How to determine which state to buy in?

Canadian Mortgages

As a professional investor for most of my life, I have developed systems to derive my investment choices. 

For real estate, I prioritise positive cash flow and, to a lesser extent, capital appreciation, although both are correlated. 

Real estate investment is not to be confused with a second home, pied-de-terre, or vacation home. These are not income-generating assets and have very different reasons for owning. 

Since positive cash flow is my priority, I look at which states have high rental yields, potential rent growth, and what specific criteria drive this growth.

Supply and Demand => If more folks are renting in a community faster than the supply of available rentals can support, rental prices tend to increase over time. 

What drives Demand?

Typically, this is population growth. For example, if California is expensive to live in, you can move to Arizona. If New York is expensive, you can move to Florida, and so on.  

What attributes would attract people to move to another state?

  • Cost of living
  • State income tax rates
  • Education
  • Job prospects
  • Wage growth, and many more

In this article, I will examine the Cost of Living and Disposable Income criteria.

In later articles, I will share how I screen for these other criteria, so stay tuned!

What is the Cost of Living?

It is the amount you spend on essential expenses under a normal and reasonable lifestyle.

We also need to take into consideration Salary and Wages since a low Cost of Living state is often associated with lower salary prospects.

We will now look at the average amount you have “leftover” after spending on essentials = Disposable Income.   

Does a high disposable income state represent the best place to own an investment portfolio?

Not necessarily, since taxes, property prices, education, and other factors are not taken into consideration.

Without giving away the secret sauce, the top states to own for cash flow are around the middle of 2 lists.

Next week, I will look at: Average property prices, Population growth, GDP growth, and Rental yield to determine which state(s) is the best to own a U.S. real estate investment in.

StateCost of living (annual $)
Mississippi$32,336
Arkansas$32,979
Alabama$33,654
Oklahoma$33,966
New Mexico$34,501
Tennessee$34,742
South Carolina$34,826
West Virginia$34,861
Kansas$35,185
Missouri$35,338
Kentucky$35,508
Louisiana$35,576
North Dakota$35,707
Iowa$35,871
Ohio$35,932
Indiana$36,207
North Carolina$36,702
South Dakota$36,864
Michigan$37,111
Montana$37,328
Wisconsin$37,374
Nebraska$37,519
Wyoming$37,550
Texas$37,582
Idaho$37,658
Georgia$38,747
Arizona$39,856
Maine$39,899
Pennsylvania$40,066
Florida$40,512
Utah$40,586
Illinois$41,395
Minnesota$41,498
Nevada$41,630
Virginia$43,067
Vermont$43,927
Delaware$44,389
Rhode Island$44,481
New Hampshire$45,575
Colorado$45,931
Oregon$46,193
Connecticut$46,912
Washington$47,231
Maryland$48,235
Alaska$48,670
New Jersey$49,511
New York$49,623
California$53,171
Massachusetts$53,860
Hawaii$55,491
StateDisposable income
New York$25,247
Washington$25,119
Massachusetts$22,740
Illinois$22,535
Virginia$22,523
Connecticut$22,398
Minnesota$22,142
Colorado$21,939
Maryland$21,515
New Jersey$21,379
Michigan$20,889
Ohio$20,598
North Dakota$20,093
California$20,049
Rhode Island$20,049
New Mexico$19,899
Texas$19,718
North Carolina$19,518
Georgia$19,253
Missouri$19,182
Arizona$18,764
Wisconsin$18,746
Pennsylvania$18,404
Tennessee$18,078
Delaware$17,871
Kansas$17,665
Iowa$17,649
Nebraska$17,551
Alaska$17,460
Indiana$17,293
New Hampshire$16,975
Oklahoma$16,974
Alabama$16,966
Wyoming$16,890
Utah$16,774
Oregon$16,487
Maine$16,061
Kentucky$15,982
South Carolina$15,824
Arkansas$15,591
Florida$15,468
Louisiana$15,364
Vermont$15,263
Montana$14,872
West Virginia$14,309
Nevada$13,860
Idaho$13,692
South Dakota$13,026
Mississippi$12,844
Hawaii$5,929

With years of experience in finance, I've developed a keen eye for identifying lucrative investment opportunities. At Global Mortgage Group and America Mortgages, we understand the importance of strategic decision-making in real estate ventures. By carefully examining critical factors such as cost of living and disposable income, we guide U.S. expat and non-resident investors towards maximizing their returns while minimizing risks. As we explore various aspects of real estate investment, our commitment remains steadfast in empowering our clients with the knowledge and tools necessary for financial success. Get in touch with us today to navigate the ever-evolving landscape of U.S. real estate together.

www.gmg.asia

Q&A: Need Liquidity? Discover Singapore Short-Term Bridge Loans

During our recent live webinar on “Need Liquidity? Discover Singapore Short-Term Bridge Loans,” our expert host, Madel Tan (MT), received numerous questions from participants. For those who have missed the opportunity to join the webinar, it is available here

Remarks have been edited for clarity and brevity.

Q1: What is the typical funding timeline?

