Author: Premela R.

20 Famous Real Estate Investing Quotes.

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America Mortgages is proud to bring you these quotes from some of history’s smartest people. In their own simple yet clever way, each quote shows that real estate could be the best way to increase wealth.

Real estate is a numbers game. But that doesn’t mean a few words can’t help investors dominate the market. Real estate investing is an extremely emotional pursuit. Between investors’ swing moods, that many times drives the market, to the risks that are involved with investing, emotions can sometimes run high. America Mortgages has a unique line of mortgage products regardless of where in the U.S. you’d want to invest.

Enjoy the selection of quotes from history’s greatest minds and investors, including Warren Buffett, Mark Twain, and Teddy Roosevelt. So the next time you need a little motivation to keep going, here are a few quotes for you to reflect on.

1) Real estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense, paid for in full, and managed with reasonable care, it is about the safest investment in the world.
Franklin D. Roosevelt, U.S. president

2) Buy land, they’re not making it anymore.
Mark Twain, writer, and humorist

3) Ninety percent of all millionaires become so through owning real estate. More money has been made in real estate than in all industrial investments combined. The wise young man or wage earner of today invests his money in real estate.
Andrew Carnegie, billionaire industrialist

4) Buy on the fringe and wait. Buy land near a growing city! Buy real estate when other people want to sell. Hold what you buy!
John Jacob Astor, real estate and business mogul

5) In the real estate business, you learn more about people, and you learn more about community issues, you learn more about life, you learn more about the impact of government, probably than any other profession that I know of.
Johnny Isakson, U.S. senator

6) Some people look for a beautiful place. Others make a place beautiful.
Hazrat Inayat Khan, spiritualist

7) Games are won by players who focus on the playing field—not by those whose eyes are glued to the scoreboard. If you instead focus on the prospective price change of a contemplated purchase, you are speculating. There is nothing improper about that. I know, however, that I am unable to speculate successfully, and I am skeptical of those who claim sustained success at doing so.
Warren Buffett, billionaire investor

8) Landlords grow rich in their sleep without working, risking, or economizing.
John Stuart Mill, political economist

9) Every person who invests in well-selected real estate in a growing section of a prosperous community adopts the surest and safest method of becoming independent, for real estate is the basis of wealth.
Theodore Roosevelt, U.S. president

10) Don’t wait to buy real estate. Buy real estate and wait.
Will Rogers, actor

11) Buying real estate is not only the best way, the quickest way, the safest way, but the only way to become wealthy.
Marshall Field, entrepreneur

12) I still think buying a home is the best investment any individual can make.
John Paulson, billionaire

13) I have always liked real estate, farmland, pastureland, timberland, and city property. I have had experience with all of them. I guess I just naturally like ‘the good Earth,’ the foundation of all our wealth.
Jesse Jones, entrepreneur

14) If you’re not going to put money in real estate, where else?
Tamir Sapir, business mogul

15) To be successful in real estate, you must always and consistently put your clients’ best interests first. When you do, your personal needs will be realized beyond your greatest expectations.
Anthony Hitt, real estate professional

16) The best investment on Earth is Earth.
Louis Glickman, real estate investor

17) A funny thing happens in real estate. When it comes back, it comes back up like gangbusters.
Barbara Corcoran, real estate investor

18) It is a comfortable feeling to know that you stand on your own ground. Land is about the only thing that can’t fly away.
Anthony Trollope, novelist

19) In my experience in the real-estate business, past success stories are generally not applicable to new situations. We must continually reinvent ourselves, responding to changing times with innovative new business models.
Akira Mori, real estate developer

20) Now, one thing I tell everyone is to learn about real estate. Repeat after me: real estate provides the highest returns, the greatest values, and the least risk.
Armstrong Williams, entrepreneur

Real estate investors need to stay motivated and open to new ideas, loan programs, and suggestions. Hopefully, these quotes will help prospective investors and veterans alike get there.

For more information, please contact [email protected].

