USA mortgage for NON US citizens, foreign nationals investing in US real estate.

It is now easier to qualify for a U.S. mortgage loan to purchase or refinance U.S. Real Estate even if you are NOT a U.S. citizen or have a valid U.S. Visa.

Although we LOVE the Power Of YES! We really like to see these “No” requirements even more!!

Here are the "NOs" (the good type of “no”)

• No income verification.
• No age restrictions. The buyer can be 70 + years old and eligible for 30 years mortgage term.
• No U.S. credit required
• No USA visa or residency required
• No reserves required
• No Life insurance is not required.
• No pre-payment or redemption penalty.
• No tax returns are required

30% down payment foreign national mortgage program enables foreign nationals, Non-U.S. residents or employment transferees to place minimum 30% down payment and finance up to 70% of the property value with no income verification.

Most of the lenders still require 50% down payment in order to obtain foreign national mortgage loan but we can arrange financing with as little as 30% down with no income verification and rates in the low 6s to mid 7s (11/01/18). Borrower must have verifiable funds for the down payment, closing cost, but no payment reserves are required.

Not only is there no prepayment penalty, meaning you can pay down or off the loan at any time, GMG SatedSelectFN 70% LTV mortgage for foreigners does not require Private Mortgage Insurance (PMI) either, so there is no extra cost.

We also offer rate and term foreign national mortgage refinancing with no limit to cash out option.

This foreign national refinance mortgage is available as a fixed and or adjustable rate mortgage. Adjustable rate are 3/1, 5/1, 7/1 term for 15 or 30 years fully amortized loan. Fixed rate are offered for the 10, 15 or 30 years fully amortized loan.

Here are some of the loan program features:

• Minimum 30% down Payment
• Starting 6.00% Interest rate (right now – 11/01/18)
• Term, 30 years, 20 and 15 years fixed
• Loan amounts up to US$5,000,000
• Par rate only
• No prepayment penalty
• International Credit History Report required in some cases
• 1 to 4 unit residential property eligible
• 72 hours for underwriting
• Closing on average 30-45 days

Here are the requirements for our foreign national loan program:

• Copy of executed purchase agreement (purchase only)
• Copy of passport
• Credit References (Credit card, Mortgage, Car lease) or International credit report
• Last 2 months bank statements showing enough funds for minimum of 30% down payment plus closing cost

*We can help with Credit reference, or International credit report if needed.

One source, multiple options


Global Mortgage Group (GMG) is a Super Broker with an emphasis on the U.S. mortgage market. We specialise in Residential, Commercial, Construction and Bridge financing for Non-U.S. Citizen, U.S. Expats, Family offices and Institutions. With the ability to lend in all 50 U.S. States (for most programs) and Internationally, GMG is the “go-to” source for global Real Estate financing.

GMG has direct relationships with U.S. banks, Asia regional banks, private mortgage lenders and global funds to offer market rate loan programs direct to the borrower in Asia or abroad.

The Power of YES! Over 11 languages/dialects spoken, cultural understanding, regional representation and the ability to open an application and close the mortgage in most locations without leaving your home country.

Our U.S. mortgage programs include:

• U.S. Expat Mortgages
• Non U.S. Citizen/Foreign National Mortgages
• Construction and Commercial property loans
• Bridge lending
• Hard/Soft money loans
• Cross Collateral
• Fix-n-Flip

Our INTERNATIONAL mortgage programs include:

• Large scale, global bridge financing – US$3mm minimum and up in most countries.
• Residential mortgage loans in various countries with a minimum loan amount of US100k
• We offer mortgage loans for foreigner in Thailand, Australia, Japan.

For more information please contact Contact us on [email protected] or visit us online www.gmg.asia.

A bridge loan is short-term financing used to facilitate the financing of a property for a short period of time. It is used for various reasons to either acquire, maintain or improve a property with quick access to funds while more permanent financing is being arranged.

GMG Bridge is a unique arrangement with various funds globally that give Global Mortgage Group the ability to source immediate asset-based capital in most countries around the world. GMG has funds and lending partners that specialise in the US, UK, Europe, Canada, Australia, Singapore, Hong Kong, Thailand, and UAE. These unique relationships and volume give GMG a lot of negotiating power on behalf of the client.

