Wholesale Lending and Why it’s Important!

Wholesale Lending - Mortgage Brokers USA

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.

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]

A Secret Strategy Top Real Estate Investors Use

International Mortgage

A secret many wealthy U.S. real estate investors use is the practice of holding properties within an LLC. 

Using an LLC to hold real estate for investments has almost become a given with many tax benefits, liability protection, and acceptance by lenders. If you think about it, any company earns revenue, and in this case, LLC’s revenue comes from the rental income of the property. Also, like any company, you have operating expenses related to running the company (your company-related tax deductions) – more on this later. 

In this article, we’ll break down how an LLC operates and dive into the advantages of opting for an LLC when dealing with rental properties.

Opening an LLC

An LLC not only shields you from liabilities but also brings in tax advantages. This offers a seamless and flexible approach to handling your investment efficiently.      

Process: 

  1. Choose a State:
    Decide in which U.S. state you want to establish your LLC. Each state has its own rules and regulations regarding LLC formation.
  2. Name Your LLC:
    Choose a unique and compliant name for your LLC. It should comply with the naming rules of the state.
  3. File Articles of Organization:
    Submit the required paperwork, usually called the Articles of Organization, to the appropriate state agency. This is often the Secretary of State’s office.
  4. Operating Agreement:
    While not always required, it’s advisable to create an operating agreement that outlines the structure and operation of your LLC.
  5. Obtain an EIN:
    Apply for an Employer Identification Number (EIN) from the IRS. This is like a Social Security Number for your LLC and is necessary for tax purposes. 
  6. Bank Account:
    Once your LLC is approved, you can open a business bank account. While banks do not help in the formation of the LLC, they are crucial for managing your LLC’s finances.

The benefits of using an LLC to hold a rental property

  1. Single or Multiple Members Allowed
    An LLC allows for flexibility in membership, accommodating either a single member or an unlimited number in a multi-member LLC. This flexibility enables individual investors to enjoy an LLC’s benefits and protections. However, if the LLC is treated as an S-Corporation for tax purposes, there is a 100-member limit.
  2. Pass-Through Entity for Tax Purposes
    An LLC is treated as a pass-through entity for tax purposes, meaning profits or losses flow through to each member based on their ownership percentage. Members report income or loss on individual tax returns and pay taxes based on personal income tax rates.
  3. Flexible Pass-Through Structure
    While LLC profits and losses are generally distributed based on ownership percentages, members can agree to a different allocation in the operating agreement. For instance, a member in a higher tax bracket might seek a larger percentage of the depreciation expense for a more substantial tax write-off.
  4. Management Flexibility
    The operating agreement of an LLC can be tailored to allow management flexibility. For example, one member with property management expertise may handle daily property details, or the operating agreement may mandate that all members vote on significant decisions like refinancing or sale of the property.
  5. One LLC for Each Rental Property
    Many investors opt to establish a separate LLC for each rental property they own. This adds an extra layer of protection by isolating potential claims against one property from the entire real estate portfolio for those with multiple rental properties. 
  6. Contribution of Personal Assets
    Members have the option to contribute personal assets, such as real property or funding, to an LLC. The LLC can also pay reasonable interest to members for loans until the borrowed money is fully repaid.
  7. Easy Transfer of LLC Interests
    Shares in an LLC may be sold or transferred to new members based on the terms outlined in the operating agreement. Real estate held under an LLC can remain within the LLC’s control even when under new members.
  8. Professional and Business-Like Image
    Holding rental property under an LLC provides real estate investors with a more professional business appearance. This could enhance credibility with tenants, lenders, and vendors.
  9. Inexpensive and Straightforward Formation
    Depending on the state forming an LLC can be a relatively simple and cost-effective process, from $50 to a few thousand, depending on the state. 

Certain states impose a minimum annual LLC tax, require annual reporting fees, and may necessitate payment of registered agent fees to an agent for service of process in the state where the property is located.

Choosing an LLC to hold a rental property can shield an investor’s personal assets in case of a lawsuit. Typically, in a legal dispute, only the business assets would be at risk, offering a protective barrier for personal belongings.

