge

Couple In Their 70s Refinance Their Existing Investment Property To Release Cash.

The Client

A married Singaporean couple in their early 70s living in Singapore with a small portfolio of U.S. investment property. The wife works and owns a small marketing company whilst the husband is retired. In addition to their home, the pair also own two rental properties.

On advice from their trust attorney they were also hoping to increase their LTV to mitigate U.S. inheritance tax, and convert their current rental mortgage into an interest only to increase their yield.

The Property

A large six-bed family home in Vail, Colorado. The couple had purchased the house over 20 years ago when living and working in the U.S..

The pair were looking to reduce their credit card debt, and help their son purchase a home in Singapore.

The Deal

In total they were looking to raise $300,000. They had requested a five-year fixed rate on interest only terms.The clients felt that their advanced age of the applicants and their low income would decrease the finance options available.

The Challenge

The clients were not current on their U.S. tax filings for their rental property, were in their late 70s and had sufficient but not well documented income.

The Solution

As a significant amount of their income was based on future contracts, but their cash flow was sufficient to service their debt, we suggested our FNStated program which would enable to the borrowers to qualify for a higher LTV based off projected income and net rental income from the property.

Age wasn’t a factor, as it is illegal to discriminate against age in the U.S.. GMG was able to structure a 30 year amortized mortgage with a 5 year interest only period giving the needed $300,000 cash in hand and reducing their monthly debt servicing by 13%, thus increasing their yield.

Loan Details

Loan TypeProperty ValueLoan AmountLTVGMG Program
Refinance Cash-Out $1,450,000 $1,087,000 75%GMGFN Stated
Loan TypeRefinance Cash-Out
Property Value$1,450,000
Loan Amount$1,087,000
LTV75%
GMG ProgramGMGFN Stated

What Is Bridge Financing And How Does It Benefit Investors?

For those who are new to investing in real estate, a common question is, what is bridge financing? A better question is, what is bridge financing and how does it benefit of commercial Real Estate investors?

For investors that are well versed in bridge financing, you understand the importance of having access to reliable and reputable bridge lenders.

Bridge financing is short-term financing, sometimes referred to as private money, smart money or hard money. Bridge loans are typically made by private individuals and not banks, so the interest rates on bridge loans are higher than bank loans. International bridge lending allows non U.S. citizen / Foreign Nationals to invest in US or other global Real Estate projects by providing the needed capital in a quick and efficient manner.

Many of the commercial real estate investors who were able to purchase distressed commercial properties in recent years made out very well. In order to act on multiple opportunities at the same time, many real estate investors have turned to bridge financing.

BRIDGE FINANCING BENEFITS INVESTORS IN 3 IMPORTANT WAYS:

1. Bridge financing allows investors to make their money go further. For example, if two properties come together at the same time, an investor can purchase both properties using a bridge loan on each purchase.

2. Bridge financing removes partners or family members from a deal. Investing with family members or business partners can be tricky. Bridge loans can remove other partners from the equation, allowing an investor more freedom and flexibility with a newly acquired asset.

3. Bridge loans fund faster than bank loans. If an opportunity is good, it won’t last long. Bridge loans have less requirements than bank loans and thus close quicker. Bridge financing allows investors can grab a fleeting opportunity before another investor snatches it up.

INTERNATIONAL BRIDGE FINANCING FOR GLOBAL / INTERNATIONAL REAL ESTATE PROJECTS?

Global Mortgage Group extensive network offers numerous options for Bridge Financing regardless of your citizenship. Whether for a hotel project in Spain, land in Thailand or a dairy farm in India, GMG is your solution for reliable capital sourcing.

OUR CAPITAL NETWORK AND EXPERIENCE FOR INTERNATIONAL BRIDGE LENDING EXPANDS BORDERS.

With over 70 combined years of experience in the mortgage and investment banking industry, and with access to funds around the world, GMG will consider most international bridge funding requests. Currently we offer bridge lending on international and foreign borrowers with a minimum loan amount of US$3mm with no maximum with a maximum of 50%LTV/LTC.

"We close loans, others can't"

GMG Partners

U.S. Expat Takes Advantage Of Lower Rates To Increase Rental Yield On Summer Home.