You Don’t Have To Be A U.S. Citizen To Get A U.S. Mortgage.

Foreign national loans for non-residents

US Mortgages for non Residents

Yes, you read that correctly. You don’t have to be a citizen to get a U.S. mortgage.

If you’re a permanent resident alien, you’ll need your green card and your social security number. Your mortgage application process will be very similar to that of U.S. citizens.

If you’re a non-permanent resident alien, you don’t have a green card, but you have a social security number or ITIN. You can finance a home if you produce a work permit (Employment Authorization Document) or special employer-sponsored visa. Lenders must verify that you’ll be able to live and work in the country for at least three years.

Non-U.S. citizens without lawful residency in the U.S. are not eligible for Fannie Mae, Freddie Mac, or FHA home loans. There are two sorts of non-citizen homebuyers in the United States — the resident who wants a primary residence and the non-resident who wants a vacation or investment property in the U.S. Each buyer may finance a property with a foreign national mortgage, but the loans are not alike.

Permanent resident aliens

Both permanent and non-permanent resident aliens can obtain mortgages in America, pretty much like everyone else. They can even get Fannie Mae and Freddie Mac home loans with as little as three percent down once they live in the U.S..

The documentation requirements depend on the borrower’s status.
If you’re a permanent resident alien, you’ll need your green card and your social security number. Your mortgage application process will be very similar to that of U.S. citizens.

Non-permanent resident aliens

Suppose you’re a non-permanent resident alien, meaning you don’t have a green card, but you have a social security number. In that case, you may be able to finance a property if you produce a work permit (Employment Authorization Document) or special employer-sponsored visa.

Lenders must verify that you’ll be able to live and work in the country for at least three years. If your permit is going to expire within a year, your lender must evaluate your likelihood of remaining in the country and decide accordingly.

Foreign national loans for non-residents

Before America Mortgages’ Foreign National Mortgage programs, it was a lot harder for borrowers outside the U.S. to finance second homes or investment properties in the U.S. These are riskier for lenders. Hence, they carry higher interest rates, often above 8%.

Borrowers also used to have to make much larger down payments — on average, 50 percent. However, that has all changed with America Mortgages’s specialized programs.

Two of the most popular programs;

– America Mortgages FNSTATED: This is a perfect program for borrowers that either can’t show the required income for various reasons such as self-employment, lumpy income, or just a privacy concern. This program doesn’t require any income verification, U.S. credit, or residency and has a high LTV of 70 percent.

– America Mortgages FNFull: This is a perfect program for a borrower to show their foreign tax returns and income statements just as a U.S. citizen would. Rates are on par with what a U.S. citizen would pay, and the LTV can go as high as 50 percent without reserves required.

America Mortgages is the ONLY Asia-based U.S.-focused Real Estate financing firm with offices in Singapore, Hong Kong, and Shanghai. The ability to open an application and close a loan without ever leaving Asia may be unique, but we do it every day.
Borderless mortgages. Easy.

What about U.S. credit scoring?

One challenge foreign borrowers face is the lack of credit history. It can take years to accumulate enough credit history to generate a good score. Or any score.

However, there is help for those with so-called “thin files” or No Credit. America Mortgages can accept either a bank reference letter or a foreign credit report instead of a standard U.S. credit report. This is a unique feature and sets America Mortgages apart from other U.S. based lenders and brokers.

What about U.S. Expats?

Are you a U.S. Expat, files U.S. Taxes but work for a foreign company and don’t receive a W2? Oh, boy! We’ve got a great program for you! Our America Mortgages Expat mortgage program is as easy as walking into your local bank in “Small Town, USA.” We look at your foreign income just as we would if it was paid in USD. Your W2 is offset with other documents, and your loan is processed just as it would if you were in the U.S. It’s that easy! Although it does require sufficient U.S. credit for these programs.

However, if U.S. credit isn’t an option because you’ve been abroad for many years … we have thought of that as well. We have programs for these borrowers as well.

America Mortgages welcomes everyone!