What is the best state to form an LLC in? 

While forming an LLC in your home state is typically advantageous, there are exceptions for non-residents and specific LLCs. Non-U.S. residents have the flexibility to choose any state, with Wyoming and Delaware being recommended options. For real estate LLCs, the “home state rule” doesn’t apply. According to doola.com, Delaware provides business owner anonymity, as it doesn’t require the owner’s name on entity formation documents. Wyoming allows listing a “nominee” as the LLC owner for added privacy.

Pre-Approval Process

Launch your U.S. real estate investment journey confidently with America Mortgages’ 72-hour pre-approval process. Our team simplifies required documentation and timeframes, providing solid assurance. House shopping is much easier when you have an official lender pre-approval.

Tax Considerations

Effortlessly navigate tax complexities with America Mortgages’ tax partners. Understand all the tricks that billionaire real estate investors use to minimize tax liability and maximize profit potential. Consult with our tax professionals for an optimized strategy.

Property Management

Ensure remote property maintenance with America Mortgages’ property management partners. Our team connects you with reliable day-to-day management, offering peace of mind even when you’re not physically present.

Legal Assistance

For smooth transactions as a foreign investor, legal advice is crucial. America Mortgages connects you with experienced professionals for essential guidance.

Property Insurance

Protect your property with suitable insurance through America Mortgages’ trusted partners. Obtain the right coverage for a well-structured risk management strategy, ensuring peace of mind for your investment.

Stay Informed

Stay updated on U.S. real estate changes and regulations affecting foreign investors. Continuous education is essential for informed decision-making and adapting to evolving market conditions.

Navigate your U.S. real estate investment journey with America Mortgages. Together with our partners, we provide comprehensive support from swift LLC formation and a 48-hour pre-approval process to tax expertise and reliable property management. Let us guide you in developing clear exit strategies and staying informed about market changes. Trust America Mortgages for a seamless and informed U.S. real estate investment experience. Contact us today at [email protected] for a seamless investment experience.

www.gmg.asia

What just happened? + How to bet alongside Blackstone!

Bridge Loan Mortgage

What a year it’s been and the resiliency of asset markets in the face of everything that was thrown at it was truly amazing!   

We are living through unprecedented times with technology and crypto experiencing another bull market, U.S. elections in 2024, and potential rate cuts around the world. Could we be “back to the races” again this year?

One exercise that we all do at the beginning of the year is to adjust our personal investment portfolio to reflect what we expect to unfold in the world over the short, medium, and long term.

For many, including myself, that means increasing the allocation to crypto and U.S. real estate investments.

The simple key to making long-term money is to create a portfolio of non-correlated investments, and there is no better time to increase your U.S. real estate investment exposure.

Our goal in 2024 is to bring more education, experience, and strategies to our client's real estate investing.

We are living through unprecedented times, and we want to be there for you on your journey as an international real estate investor.

Message me if you want to know what I recommend as your real estate exposure vs. your overall portfolio.

U.S. Real Estate Market - What Just Happened?!

In a year that saw:

  • 10-year Treasury yields at 5%
  • 30-year mortgage rates at 7-8%
  • Inflation as high as 6.5% 

How did:

  • Home prices rise across the country; in some metro areas 10-15%
  • S&P +25%; Nasdaq +55%

How did everyone get it wrong?  

In hindsight, it is clear to me that the extent of the positive impact of various layers of government stimulus going back to COVID (including the Fed’s BTFP) was severely misunderstood and underappreciated.  

Now, with inflation and employment (Fed’s dual mandate) seemingly under control, most of the world now expects around a 75 bps cut in Fed Funds rates (echoed by the Fed’s new dot plot).  

Hat’s off to our GMG Research team, which mid-2022 called for a supportive U.S. property market in 2023, but never did we expect a rising market to this extent.   

Our thesis was simple - it was based on the fact that: 

  • 24% of homeowners have their mortgages < 3%
  • 63% are locked-in < 4% and 
  • 83% of homeowners have mortgages < 5%
  • Severe lack of supply 

Existing Homes

In any marketplace, you need supply and demand. For U.S. real estate, the supply is Existing Homes and New Homes. Existing Home Sales are about 90% of Total Home Sales in the U.S.