The Client

A U.S. Expat living in Hong Kong working in the IT field.

The Property

A 4 bedroom Tempe, Arizona home which use to be the family’s residence and now used as a short term rental so the family can use over the summer school holidays.

The Deal

To secure a lower rate and term mortgage to increase their rental yield.

The Challenge

Client was working for a global company. He was current on his US tax filings but his income was foreign earned, no “normal” payslip, no U.S. bank account and no W2.

The Solution

Once we had all the required documentation settled, we packaged the loan and shopped for the best rate and terms. GMG helped the client structure several letters of explanation regarding how his income was calculated and the use of the rental property (AirBnB).

A formal mortgage offer was received within ten working days and closed shortly thereafter. Client was able to lower his current interest rate by a full percent, on a 30 year fixed savings thousands in long term financing costs.

Loan Details

Loan TypeProperty ValueLoan AmountLTVGMG Program
Refinance Cash-Out $510,000 $341,700 67%GMGUS Expat-1
Loan TypeRefinance Cash-Out
Property Value$510,000
Loan Amount$341,700
LTV67%
GMG ProgramGMGUS Expat-1

U.S. Expat international school teacher living in China for many years with no current US credit score buys first US investment property.

The Client

U.S. Expat international school teacher living and working in Shanghai for the past 15 years with no U.S. credit score.

The Property

A condo in Orlando, Florida within a 30 minute drive to several local attractions and amusement parks.

The Deal

To secure the property, the client needed to borrow $210,000. Client wanted a low rate, 30 year fixed, 20% down mortgage. The seller was about to cancel the transaction because the borrower’s original financing fell through.

The Challenge

Client came to GMG after failing to secure a mortgage with a local Florida broker. The seller was threating to cancel the transaction and keep the client’s deposit as the mortgage loan fell through in the final stages of the transaction. The client had filed all their U.S. tax returns but had been living in Asia for many years without having a U.S. credit accounts. No FICO score.

The Solution

Client would need to manage their expectations as they no longer had U.S. credit which is paramount in conventional U.S. mortgage lending. GMG loan specialist explained the options and a long term strategy of re-establishing their U.S. credit and refinancing into a conforming loan within 24 months. We spoke with the buyers and seller’s agents and explained the situation and GMG’s three step plan to obtaining the loan. An extension was granted, a mortgage loan only slightly above “prime” rate was secured. Seller, client and agents - Happy. Client is now on their way to re-establishing their U.S. credit and building their real estate portfolio.

Loan Details

Loan TypeProperty ValueLoan AmountLTVGMG Program
Purchase $300,000 $210,000 70% GMGUS Expat-2
Loan TypePurchase
Property Value$300,000
Loan Amount$210,000
LTV70%
GMG ProgramGMGUS Expat-2

U.S. Expat first time real estate investor increases her income with new home purchase post-divorce.

The Client

CA recently divorce US Expat living in Shanghai looking to purchase a high yielding rental property in Chicago.

The Property

A 3 bedroom single family house within a sought after cul-de-sac neighbourhood outside of the city of Chicago. The property was a “pocket” listing through a realtor she had used in the past.

The Deal

A 3 bedroom single family house within a sought after cul-de-sac neighbourhood outside of the city of Chicago. The property was a “pocket” listing through a realtor she had used in the past. To secure the property, the client needed to borrow $480,000. Client wanted a low rate, 30 year fixed, 20% down mortgage.

The Challenge

Although the client earned excellent income, her US tax returns were combined with her ex-husband for the past couple years. Her income was foreign earned, no “normal” payslip, no US bank account (only China) and no W2. The property listing was a pocket listing (not published yet) and the client needed to act quickly.

The Solution

Once we had all the required documentation settled, backed out the husband’s income, officially translated all the income documentation to English, helped the client structure several letters of explanation we sent the application over to the lender. A formal mortgage offer was received within five working days and closed within 34 days. Client is now receiving an extra $800 a month in rental income.

Loan Details

Loan TypeProperty ValueLoan AmountLTVGMG Program
Purchase $600,000 $480,000 80% GMGUS Expat-1
Loan TypePurchase
Property Value$600,000
Loan Amount$480,000
LTV80%
GMG ProgramGMGUS Expat-1