Author: Premela R.

Hot Investment Theme: Student Housing + Cities to invest in

Hot Investment Theme

When making an investment decision, whether we know we are doing it or not – we put them into strategies – rumours, hot tip, value, momentum, growth, high dividend etc.

Investing in real estate is no different – what is your strategy?

  • Capital appreciation
  • Owning near a relative
  • Trophy asset
  • Potential immigration
  • Distressed
  • BRRRR Method
  • Student housing
  • Elderly homes
  • AirBNB

List goes on…

In this article, let’s talk about student housing, one of the hottest real estate investment strategies at the moment.

It’s fairly logical –

Supply of on-campus housing has not changed over the past 30 years.

Meanwhile, the unprecedented wealth created globally has driven applicants from all over the world into U.S. universities. It’s much easier hiring more teachers and building teaching facilities than student housing. It’s also much sexier for donors to have their name on a Medical School than a dormitory.

Off-Campus Housing Trends

Moving off-campus used to be affordable, but not anymore. Moody’s analytics show that off-campus housing is now pricier than on-campus dorms in over 70 public universities. Rental prices surged by nearly 30%, burdening students with debt. In places like Austin, Texas, students opt for $1,300/month windowless rooms, which are affordable and highly sought after.

National Average - OFF Campus Student Apartments

Globally, investors are eyeing student apartments for their rapidly increasing value. Over 40% of last year’s purchases came from major investors, highlighting its global appeal. CoStar analyst Chad Littell said, “Where is capital going in the commercial real-estate space? It’s following rent growth, and student housing is showing some of the strongest rent growth.”

In 2022, Blackstone spent $13 billion to purchase American Campus Communities, aiming for regions with high demand. They acquired the Crest at Pearl in Austin, where rent for windowless rooms spiked 25% from 2016 to 2024, nearing $1,300. Around 10% of the Crest’s bedrooms lack windows, with renting a bed in a windowless unit costing up to $1,500.

Top College Towns for Real Estate Investment

Investing in college towns is a savvy choice for international investors. With new students and faculty each year, the demand for housing remains consistently high, resulting in robust home values and rent price growth. According to a recent Roofstock article, here are the top 10 college towns where investing in rental property can be particularly lucrative:

1. Austin, TX

Austin is a vibrant city known for its thriving tech industry, home to the University of Texas at Austin, Concordia University, and Austin Community College. Often referred to as “Silicon Hills” due to its concentration of high-tech companies and STEM graduates, Austin offers a dynamic environment for real estate investment.

  • Population: 965,872
  • Educational Attainment (Bachelor’s degree or higher): 53.4%
  • Median Home Values: $676,077 
  • Change in home values: 38.6%
  • Median Rent (3-bedroom home): $2,396
  • Rent change: 20%
  • Renter-occupied Households: 61%

2. Ann Arbor, MI

Ann Arbor is a charming city known for its academic excellence, home to the prestigious University of Michigan. The university’s research infrastructure attracts high-tech employers, making Ann Arbor an attractive destination for real estate investment.

  • Population: 121,093
  • Educational Attainment (Bachelor’s degree or higher): 77.3%
  • Median Home Values: $470,751 
  • Change in home values: 12.6%
  • Median Rent (3-bedroom home): $2,550
  • Rent change: 6%
  • Renter-occupied Households: 48%

3. Provo, UT

Provo is a picturesque city nestled along the Wasatch Front, renowned for being home to Brigham Young University, one of the largest private universities in the U.S. With its growing student population and thriving community, Provo offers promising opportunities for real estate investors.

  • Population: 116,886
  • Educational Attainment (Bachelor’s degree or higher): 42.9%
  • Median Home Values: $491,290
  • Change in home values: 27.9%
  • Median Rent (3-bedroom home): $1,598
  • Rent change: 25%
  • Renter-occupied Households: 57%

4. Orlando, FL

Orlando is a bustling city known for its diverse economy and vibrant culture, home to the University of Central Florida and Florida State University College of Medicine. With its strategic location and growing population, Orlando presents exciting opportunities for real estate investment.

  • Population: 284,817
  • Educational Attainment (Bachelor’s degree or higher): 40%
  • Median Home Values: $354,259
  • Change in home values: 27.5%
  • Median Rent (3-bedroom home): $2,309
  • Rent change: 28%
  • Renter-occupied Households: 55%

5. Oxford, OH

Oxford is a quaint college town in northwestern Ohio, home to Miami University, renowned for its academic excellence. With its charming atmosphere and vibrant student community, Oxford offers unique opportunities for real estate investment.