Given that 83% of existing homeowners have a mortgage < 5%, they would have to be under financial stress to sell, given their new mortgage would cost 7-8%. As you can imagine, Existing Home Sales is at a 13-year low!    

New Homes

It’s widely known that there is a major shortage of homes in the U.S.; between 3-6M units, depending on what you read.

Lack of Homebuilder Motivation

With higher borrowing costs, higher commodity prices, and higher wages - there is no financial motivation for homebuilders to increase their development, given the lower margin potential from higher costs.  

More importantly, demand and affordability will be dampened by higher-for-longer mortgage rates. 

Remember, the large homebuilders are all publicly traded companies with CEOs compensated on share price performance. 

Higher profit => Higher EPS => Lower PE => Institutional Buying => Higher share prices => Higher CEO bonuses!

Sun Belt is Rising!

Elsewhere, the national reshoring of manufacturing is happening; it's happening now, and it's happening fast!

States like Georgia, Texas, and Florida are experiencing an unprecedented influx of employment seekers to match the growing opportunities.

Between January 2020 and January 2023, rents for a two-bed detached home increased about 44% in Tampa, Florida, 43% in Phoenix, and 35% near Atlanta. 

Why is this important for you (international property investor)?

Many Americans will not be able to afford a mortgage even if rates fall to 5-6%, so they will have to rent.

In the states mentioned above, we are seeing gross rental yields of 12% already!

I have no doubt that rental yields in these states will be 15% sooner than we think.  

You know who else knows this?

Wall Street, aka Private Equity (aka Blackstone and its pals)

Single-family homes are the next big institutional investment opportunity given its sheer scale and for the reasons I mentioned above.  

There have been many articles published this year about how institutions may own up to 40-60% of single-family home supply by 2030!

Hear Bobby Kennedy Jr’s speech on this

As an investment banker for over 20 years with Blackstone as its client, I can assure you if there is money to be made, they are going to make it!

The Perfect Storm to Invest in U.S. Real Estate

  • Extremely supportive supply demand
  • Low-entry price point
  • Ease of transaction
  • High leverage (even for foreign nationals living overseas)
  • Tailwind of institutional buying and 
  • Plenty of ways to maximize cash flow (lower tax)

Home prices will certainly go higher, given the expectation of lower rates in 2024!

If you are interested in taking your first step in owning a U.S. real estate investment property, send me a private message, and I can walk you through the entire process:

  • How to find the right city to invest in
  • Which cities have the highest rental yield
  • Setting up an LLC and bank account
  • U.S. tax specialist specializing in international investors
  • Property manager
  • Realtor….and, of course,
  • Financing for foreign nationals or expats living overseas

2023 In Review

Bank stuff…

Silicon Valley Bank was put into receivership after it failed to raise needed capital. SVB’s closure was the largest bank failure in U.S. history since the 2008 financial crisis. This led to the collapse of cryptocurrency-focused Silvergate Bank and Signature Bank as well.

The implosion of these three small-to-mid-sized U.S. banks ignited contagion fears across the globe in the months that followed, prompting the Federal Reserve to set up a US$12B emergency lending program - known as the Bank Term Funding Program (BTFP). More on this later.  

The programme couldn’t save First Republic Bank from closing down and was ultimately sold to JPMorgan Chase. 

This was just an amuse-bouche for what happened next as Credit Suisse collapsed with UBS paying only CHF 3B to save the company, a deal brokered by the Swiss government. Google “AT1 bonds,” and the story gets even crazier. 