"Regardless if you're in the US, UK, Europe, Canada, Australia, Singapore, Hong Kong, Thailand, or UAE, GMGBridge is a viable short-term financing option for assets you may own globally and wish to keep but have a short-term liquidity issue."

"In many cases, these events are unforeseen and can be resolved in a few months to a year. We understand the situation and the implications and, in most cases, take a loan from application to funding in a matter of 10 days. In most cases, we don't like to exceed 55%LTV (loan-to-value). However, in some cases, we have been able to secure as high as 70% LTV."

"Anyone that knows bridge financing, that is extremely aggressive."

Robert Chadwick | GMG

Global Mortgage Group offers bridge financing on a variety of property types:

• Commercial buildings
• Hotels and casinos
• Land
• Warehouses
• Retail shopping centers
• Mixed-use residential
• Apartment buildings
• Luxury homes
• Multi-family commercial

Reasons Companies or Individuals apply for bridge financing:

• Avoiding foreclosure
• Quick close on the property
• Partner Buy-Out
• Apartment buildings
• Financing a project beyond standard bank limits
• Pay off debt

"When GMG issues a bridge loan, a viable exit strategy is in place before the loan ever funds. Normally GMGBridge loans, regardless if they are in Europe, the UK, Canada, Australia, Singapore, Thailand, Hong Kong, UAE, or the US, the terms are relatively the same. 12-36 months interest-only payments with rates ranging from 9%-15% depending on the location, the rule of law, and the collateral. More often than not, with the proper time frame, we can refinance these assets into long-term financing through Global Mortgage Group's commercial or residential mortgage programs."

Robert Chadwick | GMG

Often GMGBridge financing is a cheaper alternative to the standard hard money or private lending options while just as flexible underwriting and fast turnaround to fund. Both are non-standard loans acquired due to short-term or uncommon situations. A bridge loan term may be closed, only available for a pre-determined time, or open with no fixed payoff date. There may be a required payoff after a specific date. GMGBridge has terms of 12-36 months with interest-only payments.

Global Mortgage Group provides bridge loan financing for companies, developers, and individuals on a global scale. These interim financing services have been designed to assist real estate investors with financial solutions that offer quick relief in challenging times when liquidity or cash flow is an issue.

As one of the leading International property bridging finance companies in the market, we pride ourselves in creating long-term client-lender relationships.

Get in touch with us today to learn more about the structures and options of short-term bridge financing solutions [email protected]


One of the most unique and inexplicably happy events of life is having a baby. This little bundle of joy keeps everyone on their toes, creating madness around the house and your lives, but somehow, it all seems worth it.

As a parent you likely already have a retirement fund under your belt, but have you considered alternative and traditional ways you can invest your extra cash to protect your children’s future? In fact, it’s easier than ever to invest in Real Estate with technology and options for obtaining mortgage loans even if you’re not a citizen of that country.

Investing in property is largely seen as a safe way to build wealth, but it is a long term strategy. The younger you start, the more effective it is, thanks to leverage (borrowing from a bank) and the power of compounding (time). For example, if you acquire a property for $500K at age 20 and it grows by a conservative 5% per annum, it will pretty much double by the time you are 35 to $1 million. How many people have $500K of equity at this young age? And by age 50, it will be worth 4 times what you paid for it, at $2 million. If capital growth is 7%, then the property will double in value every 10 years, thus accelerating your portfolio dramatically.

Should I invest in my own home country, the United States, U.K., Australia, or emerging markets? All the investment opportunities available can be overwhelming. We understand. So, to help you filter out the noise and make informed decisions, Global Mortgage Group has mortgage options parents should consider as great places to invest in Real Estate for your, and your children’s future:

Commercial Real Estate

We often think of real estate investing in terms of home ownership or maybe “house flipping,” but there are lucrative opportunities too in the commercial side of the industry that are no longer exclusive to ultra-wealthy investors. Online real estate platforms make it possible to invest in commercial real estate without ever stepping foot inside a property or country it is being sold in. Of course there needs to be a “trust” issue with investing in an asset, however, through online reviews, personal recommendations and proper research these risks can be mitigated.

A recent survey asked global participants to choose how they would invest $10,000, and real estate was the second most popular choice among millennials, Generation X, and baby boomers. Nearly 23 percent of those surveyed said they would pool their $10,000 with money from other investors to purchase Real Estate.