MT: Typically, funding for unencumbered properties can be finalised in less than a week. However, if dealing with existing banking institutions like local banks, it might take about a month due to potential delays on their end. If liquidity needs arise, please let us know so that we can work with both existing and new lenders to expedite the process.

Q2: What are the closing costs?

MT: Borrowers are usually responsible for covering legal fees, valuation fees, and fire insurance, similar to conventional bank loans. Closing costs vary based on the loan size and property. Different lenders have their preferred lawyers and valuers, depending on who is on their approved panel list. Thus, the fees would vary. For a more accurate estimate, please share your funding requirement and property details so we can provide a range of estimated closing costs.

Q3: I’m 74 years old. Can I still qualify for a loan?

MT: Yes, we have assisted numerous clients, including those above 70, with diverse real estate portfolios in Singapore. Typically, lenders may request a simple memo or letter from a general practitioner such as a medical certificate to confirm your mental clarity and cognitive fitness. This straightforward process ensures eligibility regardless of age.

Q4: What is the minimum loan amount to qualify?

MT: For a Singapore bridge loan, the minimum loan amount is $1 million. We are capable of extending lending beyond $100 million for larger transactions. If you have deals falling outside this range, we are open to discussing them in further detail to accommodate your needs.

Q5: How do you navigate Total Debt Servicing Ratio (TDSR) constraints?

MT: As these loans are deemed private and structured for accredited investors, they are not subjected to TDSR regulations. However, it's important to understand that these loans are short-term solutions and are not meant to replace traditional bank loans. We prioritise establishing a clear exit strategy before proceeding with a bridge loan, which may involve various options such as sale of the property, maturing investments, or fixed deposit redemptions etc. This approach ensures responsible and manageable financing for our clients.

Q6: Hi, what’s the standard interest rate applicable to such bridging loans?

MT: The standard interest rate for bridging loans usually starts at 8.5%. Payments are structured as interest servicing only, with the principal repayment made as a bullet repayment at the end of the loan term. This arrangement ensures manageable monthly obligations for borrowers.

Q7: Is financing available for both residential and commercial properties?

MT: Yes, financing is available for both residential and commercial properties. Typically, lenders prefer freehold properties, especially for residential ones. However, we can still assist with leasehold properties, though additional valuation and lender checks may be required, especially properties with very short leases remaining. We are equipped to handle various property types, ensuring comprehensive financing options for our clients.

Q8: I’m 68 years old. I can no longer get a bank mortgage. Do I still qualify for your loans? I will sell the property in 12 months.

MT: Yes, you may still qualify for our loans. Our private loans, offered to accredited investors, are not subjected to Total Debt Servicing Ratio (TDSR) constraints. However, it's important to note that these loans serve as short-term solutions and are not intended to replace traditional bank mortgages. Before proceeding with the loan, we typically require clients to have a clear exit strategy in place. This exit strategy could involve various options, such as selling the property, utilising overseas funds, or maturing investments/fixed deposits. Having a clear exit plan is crucial to ensure a smooth transition out of the bridge loan.

Q8: What are the payment terms?

MT: The payment terms are straightforward: it's interest servicing only. This means that you'll only need to pay the interest amount each month. Then, at the end of the loan term, you'll make a bullet payment to cover the principal amount.

Q9: May I know what the usual interest rate is?

MT: The usual interest rate typically starts at 8.5%, but it can vary depending on the specifics of your situation. For instance, if you need the funds really quickly, like within three days, the rate might be a bit higher. Feel free to drop me a message, and I can give you a better idea of what rate you might expect. But as a general guideline, our rates usually start at 8.5%, and it's interest-servicing only.

Q10: Can I get a loan with a high loan to value even though I own 4 landed properties in my own name?

MT: Absolutely, we've worked with many clients in similar situations. Traditional banks often have restrictions, like limiting the loan-to-value (LTV) ratio to 40% if you own more than three properties or requiring you to have a certain amount of assets under management (AUM) with them. With us, however, this is not an issue. We're here to help, so feel free to reach out, and we'll find a solution that works best for you.

Q11: How long will the interest-only loan last?

MT: Usually, our interest-only loans are designed as short-term solutions, not as replacements for traditional long-term bank loans. The duration typically ranges from 12 to 24 months, but sometimes, we can extend it a bit longer depending on the lender and good repayment conduct.

Q12: Can I finance a private condo in Florida valued at around $700,000, or do your loans typically start at amounts higher than $1 million? Thanks.

MT: Absolutely, we can assist with that. Financing a property of this value in the U.S. is not an issue for us. Our wholly-owned subsidiary, America Mortgages, is a licensed lender in the United States and provides U.S. loans starting from $150,000. Please provide your email address or contact details, and we'll reach out to provide you with more information on U.S. financing options.

Q13: Do you offer loans longer than 1 year?

MT: Yes, we do offer loans with durations longer than one year. Our loan terms typically range from 24 to 36 months at maximum.

Q14: Can you lend on strata title commercial?

MT: Yes, definitely, we can.

Q15: I own a shophouse. What LTV can you do on this? How fast can I get the money? There is no debt.