Crypto stuff…

  • January - BTC $16,000; ETH $1606; SOL $9.9
  • February - Kraken shuts down
  • March - SVB collapses; Arbitum launches ARB token
  • April - ARK refiles Bitcoin ETF
  • May - DOJ investigation on Binance for Russia sanctions
  • June - SEC sues Binance CEO; Blackrock files for spot Bitcoin ETF; Fidelity, Wisdom Tree, VanEck refiles Bitcoin ETV
  • July - Blackrock CEO says BTC “could revolutionize finance”; Ripple won ruling
  • August - Paypal launches stablecoin, Grayscale wins lawsuit with SEC, 
  • September - Nomura launches Bitcoin fund
  • October - 1st ETH futures ETF launched
  • November - SBF found guilty; Blackrock files for spot Ethereum ETF; Binance settles lawsuit and CEO steps down
  • December - BTC $40,000; ETH $2,396; SOL $105 

Bad actors were removed, Binance settled, Ripple won, Bitcoin spot ETF (only a matter of time), and MicroStrategy bought $600M of BTC at $42K last night!

AI stuff…

It’s mind-boggling that ChatGPT reached 100 million users in just 2 months after launch. Just guessing here, but it must be the fastest adoption of any form of technology, language, or service in the history of humankind. The scary thing is that it’s only getting started. It’s now a necessary tool for nearly all organizations (ChatGPT is writing this now…just kidding).

An event prescient of things to come was the Hollywood strike, which, at the core, was about protecting Hollywood jobs from AI. The delay of Dune 2 till March 2024 was the biggest disappointment to me personally. 

Nvidia, the only company that is able to make chips capable of crunching AI’s large language models, saw its stock +200%. The rest of the tech incumbents went along for the ride: Meta +250%, Tesla +100%, Google, and Microsoft, both +50%+. 

Fun stuff….

  • Taylor Swift’s x ERAs tour is generating more GDP than many small countries. I’m a massive Swiftie, so bummed I couldn't get tickets.
  • Taylor Swift x Travis Kelce
  • Barbie x Oppenheimer
  • Coronation of King Charles III and Camilla

Sad stuff…

  • Hamas and Israel
  • Hawaii forest fires
  • Titan x Titanic
  • Matthew Perry, Tina Turner, Sinead O’Conner

Crazy stuff…

  • Twitter rebrands to X
  • George Santos gets expelled from the House of Representatives
  • Kevin McCarthy gets ousted as Speaker of the House
  • Torrential rain flooded Burning Man (I was supposed to go)
  • The Cricket World Cup breaches 1 trillion viewing minutes globally
  • Watching Harvard and UPenn botch their response to the ME events
  • Ozempic, a diabetes drug popular with Hollywood actors to lose weight, became mainstream to the point its manufacturer, Novo Nordisc, was the largest market cap stock in Europe, larger than LVMH!
  • Even crazier, General Mills had to research the impact Ozempic had on their business, given the potential lack of calorie consumption.

Sports stuff…

  • Messi-mania goes nuclear in Miami
  • Inter Miami is the most searched sports team on Google
  • Lebron surpassing Kareem in most points scored
  • South Africa wins the Rugby World Cup
  • Australia wins the Cricket World Cup

Update of our Global Financing Capabilities

  • International Residential Mortgages
    U.S.,  Canada,  Mexico,  U.K.,  France,  Spain,  Portugal,  Italy,  Dubai,  Singapore,  Japan,  Thailand,  Australia
  • International Asset-backed (Bridging) Loans
    U.S.,  Canada,  U.K.,  Singapore,  Thailand,  Philippines,  Australia
  • Asian Real Estate Structured Debt Financing
    Most of Asia
  • Listed Share Financing
    Most of Asia and the U.K.

I want to thank all our stakeholders for joining us on our journey to disrupt how international investors secure financing for global real estate investments.  

We wish you abundant health, wealth, and happiness in 2024!

Happy Hunting!

[email protected]

Global Mortgage Group Funds Singapore Real Estate Bridging Loan in 72 Hours

French Mortgage Broker

GMG HNW Solutions Introduces Listed Share Financing

Global Finance Herald - Bridge Loan Mortgage

France Alert! 100% Financing Available for Luxury French Property!

France Residential Mortgages

GMG Presents...

Mortgages for Luxury French Property with... 

100% Purchase Price Financing!

THE ALLURE OF THE FRENCH RIVIERA

Nestled on France's southern coast, near the Italian frontier, the French Riviera showcases some of the most enchanting towns you could envision. With its chic allure, this region has magnetized celebrities for generations. Boasting approximately 300 sunlit days annually, its climate is nothing short of ideal. From designer boutiques, to the array of nearly 40 Michelin-starred restaurants, it's a destination of elegance. It's also a thriving community of English and American expatriates.

