In the exclusive webinar, “Investing & Financing U.S. Commercial Real Estate While Living Overseas,” Lance Langenhoven, Head of Commercial Lending at America Mortgages, shared expert insights on how non-U.S. residents can successfully invest in and finance U.S. commercial properties from anywhere in the world.
From understanding different loan structures to learning how to work with U.S. lenders, this session covered everything a foreign national needs to know to make informed investment decisions and secure the right financing.
For those who missed it, the recording is available here.
Remarks have been edited for clarity and brevity.
Should I first get pre-approved for a loan or get the property under contract?
LL: In commercial real estate, it’s tricky to get pre-approved without knowing what kind of property you want to buy. Since there are so many categories, the best approach is to first identify a property you’re interested in and send a link or contract for that property. Once the property is identified, a deal package can be prepared for banks. While you may not receive a formal pre-approval, you will get a guideline of what’s possible based on that specific property and your profile.
Can I just send a letter from my CPA stating my income instead of tax returns?
LL: It might work with some banks, and it’s worth trying, but most banks typically require at least three years of tax returns. A CPA letter might be considered supplementary, but it won’t replace the standard documentation requirements for most lenders.
If I find a commercial property I like, should I deal with the listing agent directly?
LL: No. In the U.S., it’s best to have your own buyer’s agent. The listing agent represents the seller and is ethically required to act impartially, meaning you may not get the best deal or full insights if you’re not represented. A buyer’s agent won’t cost you extra since the seller usually pays their commission.
How long does the loan approval process typically take for non-residents?
LL: Pre-approval can take as little as a week or two, if all documentation and the contract are in place. Closing the deal usually takes at least 30 days, potentially more depending on the appraisal and due diligence process. If you haven’t identified a property yet, pre-approval isn’t really possible.
Do I need a down payment for commercial real estate loans?
LL: Yes. 100% financing is not available. Most foreign investors need at least a 30–35% down payment. For some multifamily deals, it could be as low as 20%, depending on the loan program. If you don’t have all the capital, you could partner with friends or family for the down payment, though it’s best to have some of your own funds in the deal.
Is there a limit to how many U.S. commercial properties I can finance as a foreign investor?
LL: No. There is no limit—you can buy and finance as many properties as you can afford.
Is Zillow a good place to find commercial real estate deals?
LL: Zillow is great for residential real estate, but not for commercial. Use platforms like CREXI or LoopNet instead.
What documentation is required if I’m self-employed or own a business overseas?
LL: You’ll need at least three years of tax returns, a list of your assets and information about your business (likely including financials or proof of ownership)
What is the average interest rate and down payment for foreign nationals?
LL: Down payment: Typically 30–35%, sometimes as low as 20% for certain multifamily deals. Interest rates: Around 7% to 7.5% is considered good in the current market. Rates may vary depending on the type of deal and lender.
Do commercial loans qualify based on property cash flow or personal income?
LL: Primarily on the property’s cash flow. In fact, lenders prefer not to use personal income when evaluating a commercial loan. The stronger the cash flow, the easier it is to qualify.
Do I need U.S. credit to qualify for a commercial loan?
LL: No. Foreign nationals do not need U.S. credit to qualify. America Mortgages works specifically with non-residents, and U.S. credit history is not required.