MT: If there's no existing debt on your shophouse, we can expedite the financing process. Upon signing, we can typically fund the loan within a week. LTV for your shophouse would typically range from 70% to 75%. If you'd like to discuss further details, feel free to reach out to me via email or WhatsApp, and we can continue the conversation.

Q16: Can a bridge loan be done with an overseas property?

MT: Certainly, of course. We can assist with overseas property. Usually, our lenders are onshore, meaning that if your property is located in the UK, for instance, we will work with a UK-based lender to facilitate the financing process.

Q17: You mentioned 1-2 weeks of processing time. Would that be sufficient for charge/pledge documents to be prepared?

MT: Typically, with a processing time of one to two weeks, there should be enough time to prepare mortgage documents, especially if the property is unencumbered. However, if there is an existing charge on the property, it may take longer than a week as we'll need to discharge the property before proceeding.

Q18: 8.5% is the starting rate; how do you qualify for that?

MT: Factors such as the client's profile and the property itself are considered to qualify. If you reach out to me, I can assess your specific situation and provide a more accurate rate fairly quickly.

Q19: Are you licensed in Singapore? By MAS, presumably?

MT: In Singapore, you do not need to be licensed to be a broker, but our Singapore lenders are licensed and regulated. Please note that our subsidiary, America Mortgages, is a licensed lender in the U.S.

Q20: How fast can you close a Singapore loan?

MT: The fastest turnaround time we've achieved for a Singapore loan was 48 hours. However, typically, for unencumbered properties, we can close within a week. If there is existing debt on the property, the process may take approximately a month, mainly due to potential delays at the bank's end.

Q21: What’s the minimum loan amount for a U.S. property and loan to value?

MT: The minimum loan amount for U.S. property is $150,000. Typically, the minimum down payment required is 25% for expats and 30% for foreign nationals.

Q22: What happens if the borrower is unable to repay the bullet in full? Is there flexibility to extend the loan term?

MT: If the borrower cannot repay the loan at the end of the term, there may be flexibility to extend the loan. Typically, if the borrower has maintained good repayment conduct by servicing the monthly interest payments on time, the lender may be willing to extend the loan. Additionally, if there is sufficient equity in the property, we can explore the option of refinancing with another lender if the existing lender does not wish to extend the loan. In most cases, if the borrower has demonstrated good payment conduct, the lender will be open to extending the loan term.

Q23: What is the loan to value for a Singapore bridging loan, and is my income and credit a need?

MT: Typically, the LTV ratio for a Singapore bridging loan ranges from 70% to 75% max. While you will be required to submit documents such as your Notice of Assessment (NOA) and credit report, income and credit requirements are not strict criteria for loan qualification. Even if you have had an adverse credit history or are retired without local income, you can still qualify for a loan. While these documents are necessary for submission, they do not significantly impact your eligibility for the loan.

Q24: Do you work with brokers?

MT: Yes, we collaborate with brokers through co-broking partnerships to facilitate transactions.

Get in touch with Madel Tan at [email protected] today!

Qualify without showing income!

Mortgage Broker Singapore

Banks DO NOT want you to know this!

Millions of homebuyers face this problem every day. 

You write off too much and don't show enough income to qualify for a traditional mortgage, or you are an entrepreneur with a lumpy income. In both of these scenarios (and many others), you would not be able to qualify for a mortgage.

What if you could qualify based on the "Rental Income" of the property and not your income?

Doesn't that make more sense?   

If the investment property generates enough rental income to cover the mortgage payments, then why would my income be relevant?

That is exactly how this works!

We launched the AM Rental Coverage Plus in January, and the feedback has been phenomenal; that's why I wanted to resend this loan program to our clients.

Here’s how it works:

AM Rental Coverage Ratio = 

Gross Rental Income / Total Debt Service ≥ 0.75:1

Total Debt Service = Mortgage expense (principal, interest, and taxes)

What Is a Good Rental Coverage Ratio?

The AM Rental Coverage Ratio needs to be 0.75 or above. This means the property is generating at least 0.75% income to mortgage obligations. A ratio below 0.75 indicates that the property may struggle to pay principal and interest charges in the future as it may not generate enough income to cover these expenses.

What Factors Affect the AM Rental Coverage Ratio?

AM Rental Coverage Ratio is affected by two items: operating income and debt service. I'll talk about this below, but Operating income (rent) is trending up, and debt service (mortgage rates) is trending down. That is to say, future margins will be higher (income up Plus costs down).

There are 2 constants in the U.S. real estate market:

1 - Property/Rental prices will go up (income)

2 - Rates will eventually be lowered (cost)

Here's why:

1 - There is a shortage of 3-7M homes in the U.S. (depending on the publication). With mortgage rates where they are now, the marginal buyer cannot afford to purchase a home and is forced to rent. This is echoed by many institutional funds looking to acquire as many single-family homes as they can.

Trend = income up

2 - Timing is debatable, but it is widely assumed rates will be lowered at some point.  

Trend = costs down

What makes the U.S. real estate market so unique is that you can buy a home today and then refinance it at a lower rate when rates fall or when the price goes up.   

There has never been a better time to own U.S. residential real estate as an investment!