TOP DESTINATIONS FOR PROPERTY OWNERS

Surrounded by both the majestic mountains and the serene sea, the Riviera promises a perfect balance. While the coast will be your regular retreat, snow-capped peaks are always within reach for a winter getaway. Explore the top places to reside in the Riviera:

  • Antibes: Originating from the 16th century, Antibes exudes a maze-like ambiance. Renowned for its breathtaking golden glow, which has attracted artists over the centuries, it houses magnificent villas in the wooded Cap d'Antibes. 
  • Cannes: Apart from the high-end boutiques and its iconic film festival, Cannes is a stone's throw from the secluded Lérins Islands. 
  • Nice: As one of the significant French cities, Nice offers a vibrant nightlife, chic boutiques, and diverse museums. 
  • Saint-Jean-Cap-Ferrat: This petite peninsula is the address for some of the Riviera's most luxurious estates and also offers upscale dining options and serene beaches with panoramic views.
  • Saint-Tropez: Famed for its pristine beaches and dynamic clubs, Saint-Tropez is a haven for entertainment seekers but also has developed into a family holiday destination. 

Now to the good stuff....

FINANCING FOR FOREIGN NATIONALS

Problem: Securing financing for Foreign Nationals to purchase property in France has always been difficult - time zone, language, lack of understanding for both lender and borrower, and other issues. Most banks and financing institutions are not focused on Foreign Nationals as the domestic market is strong, and they have enough business to satisfy them.

The GMG Solution: Our GMG European Lender Acquisition team has worked with a few smaller private banks to create a financing solution for our international clientele with a structure that suits their specific needs. 

ELIGIBILITY AND REQUIREMENTS

For Foreign Nationals seeking finance in this exclusive domain, banks have set specific benchmarks to evaluate potential candidates.

1. Geographical Preference

  • Prime Locations: It's imperative for the property in question to be situated in sought-after areas. This encompasses regions such as Paris, leading stations in The French Alps, and The French Riviera.
  • Emerging Desirability: The South West has been gaining traction recently, making it an area of interest for Private Banks.

2. Property Type

  • Prospective properties should fall under categories such as: Luxury Apartments, Modern Residences, Contemporary Villas, Maisons de Maître, Manoirs, or Impeccably Refurbished Chateaux (case-by-case basis).

3. Loan Size

  • Minimum loan amount is €1M, excluding ancillary fees.

4. Our 100% LTV Solution!

  • In this structure, the client will invest a portion of funds equal to 30-50% of the loan amount into an interest-earning product.
  • In return, the bank will finance 100% of the purchase amount of the property (excluding fees)! 
  • Client earns investment income, which may be more than the interest paid on the mortgage = positive carry.

5. Age Bracket

  • Applicants should be no older than 65 years at the submission time, with a preference for those below 60.

6. Financial Overview

  • Generally, the focus is on High Net Worth (HNW) individuals, specifically those boasting a net valuation exceeding €2M. Liquid assets or readily available cash remains a pivotal factor in discussions.

HOW IT WORKS

Example
Purchase price: €1,000,000
Loan amount: €1,000,000 (100% LTV)
Interest rate: 4.50%
Loan duration: 20 years
Loan type: Principal + Interest

Investment amount: €500,000 (50% of loan amount)
Investment return: 4.50% Compounded 

Mechanics
The 100% LTV mortgage
€1,000,000 @ 4.50% for 20 years
= Total mortgage interest PAID = €518,359

The interest-earning investment for 50% of loan amount
€500,000 investment @ 4.50% “Compounded” for 20 years 
= Investment value end of Year 20 = €1,205,000 - €500,000 principal
= Total interest EARNED = €705,000

€705,000 EARNED - €518,359 PAID
= Net POSITIVE cash flow = €186,641

That is to say, the bank will give you a positive carry-trade for using their mortgage, and not only is the mortgage FREE, you MAKE money!