  • Population: 23,192
  • Educational Attainment (Bachelor’s degree or higher): 64.4%
  • Median Home Values: $284,054
  • Change in home values: 14.2%
  • Median Rent (3-bedroom home): $923
  • Renter-occupied Households: 63%

6. Gainesville, FL

Gainesville is a dynamic city known for its academic prowess, home to the University of Florida, a hub for high-growth enterprises and startups. With its thriving economy and diverse population, Gainesville presents promising opportunities for real estate investment.

  • Population: 133,611
  • Educational Attainment (Bachelor’s degree or higher): 47.9%
  • Median Home Values: $268,381
  • Change in home values: 20.1%
  • Median Rent (3-bedroom home): $1,699
  • Rent change: 13%
  • Renter-occupied Households: 52%

7. Scottsdale, AZ

Scottsdale is a rapidly growing city bordered by Tempe to the south, home to Arizona State University. With its thriving economy and diverse population, Scottsdale offers attractive opportunities for real estate investment.

  • Population: 254,995
  • Educational Attainment (Bachelor’s degree or higher): 59.5%
  • Median Home Values: $820,126
  • Change in home values: 30.7%
  • Median Rent (3-bedroom home): $3,995
  • Rent change: -2.0%
  • Renter-occupied Households: 20%

8. West Lafayette, IN

West Lafayette is a charming city in northwestern Indiana, home to Purdue University and several private schools. With its strong educational infrastructure and vibrant community, West Lafayette offers promising opportunities for real estate investment.

  • Population: 230,353
  • Educational Attainment (Bachelor’s degree or higher): 35.3%
  • Median Home Values: $324,806
  • Change in home values: 21.8%
  • Median Rent (3-bedroom home): $1,563

9. Rexburg, ID

Nestled in southeast Idaho, Rexburg is a thriving city known for Brigham Young University-Idaho, which drives both the economy and housing demand. With its significant growth in recent years, Rexburg offers great opportunities for real estate investment.

  • Population: 39,409
  • Educational Attainment (Bachelor’s degree or higher): 43.4%
  • Median Home Values: $406,426
  • Change in home values: 20.7%
  • Median Rent (3-bedroom home): $1,548
  • Rent change: 64%
  • Renter-occupied Households: 70%

10. College Station, TX

College Station, situated between Houston and Austin, hosts Texas A&M University, known for its federal agency-funded research projects. With its strategic location and strong educational institutions, College Station presents promising prospects for real estate investment.

  • Population: 115,802
  • Educational Attainment (Bachelor’s degree or higher): 57.8%
  • Median Home Values: $304,183
  • Change in home values: 14.2%
  • Median Rent (3-bedroom home): $1,450
  • Rent change: 8%
  • Renter-occupied Households: 68%

AM Student+ Loan Program

With the AM Student+ loan program, parents can easily secure financing to purchase condos near their child’s chosen university. Whether opting for a condo as an investment or a residence for their child during academic years, the program offers up to 75% financing across all 50 states, ensuring accessibility and convenience. 

This loan program simplifies securing housing for university-bound children by providing hassle-free mortgage qualification without the need for personal income documentation. By leveraging the property’s projected rental income rather than personal income, AM Student+ streamlines the qualification process. Highlights include qualification based on rental income, flexible loan amounts ranging from $150,000 to $3 million, and no requirement for U.S. credit history. 

Investing in suitable housing for your children’s university years is now more attainable than ever with the AM Student+ mortgage loan program. Don’t miss out on this opportunity to provide your children with a stable and safe place to live during their academic journey. Contact us today to learn more about how AM Student+ can help you make university housing a reality for your family.

[email protected]

Smart Real Estate Tools for Sophisticated Investors: AM Bridge

Foreign Mortgage Loan | Investing In Mortgage Loans

Bridge loans are short-term financing solutions, usually obtained for a duration ranging from several months to a couple of years. They serve to bridge the gap until longer-term financing or an exit strategy, such as a property sale, can be arranged. These loans are essential when immediate financing is necessary but not readily accessible.       

For investors, bridge loans allow them to secure a mortgage using their existing property’s equity, facilitating the down payment for a new home. They are also advantageous for individuals looking to buy a new home before selling their current one and businesses requiring funds for operational expenses while awaiting long-term financing.       

Introducing AM Bridge

AM Bridge, once reserved for the wealthy, is now available to all. Real estate investors, typically rich in assets but lacking in cash, often find their wealth tied up in properties or other ventures. Accessing these funds might involve sacrificing a stake in their business or losing influence over its future, which may not be ideal.       