In summary, America Mortgages' Rental Coverage Plus offers a groundbreaking solution for both U.S. expats and non-resident investors. By focusing on rental income instead of personal earnings, this program helps people overcome typical mortgage hurdles. With a dedication to clear and accessible mortgage options, America Mortgages remains at the forefront of real estate financing. Secure your path to financial success with AM Rental Coverage Plus today. Contact usnow to learn more and get started! www.gmg.asia

Turn your home equity into cash!

Bridging Loan Canada

Need cash fast?   

We can help you tap into your home equity today!

We are living in a world where the availability of credit has become nearly non-existent with retail banks preferring not to lend.  

We are conditioned to think of our local bank as the only option but in fact there are private lenders that can fill the gap where banks are unable to help.  

With 300 lenders available globally, we are confident to find a solution to meet your specific needs!

We offer home equity loans in the following countries:

USACanadaUKAustralia
SingaporeHong KongPhilippinesThailand

Typical use of funds:

RefinancingRenovationsCollege tuition
Pay off high-interest debtPersonal business needsPurchasing more property
Cash while waiting for saleDown-paymentsOther investments
  • Get approved in 24 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
  • No age restriction in many countries

With our fast approval process, flexible terms, and international reach, we're here to support your financial needs. Reach out to our International Loan Officers today and let's turn your home equity into cash for whatever you need. Get started now!

www.gmg.asia

The BRRRR Method of U.S. Property Investing for Overseas Investors

The BRRRR (Buy, Rehab, Rent, Refinance, Repeat) real estate investment strategy is a popular approach that involves finding a mispriced/distressed property, fixing it up, renting it out, and then using a Cash-Out Refi to pull cash out towards another property purchase.

The mindset shift focuses on 2 things: finding a mispriced property, “forcing” appreciation, and then pulling cash out of the increased valuation in the form of a Cash-out refinance.

Yes…this is achievable as a Foreign National, Non-U.S. Citizen or U.S. Expat living overseas, AND it can all be done remotely!

America Mortgages and its parent company, Global Mortgage Group, are the world’s ONLY place you can obtain a U.S. mortgage outside the U.S. 

Speak to our Loan Officers to learn how an overseas investor can use leverage to lower your cash investment and increase your returns for your U.S. real estate investments! 

Don’t believe us?

Watch a recent interview with one of our clients, a young Singapore-based couple who used our loans for the BRRRR Method and built a 11-unit cash-flowing rental portfolio in only 3 years - all remotely from Singapore. They have recently quit their jobs and are now full-time U.S. real estate investors!

Here is how it works.

BUY

The key to the BRRRR method is purchasing a mispriced property. There is a fine line between distressed and mispriced. The more distressed, the cheaper it will be, so there is a higher potential for “forced appreciation,” but you will have to spend more on refurbishment.

Financing the initial purchase can be tricky since all lenders will require an appraisal on the property, which needs to meet certain criteria. A distressed property will unlikely meet this criteria, but a mispriced property may.

One option is to use a Short-term Bridging Loan to purchase the property and then use a traditional loan to refinance. Bridging loans are based on the asset value of the property and are more flexible in terms and conditions. This is a common approach to the BRRRR method.

Another option is, of course, to pay for the home with cash and then refinance.

REHAB

This takes a little expertise, but costs of renovations and materials are very inexpensive in the U.S., and it is fairly easy to get everything at Home Depot, IKEA, etc. You will need to find a good contractor in the neighborhood, but generally speaking, most of the REHAB should be cosmetic and nothing foundational. That includes painting, flooring, changing bathrooms, kitchens, etc.

The key to the BRRRR strategy is calculating the After-repair Value since that will be the value that you refinance once the rehab is complete.

A common rule of thumb is the 70/30 rule. If the ARV value is $300,000, you should not pay more than 70% or $210,000.

RENT

Finding rental comps is fairly easy - even if it's for short-term rentals (Airbnb, VRBO, etc.). This does require some work, but Zillow and AirDNA are good places to start your research. 

Choosing tenants requires a little common sense, but a simple checklist would be:

  • Good credit score (if they don’t pay their banks, they won't pay you on time)
  • A stable job with a steady income (name of company, position, how long they have been there, etc.)
  • No criminal record
  • Positive references
  • Young family (families don’t normally have time to host parties)

I personally use the 1% rule in real estate investing, and only in the U.S. can you find these deals. Here is how it works - multiply the purchase price of the property (ARV) by 1% to determine the base level of rent. In this case, financing will need to be less than 1%. More later.

REFINANCE

Here is the big mindset shift - to use a Cash-out refinance towards the next purchase, which often means your net initial outlay is ZERO!

You can qualify for our AM Rental Coverage Plus loan program by using the rental income of the property to cover the mortgage costs.

REPEAT

The final step in the BRRRR method is to repeat the steps again. There is no rush here, and it’s important to learn from the entire process.

Pros and Cons of the BRRRR Method

Pros - With a limited cash outlay, you can start to build a portfolio of cash-generating assets, “force” equity appreciation, and use debt to your advantage! Remember, debt is not taxed in the U.S.!

Cons - This takes work, but we think the satisfaction of seeing your assets “Pay You” is worth the effort. Work includes research, building a team on the ground, finding the properties, and maximizing cash flow, to name a few. 