When you’re first starting out, a smart strategy is to focus on one type of investment, whether it be apartments, offices, retail, land, etc. A popular type of commercial real estate is student housing units — the very places you might be paying rent to when you send your kids off to college. Student housing in many University locations throughout the U.S. can be extremely lucrative investments.

Residential Real Estate

As a global citizen, if I wanted to invest in Singapore, Hong Kong, Seoul, Bangkok, Shanghai or any of the major global cities such as New York, San Francisco, London or Sydney, the barrier to entry would be my purchasing power and the ability or inability to obtain leverage from a bank or private lender. However, as an example, in smaller cities around the United States there are millions of Real Estate options for investors that never imagined they could own Real Estate, let alone be a Global Real Estate Investor.

Global Mortgage Group’s only focus is on sourcing the best options for non-citizens or Expats looking to obtain a mortgage loan to purchase or refinance Real Estate on a global scale.

"As many of your children will attend school in the U.S., Australia or the U.K., obtaining a mortgage loan to purchase residential (or refinance) property in the U.S., U.K. or Australia just became that much easier."

GMG Partners

Our partnership with institutions and private lending partners has made us the premier “go-to” source for real estate investors. Residential homes are the easiest to qualify for and a great way to build your portfolio.

The difficulty is the starting point, as young people rarely have enough for a large down payment for a first property. The good news is, most of our U.S. and Australia mortgage loans only require a minimum down payment of 30%. Note, that is 30% of a property with a purchase price far less than you could buy in Hong Kong as an example.

The opportunity is amazing to build and grow a viable Real Estate portfolio without a huge capital expense. If well researched, and with the right advice, a property can be cash flow neutral or positive in the current market. If held over time and as rates will likely increase globally changing the current economic model from a buyers to a renters market, it should remain quite manageable.

If you acquire several properties over time, manage properly and leverage smartly, imagine the amount of equity you can build up by the time your children are an adult or, when you’re ready to retire!

For more information on mortgage loans in the U.S., Australia, U.K. or elsewhere please email Global Mortgage Group at [email protected]


Are you a U.S. Expat living abroad, filing U.S. income tax, but earning income from your overseas assignment? If you answered YES, we created a U.S. Home Loan Mortgage program specifically for you! GMG PrimeSelect allows you to use two years of your U.S. tax returns, along with your monthly foreign income to qualify just as you would if you were back home in the U.S.

The credit crunch, which was largely caused by the U.S. banks’ cavalier attitude to mortgages and other loans, has put paid to the previous days of easy credit. It is now much more difficult to obtain a mortgage from a U.S. lending institution. For example, guidelines introduced in January 2013 encouraged lenders to demand full documentation from potential borrowers, and to be clearer about the consequences of low early repayment rates.

As an expat, you will find getting a mortgage even more difficult. Many lenders will not even consider lending use foreign income earned, so you would need to be persistent and shop around. Note that, as in many cases, mortgage programs may vary from state to state. With GMG PrimeSelect, you are now able to purchase U.S. Real Estate as an investment, second home or if your intention is moving back to the United States, owner occupied at prime rates, terms and programs.

Requirements


You will need to prove that you have sufficient employment and enough funds to repay the loan. Bear in mind that the more cash you have readily available to pay for a deposit, the wider choice of mortgage you will have. GMG PrimeSelect will allow up to 90% financing for a second home purchase.

GMG PrimeSelect mortgages are ‘fully documented’, meaning you will need to prove your income by supplying two years of U.S. tax returns. In addition to this, you will also need to show your last two months’ bank statements in order to show you have money sufficient to cover both down payment and closing costs. We will also require one month of pay statements in the country you are working in. If these accounts, pay and banking is in a language other than English, it will require a professional translation.

• Two years of U.S. Tax returns
• Two months bank statements (foreign okay)
• One month of pay statements
• Passport or drivers license
• Social security card
• US credit score (FICO)

Debt to Income Ratio

Most lenders will want your debt-to-income ratio to be no more than 35%. GMG PrimeSelect will allow up to a 45% ratio. This is rather aggressive, but often needed due to the fluctuation of the US dollar to other currencies.