Not every real estate investor has money just sitting in their bank account readily available to fund a property immediately. In today’s fast-paced market, where acquiring good properties requires quick decisions, having substantial funds available right away is important. America Mortgages now offers this powerful funding option to everyone.

Common Uses of Bridge Loans

  • Finalizing the sale of your old property before buying a new one
  • Buying a new property based on its asset value before it’s completed
  • Covering initial purchase costs or refinancing
  • Acquiring land for commercial development
  • Obtaining a cash-out bridge loan for short-term personal or business needs

Market Dynamics

In times of economic uncertainty, businesses opt for bridge loans due to their quick processing and flexibility, which stands in contrast to the inflexible nature of conventional lending. This quick and flexible financing solution enables companies to swiftly access capital, addressing immediate financial needs and seizing time-sensitive opportunities.

Challenges and Solutions

When considering short-term loans, it’s important to look at your situation and needs. Even though regular options exist, short-term bridge loans can be better, especially when you need money quickly for urgent deals.   

Case Study: Bridge Loan Unlocks U.S. Investment Opportunity

Challenge: An Australian investor seeks a lucrative California U.S. property investment valued at $1.5 million. However, delays in selling their current property could jeopardize the opportunity.

Solution: Leveraging AM Bridge, the investor secures $1,125,000, covering 75% of the U.S. property’s value.

Benefits: Prompt access to funds enables the investor to seize the U.S. opportunity, initiate rental income, and capitalize on market potential. Upon selling their current property, proceeds will repay the bridge loan.

This case study exemplifies AM Bridge’s ability to empower investors to seize U.S. market opportunities despite temporary cash flow limitations from ongoing property sales overseas.

AM Residential Bridge Loan
Palo Dobrik Photography LLC

Short-Term vs. Long-Term Financing

Long-term financing involves more rules and regulations, making it slower to obtain. On the other hand, bridge loans offer a quicker solution, typically provided by flexible lenders. It’s worth noting that while bridge loans provide speed, they may carry slightly higher risks and interest rates. However, when used wisely, they can be valuable tools for seizing opportunities and adapting to changing circumstances. Our goal is to find you a solution that works with your situation with a long-term solution and exit from the bridge loan.

For further inquiries about AM Bridge, reach out to us via email at [email protected] or visit www.americamortgages.com. If you’d like to schedule a commitment-free meeting with one of our U.S. loan officers to explore your U.S. mortgage options, here’s our 24/7 calendar link.

Q&A: Managing U.S. Property from Abroad

Mortgage For Foreigners | Foreign National Mortgage

During our recent webinar titled “Managing U.S. Property from Abroad,” hosted by Phil Gerathy (PG), Managing Director at Austplan Management Inc, and featuring America Mortgages’ CEO Robert Chadwick (RC), they addressed numerous questions regarding property management in the U.S. and financing options for investors. For those who missed the webinar, the recording is available here.

Phil Gerathy and Robert Chadwick have dedicated time to provide detailed responses to the questions received, with remarks edited for clarity and brevity.

Remarks have been edited for clarity and brevity.

Q: A friend of mine had an investment property in the U.S.; however, communication was a problem. Can I be assured of ease in communication?

PG: Yes, ease of communication is ensured. Offices are available in Southeast Asia, Australia, and the United States, with staff reachable via various means, including WeChat, WhatsApp, telephone, and email, regardless of time zones.

Q: This may sound like a basic question, but how can you assure me I won’t have to worry about my property?

PG: Assurance comes from 16 years of experience and a reliable infrastructure. The team at America Mortgages and Austplan Management knows how to deliver peace of mind through effective communication and proven referrals.

Q: What question do foreign investment property buyers ask the most?

RC: The most common question concerns how to get started. Many potential investors living abroad wonder how to begin the process of acquiring property in the U.S.

Q: Could you provide an overview of your service fees, including approximate figures?

Please contact us for specific chargers for services.

Q: How exactly do you deploy people all over the U.S.? For instance, if I buy property in San Francisco but you don’t have a presence there, you mentioned having someone in Los Angeles. Can you explain how this works?

PG: In locations without a resident office, the closest individual is called upon to handle the property. Infrastructure for property management can be established remotely from the head office in Dallas, Texas.

Q: I am ready to go, but my wife is extremely risk-averse. Do you have reference/referrals of happy clients that we could communicate with (for both the mortgage and the property management service)?