Example (for illustration purposes)

Home price: $200,000

Nearby comparables: $250,000 - $300,000

Renovation costs: $30,000

After-repair value: $310,000

After-repair monthly rent: $2,500

Scenario 1 - All cash payment

  • Purchase price = $200,000 + Rehab $30,000 = $230,000 cash outlay
  • After-repair value = $310,000
  • Cash-out refinance using AM Rental Coverage Plus =  70% x $310,000 = $217,000
  • Monthly mortgage = $1,700
  • Gross monthly rental income = $2,500
  • Net rental income = $800
  • Now, you have $217,000 towards your next investment.

In this scenario, you spent $230,000, and then borrowed $217,000, which means your total cash outlay was $13,000.

  • With $13,000 spent, you are now earning $800 monthly!
  • After 12 months, you will have earned $9,600 in passive income (Yes, 74% return!)
  • After 16 months, the property would have paid back your entire investment!

Scenario 2 - Bridging loan to purchase

  • Purchase price = $200,000
  • Bridging loan = 70% loan to value x $200,000 = $140,000 loan = $60,000 down payment
  • Bridging loan term = 12 months @ 12% per annum, interest-only
  • Total Bridging loan interest = $16,800
  • Down Payment = $60,000
  • Rehab = $30,000
  • Total initial outlay = $90,000
  • After-repair value = $310,000
  • Cash-out refinance using AM Rental Coverage Plus =  70% x $310,000 = $217,000
  • Monthly mortgage = $1,700
  • Gross monthly rental income = $2,500
  • Net rental income = $800
  • Pay back Bridging Loan = $217,000 - $140,000 = $77,000
  • Subtract Bridging loan interest = $77,000 - $16,800 = $60,200
  • Now you have $60,200 towards your next investment

In this scenario, you spent $90,000, then borrowed $60,200, which means your total cash outlay was $29,800

  • With $29,800 spent, you are now earning $800 monthly!
  • After 12 months, you will have earned $9,600 in passive income (Yes, 30% return!)

It gets better!

In both scenarios - after 12 months, you can renegotiate a higher rent once the lease term ends and refinance the loan to a lower 30-year fixed-rate mortgage at a higher property value!

Money in GOES UP + Money out GOES DOWN = MORE MONEY!

There are strategies for finding the best states and cities to invest in. If you want to learn how to identify which city to start your BRRRR Method journey, please feel free to contact us!

In conclusion, the BRRRR method offers a great opportunity for investors from overseas to invest in U.S. real estate. America Mortgages, along with Global Mortgage Group, is your go-to for getting U.S. mortgages abroad. With success stories like the couple who built a rental portfolio from afar, it's clear this strategy works. For those keen on making the most of their investments, our team is here to help. Reach out today at [email protected] to learn more about how the BRRRR method can boost your real estate journey.

www.gmg.asia

Wholesale Lending and Why it’s Important!

Key takeaways:

  • A wholesale mortgage lender is an institution that funds mortgages and offers them to third parties, such as a mortgage broker, bank, or credit union
  • Non-bank lending accounts for about half of all U.S. mortgage origination
  • Wholesale mortgage lending differs from other mortgage options in that it requires the borrower to work with a mortgage broker instead of the lender
  • Wholesale lenders can offer cheaper rates and more relaxed eligibility guidelines compared to traditional lenders 
  • America Mortgages is the only U.S. mortgage broker outside the U.S. that focuses 100% of their business on Foreign Nationals and Expats living overseas

Wholesale Lending, Mortgage Brokers.... and Why It’s Important for International Clients 

The concept of wholesale lending is not understood outside the U.S. but actually accounts for about half of all mortgage origination in the U.S. 

One way to think about a wholesale lender is a bank that does not take customer deposits and only buys and sells mortgages.

A research article by The Ascent highlights the presence of non-bank financial institutions as the top three largest mortgage lenders in the U.S.

According to The Ascent's analysis of the top 25 mortgage lenders, 72% are independent mortgage companies, and 28% are banks!

Thanks to a regulation called Dodd-Frank after the financial crisis, retail banks only focused on “Prime” borrowers since these mortgages eventually would be sold to Fannie Mae, a government-linked entity providing liquidity to the mortgage market.

Prime borrowers are U.S. citizens with very good U.S. credit who hold high-earning, long-tenured, salaried jobs and borrow for their primary residence. Nearly all other types of borrowers fall under wholesale mortgages.

This includes our clients => international borrowers, both foreign nationals and overseas expats!

The Customer Journey

Whether it's a purchase loan or a refinance - retail lenders work directly with individual borrowers, while wholesale mortgage lenders don’t. 

Instead, they partner with mortgage brokers, who work with you to find the right loan — often at a discounted rate — and prepare your application.

America Mortgages => The world’s only U.S. mortgage broker with a 100% focus on Foreign Nationals and U.S. Expats!

What is a wholesale mortgage lender?

A wholesale mortgage lender is an institution that funds mortgages and offers them to third parties, such as a bank, credit union, mortgage broker, independent mortgage company, or professional.