THE PURCHASE PROCESS

Navigating property acquisition in France is smoother with the guidance of a property buyer's agent familiar with the region and the nuances of French property transactions. Once you've found your dream home, the steps are as follows:

  • Proposal Submission: You'll submit a written proposal. This will be forwarded to the property owner for a response. If the proposal gains approval, both parties – the buyer and the seller – will endorse the 'Compromis de Vente.' This preliminary agreement outlines the property specifics and the sale terms. As the transaction progresses, especially during conveyancing, certain terms in this contract might undergo modifications.
  • Reflection Window: Following this, there's a 10-day cooling-off window. During this phase, should you reconsider the purchase, you can withdraw without repercussions. Specifically, the 5-10% earnest money you've placed as a deposit is fully refundable.
  • Financing Initiatives: At this juncture, the financial groundwork commences (details above).
  • Conveyancing Phase: Post cooling-off window, the conveyancing phase kicks off. This process, extending up to three months, involves a series of property evaluations, all supervised by the notaire.
  • Finalization: After a thorough review and addressing any reservations, the concluding payment is made to the notaire. Subsequently, both parties validate the 'Act de Vente,' essentially the property's title deed.

In conclusion, owning a home in the South of France is now achievable for non-residents with our new GMG Luxury France Mortgages! I hope I get an invite to visit you one day! 

Global Mortgage Group offers innovative financing solutions to meet the diverse needs of our global clientele, including Overseas Expats, Foreign Nationals, Family Offices, Investment Funds, High-Net-Worth Clients, and Private Banks. Contact us at [email protected] to start your Riviera investment journey today!

If you have any questions, please feel free to contact me directly at [email protected] or my personal mobile +65 9773-0273. 

www.gmg.asia

Global Mortgage Group Successfully Funds $38.5 Million Singapore Asset-Based Bridging Loan for Good Class Bungalow

International Mortgage Lenders

Global Mortgage Group (GMG), a leading international mortgage originator, is proud to announce the successful funding of a $38.5 million asset-based bridging loan for a luxury Good Class Bungalow (GCB) property in Singapore. The loan enabled the owner to complete the acquisition of another company by leveraging on this prime real estate. 

With a strong commitment to empowering Singapore real estate investors and homeowners with bespoke financial solutions, GMG specialises in catering to the unique needs of high-net-worth (HNW) individuals and foreigners seeking to access liquidity without the need for a deep dive into personal and company financials. GMG offers these customised liquidity solutions worldwide, including U.S.A., Australia, U.K., Canada, Thailand, Philippines, Hong Kong, and Dubai. 

Located in one of Singapore's most sought-after neighbourhoods, the GCB offers unrivalled luxury and privacy, making it a prime investment in Singapore's thriving property market. The loan was structured to meet the client's funding needs and exit timeline at a 72% LTV (loan-to-value) with an 18-month interest servicing-only tenor. This closing marks GMG's successful funding in excess of over $350 million in bridging loans in Singapore this year alone. 

"We are thrilled to have facilitated this substantial asset-backed bridge loan for our client. Our team of experienced financial analysts structured a tailored solution that met the client's specific requirements, enabling them to capitalise on this unique investment opportunity to expand their business. From the initial discussion to funding, the process took only 12 days." said Madel Tan, Singapore Head for Global Mortgage Group. "We have seen an upward trend in market demand for bridging loans that offer flexibility and liquidity to our HNW clients."

GMG's expertise in providing efficient asset-based bridge loans for high-value properties allows their clients access to an extensive network of lenders with bespoke programs. Their commitment to excellence extends to simplifying what is often a complex real estate transaction. 

About Global Mortgage Group:

Global Mortgage Group is a leading international mortgage originator that specialises in offering customised financial solutions for high-net-worth individuals and foreign investors. With a track record of successfully funding significant real estate transactions in Singapore and globally, Global Mortgage Group provides flexible and personalised mortgage options to meet the diverse needs of its clients worldwide.

For more information, please visit  www.gmg.asia  or get in touch with Madel Tan, Director and Head of Singapore at, +65 9634 5623 or [email protected].