RC: References or referrals of satisfied clients are available upon request. Both America Mortgages and Austplan Management can provide contacts for potential clients to communicate with.

Q: Can you do 30-year variable rates?

RC: Yes, 30-year variable rates are offered.

Q: Which states do you manage properties in?

PG: Properties are managed in various states across the U.S., including west coast states, Texas, Florida, New York, New Jersey, Michigan, and Washington state.

Q: Can I visit your team in Dubai?

RC: Yes, arrangements can be made to meet with team members in Dubai.

Q: Are there any issues with purchasing a couple of low-value properties that would total a similar amount to a 200k loan?

RC: Yes, there are potential loan programs that could accommodate the purchase of multiple low-value properties totalling a similar amount to a $200,000 loan. We would need to discuss your specific situation with one of our loan officers to determine the best options available to you. If this is something you’re interested in pursuing, we can explore the possibilities and tailor a solution to meet your needs.

Q: Do you offer HELOC for foreign nationals wanting to purchase in the U.S.?

RC: HELOCs, which is a home equity line of credit or a second mortgage, are not available for foreign nationals, but options may exist for U.S. expats.

Q: American citizen living overseas 20+ years with no U.S. credit anymore.. Which program would apply to me? U.S. expat or foreign investor?

RC: American citizens living abroad can qualify using credit from the country they reside in. You can potentially qualify as U.S. expats after re-establishing your U.S. credit, which may offer better pricing, and can later refinance into a U.S. citizen rate.

Q: Firstly, thank you for the presentation. Just wondering about the deal for tenants. What is the standard renovation deal for tenants? Two years, or if I have intentions to move to the US in the short term, can I request my property before the end of the term? And can I sell my property to buy a new one?

PG: The standard lease period ranges from either one or two years. It’s 50-50. Some people will sign a one-year lease and then extend, and that process means that we get involved in the negotiation to increase the rent in the second year, some tenants will sign a two-year lease where we’ll lock in a rate, but that’s higher than what it would be if it was a one year lease. Rarely, do we get much past a two-year lease, but we do have several people that will stay on and we have tenants that have been in houses for three and four years. We just continually renew the lease and adjust the rent.

Q: Should I get an IPA before I buy this property?

A: Yes, it’s advisable to obtain a pre-approval before purchasing a property to understand current rates, mortgage payments, and ensure readiness to make an offer. Pre-approval is typically required before entering into a purchase agreement.

Q: Approximate rates for these programs at the moment?

RC: For US citizens, current rates for a 30-year fixed mortgage are around 7%. For expats or foreign nationals, rates are typically 0.75% to 1% higher.

Q: Application fees?

RC: There are no application fees charged for completing the mortgage application process. Pre-approval can be obtained within 72 hours, and fees are only paid at the close of the transaction, typically around 2% of the loan amount.

Q: I have 21 condos, all in the Fort Lauderdale area. Nine different complexes. What is the cost of property management for each/all units?

PG: Property management fees are typically based on the gross monthly rent and can range from 5% to 8%, depending on factors such as the number of properties owned.

Q: How can I help my kids build a credit score if I only buy one property?

RC: It’s going to depend on how you structure the loan. But if that is a requirement for the loan, children can be added to the loan as long as they obtain an ITIN (Individual Taxpayer Identification Number) to start building credit.

Q: Are we able to speak to a few current long-term customers on their experience using you as their property manager?

PG: Yes, references from current long-term customers can be provided upon request to confirm the quality of service provided.

Q: What’s Austplan’s fees for property management?

PG: We don’t charge any fees for hands-on or day-to-day management of the property. We charge one fee, and that’s a monthly management fee based on the gross rent that we receive. If the property is not tenanted, we don’t charge the management fee. We only charge a management fee once the tenant has been located and has moved in. Property management fees typically start at 8% of the gross monthly rent for a single property and can be negotiated down to around 6% for multiple properties.

Q: Can New York offices manage or sublet management properties in Philadelphia?

PG: Yes, properties in different cities can be managed from a central office, with local personnel handling on-site maintenance and specific city-related issues.

Q: How often do you make regular site visits to properties under your management?

PG: Site visits are typically conducted every six months, with additional visits as needed based on tenant or homeowner association requirements.

Q: What is the average amount of expenses paid before the property has positive cash flow? Management, taxes, insurance, maintenance, and other costs?

PG: Excluding interest on borrowings, properties can achieve positive cash flow from the second month of a tenant moving in.

Q: Since the current interest-only mortgage rates are high, why would I want to go for a fixed rate over five or ten years? How do I take advantage of these drops in two to three years?

