One of the most unique and inexplicably happy events of life is having a baby. This little bundle of joy keeps everyone on their toes, creating madness around the house and your lives, but somehow, it all seems worth it.

As a parent you likely already have a retirement fund under your belt, but have you considered alternative and traditional ways you can invest your extra cash to protect your children’s future? In fact, it’s easier than ever to invest in Real Estate with technology and options for obtaining mortgage loans even if you’re not a citizen of that country.

Investing in property is largely seen as a safe way to build wealth, but it is a long term strategy. The younger you start, the more effective it is, thanks to leverage (borrowing from a bank) and the power of compounding (time). For example, if you acquire a property for $500K at age 20 and it grows by a conservative 5% per annum, it will pretty much double by the time you are 35 to $1 million. How many people have $500K of equity at this young age? And by age 50, it will be worth 4 times what you paid for it, at $2 million. If capital growth is 7%, then the property will double in value every 10 years, thus accelerating your portfolio dramatically.

Should I invest in my own home country, the United States, U.K., Australia, or emerging markets? All the investment opportunities available can be overwhelming. We understand. So, to help you filter out the noise and make informed decisions, Global Mortgage Group has mortgage options parents should consider as great places to invest in Real Estate for your, and your children’s future:

Commercial Real Estate

We often think of real estate investing in terms of home ownership or maybe “house flipping,” but there are lucrative opportunities too in the commercial side of the industry that are no longer exclusive to ultra-wealthy investors. Online real estate platforms make it possible to invest in commercial real estate without ever stepping foot inside a property or country it is being sold in. Of course there needs to be a “trust” issue with investing in an asset, however, through online reviews, personal recommendations and proper research these risks can be mitigated.

A recent survey asked global participants to choose how they would invest $10,000, and real estate was the second most popular choice among millennials, Generation X, and baby boomers. Nearly 23 percent of those surveyed said they would pool their $10,000 with money from other investors to purchase Real Estate.

When you’re first starting out, a smart strategy is to focus on one type of investment, whether it be apartments, offices, retail, land, etc. A popular type of commercial real estate is student housing units — the very places you might be paying rent to when you send your kids off to college. Student housing in many University locations throughout the U.S. can be extremely lucrative investments.

Residential Real Estate

As a global citizen, if I wanted to invest in Singapore, Hong Kong, Seoul, Bangkok, Shanghai or any of the major global cities such as New York, San Francisco, London or Sydney, the barrier to entry would be my purchasing power and the ability or inability to obtain leverage from a bank or private lender. However, as an example, in smaller cities around the United States there are millions of Real Estate options for investors that never imagined they could own Real Estate, let alone be a Global Real Estate Investor.

Global Mortgage Group’s only focus is on sourcing the best options for non-citizens or Expats looking to obtain a mortgage loan to purchase or refinance Real Estate on a global scale.

"As many of your children will attend school in the U.S., Australia or the U.K., obtaining a mortgage loan to purchase residential (or refinance) property in the U.S., U.K. or Australia just became that much easier."

GMG Partners

Our partnership with institutions and private lending partners has made us the premier “go-to” source for real estate investors. Residential homes are the easiest to qualify for and a great way to build your portfolio.

The difficulty is the starting point, as young people rarely have enough for a large down payment for a first property. The good news is, most of our U.S. and Australia mortgage loans only require a minimum down payment of 30%. Note, that is 30% of a property with a purchase price far less than you could buy in Hong Kong as an example.

The opportunity is amazing to build and grow a viable Real Estate portfolio without a huge capital expense. If well researched, and with the right advice, a property can be cash flow neutral or positive in the current market. If held over time and as rates will likely increase globally changing the current economic model from a buyers to a renters market, it should remain quite manageable.

If you acquire several properties over time, manage properly and leverage smartly, imagine the amount of equity you can build up by the time your children are an adult or, when you’re ready to retire!

For more information on mortgage loans in the U.S., Australia, U.K. or elsewhere please email Global Mortgage Group at [email protected]


Are you a U.S. Expat living abroad, filing U.S. income tax, but earning income from your overseas assignment? If you answered YES, we created a U.S. Home Loan Mortgage program specifically for you! GMG PrimeSelect allows you to use two years of your U.S. tax returns, along with your monthly foreign income to qualify just as you would if you were back home in the U.S.

The credit crunch, which was largely caused by the U.S. banks’ cavalier attitude to mortgages and other loans, has put paid to the previous days of easy credit. It is now much more difficult to obtain a mortgage from a U.S. lending institution. For example, guidelines introduced in January 2013 encouraged lenders to demand full documentation from potential borrowers, and to be clearer about the consequences of low early repayment rates.