LTV (Loan to Value)

Unlike many programs that restrict LTV for U.S. Expat foreign earned income, GMG PrimeSelect Loan-to-value ratios are generally around 80-90%. The maximum full term is 30 years regardless of age.

Mortgage Types

A wide range of mortgage products is available for U.S .expats looking to purchase or refinance U.S. Real Estate. Mortgages can be variable or fixed-rate, with flexibility over the fixed-rate term. In addition to the standard principle and interest U.S. mortgage loans, there are also interest-only mortgages, allowing for more cash flow. As most of these loans do not have pre-payment penalties you can pay towards the principle at will.

Do you have the income but doesn’t show on your US Tax returns? No problem either, GMG StatedSelect allows you to only state your income. We will not request or require proof of income including tax return, or monthly pay statements. LTV and rates vary for these programs but qualifying can be extremely simple.

One of our associates or partners will be happy to answer any questions you may have regarding GMG’s various loan programs. Please send us a message at [email protected]

Qualifying as a non citizen has never been easier.

Before you read about our 75% LTV loan program we would like to note a few differences between U.S., Asia and European mortgages. In the US mortgages work different then the mortgages in most of the other countries:

1. There is NO age restrictions. The buyer can be 85 + years old and eligible for 30 years mortgage term.

2. For our 75% LTV loans, the asset is the determining factor, and not the borrower’s income.

3. Life insurance is not required.

4. NO pre-payment or redemption penalty.

5. No tax returns or liquid reserves are required.

6. In many cases, the seller is allowed to pay up to 3% of the purchase price for buyers closing cost.

Our minimum 25% down payment foreign national mortgage program enables foreign nationals, non U.S. residents or employment transferees to place minimum 25% down payment and finance up to 75% of the property value. Most of the lenders still require 50% down payment in order to obtain foreign national mortgage loan but we can arrange financing with as little as 25% down.

Seller or developer can give the buyer up to 3% of the purchase price concession towards the closing cost and or prepays. If that is the case most of your closing costs would be covered and you’ll be able to invest less money upfront. Borrower must have verifiable funds for the down payment, closing cost in a verified financial institution in or outside the US. Any foreign language accounts would need to be translated and certified by a translation company.

Our 75% LTV mortgage for foreigners does not require Private Mortgage Insurance (PMI) so there is no extra cost. We also offer rate and term foreign national mortgage refinancing with often an unlimited cash out option (restricted by loan limits).

This foreign national refinance mortgage is available as a fixed and or adjustable rate mortgage. Adjustable rate are 5/1, 7/1 term for 15 or 30 years fully amortized loan. In some cases, interest only is also available.

Treasury Yields Could Increase Even More

After bottoming at 50 basis points, the 10-year Treasury yield has been growing since August 2020. On February Friday, it was 1.35%, which has a high chance of growing even more and reaching 1.5%. 

However, the yield won’t increase rapidly unless inflation breaks out or the Fed tightens the policy. Even if inflation happens, it is unlikely to go out of control. Any policy change is not on the horizon, too, since James Bullard, the St. Louis Fed President, dismissed this possibility.

Here are some of the loan program features:

• Minimum 25% down Payment
• 5.75% Interest rate (right now. Does not include APR)
• Term, 30 years, 20 and 15 years fixed
• Loan amounts up to $5mm
• No prepayment penalty
• No U.S. credit required. International Credit History Report allowed
• No reserves (PITI) required
• Up to 3% seller contribution towards buyers closing allowed
• 1- 4 unit single family residential property eligible
• Condos eligible
• 72 hours for underwriting
• Closing on average 45 days

Here are the requirements for our foreign national loan program:

• Copy of executed purchase agreement
• Copy of passport
• 2 personal Credit References (Credit card, Mortgage, Car lease, Landlord Letter, Utility bill) OR International credit report.
• Last 2 months bank statements showing enough
• U.S. mortgage application

For more information on U.S., Australian, Canadian, U.K. or loans within Asia please visit us online or email [email protected]


If you’re from Hong Kong, Singapore, China or even India, the prices of Real Estate have increased beyond the point to where you can maintain a positive yield. That isn’t the case in the US. Not all all.

However, no one ever said that trying to buy a home in the U.S. as a non-U.S. citizen or foreigner isn’t going be tricky, at least on the surface.