RC: Fixed-rate mortgages offer stability and predictability in payments over the long term, providing peace of mind. While rates may drop in the future, fixed-rate mortgages ensure consistent payments and protection against potential rate increases.

Q: Do you help manage short-term rentals such as Airbnb?

PG: Currently, short-term rental management, such as Airbnb, is not offered due to homeowner association restrictions and concerns about day-to-day management. However, exploratory efforts are being made for certain property types.

Q: Can you manage large multifamily or apartments with a lot of units? If so, what is the maximum number of units, and how would that work with the rates?

PG: Yes, large multifamily properties with numerous units can be managed, with on-site management often required for larger buildings. Rates typically start at around 5% of gross rent for large properties.

Q: Are management fees tax deductible?

PG: Yes, management fees are typically tax-deductible expenses, along with other property-related costs, helping to reduce tax liability.

Q: How do you manage repairs and repair costs?

PG: Repairs and maintenance are managed through a panel of qualified tradespeople, with tenants initiating maintenance requests through a management platform. Repairs over a certain threshold are approved by property owners.

Q: Can you manage properties in Austin, Texas, Atlanta, Georgia, Nashville, Tennessee, Charlotte, and Raleigh, North Carolina, Indianapolis, Indiana, and three cities in Florida?

PG: Yes, properties in various cities and states can be managed remotely, with local personnel handling on-site management and specific city/state requirements.

Q: What are the costs of refinancing a property to a lower rate?

RC: Refinancing costs depend on current rates, loan terms, and specific state requirements. These costs include brokerage fees, title insurance, appraisal fees, and other related expenses.

Q: Phil, are you based in Brisbane?

RC: Yes, Phil is based in Brisbane, Australia, but travels frequently to various offices in the United States for business purposes.

Q: Do you process a loan for a foreign national under my LLC, registered in Delaware instead of under my individual name?

RC: Yes, loans can be processed for foreign nationals under an LLC, with the individual being responsible for the loan while the property ownership can be held by the LLC.

Qualify Using Rental Income Only with AM’s No Ratio Mortgages

International Home Loans | Rental Income

Do you know what “Common sense” underwriting is? Common Sense underwriting is how America Mortgages qualifies U.S. investment properties for non-resident (foreign national and U.S. expat) real estate investors.

Think about it; if you were to buy a large commercial building, would you qualify on your personal income or the cash flow of the property? You’d qualify on the latter. That is how America Mortgages qualifies our clients when purchasing or refinancing U.S. real estate, regardless of loan size. It just makes sense. 

So, if you are thinking about investing in U.S. real estate but are concerned about your debt-to-income ratio or want the flexibility of not providing your personal income documents, our No Ratio Mortgage Loans could be the solution you need. America Mortgages offers a No Ratio Loan Program designed for U.S. expats and foreign national investors with common-sense underwriting. If the property can support the mortgage, the loan qualifies. It’s literally that simple. 

This type of financing doesn’t focus on your debt-to-income ratio like traditional loans do. It gives borrowers a more flexible way to qualify for a mortgage.

With No Ratio Mortgage Loans, you don’t have to share details about your income and debt levels. This flexibility allows the investor to focus on building their real estate portfolio, while providing the lender the assurance of knowing there is sufficient rental coverage. 

Benefits of No Ratio Mortgages:

Flexible Approval Criteria: Unlike traditional mortgages, our No Ratio Mortgage Loans doesn’t require you to disclose your income or debt levels. Instead, we focus on the property’s ability to generate enough rental income to cover the mortgage expense. 

Quick Processing: With fewer documentation requirements, our streamlined application process means you can receive approval for your loan faster than with conventional mortgages, allowing you to capitalize on investment opportunities quickly.

Privacy Protection: We understand the importance of privacy, especially for U.S. expats and foreign national investors. With AM’s No Ratio Loan Program, you can secure financing without having to divulge sensitive income details.

Higher Loan Amounts: Our program offers loan-to-value ratios as high as 75%, allowing you to finance properties with substantial value without being limited by traditional underwriting criteria.

Diverse Loan Options: Whether you’re interested in a 30-year fixed-rate mortgage or a 10-year fixed-interest-only mortgage with a total 40-year tenure, we offer a range of loan terms to suit your investment strategy.

Features:

  • Loan-to-value ratio as high as 75%
  • No tax returns or income verification required
  • No restrictions on cash-out financing
  • Simplified asset verification process
  • Interest-only terms available for investment properties

How to Qualify:

Down Payment: Be prepared to make a down payment of up to 25% or more, depending on the loan amount and property value.