How wholesale lending works

In wholesale lending, the borrower doesn’t have direct contact with the lender; instead, the borrower interacts with the third-party mortgage broker, who is responsible for facilitating the loan origination and application process and communicating throughout the lender’s underwriting. The mortgage broker works for the clients, and not just one bank or wholesale lender. This gives the clients more options of loan programs and qualifications.   

A wholesale lender lets mortgage brokers know what the loan options and terms are, and the third party then matches borrowers with an appropriate loan.

Once the loans close, wholesale lenders typically sell them in the secondary mortgage market to free up capital to fund more mortgages.

When working with America Mortgages, you gain access to our extensive network of over 50 wholesale lenders and will have access to competitive rates and more flexible loan options and requirements.

If you're seeking the best mortgage rates and expert guidance through the lending process, opting for the broker and wholesale lender route is your best choice. 

America Mortgage's sole focus is on overseas borrowers and we have the knowledge and experience to meet your specific needs. This is all we do!

The role of mortgage brokers in wholesale lending

You’ll work with our international-based loan officers to complete each step in the application process. Once your application is ready for review, we will coordinate with the wholesale lender’s underwriting team for a pre-approval in 72 hours.

You can then use the pre-approval to show proof of financing when you start house-hunting.

Our job as a mortgage broker doesn’t stop with assisting the prospective borrower with their mortgage application. 

We will also work to find you the best deal on a mortgage. Since we will have access to loan programs specifically designed for overseas borrowers, you will be able to secure more competitive rates and terms than you would if shopping for a home loan independently.

More importantly, since we understand the requirements of foreign borrowers significantly better than any U.S.-based mortgage broker, our team will be more effective and efficient in guiding you through the entire loan process.

Wholesale mortgage lending process

Below is an overview of what to expect if you decide to work with one of our internationally-based U.S. loan officers:

  • Step 1: Connect with our International Loan Officers to complete a standard loan application 1003 and gather documentation the wholesale lender needs to make a decision
  • Step 2: The mortgage broker confirms your application is complete and submits it to the wholesale lender for review
  • Step 3: Upon receipt, a member of the wholesale lender’s underwriting team analyzes your loan application, along with the supporting documentation, and verifies the entries to make a lending decision
  • Step 4: Once your application is approved, the mortgage broker provides you with a commitment letter from the wholesale lender detailing the loan terms and any applicable conditions
  • Step 5: The mortgage broker coordinates with the wholesale lender to close and fund your home loan. If there are any conditions the borrower must satisfy for the loan to close, the mortgage broker notifies the borrower during this step
  • Step 6: Once all conditions are met, the wholesale lender issues the “clear to close” to the mortgage broker, and the broker notifies the borrower. The borrower sends their down payment and the funds for closing costs to the title company shortly before closing
  • Step 7: At closing, the borrower signs the loan documents at the local embassy to finalize their end of the transaction and mails the documents to the title company
  • Step 8: The wholesale lender closes and funds the home loan

Key points of wholesale mortgage lending

  • A mortgage broker will search for the best loan option from a network of wholesale lenders
  • Less stringent eligibility guidelines
  • Potentially access more competitive rates and flexible loan terms
  • Personalized support from a mortgage broker
  • No direct contact with the lender
  • Mortgage broker fees  
  • Higher likelihood of loan sell-off following closing

Is wholesale mortgage lending right for you?

Getting a mortgage from America Mortgages is your only choice outside the U.S. if you are a non-resident foreign national or overseas expat looking to purchase an investment property or second home. 

A U.S.-based mortgage brokers WILL NOT know the ins-and-outs of borrowers living overseas, but THIS IS ALL WE DO - and we are in your time zone and speak your language!

Here are our popular U.S. loan programs

In conclusion, understanding the dynamics of wholesale mortgage lending is crucial for international clients, especially non-resident foreign nationals and overseas expats.

At America Mortgages, we navigate this landscape with over 50 established relationships with wholesale lenders, offering you access to competitive rates and flexible loan options.

If you're seeking the best mortgage rate and a guided lending process tailored to your international needs, reach out to us today to take the first step toward securing your U.S. property with confidence.

New Mortgage Launch: AM Rental Coverage Plus

New Mortgage Launch - International Mortgage

We absolutely LOVE the unique advantages the U.S. mortgage market has to offer over any other country. However, we get even more excited when we launch a new mortgage loan program such as the AM Rental Coverage Plus! 

As a company, we focus on providing our foreign national and U.S. expat clients with the most comprehensive mortgage programs available. America Mortgages wants to be your long-term partner on your real estate investment journey. Whether you’re looking to refinance an existing U.S. property or build a real estate portfolio for retirement or legacy, we are with you every step of the way. 

Before introducing AM Rental Coverage Plus, let’s break down the advantages America Mortgages currently offers to their clients;

  • No age restrictions on loan tenure: Maximize your yield potential with 30–40-year amortization. Regardless of whether you are 19 or 99, you can qualify for the longest tenure possible. (This is a U.S. government anti-discrimination policy)

  • No limit on the number of properties owned with maximum LTV financing: We understand building a real estate portfolio requires leverage. America Mortgages’ loan programs allow you to obtain the maximum LTV available regardless of the number of properties owned.