If you’re wondering whether a non-citizen can buy real estate in the U.S., the short answer is yes, though it’s easiest if you’re paying cash. If you’re seeking financing to purchase real estate in the U.S. as a non-citizen, getting a mortgage is the challenging part which is why Global Mortgage Group ONLY specialises in these types of mortgages.

Buying a house as a NON-U.S. citizen


Anyone may buy and own property in the United States, regardless of citizenship. Hong Kong, Singapore, China, Indonesia, and other countries in the region focus primarily on the US when it comes to investing in real estate and as there are no laws or restrictions that prevent any individual of any foreign citizenship from purchasing or owning property in the U.S., it is the perfect place to invest for the future.

Besides investment Real Estate, many foreign nationals /non US citizens purchase vacation homes in the United States. There are many wealthy foreign investors who purchase investment property such as multi-unit apartments or condos, single family homes, and even business properties such as shopping malls.

Getting a mortgage as a NON-U.S. citizen


Purchasing a house in the U.S. as a foreign citizen is simple if you plan to pay in cash (or having all the money saved to buy the home in one lump sum). If you’re not in the financial position to be able to purchase a home with cash or you find leverage is a better option for you, you’ll need to obtain a mortgage loan to purchase property. This is where the process becomes tricky. Fortunately the Global Mortgage Group’s primary focus is on the U.S. market, and it’s only focus are these types of mortgages.

Most U.S.-based mortgage lenders look at a borrower’s U.S. credit history to determine their eligibility for a mortgage loan. As a non-U.S. citizen, you don’t have a U.S. credit report, making it difficult for lenders to analyze the risk of loaning you money to purchase a home. That means your lender will elevate your risk factor as a borrower. This doesn’t have to be the case. Nor do you have to stay up late at night in Asia calling lenders, brokers and banks trying to find someone that will understand your situation. It may take you longer to find a lender who is willing to work with you, and it may take longer to get approval for your mortgage loan. You might also pay a higher interest rate.

We understand the complexity of analyzing risk, calculating foreign income and alternative sources of acceptable credit verification. We do it all day, every day. It’s not difficult if you know the terrain, and in most cases we can find a U.S. mortgage loan for every client.

Implications for selling a U.S.-based property as a foreigner

Eventually, you might decide to sell your U.S.-based property. Before you purchase property in the U.S., it's good to be aware of the rules and requirements should you decide to sell your property in the future. The IRS requires that buyers of property from foreign citizens withhold 15% of the amount realized on the disposition. If the buyer does not withhold this amount, they may be responsible for additional taxes. The rules surrounding this are somewhat complex but are outlined in the IRS FIRPTA publication, and more information can be found in the International Tax Gap Series.

You should work with an agent you trust who won't push you beyond what you're comfortable offering or rush you into making a bad decision. Although we do not sell Real Estate ourselves, our network within the Real Estate world, especially within the U.S., is not only strong but also vetted. We are happy to point you in the direction of agents we have worked with in the past.

One of our associates or partners will be happy to answer any questions you may have regarding mortgage financing for your investment. Please send us a message at [email protected].


Becoming a real estate investor is often seen as one of the most universal signs of personal financial achievement, no matter what your age. While, technically, in the US there is no age limit for getting a mortgage, there are some age-related home buying guidelines you should keep in mind.

How old is too old to get a mortgage?


Because a mortgage is a legally binding contract that allows you to finance the cost of a home over a long period of time, some people might wonder if there are age limits involved. For example, if you’re 75, could a lender refuse to let you take out a 30-year mortgage? After all, the average life expectancy in the United States is 78.6, according to the Centers for Disease Control and Prevention.

The good news for seniors who are looking to buy a house is that it is against the law for a mortgage lender to discriminate against you based on age. The Equal Credit Opportunity Act (ECOA), which came out of the Civil Rights Act of 1964, says lenders cannot deny you credit based on age, as well as other criteria like race, color, religion, national origin, sex or marital status. The Fair Housing Act of 1968 adds even further protections, specifically stating that it’s against the law to discriminate in any residential real estate transaction.

However, there are some instances in which a lender could consider a lendee’s age indirectly. A lender may look at whether you are close to retirement age and make a decision based on your having enough income to handle the loan, according to the Consumer Financial Protection Bureau. But again, in this instance, the disqualifying factor is not your age but rather your ability to manage loan payments.