Proof of Assets: You’ll need to provide evidence of your down payment in a bank account for a minimum of 60 days. The account can be in a foreign country.

Income Used to Qualify: When America Mortgages orders your property appraisal, we will request a supplement that states the rental income that could be generated based on the property and area. This will be used to calculate the income needed to qualify.

Is a No Ratio Mortgage Right for You?

If you’re a U.S. expat or a non-resident investor eager to invest in U.S. real estate, our No Ratio Loan Program could be the perfect fit for your investment strategy. Contact us today to discover how AM’s No Ratio Loan Program can help you achieve your goals in the U.S. real estate market. 

If you’d like to schedule a commitment-free meeting with one of our U.S. loan officers to explore your U.S. mortgage options, here’s our 24/7 calendar link.

www.americamortgages.com

How to determine which state to buy in?

International Mortgage Loans | U.S. states

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

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

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

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

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

What drives Demand?

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

What attributes would attract people to move to another state?

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

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

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

What is the Cost of Living?

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

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

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

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

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

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

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

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

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

www.americamortgages.com

Qualify without showing income!

Loans For Non Residents

Banks DO NOT want you to know this!

Millions of homebuyers face this problem every day. 

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

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

Doesn’t that make more sense?   

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

That is exactly how this works!

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

Here’s how it works:

AM Rental Coverage Ratio = 

Gross Rental Income / Total Debt Service ≥ 0.75:1

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

What Is a Good Rental Coverage Ratio?

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

What Factors Affect the AM Rental Coverage Ratio?

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

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

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

2 – Rates will eventually be lowered (cost)

Here’s why:

1 – There is a shortage of 3-7M homes in the U.S. (depending on the publication).

With mortgage rates where they are now, the marginal buyer cannot afford to purchase a home and is forced to rent. This is echoed by many institutional funds looking to acquire as many single-family homes as they can.

Trend = income up

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

Trend = costs down

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

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

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


www.americamortgages.com

Curious About 2024 U.S. Mortgage Rates?

U.S. Mortgage Rates

Curious about what’s happening with mortgage rates in 2024? It’s a hot topic right now. Experts say rates might drop to about 6% after hitting nearly 8% due to recent changes by the Fed. But here’s the deal: understanding these predictions feels like a rollercoaster. Some experts say rates might drop further, while others predict stability or even slight increases. It can all be a bit confusing, especially for non-U.S. citizens and U.S. expat investors who are new to this market.

It’s worth noting that many discussions about future rates do not come directly from the Fed. Instead, they are interpretations made by experts using current economic data. These interpretations can vary widely, making it unwise to rely solely on interest rate predictions when making real estate decisions.

What could interest rate cuts mean for the U.S. 2024 election?

Arriving less than a year before the presidential contest, the announcement raised a separate consideration: What the rate cuts could mean for President Joe Biden’s re-election bid.

“A good economy benefits an incumbent,” Ray Fair, a professor at Yale University who oversees a model that forecasts elections based on economic conditions, told ABC News. “A bad economy goes the other way.” Will this be used as a tool to boost the economy and potentially get Biden re-elected? That seems to be the million-dollar question.

In theory, lower interest rates make borrowing less expensive for businesses and consumers, propelling companies to invest in new projects and everyday people to stretch for bigger purchases. That all should help propel economic growth and buoy consumer optimism.

In turn, a major economic surge could benefit Biden, dispelling concern about a recession and improving the livelihoods of everyday people, as suggested by some analysts.

Time will tell.

What will happen to U.S. real estate prices if interest rates are lowered?

The experts we spoke with agree that a drop in interest rates will likely drive up demand, which, in turn, will drive up home prices. They anticipate that the resulting supply-demand imbalance will further drive up prices.

What are we recommending at America Mortgages?

If you believe the writing on the wall and find yourself on the fence, weighing whether to buy now or wait for further interest rate drops, consider this: you may miss out on the potential appreciation of the property. You can always refinance a property when it makes sense. You can’t always get the best price when you buy.

So, if you’re thinking about investing in U.S. real estate in 2024, ask yourself: would you want to pay a lower price for the home and maybe have a higher interest rate but have the option to refinance if rates go down? Or would you want a lower interest rate, even if it means paying more for the home and not being able to refinance later?

How much will prices increase on the next rate drop?

Home Prices | America Home Mortgage

We are the industry experts for U.S. real estate financing for non-U.S. residents.