As an expat, you will find getting a mortgage even more difficult. Many lenders will not even consider lending use foreign income earned, so you would need to be persistent and shop around. Note that, as in many cases, mortgage programs may vary from state to state. With GMG PrimeSelect, you are now able to purchase U.S. Real Estate as an investment, second home or if your intention is moving back to the United States, owner occupied at prime rates, terms and programs.

Requirements


You will need to prove that you have sufficient employment and enough funds to repay the loan. Bear in mind that the more cash you have readily available to pay for a deposit, the wider choice of mortgage you will have. GMG PrimeSelect will allow up to 90% financing for a second home purchase.

GMG PrimeSelect mortgages are ‘fully documented’, meaning you will need to prove your income by supplying two years of U.S. tax returns. In addition to this, you will also need to show your last two months’ bank statements in order to show you have money sufficient to cover both down payment and closing costs. We will also require one month of pay statements in the country you are working in. If these accounts, pay and banking is in a language other than English, it will require a professional translation.

• Two years of U.S. Tax returns
• Two months bank statements (foreign okay)
• One month of pay statements
• Passport or drivers license
• Social security card
• US credit score (FICO)

Debt to Income Ratio

Most lenders will want your debt-to-income ratio to be no more than 35%. GMG PrimeSelect will allow up to a 45% ratio. This is rather aggressive, but often needed due to the fluctuation of the US dollar to other currencies.

LTV (Loan to Value)

Unlike many programs that restrict LTV for U.S. Expat foreign earned income, GMG PrimeSelect Loan-to-value ratios are generally around 80-90%. The maximum full term is 30 years regardless of age.

Mortgage Types

A wide range of mortgage products is available for U.S .expats looking to purchase or refinance U.S. Real Estate. Mortgages can be variable or fixed-rate, with flexibility over the fixed-rate term. In addition to the standard principle and interest U.S. mortgage loans, there are also interest-only mortgages, allowing for more cash flow. As most of these loans do not have pre-payment penalties you can pay towards the principle at will.

Do you have the income but doesn’t show on your US Tax returns? No problem either, GMG StatedSelect allows you to only state your income. We will not request or require proof of income including tax return, or monthly pay statements. LTV and rates vary for these programs but qualifying can be extremely simple.

One of our associates or partners will be happy to answer any questions you may have regarding GMG’s various loan programs. Please send us a message at [email protected]

Investors sometimes ask if it makes sense to buy a rental property in another country when they live so far away. Often, they’re curious about exploring other areas because there are few good deals left where they live, or they’ve heard that certain locations have excellent returns.

During the peak real estate years of 2003–2007, investors from all over the world were calling Realtors in U.S. states like Arizona, Georgia, and Florida, to snap up investment properties — often without even seeing the homes in person. Mainly the purchases were cash; however, if they would have applied for a mortgage, they could have been assured that a bank or private lender will not lend on a property that does not meet certain specifications or values. It is certainly the best way to make sure you’re buying at the right price, and the right condition.

Regardless if you live in Singapore, Hong Kong, Shanghai, or Seoul, it’s important that investors are prudent and take certain precautions when purchasing global assets. As one of the only Asia-based U.S.-centric mortgage brokers, Global Mortgage Group can assist you with honest advice and guidance on financing these investments.

Why be a Long-Distance Landlord?

There are pros and cons inherent with long-distance real estate investing. Let’s take a look at the pros first:

1. You have the freedom to invest in more affordable areas. By not restricting yourself to the area in which you live, you open up a whole new world of investing possibilities. Many investors in high-cost-of-living areas such as Singapore, Hong Kong, Tokyo or Seoul can no longer afford to buy investment homes where they live, but are finding the Midwest and Southern U.S. states to be much more affordable. In addition to cheaper sales prices, these areas also have lower taxes and dwelling (i.e. rental property) insurance premiums.

2. You can fund your future retirement home. Some global real estate investors buy a home in a retirement town with an eye toward living there or as a second home one day. They may buy a condo near the beach or a ski cabin in the mountains. Then they rent the home out with either short- or long-term leases, and in the process, their tenants pay down the loan principal until the investor is ready to retire or visit. By then, the mortgage might be fully paid off.