How young is too young to get a mortgage?


Can age be a discouraging factor when it comes to getting a mortgage if you’re closer to high school graduation age than retirement?

Lenders can’t deny a mortgage application solely because of your age, but states do have laws that determine the age at which a contract can be negotiated. For example, in Virginia, you must be 18 to enter into a legally binding contract, which would include a mortgage.

Your age may also affect your ability to meet other requirements for being approved for a mortgage loan.

• Lenders evaluate your income to see that you have enough to make the mortgage payments. If you’re under 18 or even in your early 20s, it’s unlikely that you’ll have a job in which you make enough to take on a mortgage.
• Lenders also typically require you to have a certain credit history, meaning they may not have enough of a credit history to meet lender’s requirements. Young people who haven’t had time to build a credit history by using credit cards or taking out loans are likely to fall in this category.
• Finally, homebuyers typically need to make a down payment. For example, minimum down payment for a non citizen is 30%. US citizens living abroad and purchasing a second home or investment property may be able to put down as little as 10% if they still maintain a US credit score.

The risks of taking out a mortgage at an older age

• 
Just because you can legally take out a US mortgage at any age, doesn’t mean it’s always be the wisest move. A mortgage is a long-term commitment, and you want to make sure you’re ready for it. If you’re a senior and thinking about taking out a mortgage, consider the following risks.
• Mortgage debt can hamper your day-to-day finances. When people retire, they typically live on a fixed income. There are no more promotions to look forward to, or year-end bonuses to give your finances a boost. Some seniors may find it challenging to make those mortgage payments month after month, along with their other expenses on a fixed income. If a financial crisis hits, they could experience a financial disaster. The Consumer Financial Protection Bureau points out that this did, in fact, happen during the Great Recession of 2007-09. Many older homeowners struggled to pay their mortgages and eventually foreclosed on their homes.
• Unexpected repairs can throw your budget for a loop. Your mortgage payment isn’t the only thing you’d have to worry about. Most homeowners at some point experience the sticker shock that comes with appliance replacements and major repairs. If you’re living on a fixed income, replacing a roof or buying a new furnace may be too much to handle on top of the regular costs of homeownership. Also keep in mind that if you’re handy around the house and have been able to do your own repairs, you might not be able to do as much physical work as you age. In that case, you’d likely have to pay someone to do the jobs you used to be able to do.

• 
You’ll likely have less time to build equity. One reason people buy real estate is so they will have something to pass down to their heirs. If you buy a house at an older age, there’s a higher chance you won’t live in the house long enough to build a lot of equity. In that case, if you die and your house is left to heirs who want to sell it, there may not be much of an inheritance for them to split.

The bottom line …


Age plays a role in many of our biggest decisions. Whether we’re thinking about marriage, starting a business or retirement, we often consider whether the timing is right to pursue these goals. While age can’t legally deter you from buying a house, you should always weigh the pros and cons of real estate investing.

Global Mortgage Group has programs which does not require income proof which may assist with obtaining a mortgage at an older age where income may be sporadic. For more information please email – [email protected].

Investors sometimes ask if it makes sense to buy a rental property in another country when they live so far away. Often, they’re curious about exploring other areas because there are few good deals left where they live, or they’ve heard that certain locations have excellent returns.

During the peak real estate years of 2003–2007, investors from all over the world were calling Realtors in U.S. states like Arizona, Georgia, and Florida, to snap up investment properties — often without even seeing the homes in person. Mainly the purchases were cash; however, if they would have applied for a mortgage, they could have been assured that a bank or private lender will not lend on a property that does not meet certain specifications or values. It is certainly the best way to make sure you’re buying at the right price, and the right condition.

Regardless if you live in Singapore, Hong Kong, Shanghai, or Seoul, it’s important that investors are prudent and take certain precautions when purchasing global assets. As one of the only Asia-based U.S.-centric mortgage brokers, Global Mortgage Group can assist you with honest advice and guidance on financing these investments.

Why be a Long-Distance Landlord?