At America Mortgages, we’re here to help you make sense of all this. Our team knows the market inside out and can guide you through these tough decisions. As experienced investors know, timing is key in real estate. “Realizing success in real estate often comes down to seizing the opportune moment,” says Robert Chadwick, CEO of America Mortgages. Instead of being overwhelmed by unpredictable rates, let us help you achieve your real estate goals.

  • Get pre-approved today with our diverse loan services and products, including pure cash flow loans requiring no personal income documentation.
  • Use our expertise to navigate complex markets.
  • Get personalized guidance throughout your journey.

At America Mortgages, we offer a range of loan programs tailored to meet your specific needs. 

Our AM Rental Coverage program is designed for investors seeking to finance rental properties smoothly. With flexible terms and competitive rates, growing your real estate portfolio has never been easier.

For homeowners looking to combat inflation and tap into their home’s equity, our Equity Release Loan Program provides a solution. This program allows you to access your home’s equity to fund expenses or investments while keeping your monthly payments manageable.

Need short-term financing to bridge the gap between buying a new home and selling your current one? Our AM Real Estate Bridge Loan program has you covered. With quick approval and hassle-free processing, you can confidently make your move.

So, whether you’re taking your first steps into real estate investment, are an experienced investor, or are anywhere in between, America Mortgages has the expertise and loan programs to help you achieve your real estate goals. Reach out to us today, and let’s turn these market predictions into real success! If you’d like to schedule a commitment-free meeting with one of our U.S. loan officers to explore your U.S. mortgage options, here’s our 24/7 calendar link.

www.americamortgages.com

Turn your home equity into cash!

International Mortgage | Home Equity

Need cash fast?   

We can help you tap into your home equity today!

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

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

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

We offer home equity loans in the following countries:

USACanadaUKAustralia
SingaporeHong KongPhilippinesThailand

Typical use of funds:

RefinancingRenovationsCollege tuition
Pay off high-interest debtPersonal business needsPurchasing more property
Cash while waiting for saleDown-paymentsOther investments
  • Get approved in 24 hours and funding in as fast as 7 days
  • Up to 70% of your home’s value
  • Available for primary homes, second homes, and investment properties
  • Priority is speed of funding, certainty, and high loan-to-value
  • No age restriction in many countries

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

www.americamortgages.com

Q&A: How to Finance U.S. Real Estate as a Canadian Investor?

Finance U.S. Real Estate

During our recent live webinar on “How to finance U.S. Real Estate as a Canadian Investor,” our expert host, Kyle Mazzuchin (KM), and America Mortgages’ CEO Robert Chadwick (RC) received numerous questions from participants. For those who missed the opportunity to join the webinar, it is available here. 

To address these questions, Kyle Mazzuchin and Robert Chadwick have set aside dedicated time to provide insightful answers.

Remarks have been edited for clarity and brevity.

Q: Can Canadians sign mortgage documents remotely via DocuSign/zoom for properties purchased in New York state?

KM: Yes, Canadians can sign mortgage documents remotely using platforms like DocuSign or Zoom for properties purchased in New York state.

Q: As a Canadian, what would be the best way to register my property? Using a company or personal?

KM: The best way to register a property as a Canadian would depend on various factors such as tax implications, liability protection, and personal preferences. Consulting with a legal advisor specializing in cross-border property ownership would be advisable to determine the most suitable approach, whether registering under a company or personally.

Q: How do I go about opening a cross-border bank account? Would America Mortgages help me with that?

KM: Opening a cross-border bank account typically involves contacting banks that offer such services and fulfilling their requirements, which may include proof of identity, residency, and other documentation. America Mortgages may provide guidance or assistance in the process, but opening a bank account would ultimately be handled by the individual and the chosen bank.

Q: Are there any preliminary steps I can take to ensure the approval process goes smoothly?

KM: Preliminary steps to ensure a smooth approval process may include gathering necessary documentation such as proof of income, assets, and credit history, as well as staying informed about the requirements and expectations of lenders.

Q: How long will it take for a non-US resident to get pre-approved, and how much does a pre-approval cost?

KM: The time to get pre-approved as a non-US resident can vary depending on various factors such as the complexity of the application and the responsiveness of the applicant. There is no cost to go through the pre-approval process.

Q: As a foreigner or non-U.S. citizen, what is the maximum LTV available? And is the LTV dependent on income?

KM: The maximum Loan-to-Value (LTV) available to foreigners or non-U.S. citizens may vary by lender and other factors. Income could be one of the factors considered in determining the LTV, but it’s not the sole determinant.

Q: Who pays for the appraisal process?

