Singapore real estate investors eyes U.S. property in California for higher yield returns

High Net Worth Mortgage Broker

The Client

Senior Singapore attorney and real estate investors looking to shift his real estate portfolio for multi-family U.S. property in California for retirement income.

Purchase of three multi-unit homes in Venice Beach (2) and Long Beach (1), California with net yields of 16%.

The Property

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

The Deal

To secure the yield needed, the client needed a mortgage below 5%.

The Challenge

Although the client earned excellent income, and experienced real estate investor the lack of U.S. credit created a road block each time he approached a California bank or broker for financing.

The Solution

As GMGFN Lite allows the borrower to use a “local” credit report, this case his Singapore credit report the issue of not having U.S. credit was resolved. The rate required was merely an adjustment in LTV, giving the borrower a fixed rate on each property below 5%.

Loan Details

Loan TypeProperty ValueLoan AmountLTVGMG Program
Purchase$4,350,000 $2,697,000 62%GMGFN Lite
Loan TypePurchase
Property Value$4,350,000
Loan Amount$2,697,000
LTV62%
GMG Program GMGFN Lite
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Chinese National closes US$5.6m purchase with GMG Bridge

High Net Worth Mortgage Broker

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
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UK citizen living in Hong Kong expands his US Real Estate portfolio with only 25% down using only the income generated from the property

High Net Worth Mortgage Broker

The Client

British Marketing Director living in Hong Kong. Owns several small properties in the Atlanta area, and wanted to add to his holding in US real estate.

The Property

4 bedroom, 3 bath, 3200 sq. ft home with a pool in Orlando, Florida.

The Deal

The client needed to release equity from two of his existing properties in Atlanta to get the down payment for the purchase of a new Florida property.

The Challenge

The main challenge we had was the client was already in contract and the loan was declined by an international bank two weeks into the process due to DTI (debt to income) issues.

The Solution

As GMG is a super broker, we were able to immediately see the issue, discuss the options with the client on affordability. Once it was understood the client intended on using this property as an investment, GMG was able to structure the loan using only the rental income to service the debt. Existing two rental properties were refinanced in sync with the closing of the purchase.

Loan Details

Loan TypeProperty ValueLoan AmountLTVGMG Program
Refinance and Purchase $675,000 $506,250 75%GMGFN Lite
Loan TypeRefinance and Purchase
Property Value$675,000
Loan Amount$506,250
LTV75%
GMG ProgramGMGFN Lite
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How to apply for U.S. Mortgages as a Foreign National?

Canadian Mortgages

How to apply for U.S. Mortgages as a Foreign National?

Did you know with GMG, Foreign Nationals can apply for U.S. Mortgages without stepping into the country? You don't even need any U.S. Credit or U.S Income! Join Donald Klip, the Co-Founder of Global Mortgage Group to learn more!

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Procuring Mortgages for U.S. Citizens Living Overseas.

Canadian Mortgages

Procuring Mortgages for U.S. Citizens Living Overseas.

Obtaining U.S. Mortgages from Overseas is in itself a huge challenge and with the current market scenario, there are very few who would be willing to create lending opportunities for our clients.
In this Webinar, we discuss how U.S. Expats can procure a mortgage from overseas and different techniques to lower their interest rates.

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

High Net Worth Mortgage Broker

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
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What Is Bridge Financing And How Does It Benefit Investors?

International Mortgages

For those who are new to investing in real estate, the common question is, what is bridge financing? A better question is, what is bridge financing, and how does it benefit 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 on bank loans. International bridge lending allows non-U.S. citizens / Foreign Nationals to invest in U.S. 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 fewer 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's 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 in 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$3M with a maximum of 50% LTV/LTC.

"We close loans, others can't"

GMG Partners
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Northern California Multi-Unit Rental Property Purchase With A Complex Income Structure.

High Net Worth Mortgage Broker

The Client

A self-employed real estate investor with a British passport living in Hong Kong. He owned and managed a small boutique investment firm and wanted to diversify his holding in U.S. real estate.

The Property

A self-employed real estate investor with a British passport living in Hong Kong. He owned and managed a small boutique investment firm and wanted to diversify his holding in US real estate.

The Deal

The client needed to raise capital in order to purchase the three unit property. To raise the money, the client wanted to refinance/cash out their existing 4 bedroom beachfront rental property lowering their current rate for a 5 year ARM which was maturing in 6 months and get into a lower rate fixed mortgage.

The Challenge

The main challenge we had with this case was that the client had a complicated income stream. The income from the business was extremely “lumpy” and although the total earned income was high, the consistency was sporadic. This made the accounts difficult to interpret and created a mortgage experience with a well-known international bank to drag out three months to eventual be declined in the end.

The Solution

Although the clients’ business was very niche in his field, he had been running this successful firm for over a decade with an exceedingly good accounts track record. We were able to highlight the stable business history to the lender, structure the income documentation in a clear and precise manner in order to satisfy the lender. The lender subsequently released the equity portion from their other property, and approved the loan on their new purchase.

Loan Details

Loan Type Property Value Loan Amount LTV GMG Program
Refinance and Purchase $1,875,000 $1,312,000 70% GMGFN Lite
Loan Type Refinance and Purchase
Property Value $1,875,000
Loan Amount $1,312,000
LTV 70%
GMG Program GMGFN Lite
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U.S. Expat Takes Advantage Of Lower Rates To Increase Rental Yield On Summer Home.

High Net Worth Mortgage Broker

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
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