With over 40+ combined years of experience in U.S. mortgage banking and Asia private banking, America Mortgages knows the type of borrowers, their problems and hurdles, and how to resolve these issues in the same time zone, without the learning curve, U.S. based banks/brokers may have. America Mortgages welcomes anyone looking to invest or refinance U.S. Real Estate. We have programs for almost every type of borrower regardless of their passport.

For more information, please contact [email protected].

Is There An Age Limit For Getting A U.S. Mortgage?

Age Limit - U.S. Mortgage

Becoming a real estate investor is often seen as one of the universal signs of personal financial achievement, no matter what your age. While, technically, in the U.S., 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 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 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. According to the Consumer Financial Protection Bureau, 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. 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 age, but states 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, including 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 specific credit history, meaning they may not have enough credit history to meet the 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, the minimum down payment for a non-citizen is 30%. U.S. 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 U.S. credit score.

THE RISKS OF TAKING OUT A MORTGAGE AT AN OLDER AGE

Just because you can legally take out a U.S. mortgage at any age doesn’t mean it’s always 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 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 homeownership’s regular costs. Also, keep in mind that if you’re handy around the house and have been able to do your 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.

America Mortgages has programs that do not require income proof, which may help obtain a mortgage at an older age where income may be sporadic.

For more information, please contact [email protected].

Singapore high tech manufacturing company identifies Texas as a manufacturing hub.

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The Client

The beneficial owner has had a connection to Texas having studied Electrical Engineering at the University of Texas. He has a modest portfolio of investment property in which he paid historically 100% with cash because of the lack of financing options.

How We Helped

Given his affinity towards Texas and the tax breaks it offers value-added manufacturers, our client chose Dallas as his U.S. headquarters. He came to us from a referral by our former client and we were able to provide the investor a financing option. This would allow him to use leverage to purchase a larger building than he originally had the cash to purchase. The building provides a positive cash-flow and is in a market with a very positive real estate outlook.

We were able to secure a non-recourse 7-year commercial real estate loan for the purchase of the property with 65% leverage.

Loan Details

NationalityProperty ValueLoan AmountLTVRate
Singapore Listed Company$5,150,000$3,347,00065%5.5%
TermStateProperty TypePurposeLoan Type
7 year fixed loan /
25 year amortization		TexasCommercial – IndustrialPurchaseCommercial

75% LTV U.S. Foreign National Loan.

U.S. Foreign National Loan

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 U.S., mortgages work differently than the mortgages in most of the other countries:

  • There are NO age restrictions
  • The buyer can be 85 + years old and eligible for 30 years mortgage term
  • For our 75% LTV loans, the asset is the determining factor, and not the borrower’s income
  • Life insurance is not required
  • NO pre-payment or redemption penalty
  • No tax returns or liquid reserves are required
  • In many cases, the seller is allowed to pay up to 3% of the purchase price for buyers closing cost

Our minimum 30% down payment foreign national mortgage program enables foreign nationals, non-U.S. residents, or employment transferees to place a minimum 30% down payment and finance up to 75% of the property value. Most of the lenders still require a 50% down payment to obtain a foreign national mortgage loan, but we can arrange financing with as little as 30% 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. The borrower must have verifiable funds for the down payment, closing cost in a verified financial institution in or outside the U.S. 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 unlimited cash-out option (restricted by loan limits).

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

Here are some of the loan program features:

  • Minimum 30% down Payment
  • 5.75% Interest rate (right now. Does not include APR)
  • The term: 30 years, 20, and 15 years fixed
  • Loan amounts up to $5M
  • No pre-payment penalty
  • 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 please visit us online or email us at [email protected].

A Real Estate investor from Canada purchases a retail complex in California.

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The Client

The client had come to us from an online search and told us that he spent 4 months working with traditional commercial lenders with the hopes of obtaining financing for their retail purchase.

How We Helped

Unfortunately, the lender always came back requesting more information, most of which our client did not have, due to not being a U.S. Entity or beneficial owners who are not U.S. Citizens.