KM: The party responsible for paying the appraisal process may vary depending on the terms negotiated between the buyer and the seller or as determined by local real estate customs and regulations, though typically the buyer pays this cost.

Q: What is the interest rate?

KM: The interest rate on a mortgage would depend on various factors, including market conditions, the borrower’s creditworthiness, the type of loan, and other factors. It’s advisable to inquire with the lender for specific interest rate information.

Q: Does anything change if I have an LLC?

KM: Having an LLC (Limited Liability Company) could potentially impact certain aspects of property ownership and financing, including liability protection and tax considerations. It’s recommended to consult with legal and financial advisors to understand the implications fully.

Q: If I already owned 4 properties in Canada, am I eligible to get finance from you guys? Is there a limit on the properties I own?

KM: Eligibility for financing and any limits on the number of properties owned may vary by lender and other factors. It’s advisable to inquire directly with the lender for specific eligibility criteria.

Q: What are the fees that you charge, and what is the range of current rates?

KM: Lenders may charge various fees associated with mortgage loans, including origination fees, application fees, closing costs, and others. The range of current rates would depend on market conditions and other factors. It’s recommended to inquire directly with the lender for fee and rate information.

Q: As a follow-up, what is your LTV on a refinance?

KM: The Loan-to-Value (LTV) ratio for a refinance would depend on various factors, including the lender’s policies, the borrower’s creditworthiness, and other considerations. It’s advisable to inquire directly with the lender for specific LTV information regarding refinancing.

Q: Is there any pre-payment penalty?

KM: Pre-payment penalties, if applicable, would depend on the terms of the mortgage loan and the policies of the lender. It’s recommended to review the loan agreement carefully and inquire with the lender about any pre-payment penalties.

Q: How about a restaurant business with property? i.e., rent $14000 and ask for a price of $2.5M with business. How do we calculate this?

KM: Calculating the value of a restaurant business with property would typically involve factors such as the property’s market value, the business’s profitability, location, lease terms, and other considerations. Consulting with a real estate appraiser or business valuation expert would be advisable to determine an accurate valuation.

Q: Can you get a mortgage in a U.S. C-Corp?

KM: Whether a U.S. C-Corporation can obtain a mortgage would depend on various factors, including the corporation’s financial standing, creditworthiness, and the lender’s policies. It’s advisable to inquire directly with lenders regarding mortgage options for corporations.

Q: What are your commercial mortgage rates? How many bps over the ten-year treasury?

KM: Commercial mortgage rates and their relation to the ten-year treasury rate would vary by lender and market conditions. It’s recommended to inquire directly with lenders for current commercial mortgage rates and their basis points (bps) over the ten-year treasury rate.

Q: What is the maximum loan-to-value a Canadian can get on a DSCR loan cash-out refinance for 2 units or more?

KM: The maximum Loan-to-Value (LTV) ratio for a DSCR (Debt Service Coverage Ratio) loan cashout refinance for Canadians on properties with 2 units or more would depend on various factors including the lender’s policies and underwriting criteria. It’s advisable to inquire directly with lenders for specific LTV information in this scenario.

Q: Does approval guarantee funds release? How reliable is it by itself? Is it binding?

KM: Approval for a mortgage loan does not necessarily guarantee funds release, as final disbursement may be subject to additional conditions and requirements. The reliability and binding nature of approval would depend on the terms and conditions outlined by the lender. It’s recommended to review the loan agreement carefully and seek clarification from the lender regarding the approval process.

Q: Is it possible to know the approximate mortgage interest and brokerage fees I can expect when closing a mortgage with you in this market?

KM: The approximate mortgage interest and brokerage fees can vary depending on factors such as the loan amount, interest rate, closing costs, and other considerations. It’s advisable to request a Loan Estimate from the lender, which provides an itemized breakdown of the expected costs associated with the mortgage loan.

Q: If you have a good Canadian credit score (800+), can you use that to qualify for better mortgage rates in the U.S.?

KM: A good Canadian credit score could potentially be beneficial in qualifying for better mortgage rates in the U.S., as creditworthiness is a significant factor in determining interest rates. However, lenders may also consider other factors such as income, assets, and debt-to-income ratio in their evaluation process.

Q: Does an ITIN score get you better rates?

KM: An Individual Taxpayer Identification Number (ITIN) is used by individuals who are not eligible for a Social Security Number but have U.S. tax obligations. While having an ITIN may be necessary for tax purposes, its direct impact on mortgage rates may vary depending on other factors such as credit history, income, and assets.