There are pros and cons inherent with long-distance real estate investing. Let’s take a look at the pros first:

1. You have the freedom to invest in more affordable areas. By not restricting yourself to the area in which you live, you open up a whole new world of investing possibilities. Many investors in high-cost-of-living areas such as Singapore, Hong Kong, Tokyo or Seoul can no longer afford to buy investment homes where they live, but are finding the Midwest and Southern U.S. states to be much more affordable. In addition to cheaper sales prices, these areas also have lower taxes and dwelling (i.e. rental property) insurance premiums.

2. You can fund your future retirement home. Some global real estate investors buy a home in a retirement town with an eye toward living there or as a second home one day. They may buy a condo near the beach or a ski cabin in the mountains. Then they rent the home out with either short- or long-term leases, and in the process, their tenants pay down the loan principal until the investor is ready to retire or visit. By then, the mortgage might be fully paid off.

3. You may gain new tax deductions. Many parents have children who attend college in the U.S. state. Instead of spending a fortune on a dorm room and semi-annual visits, they buy a modest three-bedroom home near campus. The student lives in this home and rents the other two bedrooms to some friends. The parents save on dorm fees and offset a good part of the total mortgage payment with the rent collected from the other students (or better yet, their parents). Furthermore, each time that the parents travel to visit the child, 50% of their total trip expenses can be legally written off on their income taxes because they’re also inspecting their property (please consult your U.S. tax advisor).

Handling the Disadvantages of Long-Distance Real Estate Investing

Make no mistake: owning rental property far from home can be a complex undertaking. There are several challenges long-distance landlords often encounter:

1. Lack of knowledge about the area in which they’re investing

2. Lack of familiarity with good local service providers

3. Relying on others to take care of day-to-day problems or repairs

4. Difficulties in getting the rent paid on time

But these obstacles don’t have to prevent you from purchasing long-distance rental property. Global Mortgage Group has Asia-based associates familiar with either the U.S. or Australian market. They can answer questions you may have and often can refer you to agents they have worked within these areas.

Here are some ways to make your global real estate investment a success;

1. Do your homework and learn about the area. Begin by hiring a good Realtor from the area you’re interested in. You can browse websites such as Realtor.com, Zillow.com, or Trulia.com to get the names of several Realtors in the area who regularly sell investment properties. Interview each Realtor by phone, and ask those you like best to send you listings of homes for sale that meet your criteria. Browse rental properties online to get a feel for the return that you can expect on homes in your price range.

Because there are more expenses involved in buying and managing long-distance real estate—such as the travel expenses you’ll incur to visit the property—don’t rule out foreclosures, short sales, and other distressed properties that can be purchased at a substantial discount to comparable homes in the area. This type of home probably won’t be move-in ready, but after you make the necessary improvements, it should yield some start-up or “sweat” equity. It is important to keep in mind that in order to obtain a good mortgage, the property must be in “liveable” condition. If you find a great deal and it needs work, Global Mortgage Group has several non-citizen, foreign national mortgage programs that can give you the purchase and the renovation financing.

2. Find a reliable and affordable property management agent. It’s not very difficult to make the necessary calls as problems arise, but if you find that landlord duties such as managing repairs and collecting rents is becoming too stressful, ask your Realtor or search online for a reliable and affordable property management services. The monthly fee for property management will range from 10%–12% of the rent. Do your homework and research their reviews fees and responsibilities.

3. Automate or simplify rent collection. There are a couple of ways to handle collecting rents on time. Some tenants can have their rent automatically deposited into your bank account.

You can also have tenants deposit the money into an account at a local bank—you’ll get the rent faster than if they mailed you a check. To encourage timely payment, send them an email or text reminder as the first of the month approaches.

Once you’ve rehabbed the property and your tenants are in place, your rental should run on autopilot for quite a while. If your tenant calls with an occasional repair problem, you can simply pick up the phone and put them in contact with your property manager.

In summary, there are many advantages to buying long-distance real estate, and while there are some disadvantages, they can be easily handled if you’ve done your initial research and set up a network of reliable resources. If you are a non-citizen or an expat and thinking about buying U.S. real estate with a mortgage loan, we can help. Global Mortgage Group only focuses on buyers that either do not live in the country which they intend to purchase or do not carry the passport. We do this every day, all day.

One of our associates or partners will be happy to answer any questions you may have regarding mortgage financing for your investment. Please send us a message at [email protected].