  • 40-year loan program with 10-year fixed interest only: America Mortgages features a 40-year amortization on many of our loans. The 10-year interest-only option is a fantastic way to lock in a long-term fixed rate with the flexibility to keep it for 40-years without seeing any adjustment in rate. Rates go up, your payment remains the same. Rates go down; refinance into a lower rate or stay with the comfortable payment you have locked in. It’s that flexible!

  • Refinance when rates go down: When rates decrease, your America Mortgages loan officer will analyze the lower rate options and present a clear and concise proposal that shows a breakeven point for any costs incurred in the refinance. 

  • Loan programs in all 50 U.S. states: Our loan programs are available in every city and state. Want to buy a condo on the beach in Waikiki, Hawaii, or refinance a single-family home in Houston, Texas — We have loan programs.

  • No U.S. credit required: Our loan programs do not require the borrower to have U.S. credit. We’re able to use your home country credit if available. If you don’t have a credit reporting agency in your home country, no problem – speak with one of our U.S. loan officers for an exception. We do it all the time.

  • U.S. expat loans with no W2 and foreign earned income: Are you a U.S. expat and feeling the frustration of no W2 or foreign earned income? These are not problems for America Mortgages. For U.S. expats, we make it as easy as if you were living and working in the U.S. and walking into your local bank. There is no premium in pricing, and it’s truly that easy.

  • Free pre-approval letters in 72 hours: The first thing we recommend for anyone looking to purchase a property is to get pre-approved. This is for a couple of reasons: 1) You should fully understand and be comfortable with the mortgage loan term and tenure you’re obtaining 2) You will need a pre-approval rate before any offer on U.S. property will be taken seriously. Don’t have a realtor? No problem: our comprehensive and complimentary realtor referral program can place you with a vetted and qualified realtor all around the U.S.

Now to the exciting part…AM Rental Coverage Plus!

America Mortgages has common sense underwriting loan programs, including loan programs that allow our clients to qualify only on the rental income of the property and not personal income. This is how commercial cash-flowing mortgages have been underwritten for years, and it makes perfect sense. The property is being purchased as an investment, and the rent from this investment will be used to pay the monthly mortgage debt. The standard ratio has been 1:1. This means if the rental income is sufficient to cover the mortgage payment, taxes, and insurance on a one-to-one basis, the loan qualifies. This is fantastic. However, this doesn’t take into consideration that mortgage rates tend to be fixed, and rental rates increase. Until now …

Introducing AM Rental Coverage Plus, which allows you to qualify on a 0.75:1 ratio. In simple terms, as long as the rent covers 75% of the mortgage payment, taxes, and insurance, the loan qualifies. It just makes sense!

Here's a simple example:

Rent: $750/month

Mortgage payment (tax, insurance) $1,000/month

Ratio: .75:1 (75% rental coverage)

Approved: YES!

For more information on the AM Rental Coverage Plus loan program, as well as our other America Mortgages loan programs, please email [email protected] or schedule an appointment to speak with one of our U.S. loan officers today.

America Mortgages only works with foreign nationals and U.S. expat investors; this is all we do, and no one does it better. Whether you're a seasoned investor or just starting to build your portfolio, our loan programs open doors previously closed to many. Seize this opportunity and discover how America Mortgages can be your steadfast partner in realizing your real estate dreams. Contact us today to learn more and embark on your journey to financial success.

Top 5 U.S. Record-Smashing Luxury Home Sales of 2023

Despite the overall decline in home sales in 2023 due to increased interest rates, high-net-worth U.S. real estate investors remained active in the luxury market. In the third quarter of 2023, the luxury market outpaced the mainstream market, growing three times faster. According to Jason Aleem, Redfin's Senior Vice President of Real Estate Operations, paying cash “helped wealthy buyers weather the storm of high mortgage rates.” A recent Redfin report noted that 42.5% of luxury homes sold in the third quarter of 2023 were purchased outright in cash, “others are choosing to take on a higher rate and refinance later - an expensive option that isn’t feasible for a lot of lower-income consumers,” Aleem explained. 

We’ve compiled the top 5 record-smashing luxury sales based on Jonathan Miller, President and CEO of appraiser Miller Samuel’s annual list.

Notably, 2 of the 5 properties were located in Palm Beach, Florida. This highlights Palm Beach County in South Florida as a consistent and attractive investment destination for luxury property investors. The real estate market in the region is robust, with luxury properties demonstrating a history of appreciation over time.

1. $190 million - 27712 Pacific Coast Highway, Malibu, California

Source: Zillow

Beyoncé and Jay-Z set a new record in California real estate with their recent purchase. The property, designed by Tadao Ando, includes 7 bedrooms and 11 bathrooms, sits on 8 acres, and features a private beach and an infinity pool overlooking the Pacific Ocean.