3. You may gain new tax deductions. Many parents have children who attend college in the U.S. state. Instead of spending a fortune on a dorm room and semi-annual visits, they buy a modest three-bedroom home near campus. The student lives in this home and rents the other two bedrooms to some friends. The parents save on dorm fees and offset a good part of the total mortgage payment with the rent collected from the other students (or better yet, their parents). Furthermore, each time that the parents travel to visit the child, 50% of their total trip expenses can be legally written off on their income taxes because they’re also inspecting their property (please consult your U.S. tax advisor).

Handling the Disadvantages of Long-Distance Real Estate Investing

Make no mistake: owning rental property far from home can be a complex undertaking. There are several challenges long-distance landlords often encounter:

1. Lack of knowledge about the area in which they’re investing

2. Lack of familiarity with good local service providers

3. Relying on others to take care of day-to-day problems or repairs

4. Difficulties in getting the rent paid on time

But these obstacles don’t have to prevent you from purchasing long-distance rental property. Global Mortgage Group has Asia-based associates familiar with either the U.S. or Australian market. They can answer questions you may have and often can refer you to agents they have worked within these areas.

Here are some ways to make your global real estate investment a success;

1. Do your homework and learn about the area. Begin by hiring a good Realtor from the area you’re interested in. You can browse websites such as Realtor.com, Zillow.com, or Trulia.com to get the names of several Realtors in the area who regularly sell investment properties. Interview each Realtor by phone, and ask those you like best to send you listings of homes for sale that meet your criteria. Browse rental properties online to get a feel for the return that you can expect on homes in your price range.

Because there are more expenses involved in buying and managing long-distance real estate—such as the travel expenses you’ll incur to visit the property—don’t rule out foreclosures, short sales, and other distressed properties that can be purchased at a substantial discount to comparable homes in the area. This type of home probably won’t be move-in ready, but after you make the necessary improvements, it should yield some start-up or “sweat” equity. It is important to keep in mind that in order to obtain a good mortgage, the property must be in “liveable” condition. If you find a great deal and it needs work, Global Mortgage Group has several non-citizen, foreign national mortgage programs that can give you the purchase and the renovation financing.

2. Find a reliable and affordable property management agent. It’s not very difficult to make the necessary calls as problems arise, but if you find that landlord duties such as managing repairs and collecting rents is becoming too stressful, ask your Realtor or search online for a reliable and affordable property management services. The monthly fee for property management will range from 10%–12% of the rent. Do your homework and research their reviews fees and responsibilities.

3. Automate or simplify rent collection. There are a couple of ways to handle collecting rents on time. Some tenants can have their rent automatically deposited into your bank account.

You can also have tenants deposit the money into an account at a local bank—you’ll get the rent faster than if they mailed you a check. To encourage timely payment, send them an email or text reminder as the first of the month approaches.

Once you’ve rehabbed the property and your tenants are in place, your rental should run on autopilot for quite a while. If your tenant calls with an occasional repair problem, you can simply pick up the phone and put them in contact with your property manager.

In summary, there are many advantages to buying long-distance real estate, and while there are some disadvantages, they can be easily handled if you’ve done your initial research and set up a network of reliable resources. If you are a non-citizen or an expat and thinking about buying U.S. real estate with a mortgage loan, we can help. Global Mortgage Group only focuses on buyers that either do not live in the country which they intend to purchase or do not carry the passport. We do this every day, all day.

One of our associates or partners will be happy to answer any questions you may have regarding mortgage financing for your investment. Please send us a message at [email protected].

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 homebuyer 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 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 are living in the US.

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

If you’re a non-permanent resident alien, you don’t have a green card, but you have a social security number, 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

Prior to Global Mortgage Group’s Foreign National Mortgage programs it was a lot harder for borrowers outside the U.S. to finance second homes or investments properties in the U.S..

These are riskier for lenders, so 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 GMG’s specialised programs.

Two of the most popular programs;

1. GMG 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 concern for privacy. This program doesn’t require any income verification, U.S. credit or residency and has a high LTV of 70 percent.

2. GMG 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.

MG 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 everyday. 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. GMG can accept either a bank reference letter or a foreign credit report in lieu of a standard U.S. credit report. This is a unique feature and sets GMG apart from other U.S. based lenders and brokers.

What about U.S. EXPATS?
Are you a US.. Expat, files US Taxes but work for a foreign company and don’t receive a W2? Oh, boy … we’ve got a great program for you! Our GMG 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.

GMG welcomes everyone …

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

GMG also offers direct mortgage programs for Canada, The UK, Australia, Thailand, Japan and most of Europe.

For more information please contact [email protected].