We have worked closely with our lending partners over the past 5 years to create financial solutions to accommodate international investors and can structure and underwrite the loan with the information available.

We were able to secure a non-recourse 5-year commercial real estate loan for the purchase of the property with 60% leverage. (Also see Can a Canadian Buy a House in the USA?)

Loan Details

NationalityProperty ValueLoan AmountLTVRate
Canadian$4,100,000$2,460,00060%4.99%
TermStateProperty TypePurposeLoan Type
5 year fixed loan /
25 year amortization		San Jose, CaliforniaRetailPurchaseCommercial

U.S. fashion designer living in Sao Paulo buys a second home in Miami.

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The Client

An up and coming fashion designer with dual Brazilian and U.S. passports wanted to buy a home in Miami, where she grew up. She is self-employed and therefore it doesn’t show on her U.S. tax returns her true ability to service the loan.

How We Helped

For self-employed clients, showing the ability to repay the debt can be challenging. Although the tax returns may not reflect her ability to repay the loan, her cash-flow is significant. We were able to find her a loan that did not require any tax returns and went strictly off the cash-flow (rental amount) from the property.

Loan Details

NationalityProperty ValueLoan AmountLTVRate
U.S. Citizen$1,725,000$1,380,00080%4.50% interest-only payments
TermStateProperty TypePurposeLoan Type
5/1 ARMMiami, FloridaSingle-Family Residence (SFR)PurchaseResidential

What is the ‘Term’ in a mortgage?

America mortgages

A mortgage term indicates the total duration of a mortgage. You will pay the lender monthly installments during this period and finally own the home after clearing off the last installment. The term of a mortgage starts from drawing the funds from the lender institution and ends on the expiry date when you need to repay the lender.

America Mortgages offer loan terms as long as 30 years (for fixed-rate mortgages) and as short as 5 years (for adjustable-rate mortgages). There are even shorter terms available, known as Bridge loans. These special loans can be as short as six months to up to one year and are excellent for procuring immediate cash-flow.

Most financial institutions offer these loans to commercial bodies like investors and constructors, but America Mortgages serves individual clients and the guarantee of some form of collateral.

If you can afford the higher monthly installments, a short-term mortgage saves plenty of money down the road. The explanation is quite simple: the longer the mortgage term, the more is the sum of the payable interest. As the interest rate is primarily front-loaded, the interest amount of a 30-year mortgage would be higher than that of a 10-year loan during the early years.

Similarly, ARM is more financially beneficial than fixed-rate loans if you can pay off the loan during the first interest cap. However, fixed-rate loans are better for people with a limited income. So, you should choose a mortgage term carefully, considering your future plans and current income sources.

America Mortgages Introduces U.S. Bridge Lending.

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

America Mortgages Bridge is a unique arrangement with various funds globally that gives America Mortgages the ability to source immediate asset-based capital in most countries worldwide. America Mortgages has funds and lending partners specializing in U.S.A., SE Asia, Central Asia, Europe, Central America, and the Caribbean. These unique relationships and volume give America Mortgages a lot of negotiating power on behalf of the client.

“Regardless if you’re in the U.S., Singapore, Hong Kong, HCMC, or Phnom Penh, America Mortgages Bridge is a viable short-term financing option to 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 | America Mortgages

AMERICA MORTGAGES 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
  • – Financing a project beyond standard bank limits
  • – Pay off debt

“When America Mortgages issues a bridge loan, a viable exit strategy is in place before the loan ever funds. Normally America Mortgages Bridge loans, regardless if they are in Vietnam, Cambodia, Hong Kong, or the U.S., 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 America Mortgages’ commercial or residential mortgage programs.”Robert Chadwick | America Mortgages

Often America Mortgages Bridge financing is a cheaper alternative to the standard hard money or private lending options, while just as flexible underwriting and fast with the turn around 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. America Mortgages Bridge has normal terms of 12-36 months with interest-only payments.

America Mortgages provide 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 on 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].