2. $170 million - 589 North Country Road, Palm Beach, Florida

Source: Addison Development Group

The property, spanning 24,131 square feet, boasts 8 bedrooms and 12 bathrooms. Situated on 1.6 acres, it includes 150 feet of direct oceanfront. This off-market sale involved Robert Stiller, founder of Green Mountain Coffee Roasters, and luxury car dealer Michael Cantanucci. Stiller and his wife reportedly purchased this property for $25 million a decade ago, illustrating South Florida’s remarkable property appreciation.  

3. $155 million - 1495 North Ocean Boulevard, Palm Beach, Florida

Source: Zillow

Estée Lauder cosmetics founder William Lauder purchased this 2.7-acre oceanfront property in an off-market sale from the widow of Rush Limbaugh. The property has 5 bedrooms, 20 bathrooms and 4 guest houses, with approximately 250 feet of ocean frontage and direct access to the beach. Limbaugh had initially purchased the property in 1998 for $3.9 million, serving as a testament to South Florida’s property value appreciation. 

4. $138.8 million - 499 Indian Field Road, Greenwich, Connecticut 

Source: Sotheby's International Realty

Hedge fund billionaire Ray Dalio acquired the 50-acre property, boasting 8 bedrooms and 10 bathrooms. With nearly a mile of waterfront offering views of Long Island Sound, the property includes luxury amenities like a 75-foot heated swimming pool, tennis court, and two private beaches.

5. $112.5 million - 700 Meadow Lane, Southampton, New York

Source: Trulia

Nestled on 8 acres between the Atlantic Ocean and Shinnecock Bay, this 15,521-square-foot property boasts 500 feet of ocean frontage, offering stunning water views from every room. With 11 bedrooms and 12 bathrooms, it includes amenities like a private boardwalk to the beach, an indoor gym, and basketball and tennis courts. 

America Mortgages – HNW Foreign National and U.S. Expat Mortgage Experts

At America Mortgages, we specialize in assisting foreign nationals and U.S. expat investors in securing financing for luxury real estate ventures in the U.S. Our commitment to streamlining the financing process for foreign nationals and U.S. expats sets us apart. For our high-net-worth clients, we provide flexible lending options, including fixed interest-only loans and loans with non-traditional income documentation - suitable for entrepreneurs and business owners.

Join us in exploring the robust luxury real estate market with practical solutions tailored to your financial goals. Visit www.gmg.asia or reach out to us at [email protected] to steer your real estate journey.

How Can Singaporeans Obtain a U.S. Mortgage?

Singapore Mortgages

Singapore is known for academics and education, with many high school graduates attending the best universities in the world!

Similarly, the U.S. is known for having most of the top global universities.

Singapore currently has 21,666 students studying abroad, according to UNESCO, and according to a recent Open Door report, Singapore had 3,901 students studying in the U.S. – a record number!

A typical Asian family will want to explore owning a property near the university the child will be attending – as a place to stay when visiting or if the student prefers not to stay in the dormitory.

After graduating, the property’s value often goes up. It might be enough to pay for college, or parents might choose to give the property to their child if they plan to work in the U.S. before returning home. This allows the child to build credit, something very important in the U.S.

However, not many can pay for a home with cash and just give up when they assume that obtaining a mortgage is not available. 

Contrary to what you may think…..

  • You CAN get a mortgage as a non-U.S. citizen or Expat living in Singapore
  • You DO NOT need U.S. credit or residency
  • You CAN QUALIFY based on your Singapore income OR by using the rental income of the U.S. investment property   
  • You CAN get market-interest rate mortgages while living in Singapore 
  • You CAN sign the closing documents at the embassy on Napier Road

Actually, we are the world’s first and only U.S.-based mortgage broker with offices in Singapore, right on Telok Ayer. Come visit us for coffee! 

Let us guide you through this process from: 

  • Introducing you to a realtor
  • Helping you screen for the best locations to buy
  • Setting up your LLC
  • Discussing the benefits of using an LLC
  • Introducing you to a property manager

[Must Sign Up!] A Singapore Couple’s Path to Financial Freedom through U.S. Real Estate Investing! 

Meet Han and Tracy, an incredible couple from Singapore who made a bold move – they left behind their regular 9-5 jobs after successfully diving into the world of U.S. real estate. Now, proud owners of 12 cash-flowing properties, achieved through strategic moves in just three years, they’re here to share their story.

Register for our exclusive webinar “Singapore Couple’s Journey to Financial Freedom through U.S. Real Estate Investing,” on January 18th at 6:30 PM SGT. Join Han and Tracy as they unravel the details of their transformative journey. Learn the secrets of how this dynamic duo achieved financial freedom through their savvy investments in U.S. real estate. Don’t miss out—reserve your spot now!

AM Student+ 

Investing in your child’s future just got easier. America Mortgages’ Student+ loan program removes the financial barrier for parents who want to purchase a property in the U.S. for their children’s education. This innovative program allows parents to qualify for a loan using the projected rental income of the property, eliminating the need for a U.S. credit history. This means that even parents who are new to the U.S. can provide their children with a safe and comfortable place to live while they study.  

With America Mortgages’ Student+ loan program, parents can invest in their children’s future and build wealth at the same time. The program’s flexible terms and competitive rates make it an attractive option for investors. Contact us today to learn more about this unique program and start investing in your child’s bright future.

[email protected]